Core Insights - Watches of Switzerland (WOSGF) operates in the luxury watch and jewellery retail sector, facing challenges related to tariffs and market conditions [1] Company Overview - WOSGF is a family of retailers specializing in luxury watches and jewellery [1] - The company has been analyzed in the context of market fears regarding tariffs [1] Investment Approach - The investment philosophy emphasizes long-term value investing, focusing on undervalued quality businesses with strong fundamentals [1] - The approach is influenced by renowned investor Warren Buffett, prioritizing companies with solid business models and sustainable growth [1]

Core Insights - Mondelez International, Inc. has successfully passed severe cost inflation onto customers, demonstrating its competitive advantage in the market [1] Valuation Methods - Various methods exist for sell-side analysts to determine a company's fair value, including DCF, multiples approach, and reverse valuation [1] - The DCF method requires precise assumptions, which can introduce bias, while the multiples approach assumes peer companies are fairly priced, a notion often unsupported by historical data [1] - Reverse valuation starts from the market price and discount rate, revealing the free cash flow assumptions embedded in the price, providing a straightforward reality check [1] Free Cash Flow Analysis - A Free Cash Flow to Equity (FCFE) model is utilized to assess what truly belongs to shareholders, calculated as Earnings + Amortization – CAPEX – average acquisition cost = FCFE [1] - The analysis disregards working capital and debt changes, focusing on core business metrics: earnings, amortization, and investments [1] Forecasting Methodology - The H-model is applied for forecasts, featuring a 10-year two-stage growth fade with terminal growth equal to the risk-free rate, represented by the 10-year government bond yield [1] - All cash flows are discounted using the cost of equity, calculated as RFR × beta + 5% ERP, resulting in a clear picture of the business's true worth [1]

Core Insights - Mondelez International, Inc. has successfully passed severe cost inflation onto customers, demonstrating its competitive advantage in the market [1] Valuation Methods - Various methods exist for sell-side analysts to determine a company's fair value, including DCF, multiples approach, and reverse valuation [1] - The DCF method requires precise assumptions, which can introduce bias, while the multiples approach assumes peer companies are fairly priced, a notion often unsupported by historical data [1] - Reverse valuation starts from market price and discount rate, revealing the free cash flow assumptions embedded in the price, providing a direct reality check [1] Free Cash Flow Analysis - A Free Cash Flow to Equity (FCFE) model is utilized to assess what truly belongs to shareholders, calculated as Earnings + Amortization – CAPEX – average acquisition cost = FCFE [1] - The analysis disregards working capital and debt changes, focusing on core business metrics: earnings, amortization, and investments [1] Forecasting Approach - The H-model is applied for forecasts, featuring a 10-year two-stage growth fade with terminal growth equal to the risk-free rate, represented by the 10-year government bond yield [1] - All cash flows are discounted using the cost of equity, calculated as RFR × beta + 5% ERP, resulting in a clear picture of the business's true worth [1]

Core Thesis - Mondelez International, Inc. is experiencing share-price pressure despite strong Q3 results due to rising cocoa prices and elevated transportation costs impacting margins, alongside weakened American consumer purchasing power affecting near-term demand [2][4] Financial Performance - Mondelez reported a modest revenue growth of 5.86% year-over-year, surpassing inflation, but earnings fell by over 18% due to margin pressures [4] - Operating margins declined from 12.5% to 7.6%, and the return on invested capital (ROIC) is currently at 6.2%, trailing the weighted average cost of capital (WACC) of 6.67% [4] - Analysts project a one-year price target of $62, indicating approximately 11% upside from the current share price of $56.08 [4] Strategic Positioning - The company’s broad portfolio, global scale, and category leadership position it for resilient long-term performance, with dominant segments in biscuits and chocolate [3] - Key brands like Oreo and Cadbury drive brand loyalty, while emerging markets and premium snack offerings provide additional growth opportunities [3] - Strategic initiatives include investments in core brands, bolt-on acquisitions, supply chain efficiencies, e-commerce expansion, and sustainability programs like Cocoa Life [3] Market Outlook - Despite short-term headwinds from cocoa volatility, logistics costs, and regulatory scrutiny, Mondelez's focus on emerging markets and premium products positions it to withstand macroeconomic pressures [5] - The company presents a conservative investment opportunity with moderate upside, where near-term market reactions may obscure long-term fundamentals and global snack leadership [5][6]

Core Points - Ritz Peanut Butter Cracker Sandwiches were recalled in eight U.S. states due to a labeling error that could cause severe allergic reactions in individuals with peanut allergies [1][2] - The recall affects 27.6-ounce cartons of 20 Ritz Peanut Butter Cracker Sandwich six-packs, specifically those with the UPC code 44000075842 and best-by dates of January 8, 2026, and January 15, 2026 [5] - The recall is not an expansion of a previous recall in July but is a precautionary measure, affecting the same single SKU and two code dates identified earlier [2][11] Company Information - Mondelēz International Inc. (MDLZ), the parent company of Ritz, has reported no injuries or illnesses related to the recall and initiated the action after discovering the mislabeled products were sent to retailers [8] - The outer cartons of the affected products are correctly labeled, indicating the presence of peanuts, while only the individual packs are mislabeled as cheese [2][5] - Mondelēz International also owns other popular snack brands such as Oreo and Chips Ahoy [12]

