In the competitive world of consumer goods, Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC) stand out as prominent players in the food sector. Both companies operate within the consumer defensive industry, focusing on food and beverages, yet they adopt distinct innovation strategies. Mondelez excels in snack foods, while Kraft Heinz emphasizes packaged meals and condiments. As we delve into their current performances and market positioning, I invite you to discover which of these companies might be the most intriguing investment opportunity for your portfolio.
Table of contents
Company Overview
Mondelez International, Inc. Overview
Mondelez International, Inc. is a global leader in snack foods, dedicated to delivering delicious and convenient products across multiple regions, including North America, Latin America, and Europe. The company’s mission revolves around empowering consumers to snack right by offering a diverse range of products, from well-known brands like Oreo and Cadbury to innovative beverages and cheese products. Headquartered in Chicago, Illinois, Mondelez operates in the food confectioner industry, boasting a market cap of approximately $74.3B. With a strong focus on sustainability and consumer trends, it aims to enhance its portfolio while maintaining a commitment to responsible sourcing and community engagement.
The Kraft Heinz Company Overview
The Kraft Heinz Company stands as one of the largest food and beverage conglomerates globally, with a mission to sustainably grow its brands and bring delicious food to consumers. Founded in 1869 and headquartered in Pittsburgh, Pennsylvania, Kraft Heinz manufactures a wide array of products ranging from condiments and sauces to dairy and snacks. With a market cap of around $30.2B, the company emphasizes innovation and quality as it serves households and foodservice providers across diverse markets. The Kraft Heinz brand portfolio includes iconic names like Heinz, Kraft, and Philadelphia, reinforcing its dedication to providing consumers with trustworthy and delightful food experiences.
Key similarities and differences
Both Mondelez and Kraft Heinz operate within the consumer defensive sector, focusing on food products. While Mondelez emphasizes snack foods and confectionery, Kraft Heinz offers a broader range of grocery and beverage items, including condiments and prepared meals. Their distribution strategies also differ; Mondelez utilizes an extensive network of direct store delivery and e-commerce, whereas Kraft Heinz relies more on independent brokers and foodservice distributors. This distinction highlights their unique approaches to market penetration and consumer engagement.
Income Statement Comparison
The following table compares the most recent income statement metrics for Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC), providing insights into their financial performances.
| Metric | Mondelez International, Inc. (MDLZ) | The Kraft Heinz Company (KHC) |
|---|---|---|
| Market Cap | 74.31B | 30.20B |
| Revenue | 36.44B | 25.85B |
| EBITDA | 8.07B | 2.72B |
| EBIT | 6.77B | 1.77B |
| Net Income | 4.61B | 2.74B |
| EPS | 3.44 | 2.27 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the latest fiscal year, Mondelez reported a revenue increase to 36.44B, showcasing a steady growth trajectory, while Kraft Heinz experienced a decline to 25.85B. Mondelez’s net income also exhibited resilience at 4.61B, yet Kraft Heinz saw a drop to 2.74B. Both companies maintained relatively stable margins, although Kraft Heinz’s profitability reflected some pressures. Notably, Mondelez’s EBITDA margin improved, indicating effective cost management and operational efficiency, while Kraft Heinz’s margins contracted, potentially due to rising input costs and competitive pressures. This suggests a cautious outlook for investors in Kraft Heinz while Mondelez appears to be on a solid growth path.
