分组1: Realty Income - Realty Income is a real estate investment trust (REIT) that owns single-tenant net lease properties, with approximately 75% of its rents coming from the retail sector and the remainder from industrial assets and unique properties like casinos [3][4] - The REIT has a diverse tenant base of nearly 1,600 different tenants, which mitigates risks associated with individual retailers [4] - Realty Income has a strong track record, having increased its dividend annually for 30 consecutive years, and currently offers an attractive dividend yield of 5.6% [5] 分组2: Hormel Foods - Hormel Foods is a food manufacturer with a wide selection of packaged food brands, focusing on protein, and is recognized as a Dividend King with over 50 consecutive annual dividend increases [8][10] - The company currently offers a historically high dividend yield of around 3.8%, despite facing challenges such as rising costs and avian flu [9][10] - Hormel has a significant nonprofit shareholder, the Hormel Foundation, which influences its long-term business decisions to sustain dividend growth [11][12] 分组3: Hershey - Hershey is known for its iconic confection brands and a small portfolio of salty snack brands, with a solid dividend history, although its dividend growth is not consistent annually [8] - The company offers a dividend yield of approximately 3.2% and is currently facing headwinds due to rising cocoa prices [9][10] - The Hershey Trust, a major nonprofit shareholder, plays a crucial role in guiding Hershey's decisions to ensure long-term dividend growth [11][12] 分组4: Investment Strategy - The consumer goods sector offers various investment opportunities, with Realty Income serving as a stable foundational investment, while Hormel and Hershey present more aggressive options despite their current challenges [13][14] - The combination of Realty Income's stability with the potential recovery of Hormel and Hershey makes for an attractive investment strategy [13][14]

Key Takeaways HSY may face up to $100M in unmitigated costs each in Q3 and Q4 from cocoa and Canadian tariffs. HSY is pivoting to lower cocoa items and using price pack architecture to preserve consumer demand. Innovation pipelines and reduced reliance on cocoa inputs are key to HSY's cost-mitigation efforts.The Hershey Company (HSY) is facing mounting pressure from soaring cocoa prices and tariff-related impacts, with up to $100 million in potential unmitigated costs per quarter in the second half of 202 ...

Over my long investing career, I have become a strong believer in the Dividend Yield Theory (DYT). DYT has been the source of many of my most successful investments and is now the main focus of my research. DYTTed Waller is a private investor who bought his first stock at age 13 (GTE) and has over 55 years of investing experience. His focus is on value and favorable risk/reward ratio, and special situations. Acquiring wealth is an incremental process that requires setting goals, adherence to principles, and ...

10 June 2025 | 1:10PM CDT Americas Food: NielsenIQ data thru 5/31: Solid total food sales growth, with continued pressure across most of packaged food Total food sales increased +2.8%/+3.2% y/y for R4/12-wks (in-line with the long-term trend of +LSD), driven by pricing and partially offset by lower volumes. However, we observed sales declines across most of our packaged food coverage, with HSY as the exception, noting support from pricing. Additionally, all companies within our coverage lost share in their ...

From lunchboxes, s'mores by campfires and holiday celebrations, the Hershey's Milk Chocolate bar has long been part of American culture – and with chocolate ranking as the #1 snack category and most preferred protein bar flavor, ONE bar has doubled down on satisfying the demand with America's most loved chocolate brand. Made with real Hershey's cocoa and chocolate chips, the ONE x Hershey's Double Chocolate flavored protein bar delivers double the rich, chocolate experience to power every on-the-go lifestyl ...

Film Production - Dandelion Media and Hershey Entities announced the full cast of the feature film "HERSHEY," which began principal photography on May 12, 2025, in Pittsburgh, Pennsylvania, and will continue through the end of June at various locations [1][2] - The film is directed by Mark Waters and stars Finn Wittrock as Milton Hershey and Alexandra Daddario as Catherine "Kitty" Hershey, with a supporting cast that includes notable actors such as Michael Moreland Milligan and Francesca Faridany [2][3] - "HERSHEY" is set to be released in 2026, coinciding with the 250th anniversary of the United States, and aims to depict the life and legacy of Milton Hershey, focusing on his contributions to education and community [4][8] Company Background - Dandelion Media, founded by Sharon Paul and Mark Tilghman, focuses on producing impactful films and television series, emphasizing risk-mitigated independent film financing and storytelling [9] - Hershey Entities encompass several organizations, including The Hershey Company and Milton Hershey School, all of which reflect Milton Hershey's philosophy of contributing to the happiness and well-being of others [10] - Aloe Entertainment, led by Mary Aloe, is recognized for producing and financing independent films, with a diverse slate of upcoming projects [11] Industry Context - The film industry is increasingly focusing on biographical stories that highlight the lives of influential figures, as seen in the production of "HERSHEY," which aims to inspire audiences through the narrative of Milton Hershey's journey from failure to success [4][8] - The collaboration between Dandelion Media and Hershey Entities illustrates a trend of partnerships between film production companies and established brands to create content that resonates with audiences while promoting brand legacy [1][10]

