Why Mondelēz Stock Blasted 4% Higher on Wednesday
Confident comments from a top executive at Mondelēz International (NASDAQ: MDLZ) about the company's immediate future drove up its share price on Wednesday. The food company's stock rose by more than 4% largely as a result, on a day when the S&P 500 index sagged marginally by 0.2%.
The individual behind the rosy pronouncements was Mondelēz's chief financial officer, Luca Zaramella. Speaking at a conference for the consumer staples industry, he waxed bullish on his company's current quarter. He said without elaboration that it posted "solid numbers" for July and August, adding, "I think you will be pleased with the numbers you're going to see in Q3."
Getting somewhat into the weeds, he cited reduced prices for cocoa -- a foundational ingredient in the many chocolate products the company sells -- as one factor in the recent profitability improvements. He implied that the resulting lower costs give management the scope to increase promotional activities for relatively sluggish goods.
Source Fool.com
