Mars has been a family-owned company for more than a century. The company started out selling candy and has since grown into one of the country's largest privately held companies.
IPO
Is Mars publicly traded?
Mars is not a publicly traded company. It has been privately held by the Mars family since Franklin Mars founded it in 1911. Mars is one of the country's largest private companies. According to Forbes, Mars produced the fourth-highest revenue among private companies in 2023, at $50 billion.
When will Mars IPO?
Mars didn't have an IPO on the calendar as of late 2024 and won't likely complete one anytime soon. Mars has remained a privately held company for over a century, which seems likely to continue. The company has said it wants to remain family-owned and private because that allows it to pursue its growth strategy and invest for the long term without catering to outside shareholders.
Step 1: Open a brokerage account
You'll need a brokerage account to start investing. If you need to open one, here are some of the best-rated brokers and trading platforms. Take your time to research the brokers to find the best one to meet your needs.
Step 2: Figure out your budget
Before making your first trade, you'll need to determine a budget for how much money you want to invest. You'll then want to decide how to allocate that money. The Motley Fool's investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years.
You don't have to buy all those stocks at once. For example, if you have $1,000 available to start investing, you might want to begin by allocating that money equally across at least 10 stocks. You can then grow your portfolio from there as you have more money to invest.
Step 3: Do your research
It's essential to thoroughly research a company before buying its shares. You should learn about how it makes money, its competitors, its balance sheet, and other factors to make sure you have a solid grasp on whether the company can grow value for its shareholders over the long term.
Step 4: Place an order
Once you've opened and funded a brokerage account, set your investing budget, and researched the stock, it's time to buy shares. The process is relatively straightforward. Go to your brokerage account's order page and fill out all the relevant information, including:
- The number of shares you want to buy or the amount you want to invest to purchase fractional shares.
- The stock ticker (HSY for Hershey, NSRGY for Nestle, and FRPT for Freshpet).
- Whether you want to place a limit order or a market order. The Motley Fool recommends using a market order since it guarantees you buy shares immediately at the market price.
Once you complete the order page, click to submit your trade and become a shareholder in one of these Mars alternatives. If Mars ever does complete an IPO, you'd follow a similar process to buy its stock. Should shares become available, fill out the order page at your brokerage account with Mars' selected stock ticker and then submit your trade.
Is Mars profitable?
As a family-owned company, Mars doesn't need to disclose its financial results publicly, so we don't know exactly how much money it makes each year. However, we do know the company generates significant revenue. Mars reported more than $50 billion in sales in 2023, more revenue than beverage giant Coca-Cola (KO -0.58%) produced.
We also know the company is solidly profitable. On its website, the company wrote about the role of profit, stating: "The freedom of Mars depends on the creation of profit. Because Mars is profitable and generates cash, we need not borrow money to the extent that we might lose control over our affairs."
Mars' strong profitability is a big reason it has remained private throughout the years. It doesn't need capital from outside investors to fund its growth. The company highlighted this on its website:
"To this end, a substantial portion of operating profits is reinvested each year. This profit then provides the cash with which we can build and upgrade plants, enter new markets, invest in R&D, innovate and implement new ways of doing things, acquire new businesses and create strategic alliances, all to maintain our competitive position."
Capital
As long as Mars remains strongly profitable, it can stay private because it can fund its growth without needing additional capital from outside shareholders. That's apparent from its deal to acquire Kellanova in 2024.
The company is paying $35.9 billion in cash (and the assumption of debt) to acquire the packaged foods giant to expand its snacking operations. It's funding the massive deal with cash on hand and new debt from its banking partners.
Should I invest in Mars?
You can't invest in the family-owned Mars. Given the company's strong profitability, it may never go public. However, you can invest in companies benefiting from the same factors driving Mars' strong profitability.
Hershey is a great alternative to consider. It holds the leading position in the U.S. confectionary market and is second in U.S. snacking. It's also solidly profitable and generates growing free cash flow. That gives Hershey the cash to grow its business and return money to shareholders by repurchasing shares and paying a growing dividend.
The company sees more growth ahead, expecting to deliver 6% to 8% annual earnings-per-share growth over the long term. That should enable Hershey to continue growing value for its shareholders.
ETFs with exposure to Mars
Many investors would prefer to invest passively rather than actively manage a portfolio of stocks. Exchange-traded funds (ETFs) make that easy.
Exchange-Traded Fund (ETF)
Mars isn't publicly traded, so you can't get passive exposure to its stock through an ETF. However, you can invest in ETFs focused on food stocks to capitalize on the same trends driving Mars' growth. Some of the top food ETFs to consider are:
- First Trust Nasdaq Food & Beverage ETF (NASDAQ:FTXG): The ETF aims to provide investors with exposure to the U.S. food and beverage industry. It held shares of 29 companies in late 2024, including Hershey (the 11th-largest holding, at 4% of the fund's assets). The fund charges investors an ETF expense ratio of 0.6%.
- Invesco Food & Beverage ETF (NYSEMKT:PBJ): This ETF also gives investors access to the U.S. food and beverage industry through a single fund. It held shares of 37 companies in late 2024, led by General Mills (GIS +1.26%) at 5.1% of its assets. The fund had a slightly higher total expense ratio of 0.62%.
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The bottom line on Mars
Mars is one of the largest privately held companies in the country. The family-owned confectionery and pet care company will likely remain private because it doesn't need outside capital, and the family doesn't want to cede control to outsiders.
Although public investors can't own a piece of the company, there are several ways to invest in the same trends that have enabled Mars to grow into a top company.
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