Financial Ratios Comparison
The following table provides a comparative overview of key financial metrics for Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC) based on the most recent fiscal year data.
| Metric | MDLZ | KHC |
|---|---|---|
| ROE | 17.12% | 5.78% |
| ROIC | 9.44% | 6.61% |
| P/E | 17.37 | 13.53 |
| P/B | 2.97 | 0.75 |
| Current Ratio | 0.68 | 1.06 |
| Quick Ratio | 0.48 | 0.59 |
| D/E | 0.68 | 0.40 |
| Debt-to-Assets | 26.82% | 22.50% |
| Interest Coverage | 12.49 | 5.01 |
| Asset Turnover | 0.53 | 0.29 |
| Fixed Asset Turnover | 3.56 | 3.61 |
| Payout Ratio | 50.94% | 68.83% |
| Dividend Yield | 2.93% | 4.33% |
Interpretation of Financial Ratios
MDLZ exhibits stronger profitability metrics compared to KHC, as indicated by its higher ROE and ROIC. However, KHC’s lower P/E and P/B ratios suggest it’s trading at a discount relative to its book value. KHC’s current and quick ratios exceed 1, indicating better short-term liquidity. Nonetheless, MDLZ shows higher interest coverage, which signifies more robust capacity to meet interest obligations. The dividend payout ratio indicates KHC’s higher reward for income-focused investors, but MDLZ retains a more sustainable payout. Investors should weigh these metrics based on their risk tolerance and investment strategy.
Dividend and Shareholder Returns
Mondelez International (MDLZ) pays dividends, boasting a dividend yield of 2.93% and a payout ratio of approximately 51%. This suggests a balanced approach to returning value while sustaining growth, supported by a robust free cash flow. Kraft Heinz (KHC) also offers dividends, with a yield of 4.33% and a higher payout ratio of around 69%, indicating a commitment to shareholder returns, although it raises concerns about sustainability given its lower profit margins. Both companies engage in share buybacks, enhancing shareholder value. Overall, their strategies appear conducive to long-term value creation, albeit with varying levels of risk.
Strategic Positioning
Mondelez International, Inc. (MDLZ) commands a notable market share in the snack food sector, leveraging its strong brand portfolio, including Cadbury and Oreo. With a market cap of $74.3B, it faces competitive pressure from The Kraft Heinz Company (KHC), which, despite a smaller market cap of $30.2B, has a diverse product range in packaged foods. Both companies must navigate technological disruptions in e-commerce and consumer preferences for healthier options to maintain their competitive positions.
Stock Comparison
In this analysis, I will evaluate the stock price movements and trading dynamics of Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC) over the past year, focusing on significant price changes and market behaviors.
Trend Analysis
Mondelez International, Inc. (MDLZ) Over the past year, MDLZ has experienced a price change of -21.23%, indicating a bearish trend. The stock’s highest price was 76.87, while the lowest price reached 56.25. The trend shows a deceleration, with a recent price change of -7.12% from September 14, 2025, to November 30, 2025, alongside a standard deviation of 2.64, which reflects moderate volatility.
The Kraft Heinz Company (KHC) For KHC, the overall price change over the past year stands at -32.76%, also reflecting a bearish trend. The stock peaked at 38.16 and fell to a low of 24.28. The trend shows acceleration despite a recent price change of -2.37% within the same period as MDLZ, with a standard deviation of 0.62, indicating lower volatility compared to MDLZ.
In summary, both stocks are currently on a downward trajectory, with MDLZ showing signs of deceleration while KHC is experiencing acceleration, albeit at a declining rate. This analysis underlines the importance of careful consideration and risk management when evaluating potential investments in these companies.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment towards Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC). Analysts have rated MDLZ with a B+, emphasizing strong discounted cash flow and solid returns on equity and assets. In contrast, KHC holds a B- rating, citing concerns over low returns on equity and assets despite a favorable price-to-book ratio. For 2025, the consensus leans towards a “buy” for MDLZ, while KHC is suggested as a “hold” due to its underperformance in critical financial metrics.
Stock Grades
I have analyzed the grades for two companies: Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC). Below are the reliable stock ratings from recognized grading companies.
