RE: Mondelez International (MDLZ): The Right Time for A Treat?
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Mass consumption is complicated, and its evolution depends on the resolution of the Middle East conflict. They make mass-market consumer products, but if you look at the image, they aren't essential products like noodles, for example. If oil prices remain high, costs will rise, and everyone will lose sales. Consumers will likely have to spend more money on fuel and energy and will have to reduce their consumption of non-essential products. Another problem is whether they can pass on the entire cost increase to prices. They face a fiercely competitive environment.
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They do in the short-term. That's part of why I'm looking at them. This conflict is temporary and will cause others to sell out and price to drop, so it'll be on sale. The fundamentals haven't changed, so price will eventually return to previous levels barring some unforeseen catastrophe.
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