Core Insights - The Hershey Company reported stronger-than-expected quarterly results with net sales growth despite volume pressure due to consumer price sensitivity [1] - The company faced ongoing margin headwinds from elevated commodity and tariff costs, as well as higher operating expenses, even as shares rose in premarket trading [1] Financial Performance - Quarterly sales reached $3.09 billion, representing a 7% year-over-year increase, surpassing the analyst expectation of $2.98 billion [2] - Organic, constant-currency net sales increased by 5.7%, with acquisitions contributing 1.2 points and currency providing a 0.1-point benefit to sales [2] Segment Analysis - The North America Confectionery segment net sales were $2,478.5 million, up 5.3% year-over-year, while the North America Salty Snacks segment saw net sales of $357.0 million, a significant increase of 28.0% [3] - The International segment reported a slight increase of 0.4% year-over-year, totaling $255.6 million [4] Margin Analysis - Adjusted gross margin decreased by 650 basis points to 38.3%, impacted by higher commodity costs, tariff expenses, and lower volume [5] - Adjusted operating profit was $529.3 million, reflecting a 24.0% year-over-year decline, with an adjusted operating profit margin of 17.1%, down 700 basis points [6] Dividend Announcement - The company raised its quarterly dividend by 6% to $1.452 per share from $1.37, payable on March 16, 2026, to stockholders of record as of February 17, 2026 [7]

Mondelez International, Inc. (NASDAQ:MDLZ) is included among the 15 Best Wide Moat Dividend Stocks to Invest in. TD Cowen Raises Mondelez (MDLZ) Target While North America Volumes Remain Weak On February 4, TD Cowen lifted its price target on Mondelez International, Inc. (NASDAQ:MDLZ) to $65 from $62 and maintained a Buy rating. The firm noted that management’s early outlook for 2026 came in below consensus, with organic growth projected at 0%–2%. That range reflects the risk that competitors could cut c ...

Financial Data and Key Metrics Changes - The company is pleased with the momentum in emerging markets and has seen sequential improvements in developed markets, although not fully recovered [12] - The guidance for 2026 is cautious due to short-term pressures, particularly in the U.S. biscuit category, which is expected to remain subdued in the first half of the year [12][13] - The company anticipates a significant impact of $500 million in the first quarter due to inventory accounting adjustments [21] Business Line Data and Key Metrics Changes - The chocolate category has shown resilience despite price volatility, with successful execution of the chocolate strategy through pricing and revenue growth management [5][7] - In North America, the biscuit category has seen a volume decline of 4% in the last three months and 3% for the year 2025, indicating a challenging operating environment [26] - The company plans to invest more in brand awareness and improve frequency and quantity of purchases in North America, focusing on successful products like Perfect Bar and Tate's Premium Biscuit [27][28] Market Data and Key Metrics Changes - Emerging markets are expected to continue growing, with high single-digit growth anticipated, while developed markets may decline in the low to mid-single digits [36] - The company is adjusting pricing strategies in Europe, expecting stability in the chocolate category after significant price increases in 2025 [12][13] - The North American market is characterized by low consumer confidence and a shift towards value-seeking behavior, affecting overall snacking categories [25][26] Company Strategy and Development Direction - The company aims to increase investments behind its brands to drive volume growth and improve profitability, particularly in the chocolate segment [8][54] - There is a focus on innovation and new product activations, with plans to enhance the chocolate strategy further during the CAGNY Conference [10] - The company is diversifying its cocoa supply sources to mitigate risks associated with reliance on traditional cocoa-growing regions [68][69] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the recent decline in cocoa prices, which may lead to competitive reactions and necessitate flexibility in guidance for 2026 [9][13] - The company expects to see improved margins in the chocolate business by 2027, driven by better cocoa pricing and strategic investments [9][54] - Management is optimistic about returning to pre-2025 profitability levels in the European chocolate division, with plans for selective price investments if necessary [59][60] Other Important Information - The company is investing in cocoa-growing regions outside of West Africa to balance supply and reduce long-term risks [68][69] - There is an expectation of a significant uplift in chocolate margins in 2027, with a focus on reinvesting part of the gains back into the business [54] Q&A Session Summary Question: What is the company's outlook on cocoa pricing and its impact on guidance? - Management indicated that recent cocoa dynamics might require adjustments and flexibility in guidance, with a focus on winning with consumers and in the marketplace [13][14] Question: How does the company plan to address cost phasing and pricing in 2026? - The company plans to maintain flat pricing in chocolate while managing costs, with a significant impact expected in the first quarter due to inventory adjustments [20][21] Question: What is the strategy for North America given the current market conditions? - Management highlighted the need to adapt to consumer behavior, focusing on value-seeking strategies and increasing market share through targeted investments [25][27] Question: How does the company view the impact of GLP-1 medications on its business? - Management believes that the adoption rate of GLP-1 medications will not significantly impact overall business volumes in the short term [65][66] Question: What are the company's plans for investments in cocoa-growing regions? - The company is diversifying its cocoa supply sources to reduce risks and is investing in regions like Ecuador and Brazil to enhance output [68][69]

