Improved Operating Performance Drives Meaningful Gains in Gross Margin and Profitability Executed Milestone Franchise Area Development Agreement to Bring 34 New Stores to Market Management to Host Conference Call Wednesday at 9:00 a.m. Eastern Time DURANGO, Colo., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the “Company”, “we”, “RMCF”, or “Rocky Mountain Chocolate Factory”), America’s Chocolatier™ and a leading franchiser of a premium chocolate and confectiona ...

Core Insights - The Hershey Company (HSY) is set to announce its fiscal fourth-quarter earnings for 2025 on February 5, with a market cap of $38.3 billion and a focus on confectionery and pantry items [1] Earnings Expectations - Analysts predict HSY will report a diluted profit of $1.40 per share, a decrease of 48% from $2.69 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to be $6, down 36% from $9.37 in fiscal 2024, but projected to rise 15.7% year-over-year to $6.94 in fiscal 2026 [3] Stock Performance - HSY stock has underperformed the S&P 500 Index, which gained 17.7% over the past 52 weeks, with HSY shares up 16.6% during the same period [4] - However, HSY outperformed the Consumer Staples Select Sector SPDR Fund, which returned 2.4% [4] Business Challenges - The company's underperformance is attributed to challenges in its seasonal business, particularly around Halloween, influenced by timing, weather, and changing consumer behavior, along with margin compression from higher cocoa prices and increased brand investments [5] - Despite some successful innovations like REESE'S Oreo, HSY anticipates moderate volume declines and is cautiously optimistic about cocoa cost inflation and tariff relief, focusing on margin rebuilding and growth [5] Recent Financial Results - On October 30, 2025, HSY shares fell over 2% after reporting Q3 results, with adjusted EPS of $1.30 exceeding expectations of $1.09, and revenue of $3.2 billion surpassing forecasts of $3.1 billion [6] - The company expects full-year adjusted EPS to be in the range of $5.90 to $6 [6] Analyst Ratings - The consensus opinion on HSY stock is cautious, with a "Hold" rating overall; out of 23 analysts, four recommend "Strong Buy," one "Moderate Buy," 17 "Hold," and one "Strong Sell" [7] - The average analyst price target for HSY is $194.41, indicating a potential upside of 2.8% from current levels [7]

Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements [1] Upgrades - Barclays upgraded Wayfair (W) to Overweight from Equal Weight with a price target of $123, increased from $104, citing accelerated market share in 2025 and expected continuation into 2026 [2] - Oppenheimer upgraded McDonald's (MCD) to Outperform from Perform with a price target of $355, reflecting a more optimistic outlook for the restaurant sector into 2026 after 2025's underperformance [2] - Barclays upgraded Lowe's (LOW) to Overweight from Equal Weight with a price target of $285, up from $259, based on a positive outlook for discretionary goods demand, particularly among mid- and high-income consumers due to upcoming tax changes [2] - Piper Sandler upgraded Hershey (HSY) to Overweight from Neutral with a price target of $213, increased from $193, noting the easing of cocoa costs and removal of cocoa tariffs, which provide Hershey with flexibility for growth and earnings enhancement [2] - BofA double upgraded Regeneron (REGN) to Buy from Underperform with a price target of $860, up from $627, driven by a more favorable view following the realization of prior underperformance concerns regarding Eylea SD and adjustments in consensus estimates [2]

Core Viewpoint - Rocky Mountain Chocolate Factory Inc. will host a conference call on January 14, 2026, to discuss its fiscal third quarter 2026 results, with a press release to be issued prior to the call [1]. Group 1: Conference Call Details - The conference call will take place on January 14, 2026, at 9:00 a.m. Eastern time [2]. - Attendees can submit questions in advance via email to the investor relations team [2]. - The call will be available for live broadcast and replay on the Company's investor relations website [3]. Group 2: Company Overview - Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of premium chocolate and confectionery retail stores, producing a wide range of products since 1981 [4]. - The Company operates nearly 250 stores across the United States and has several international locations, ranking in Entrepreneur's Franchise 500 for 2025 and Franchise Times' Franchise 400 for 2024 [4]. - The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF" [4].

Core Viewpoint - Hershey Company is projected to have a potential upside of 18.81% from its current trading price, reflecting confidence in its market position and future growth [1]. Financial Performance - Hershey has a strong history of exceeding earnings estimates, with an average earnings surprise of 19.53% over the last two quarters [2]. - In the most recent quarter, Hershey reported earnings of $1.3 per share, surpassing the Zacks Consensus Estimate of $1.09 per share, resulting in a 19.27% surprise [2]. - In the preceding quarter, Hershey achieved earnings of $1.21 per share against an expectation of $1.01 per share, marking a 19.80% surprise [3]. - This consistent trend of outperforming expectations has led to upward revisions in earnings estimates for Hershey [3]. Stock Performance - Currently, Hershey's stock is priced at $179.28, with a slight decrease of 0.39% today [4]. - The stock has experienced a trading range over the past year, reaching a high of $199 and a low of $140.13, indicating volatility [4]. - Hershey's market capitalization is approximately $36.35 billion, with a trading volume of 1,761,745 shares, reflecting strong market presence and investor interest [5].

