Shares of The Hershey Company (HSY 1.08%) are in a deep downturn, off over 40% from their 2023 highs. The confection giant is in its own personal bear market. Given the nature of the problems Hershey faces, the bad news that led to this decline isn't likely to let up anytime soon.Yet, this food maker's share price drop is still a buying opportunity for growth investors. Here's why.What does Hershey do?Hershey is a consumer staples company. Within that broad sector description, it is a food maker. And within ...

Consumer staples companies sell things that people tend to buy regardless of the economic environment and stock market dynamics. They are looked at as safe-haven investments for that reason.But two of the industry's best-known companies are struggling today and, if you think long term, that is likely to be a buying opportunity. Here's why these two monster food stocks are buy-and-hold investments for the next decade.1. PepsiCo is the snack kingPepsiCo (PEP -0.01%) is named after its famous soda brand. Bever ...

Core Viewpoint - Hershey faces significant challenges due to rising cocoa prices and supply shortages, leading to a stock decline of over 40% in the past two years, but there are reasons for optimism regarding its future performance [1][4][12] Group 1: Challenges Faced by Hershey - Cocoa prices have surged from below $2,000 per metric ton in fall 2022 to around $10,000 per metric ton currently, significantly impacting margins [4][5] - The majority of cocoa is produced in countries like Ivory Coast, where crop yields have been affected by disease and adverse weather, contributing to the price increase [5] - Hershey's candy sales in North America accounted for 82% of its revenue in Q1 2025, but net sales fell 14% to $2.8 billion during the same period [5][6] Group 2: Reasons for Optimism - Hershey projects a net sales gain of at least 2% for 2025, indicating customer loyalty despite high cocoa prices [8] - The top three cocoa producers reported a 20% increase in supply this season, providing some relief to Hershey [8] - Hershey has maintained a dividend of $5.48 per share, with a 3.4% yield, significantly higher than the S&P 500 average of 1.3%, and has increased its dividend for 15 consecutive years [9][10] Group 3: Financial Performance and Valuation - Despite challenges, Hershey generated over $1.9 billion in free cash flow in 2024, allowing it to sustain its dividend payments [10] - The stock trades at 20 times earnings, below its five-year average P/E ratio of 25, suggesting potential for recovery as cocoa shortages ease [11]

Core Insights - The article emphasizes the author's extensive experience in both equity and real estate markets, focusing on identifying long-only investment opportunities that provide safe and growing dividends [1] - The author has successfully sourced over $100 million in commercial real estate investments, showcasing a strong track record in the investment sector [1] - The background in economics and applied mathematics aids in providing timely analyses and strategies for enhancing investment portfolios [1] Company and Industry Summary - The author has a beneficial long position in the shares of HSY, indicating a positive outlook on the company's performance [1] - The article reflects a commitment to sharing insights on market evolution and investment opportunities, which may benefit investors seeking wealth creation [1]

The Hershey Company (HSY) FY 2025 Annual General Meeting May 06, 2025 10:00 AM ET Speaker0 Thank you, Michelle, and good morning, everyone. Our first question in the Q and A is on compensation. Can you speak about why the CEO and named executive officer compensation is fair? Does the entire Board approve of the CEO's compensation package? Speaker1 Thanks, Inori. Yes, we pay for performance by aligning our short and long term incentive compensation plans with the business strategies so that we can reward exe ...

The Hershey Company (HSY) reported first-quarter 2025 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year. Hershey posted adjusted earnings of $2.09 per share, which fell 31.9% year over year but beat the Zacks Consensus Estimate of $1.94. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Consolidated net sales of $2,805.4 million decreased 13.8% from the year-ago quarter’s tally, missing ...

Hershey (HSY) reported $2.81 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 13.8%. EPS of $2.09 for the same period compares to $3.07 a year ago.The reported revenue represents a surprise of -0.54% over the Zacks Consensus Estimate of $2.82 billion. With the consensus EPS estimate being $1.94, the EPS surprise was +7.73%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Hershey (HSY) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $3.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.73%. A quarter ago, it was expected that this chocolate bar and candy maker would post earnings of $2.38 per share when it actually produced earnings of $2.69, delivering a surprise of 13.03%.Over the last four quarters, ...

The Hershey Company (HSY) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Anoori Naughton - Senior Director - Investor RelationsKen Goldman - Managing DirectorMichele Buck - Chairman, President & CEOSteve Voskuil - Senior Vice President & Chief Financial OfficerAndrew Lazar - Managing DirectorMax Gumport - Director - Equity ResearchDavid Palmer - Senior Managing DirectorRobert Moskow - Managing Director Megan Clapp - Executive Director Conference Call Participants Jim Salera - Research A ...

The Hershey Company (HSY) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Greetings, and welcome to The Hershey Company First Quarter twenty twenty five Question and Answer Session. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded. I'd now like to turn the call over to your host, Anori Naughton, Senior Director of Investor Relations for The Hershey Company. Thank you. You may begin. Speaker1 Thank you, and good morning, everyone. Thank you fo ...