Mondelez International (MDLZ)-Part One

A food favorite with several problems reducing the quality of non-GAAP profits

Mondelez International (MDLZ) is a favorite among staples investors. The company boasts a stable of iconic brands including Oreo cookies, Ritz crackers, and Cadbury chocolates. Also, as the name implies, the company has a strong international presence that is supposed to offer the opportunity to grow at a faster pace than peers with sales more concentrated in slower-growth domestic markets.

We have a long history following MDLZ and its predecessor, Kraft Foods. During that time, we have always been skeptical of the quality of the reported earnings on many fronts. This article will examine an ongoing concern we have regarding the company’s seemingly never-ending restructuring charges which can be traced back for literally decades. The second part of our review which we will publish next week will examine some more current concerns which could negatively impact upcoming results.