Financial Data and Key Metrics Changes - The company reported a significant focus on the chocolate category, which has shown resilience despite price volatility in 2025 [6][9] - Cocoa prices have recently declined unexpectedly, which may lead to short-term pressures for the industry [8][9] - The company aims to increase margins in the chocolate business significantly by 2027 due to improved cocoa pricing [9] Business Line Data and Key Metrics Changes - The chocolate strategy has been effective, with successful execution in major markets like India, Brazil, and Australia, while adjustments are needed in northern European markets due to higher elasticity [6][7] - The company plans to invest more in brand marketing and innovation, particularly with successful collaborations like Biscoff [8][9] Market Data and Key Metrics Changes - Emerging markets have shown strong momentum, with expectations for continued growth in high single digits, while developed markets are expected to see declines in the low to mid-single digits [36][38] - The North American market is facing challenges, with consumer confidence at historic lows and a decline in the biscuit category [25][28] Company Strategy and Development Direction - The company is focusing on brand investments and innovation to drive volume growth, particularly in North America and Europe [29][30] - There is a strategic emphasis on adapting to consumer behavior changes, with a focus on value-seeking consumers [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the 2026 guidance, highlighting the need for flexibility due to recent cocoa price dynamics [12][13] - The company anticipates a gradual improvement in volume and revenue throughout 2026, with a focus on maintaining pricing strategies [22][24] Other Important Information - The company is investing in cocoa-growing regions outside of West Africa to diversify supply and reduce risks associated with crop diseases [69][70] - There is an ongoing exploration of lab-grown cocoa as a sustainable alternative, which may gain regulatory approval in the future [70][71] Q&A Session Summary Question: What is the outlook for the chocolate strategy given cocoa price changes? - Management noted that the chocolate category has shown resilience and that adjustments will be made to pricing strategies in response to cocoa price fluctuations [6][7] Question: How does the company plan to address cost phasing in 2026? - The company will face a one-time inventory adjustment impacting costs, with expectations for sequential improvements in volume and revenue throughout the year [22][24] Question: What is the strategy for North America amidst weak volume trends? - Management highlighted the need for increased investments to drive consumer awareness and adapt to changing shopping behaviors, focusing on value and promotions [25][28] Question: How will emerging markets perform in 2026? - Emerging markets are expected to continue growing, with Brazil and Mexico showing strong performance, while Argentina's economic issues are impacting overall regional results [44][45] Question: What are the expectations for profitability recovery in European chocolate? - The company aims to return to pre-2025 profitability levels by investing in brand marketing and adjusting pricing strategies as cocoa prices stabilize [60][61]

Core Insights - Barry Callebaut and its former CEO Peter Feld have parted ways following a clash regarding a proposal to separate the company's cocoa business from its chocolate operations [1] Company Summary - The separation proposal was a significant point of contention between the company's leadership and Peter Feld, indicating potential strategic shifts within Barry Callebaut [1]

Core Viewpoint - Mondelez International, Inc. is positioned favorably in the market with strong cash returns to shareholders and improved EPS visibility due to declining cocoa prices, despite facing challenges from cocoa cost inflation [2][3][4]. Group 1: Financial Performance and Shareholder Returns - Mondelez has a robust history of returning cash to shareholders, with dividends growing at an annual rate above 10% over the past five years [3]. - The company has repurchased over $13 billion of its own shares since 2018, reducing the share count by approximately 15% [3]. - Morgan Stanley raised its price target for Mondelez to $65, indicating positive sentiment towards the stock [2]. Group 2: Market Challenges and Opportunities - The recent decline in cocoa prices is seen as beneficial for Mondelez, enhancing visibility into earnings per share forecasts [2]. - However, the company has warned that unprecedented cocoa cost inflation could potentially reduce adjusted earnings per share by up to 15% in 2025 [4]. - Mondelez operates from a position of financial strength, supported by its diverse geographic presence and established brand portfolio amid economic uncertainties [4]. Group 3: Company Overview - Mondelez International, Inc. is recognized as one of the largest snack companies globally, with a diverse portfolio that includes biscuits, chocolate, cakes, pastries, snack bars, and candy [5].