Core Insights - Mondelēz is leveraging artificial intelligence through its generative AI tool AIDA to enhance marketing content production and personalization, aiming for higher engagement and conversion rates [1][6][7] - The company has invested over $40 million in AIDA, which is expected to reduce marketing content creation costs by up to 50% [5][6] - AIDA is still in the learning phase, being tailored to fit the unique needs of Mondelēz's diverse brand portfolio while ensuring responsible advertising practices [4][15] Investment and Strategy - The initial investment in AIDA is significant, prompting Mondelēz to prioritize features that deliver quick value [2] - The company is exploring which brands to pilot first with AIDA to maximize the tool's effectiveness [2][18] - AIDA's infrastructure is designed to be scalable, with plans to identify additional value cases for expansion [18] Technology and Implementation - AIDA was developed over two years and aims to create marketing content more efficiently, allowing for personalized material targeting specific consumer groups [6][7] - The company emphasizes the importance of integrating AI thoughtfully, ensuring it enhances existing processes rather than complicating them [8][9] - There is ongoing experimentation with AIDA to push its capabilities and improve output quality [11][12] Challenges and Considerations - The complexity of food marketing requires AIDA to maintain high fidelity in product representation, which differs from other consumer goods [13][14] - Mondelēz is committed to responsible AI use, ensuring that outputs align with brand values and do not promote unhealthy consumption [15][16] - Legal oversight remains a critical part of the process, with all marketing assets undergoing manual review before market release [17]

Core Viewpoint - San Francisco is suing major food brands for selling ultra-processed foods that contribute to public health issues, claiming these companies have profited from harmful products without proper health warnings [1][3][4]. Group 1: Lawsuit Details - The lawsuit, filed by San Francisco City Attorney David Chiu, is 64 pages long and targets 11 major food brands [1][2]. - The brands named in the lawsuit include Kraft Heinz, Mondelez, Coca-Cola, Pepsico, General Mills, Nestlé, and others [2]. Group 2: Accusations Against Brands - The lawsuit accuses these brands of creating addictive foods that lead to health problems, failing to provide health warnings, and making misleading claims about product healthiness [3][4]. - Ultra-processed foods are linked to obesity, type 2 diabetes, cardiovascular disease, and other chronic illnesses [4]. Group 3: Legal and Regulatory Context - Chiu is calling for the brands to stop deceptive marketing practices and to pay civil penalties to San Francisco [5]. - This lawsuit aligns with a broader movement in the U.S. to regulate processed foods, initiated by Health Secretary Robert F. Kennedy Jr. [5][6].

Core Viewpoint - The city of San Francisco has filed a lawsuit against major food companies, including Kraft, Mondelez, and Coca-Cola, accusing them of knowingly marketing addictive and harmful ultra-processed foods that contribute to public health issues in California [1][2][8]. Group 1: Lawsuit Details - The lawsuit was filed by City Attorney David Chiu in San Francisco Superior Court, alleging that the companies used marketing tactics similar to those of the tobacco industry to create addictive products [2][4]. - The lawsuit claims that the proliferation of ultra-processed foods has led to increased rates of obesity, cancer, and diabetes, with heart disease and diabetes being leading causes of death in San Francisco, particularly affecting minority and low-income communities [4][9]. - San Francisco is seeking restitution and civil penalties to cover healthcare costs, as well as a court order to stop deceptive marketing practices and require changes in the companies' operations [5]. Group 2: Industry Context - The definition of ultra-processed foods is debated, but it generally includes packaged snacks, sweets, and soft drinks made with industrial ingredients and additives, often containing little whole food [6]. - This lawsuit is notable as it marks the first instance of a municipality suing food companies over claims of knowingly marketing harmful ultra-processed foods [8][11]. - Previous similar lawsuits have faced challenges, as seen in a dismissed case in Pennsylvania where the plaintiff could not connect specific products to health issues [10].

Core Insights - Mondelez International, Inc. (NASDAQ:MDLZ) is recognized as one of the 15 Best Boring Dividend Stocks to Buy, indicating its stable dividend performance and investment appeal [1] Financial Performance - For Q3 2025, Mondelez reported revenue of $9.74 billion, reflecting a 5.9% increase year-over-year [3] - Year-to-date, the company generated $2.1 billion in operating cash flow and $1.2 billion in free cash flow [3] - In the first nine months of the year, Mondelez returned $3.7 billion to shareholders [3] Market Challenges - CEO Dirk Van de Put noted ongoing challenges in the European market, despite a solid chocolate business [4] - The company faces pressure in certain areas due to competitors not raising prices as much as Mondelez, and retailers capturing a larger share of the margin in some markets [4] Analyst Updates - Piper Sandler lowered its price target for Mondelez to $62 from $63 while maintaining a Neutral rating, reflecting updates in models due to GLP-1 news, increased ABV headwinds, and tariff relief [2]

Core Points - Mondelēz Global LLC announced a voluntary recall of 70 cases of RITZ Peanut Butter Cracker Sandwiches due to potential mislabeling, affecting specific states in the U.S. [1][5] - The recall is precautionary and does not expand on a previous recall from July, focusing solely on one SKU and two code dates [1][5]. - No injuries or illnesses have been reported related to this product, and corrective actions are being implemented [5]. Product Details - The affected product is the 27.6 oz. RITZ Peanut Butter Cracker Sandwiches, with UPC 44000 07584 2, and Best When Used By Dates of January 8, 2026, and January 15, 2026 [3]. - Only the cartons labeled as Peanut Butter may be incorrectly identified as Cheese variety, posing a risk to individuals with peanut allergies [2][4]. - All outer cartons are correctly labeled and include an allergen advisory statement indicating the presence of peanuts [2]. Consumer Guidance - Consumers with peanut allergies are advised not to consume the affected products and to discard them [6]. - The company has provided a contact number for consumers to reach out for further information regarding the recall [6]. Company Overview - Mondelēz International, Inc. reported net revenues of approximately $36.4 billion in 2024, with a portfolio of iconic brands including OREO, RITZ, and CADBURY [7]. - The company operates in over 150 countries and is a member of major stock indices such as the S&P 500 and Nasdaq 100 [7].