The Hershey Company (NYSE:HSY) is one of the best sugar stocks to buy according to hedge funds. Stephens adjusted the price target on The Hershey Company (NYSE:HSY) to $260 from $200 on February 12 and reiterated an Overweight rating on the shares. The firm told investors that it updated the rating on the stock after a “clean” Q4 beat and fiscal year 26 guidance that “reads better-than-feared on both sales and adjusted EPS.” Deutsche Bank Lifts Hershey (HSY) Target but Stays on the Sidelines Ahead of Q4 ...

Consumer Spending Insights - U.S. consumer spending for Valentine's Day is projected to reach a record $29.1 billion, an increase from last year's $27.5 billion, with an average spend of $199.78 per shopper, the highest ever recorded [1][9] Company-Specific Opportunities Hershey - Hershey is a primary beneficiary of Valentine's Day spending, with its chocolate products being the most popular gifts during the holiday [3] - The company is enhancing its investment case through strategic initiatives such as cost optimization and product innovation, with adjusted EPS projected to grow 30-35% by fiscal 2026, reaching between $8.20 and $8.52 [4] - The Zacks Consensus Estimate for Hershey's 2026 EPS has increased by 96 cents recently, and the stock holds a Zacks Rank 1 (Strong Buy) [5] Brinker International - Brinker, the parent company of Chili's and Maggiano's, is well-positioned to benefit from increased dining out during Valentine's Day, with Chili's being a key growth driver [6] - The company focuses on operational excellence and guest experience, implementing initiatives to enhance engagement and customer satisfaction, which positions it for sustainable traffic growth [7] - The Zacks Consensus Estimate for Brinker's fiscal 2026 EPS indicates a year-over-year growth of 20%, with the stock also holding a Zacks Rank 1 [8] Movado Group - Movado capitalizes on the demand for meaningful gifts during Valentine's Day, appealing to younger consumers with fresh designs [9] - The growth of e-commerce and direct-to-consumer sales has improved margins, positioning Movado for both seasonal and long-term growth opportunities [11] - The Zacks Consensus Estimate for Movado's fiscal 2027 EPS suggests a year-over-year growth of 32%, with the stock rated Zacks Rank 2 (Buy) [12] Inter Parfums - Inter Parfums benefits from the demand for luxury fragrances during Valentine's Day, with core brands like Jimmy Choo and Coach driving sales [13] - The introduction of new high-margin products and strengthening e-commerce channels are expected to enhance growth [14] - The Zacks Consensus Estimate for Inter Parfums' fourth-quarter 2025 EPS has seen a slight increase, and the stock carries a Zacks Rank 2 [15] Airbnb - Airbnb is positioned to capture seasonal demand for travel experiences during Valentine's Day, reporting a strong increase in bookings [16] - The company is enhancing its platform with new features to improve user experience and is expected to achieve low double-digit revenue growth in 2026 [17] - The Zacks Consensus Estimate for Airbnb's 2026 EPS indicates a year-over-year growth of 14%, with the stock rated Zacks Rank 2 [18]

Tanner described the U.S. snacking environment as steady in the fourth quarter, with consumers “spend[ing] selectively” on items that deliver emotional or functional value. He said U.S. confectionery category retail takeaway accelerated in 2025, and confection was the third-fastest-growing U.S. snacking category for the year behind nutritional bars and meat snacks.CFO Steve Voskuil said consolidated 2025 net sales were approximately $11.7 billion, up 4.4% year over year, with organic constant currency growt ...

Financial Data and Key Metrics Changes - The company anticipates 4%-5% net sales growth and meaningful earnings recovery for 2026, indicating a positive outlook following a challenging 2025 [4] - The gross margin is expected to recover to 41% in 2026, which is an improvement from 2025 but still below historical levels [24][26] Business Line Data and Key Metrics Changes - The snacks business experienced an 18% growth in Q4, driven by double-digit volume growth, showcasing strong performance in this segment [12][47] - Organic sales growth for the confection segment is around 3%, while salty snacks are expected to grow in the mid-single digits [99] Market Data and Key Metrics Changes - The company is gaining market share in key international markets such as Canada, Mexico, Brazil, and the UK, indicating a strong international growth potential [102] - The company has factored in the impact of SNAP waivers into its outlook, with only 2 states currently implementing these waivers for candy [88] Company Strategy and Development Direction - The company is focused on investing in innovation, brand building, and execution to drive growth, with a significant increase in advertising planned for 2026 [29][30] - The strategy includes a balanced approach to growth and margin recovery, with multi-year investments aimed at sustaining long-term top-line growth [30][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their portfolio despite headwinds like cocoa inflation and macro volatility [4] - The company is optimistic about the cocoa market, anticipating a larger supply surplus in 2025 and 2026, which could lead to further deflation in cocoa prices [26][60] Other Important Information - The company plans to connect its brands to cultural moments throughout the year, enhancing consumer engagement and driving sales [90] - The management highlighted the importance of maintaining a rational pricing strategy in the category, with expectations for continued promotional activities [95] Q&A Session Summary Question: Concerns about potential price deflation due to cocoa price decline - Management acknowledged the sophisticated nature of competitors and emphasized their patient approach to pricing, ensuring affordability while navigating cocoa cost inflation [9][10] Question: Elasticity and its impact on pricing strategy - Management noted that current elasticities are favorable, and they are planning for around 0.8 to account for fluctuations, with a goal to exceed this [19] Question: Insights on cocoa's impact on margins - Management indicated that while cocoa prices have declined, they expect to see a recovery in gross margins, but volatility remains a concern [24][26] Question: Plans for brand investment and its durability - Management stated that investments in 2026 are designed to lay a foundation for future growth, with a focus on demand creation and innovation [30] Question: Performance in international markets - Management expressed optimism about international growth, highlighting market share gains and a focused strategy for key markets [102] Question: Impact of SNAP changes on business - Management described SNAP changes as a manageable headwind, with ongoing monitoring and strategies in place to adapt [88] Question: Expectations for earnings growth and flexibility in guidance - Management emphasized the momentum in the business and the flexibility built into their guidance to respond to changing conditions [46][49]