Core Viewpoint - Barry Callebaut has appointed Hein Schumacher as the new CEO, succeeding Peter Feld, amid a transformation program aimed at enhancing the company's agility and customer focus [1][2][3][4]. Group 1: Leadership Transition - Hein Schumacher, former CEO of Unilever and FrieslandCampina, has been appointed as the new CEO of Barry Callebaut [1][2]. - Peter Feld, the outgoing CEO, will leave the company next week to pursue other career opportunities after leading the company since 2023 [2][4]. - The chairman, Patrick De Maeseneire, emphasized the timing of the CEO transition coinciding with the nearing completion of the BC Next Level transformation program [3][4]. Group 2: Financial Performance - Barry Callebaut reported an 8.9% increase in revenue for the first quarter of its financial year, reaching SFr3.67 billion ($4.64 billion), despite a nearly 10% decline in volumes [5]. - In the last full financial year, revenue surged by 42.4% to SFr14.79 billion, driven by price increases to offset high cocoa bean costs, although volumes decreased by 6.8% [6]. Group 3: Market Context - The chocolate confectionery market is reportedly declining, as indicated by Nielsen figures, which may impact future sales volumes for Barry Callebaut [5]. - De Maeseneire has denied any plans to separate the cocoa division from the rest of the business, countering rumors regarding the company's strategic direction [4]. Group 4: Leadership Qualities - De Maeseneire praised Schumacher as a seasoned leader with a strong background in food and B2B/B2C sectors, highlighting his proven track record in creating shareholder value [7]. - Schumacher is expected to lead Barry Callebaut into a new phase focused on customer engagement and financial strength, leveraging the company's integrated cocoa and chocolate business model [7].

Core Insights - Barry Callebaut has appointed Hein Schumacher, the former CEO of Unilever, as its new CEO amid weaker-than-expected financial results [1] Group 1: Leadership Changes - The appointment of Hein Schumacher is a strategic move for Barry Callebaut, indicating a shift in leadership to navigate current challenges [1] Group 2: Financial Performance - The company reported financial results that fell short of expectations, highlighting potential operational or market challenges [1]

Core Viewpoint - Rocky Mountain Chocolate Factory, Inc. (RMCF) is undergoing a transformation focused on profitability and long-term value creation, despite a decline in revenue due to strategic exits from lower-margin channels [6][7]. Financial Performance Overview - For Q3 of fiscal 2026, RMCF reported total revenues of $7.5 million, a 4.4% decrease from $7.9 million in the same quarter last year [2]. - The net loss narrowed to $0.2 million, or $0.02 per share, compared to a loss of $0.8 million, or $0.11 per share, in the prior-year quarter [3]. - Total product and retail gross profit increased to $1.4 million from $0.7 million year-over-year, driven by pricing actions and improved efficiencies [3]. Key Business Metrics - Gross manufacturing margin improved to 21.4% from 10% in the same quarter last year [4]. - Total costs and expenses decreased by 13.2% to $7.5 million from $8.6 million a year ago [4]. - The addition of a second production shift is expected to unlock annual cost savings of $500,000 to $1 million [4]. Management Commentary - Management emphasized the quarter as an inflection point, focusing on profitability over revenue growth [6]. - Progress in franchise development and digital marketing efforts is seen as a key driver for future growth [6]. Factors Influencing Financial Results - Revenue decline was attributed to the exit from lower-margin revenue streams, viewed as necessary for resetting the economic foundation [7]. - Cocoa price volatility impacted results, but recent declines and tariff eliminations are expected to provide margin support [8]. Guidance and Outlook - RMCF did not provide formal quantitative guidance but expects continued margin improvement and gradual return to profitability [10]. - Near-term growth is anticipated from improving same-store sales and expanding e-commerce capabilities rather than rapid unit expansion [10]. Other Developments - RMCF completed a $2.7 million equity capital raise, using $1.2 million to pay down debt and retaining $1.5 million for working capital [11]. - An area development agreement with four franchisees will bring 34 new stores over the next four to five years [11]. - Technology initiatives are being rolled out, including expanded point-of-sale systems and a loyalty program expected to launch soon [12].

Core Insights - The chocolate brand plans to increase its advertising spending and leverage TikTok influencers to enhance its market presence [1] Group 1: Advertising Strategy - The company will boost its advertising budget to reach a wider audience and improve brand visibility [1] - Embracing TikTok influencers is part of the strategy to engage younger consumers and tap into trending social media platforms [1]