The board of directors of
Mondelez International, Inc.
) recently authorized the repurchase of shares worth $1.2 billion
or 40 million shares, whichever is less. The duration of the
share repurchase program is three years.
Mondelez International focuses on the global food and snacks
business of the erstwhile Kraft Foods. It markets products in
fast growing food categories like chocolates, biscuits, gum,
candy, coffee and powdered beverages, which includes several
popular brands like TANG, Oreo, Cadbury. On Oct 1, erstwhile
Kraft Foods spun off its North American grocery business into a
separate independent company,
Kraft Foods Group, Inc.
The authorization of the share repurchase program followed the
company's declaration to pay a cash dividend of 13 cents per
share on Apr 15, 2013 to shareholders of record as of Apr 1,
2013. The company is able to return value to its shareholders as
its liquidity position is strong with $4.48 billion in cash and
cash equivalents as of Dec 31, 2012.
Mondelez International missed on both the top and bottom lines
in its fourth quarter 2012 mainly due to currency headwinds.
However, the company raised its financial outlook for 2013.
Mondelez International raised its 2013 operating EPS guidance to
the range of $1.52-$1.57 from the previous range of $1.50-$1.55
per share to reflect lower headwinds from currency.
Mondelez International carries a Zacks Rank #3 (Hold) as the
company is still in a transitional stage and it is likely to take
some time to stabilize.
Some food companies that are worth a look include
Flower Foods Inc.
J&J Snack Foods Corp.
) both carrying a Zacks Rank #1 (Strong Buy).
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
MONDELEZ INTL (MDLZ): Free Stock Analysis
To read this article on Zacks.com click here.