Mondelez International, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | maintain | Neutral | 2025-11-21 |
| DA Davidson | maintain | Neutral | 2025-11-10 |
| Barclays | maintain | Overweight | 2025-10-30 |
| Bernstein | maintain | Outperform | 2025-10-29 |
| Stifel | maintain | Buy | 2025-10-29 |
| Mizuho | maintain | Outperform | 2025-10-29 |
| RBC Capital | maintain | Outperform | 2025-10-29 |
| Piper Sandler | maintain | Neutral | 2025-10-29 |
| Wells Fargo | maintain | Overweight | 2025-10-29 |
| B of A Securities | maintain | Buy | 2025-10-29 |
The Kraft Heinz Company Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Barclays | maintain | Equal Weight | 2025-10-31 |
| UBS | maintain | Neutral | 2025-10-30 |
| Piper Sandler | maintain | Neutral | 2025-10-30 |
| Wells Fargo | maintain | Equal Weight | 2025-10-30 |
| JP Morgan | maintain | Neutral | 2025-10-30 |
| TD Cowen | maintain | Hold | 2025-10-30 |
| Evercore ISI Group | maintain | In Line | 2025-10-30 |
| Mizuho | maintain | Neutral | 2025-10-28 |
| UBS | maintain | Neutral | 2025-10-08 |
| Morgan Stanley | upgrade | Equal Weight | 2025-09-03 |
Overall, both companies are being rated with stability in mind, as most grades are maintained at their previous levels. Notably, MDLZ shows a range of “Outperform” and “Buy” ratings, indicating positive sentiment, while KHC’s grades hover around “Equal Weight” and “Neutral,” suggesting a more cautious stance from analysts.
Target Prices
A consensus of reliable target prices is available for Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Mondelez International, Inc. | 84 | 62 | 69.73 |
| The Kraft Heinz Company | 28 | 24 | 26 |
Analysts have set a target consensus of 69.73 for MDLZ, significantly above its current price of 57.57, indicating positive expectations. For KHC, the target consensus of 26 is also above the current price of 25.51, suggesting optimism among analysts for its growth potential.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC) based on recent financial data.
| Criterion | Mondelez International (MDLZ) | The Kraft Heinz Company (KHC) |
|---|---|---|
| Diversification | Strong global snack portfolio | Diverse food and beverage range |
| Profitability | Net profit margin: 12.65% | Net profit margin: 10.62% |
| Innovation | High investment in R&D | Moderate focus on product innovation |
| Global presence | Operates in multiple regions | Strong presence in North America and UK |
| Market Share | Leading in snacks category | Strong but declining in some segments |
| Debt level | Debt to equity: 0.68 | Debt to equity: 0.40 |
Key takeaways indicate that Mondelez leads in profitability and market diversification, while Kraft Heinz shows strength in operational leverage but faces challenges in innovation and market share stability.
Risk Analysis
Below is a table outlining the primary risks associated with Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC).
| Metric | Mondelez International, Inc. | The Kraft Heinz Company |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | Low | Moderate |
In summary, both companies face significant operational risks, especially KHC, which has been grappling with supply chain disruptions and fluctuating commodity prices. Mondelez also faces challenges, but it currently has a more stable market outlook.
Which one to choose?
In comparing Mondelez International, Inc. (MDLZ) and The Kraft Heinz Company (KHC), MDLZ appears more favorable based on its financial fundamentals. MDLZ boasts a higher gross profit margin (39.1%) compared to KHC (33.5%). Additionally, MDLZ has a better net profit margin (12.7% vs. 10.6%) and a more favorable debt-to-equity ratio (0.68 vs. 0.40), suggesting better financial health and lower risk.
Analyst ratings support this view, with MDLZ receiving a B+ rating versus KHC’s B-. The stock trends, however, remain bearish for both companies, with MDLZ experiencing a -21.23% decline and KHC a -32.76% decline over the past year.
Investors focused on growth may prefer MDLZ, while those valuing dividends might find KHC’s higher yield (5.2%) appealing. However, both companies face risks, including market competition and pricing pressures.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Mondelez International, Inc. and The Kraft Heinz Company to enhance your investment decisions:
