Mondelez International Inc. has set a goal of adding $1 billion in Oreo sales by 2023, and the brand is getting a boost from some huge names in entertainment.
During the third quarter, the food giant launched Oreo x Pokémon, a limited-edition cookie featuring 16 different Pokémon designs. It was the fastest selling edition of the iconic sandwich cookie of all time in the U.S.
According to Dirk Van de Put, Mondelez’s chief executive, it beat out previous launches with Game of Thrones and Lady Gaga.
“Oreo continues to ‘wow’ with its growth,” wrote Stifel analysts in a note published after Mondelez announced its third-quarter results.
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“That level of growth would push the sales of Oreo over $4 billion globally,” analysts said.
Stifel rates Mondelez shares buy with a $67 price target.
Other brands in the Mondelez portfolio include Cadbury, Ritz, Toblerone and Triscuit.
“We view the combination of a strong headline organic sales growth figure and a non-disastrous gross margin miss as a small win for this name today,” wrote JPMorgan in its post-earnings note.
“The 66 basis-point miss was actually lighter than most misses in packaged food lately.”
JPMorgan rates Mondelez stock overweight with a $73 price target.
“While the top-line beat only translated to a penny of upside to EPS, we came away confident that Mondelez can comfortably achieve its FY21 earnings guidance.”
UBS rates Mondelez stock buy with a $72 price target.
Mondelez says price increases of an overall net average of 6% to 7% will go into effect in the U.S. on Jan. 1, 2022.
Mondelez stock has gained 5.8% for the year to date while the S&P 500 index SPX,