Group 1: Company Overview - The Hershey Company is a consumer staples company primarily focused on food production, particularly in the snack sector, with a strong emphasis on chocolate products like Hershey and Reese's [2][5] - Despite economic fluctuations, consumer staples companies like Hershey tend to be resilient, as chocolate is viewed as an affordable indulgence [4] Group 2: Current Challenges - Hershey's share price has declined over 40% from its 2023 highs, indicating a significant downturn for the company [1] - The company is facing challenges due to soaring cocoa prices, which are impacting profit margins, leading to an expected adjusted earnings drop of around 35% [5] Group 3: Long-term Growth Potential - The Hershey Trust, which has voting control of the company, takes a long-term investment approach, allowing Hershey to focus on future growth despite short-term market pressures [6][9] - High commodity prices, such as cocoa, typically resolve over time, and Hershey is expected to manage costs and gradually increase prices to restore margins [7] - Hershey continues to diversify its business by acquiring new brands, such as Sour Strips and LesserEvil, to expand its market reach [8] Group 4: Investment Opportunity - The current downturn in share price presents a buying opportunity for growth investors, as demand for Hershey's core products remains solid [10] - The decline in share price has resulted in a historically high dividend yield of 3.5%, making it an attractive option for income investors as well [10]

Group 1: Industry Overview - Consumer staples companies are considered safe-haven investments due to their consistent demand regardless of economic conditions [1] - The average consumer staples stock yields around 2.5% today, with PepsiCo and Hershey offering higher yields [13] Group 2: PepsiCo Analysis - PepsiCo is the leading company in salty snacks with its Frito-Lay brand and has a significant presence in packaged foods through Quaker Oats [2] - Currently, PepsiCo is experiencing cooling top-line growth after inflation-driven growth post-pandemic, and is facing changing snacking trends [4] - The company has a strong history of increasing dividends for 53 years, demonstrating resilience through adversity [5] - PepsiCo is actively working on cost-cutting, improving efficiencies, and adjusting product offerings, including acquisitions of on-trend brands like Siete and Poppi [6] - The company offers a historically high dividend yield of 4.4%, providing investors with compensation while waiting for recovery [7] Group 3: Hershey Analysis - Hershey is the U.S. leader in the confections space, known for its iconic brand and the Reese's franchise, with a dividend yield of approximately 3.4% [8] - The company is currently facing significant challenges due to rising cocoa prices, which are expected to impact margins [9] - Despite the cocoa price challenges, Hershey maintains a dominant market position and plans to grow through acquisitions in non-chocolate confection and salty snack sectors [10] - The Hershey Trust's control allows the company to focus on long-term growth and reliable dividends, aligning with investor interests for sustainable income [11] - Investors may consider waiting for Hershey to navigate current cocoa market challenges while benefiting from its dividend yield [12]

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]

Investment Rating - The report does not explicitly provide an investment rating for the food and beverage industry. Core Insights - The high tariffs imposed in the 1930s catalyzed the economic downturn in the United States, leading to a significant decline in consumer demand, influenced by falling income and credit availability [10][34]. - The food sector demonstrated resilience during the bear market from August 1929 to June 1932, with a decline of 72.6%, compared to a 86.0% drop in the S&P 500, indicating its defensive characteristics [19][20]. - Post-1932, the food industry saw a recovery, with prices increasing by 132.3% compared to 121.4% for the S&P 500, showcasing the sector's potential for excess returns [22][23]. Summary by Sections 1. Introduction and Summary - The 1930 Smoot-Hawley Tariff Act raised the average tariff rate in the U.S. to a historical high of 59%, triggering a global trade war and exacerbating the decline in domestic demand [10][44]. 2. Review of 1920-1930s America: High Tariffs as a Catalyst for Recession - The economic boom of the 1920s was followed by the Great Depression, with high tariffs contributing to the decline in agricultural exports and domestic prices [34][44]. - The Smoot-Hawley Tariff Act was intended to protect domestic agriculture but led to retaliatory tariffs from over 40 countries, resulting in a 46.2% drop in U.S. exports from 1929 to 1932 [52]. 3. Market Performance: The 1930 Tariff Act Accelerated Stock Market Decline - The food sector's performance during the bear market was relatively stable, with a smaller decline compared to the broader market, indicating its defensive nature [19][20]. - The food sector's resilience was attributed to the stable performance of leading companies amidst declining consumer demand [19][20]. 4. Industry Level: The Emergence of the U.S. Food Industry - The food industry faced significant challenges post-1929, with a notable decline in consumer demand, but leading companies like Coca-Cola maintained steady revenue growth [23][24]. - Coca-Cola benefited from the shift towards carbonated beverages as substitutes for alcoholic drinks, while Hershey's faced pressure on its revenue due to the economic downturn [24][26]. 5. Company Performance - Coca-Cola's gross margin improved by 2.9 percentage points from 1929 to 1931, driven by new product launches and declining raw material costs [24][26]. - Hershey's gross margin increased by 10.4 percentage points during the same period, despite facing revenue pressures [24][26].