Can Mondelez's Organic Growth Momentum Continue Through 2026?

Emerging Markets grew 4.4% organically in the second quarter, supported by 1.6 points of volume/mix. North America advanced 3.4%, with volume/mix up 1.2 points. AMEA delivered 7.1% growth, including a 5.2-point volume/mix contribution, while Latin America increased 8.4%. The Latin America result included an approximately 1.5-point benefit from higher trade inventory ahead of the SAP S4 implementation in the mid-third quarter.

Europe remained softer, with organic revenues down 3.5% and volume/mix declining 2.1 points, largely reflecting lower chocolate volumes tied to unusually hot weather. The Zacks Rank #3 (Hold) company expects European volumes to improve through the second half.

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Mondelez now expects at least 2% organic net revenue growth for 2026 compared with its previous outlook of flat to a 2% increase. Continued positive volume/mix, strength across Emerging Markets and North America and further improvement in Europe are the key elements supporting that higher full-year growth expectation.

Shares of MDLZ have rallied 15.5% year to date, outpacing the industry’s growth of 5%.

Better-Ranked Stocks to Consider

Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.

The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.

US Foods Holding Corp. USFD engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.5%, on average.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.3% and 16.3%, respectively, from the year-ago figures.

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This article originally published on Zacks Investment Research (zacks.com).

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