Jim Cramer takes a bite out of Hershey's chart

Financial Performance - Hershey's stock experienced a significant drop, declining from $196 to $169 within three weeks [2] - Hershey's Q3 net sales reached $318 billion, a 65% year-over-year increase, surpassing Wall Street's expectation of $312 billion [7] - Organic sales grew by 62%, primarily driven by price increases, exceeding analysts' expectations of 36% [8] - Adjusted gross margin decreased by 85 basis points year-over-year to 318%, attributed to higher commodity and tariff costs [8] - Q3 earnings per share were $130, down 44% year-over-year, but above Wall Street's anticipated $107 [9] Market Dynamics and Challenges - Hershey has faced challenges in the past two and a half years, partly due to the impact of GOP-1 weight loss drugs on the packaged food industry [3] - The company has also struggled with high cocoa prices, although the situation has improved in the last 10 months [4] - Halloween season sales started slower than expected due to warmer weather and concentrated seasonal purchases [11][12] Strategic Initiatives and Outlook - Hershey appointed Kirk Tanner as the new CEO in mid-August, who previously worked at Wendy's and PepsiCo [5] - Management raised the lower end of their full-year earnings guidance by 9 cents, projecting $590 to $6 per share [10] - The company emphasizes a long-term strategy, focusing on future performance rather than short-term gains [13] - Piper Sandler upgraded Hershey's stock from underweight to neutral, citing reduced uncertainty and potential moderation in cocoa prices [16]