Group 1 - Morgan Stanley has upgraded Hershey Foods (HSY) stock rating from "Equal Weight" to "Overweight," indicating a potential comeback after significant negative revisions [1] - Analysts have observed early-stage positive inflection in Hershey's fundamentals, which could lead to faster EPS growth, and raised the stock price target from $195 to $211, suggesting a 13% upside [2] - Hershey Foods, headquartered in Pennsylvania, is a leader in the global confectionery sector with a market capitalization of $38 billion and a diverse portfolio of iconic brands [3][4] Group 2 - Hershey's stock has gained 9% over the past 52 weeks and 8% over the past six months, despite facing pressure from high cocoa prices, leading to announced price increases in U.S. retail [5] - The company's Q3 2025 results exceeded expectations, with net sales rising by 6.5% year-over-year to $3.18 billion, surpassing the anticipated $3.13 billion [7] - Hershey's current price-to-earnings ratio stands at 31.5 times, which is higher than the industry average, indicating a relatively pricey valuation [6]

Core Insights - Cocoa prices surged last year but are now declining rapidly, yet chocolate prices in stores are expected to remain high for the foreseeable future due to previous high cocoa purchases and recipe changes by manufacturers [1][3][14] Cocoa Market Dynamics - Cocoa futures reached nearly $13,000 per ton last year due to crop damage from diseases and adverse weather in major producing countries like Ivory Coast and Ghana, which account for over half of global cocoa supply [3][10] - This year, cocoa prices have dropped by approximately 50% to around $6,000 per ton due to improved harvests, reduced demand, and diminished concerns about shortages [3][13] Impact on Chocolate Manufacturers - Many chocolate companies, including Lambertz, have incurred significant costs from purchasing cocoa at elevated prices, with Lambertz reporting an additional €150 million ($176 million) in costs, representing about 20% of its revenue last year [4][16] - Chocolate makers are cautious about adjusting retail prices due to ongoing market instability, with some experts suggesting that relief in pricing may not be seen until 2026 [5][16] Recipe Adjustments - To manage costs, chocolate manufacturers are altering recipes by reducing cocoa content or producing smaller bars, leading to some products no longer being classified as "chocolate" [9][13] - These changes are difficult to reverse, indicating that high retail prices are likely to persist despite falling cocoa prices [9][14] Supply Chain Challenges - Cocoa farming in West Africa faces long-term structural challenges, including a lack of investment, inadequate farming tools, and disease-resistant plants, which continue to threaten supply stability [8][11] - Governments in Ghana and Ivory Coast are now supporting farmers with better pricing and farming practices, which has improved farmer incomes and allowed for better agricultural inputs [12][16]

Core Insights - Cocoa futures nearly tripled last year, leading to significant cost increases for manufacturers, who subsequently raised chocolate prices [1][4][12] - The chocolate industry is currently facing high cocoa prices, with expectations for cheaper cocoa to only impact retail prices in the second half of next year [1][9][10] Industry Impact - The surge in cocoa prices has caused distress across the industry, affecting both large packaged food companies and small chocolatiers, with some struggling for survival [4][6] - Lambertz, a historic German confectioner, reported an additional €150 million ($176 million) in annual costs due to high cocoa prices, equating to one-fifth of last year's revenue [6][7] - Many producers are passing costs onto consumers while accepting a loss in sales volume, indicating a challenging market environment [7][10] Market Dynamics - Cocoa prices peaked at nearly $13,000 per ton last year but have since dropped by about 50%, marking the steepest annual decline since 1960 [1][9] - Despite recent price drops, major chocolate manufacturers remain cautious about signaling changes due to ongoing market volatility [9][10] - Analysts have reduced their cocoa surplus expectations, contributing to the current price stabilization around $6,000 per ton [9][10] Supply Chain Challenges - West African cocoa supply remains unstable, with smallholder farmers facing chronic underfunding and lack of resources to adapt to climate change [10] - Barry Callebaut AG's CEO highlighted the long-term structural challenges in cocoa farming, emphasizing the need for investment [10] Product Adjustments - In response to high cocoa prices, companies are altering recipes, such as reducing cocoa content or portion sizes, which may become permanent changes [12][14] - Examples include Milka chocolate bars becoming 10% lighter while prices increased by about 25%, and some UK chocolate bars no longer qualifying as "chocolate" due to ingredient changes [12][14]

Group 1 - Barry Callebaut AG is evaluating a separation of its global cocoa division from its core chocolate business to reduce exposure to extreme cocoa price volatility [2] - The primary goal of this potential separation is to sharpen focus on higher-margin chocolate activities [2]

Core Insights - Gardners Candies is expanding its national presence by partnering with Cracker Barrel Old Country Store and increasing availability in various retail locations, including over 20 Grandpa Joe's Candy Shop locations [2][3] - The company is introducing new packaging for its products, specifically 3.5-ounce bags designed for retailers, which will be available starting February 1 [6][7] - Gardners is launching new products, including Dubai Chocolate and Milk Chocolate Double O's, to enhance its product line and attract more customers [8][10] Expansion Strategy - Gardners Candies is set to sell its S'mores in approximately 660 Cracker Barrel locations across 43 states starting next spring [3] - The company has gained traction with major retailers, as evidenced by Giant Eagle increasing its product offerings, including Peanut Butter Meltaway Pretzels and other items [7] - The introduction of new 3.5-ounce bags aims to cater to convenience stores and differentiate Gardners' product line from single items [6] Product Development - Gardners is expanding its product range with the introduction of Dubai Chocolate and a third OREO treat, Milk Chocolate Double O's, which features OREO cookies coated in Gardners milk chocolate [8][10] - The new packaging will include seven individually wrapped pieces of various flavors, enhancing the consumer experience [6][7] - Gardners continues to innovate with its offerings, maintaining a focus on quality and customer service since its founding in 1897 [10]