May the Odds Be Ever in Mondelez's Flavor: Wells Fargo Bets on Chocolate Empire!

A Capitalist Mockingjay?

Well folks if I'd known surviving the Hunger Games would lead to analyzing chocolate empires I might have asked for a different sponsor gift. But here we are! Wells Fargo which sounds about as friendly as President Snow is apparently betting big on Mondelez International the folks responsible for Oreos and Cadbury. They've upgraded Mondelez saying the company is doing better than expected in the cutthroat world of... snack foods. Remember in the arena there is only one rule: survive. In the world of business it's apparently about selling more cookies.

Inflation? More Like Inflamed Prices!

Apparently even the chocolate business isn't immune to the dreaded inflation. But according to Wells Fargo Mondelez is handling it like Peeta with a frosting bag – skillfully! Analyst Chris Carey (probably not related to Mariah but who knows?) says they've been pricing aggressively especially in Europe to combat the rising cost of cocoa. And get this – people are still buying! Who knew the citizens of Panem had such a sweet tooth? Makes you wonder if a well placed Oreo could have swayed the Capitol.

Elasticity? Sounds Like a Gymnast in District 1!

Carey this analyst keeps mentioning 'elasticities' in Europe. I’m no economist (thank goodness) but apparently it means people aren't dramatically reducing their chocolate consumption despite the higher prices. It's like they're saying 'I volunteer as tribute... for another chocolate bar!' This is good news for Mondelez as it means they can keep their profits up even if things are a bit sluggish in North America. It’s almost as if these people are saying "Real."

A Glimmer of Hope in 2026 (Just Like Post War Panem?)

The really good news? Carey believes inflation will be 'paltry' in 2026. Paltry! Suddenly surviving poisoned berries seems less daunting. This means Mondelez might actually get to enjoy some breathing room and maybe even lower prices (though don't hold your breath – or do if you're trying to avoid tracker jackers). It seems a more successful year is looming for Mondelez.

Superior Growth: is superior really superior or is it a trap?

Carey also mentioned that Mondelez is doing better than its competitors saying that MDLZ has potential to deliver superior long term growth driven by share gains in developed market white space opportunities in developing markets and a proactive M & A strategy. If it continues this way who knows? Maybe they will be buying out their competitors soon enough. However I really hope that the cost of chocolate does not increase anymore or you may find Katniss Everdeen in a store near you!

The Stock Market Games

So there you have it. Wells Fargo thinks Mondelez is a good bet and the stock has already rallied 11% this year. Whether you're a seasoned investor or just someone who likes to eat Oreos while contemplating the state of the world (like me) it seems the odds are currently in Mondelez's favor. Let's just hope they use their profits for something good like funding better healthcare in District 12... or at least making a chocolate that actually tastes like mockingjay feathers (kidding... mostly). I wonder if Gale invests?