Financial Data and Key Metrics Changes - The company anticipates 4%-5% net sales growth and meaningful earnings recovery for 2026, indicating a positive outlook after navigating challenges in 2025 [4][10] - The gross margin is expected to recover to 41% in 2026, which is an improvement from 2025 but still below historical levels [25][27] Business Line Data and Key Metrics Changes - The snacks business experienced an 18% growth in Q4 2025, driven by double-digit volume growth [12][46] - The confection segment is projected to have organic sales growth around 3%, while salty snacks are expected to grow in the mid-single digits [98] Market Data and Key Metrics Changes - The company is seeing strong performance in its salty snacks category, which has been a significant growth driver, contrasting with a relatively flat performance in the overall salty category last year [52][79] - The international market is expected to see low single-digit sales growth, with a focus on premium products and strategic pricing [100][101] Company Strategy and Development Direction - The company is focusing on multi-year investments in brand building, innovation, and R&D to drive sustainable growth [30][62] - There is a strong emphasis on connecting brands to cultural moments and seasonal events to enhance consumer engagement and drive sales [90][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio and the ability to navigate macroeconomic challenges, including cocoa inflation [4][10] - The company is monitoring external factors such as SNAP changes and macroeconomic headwinds, but remains optimistic about growth opportunities [88][106] Other Important Information - The company plans to provide more detailed insights into its strategy and investments during the upcoming investor day [62][110] - The management highlighted the importance of maintaining a rational pricing strategy while leveraging promotions to drive consumer excitement [95][97] Q&A Session Summary Question: Cocoa pricing and potential deflation - Management acknowledged the potential for price deflation due to recent cocoa price declines but emphasized their strategic approach to pricing and consumer insights [9][10] Question: Elasticity and flexibility in planning - Management noted that while current elasticities are favorable, they are planning for fluctuations and have built flexibility into their guidance [20][21] Question: Gross margin performance in Q4 - Management indicated that the gross margin exceeded expectations due to strong volume leverage and lower-than-anticipated tariffs on supplier materials [36][38] Question: Brand investment durability - Management stated that the brand investments made in 2026 are expected to lay a foundation for growth in 2027 and beyond [30][31] Question: International market performance - Management expressed optimism about international growth, highlighting share gains in key markets like Canada and Mexico [101][102] Question: SNAP program changes - Management provided insights on the impact of SNAP changes, indicating it is a manageable headwind and factored into their outlook [88][89] Question: Future earnings expectations - Management discussed the potential for earnings growth in 2027, emphasizing the importance of balancing investments with margin recovery [59][60]

Financial Data and Key Metrics Changes - Total Hershey net sales increased by 7% in Q4 2025, with full-year growth of 4.4% [4][13] - Consolidated net sales for 2025 reached approximately $11.7 billion, reflecting a 4.4% increase year-over-year [13] - Adjusted gross margin for Q4 was 38.3%, a decrease of 650 basis points compared to the previous year due to commodity inflation and tariff expenses [16] Business Line Data and Key Metrics Changes - North America Confectionery net sales increased by 5.3% in Q4, with net price realization contributing approximately 10 points to growth [14] - North America Salty Snacks segment net sales surged by 28% in Q4, with organic constant currency growth of 18.2% [14] - The international segment saw a slight increase in net sales by 0.4% to $256 million, but organic constant currency net sales declined by 1.9% [15] Market Data and Key Metrics Changes - U.S. confection retail sales growth was in line with the category in Q4, driven by strong innovation and holiday programming [4] - The U.S. salty snacking business experienced a retail sales growth of 15.6% in Q4, leading to an 11.3% increase for the full year [5] - Hershey's international segment achieved full-year organic constant currency net sales growth of 2.2%, with market share gains in Mexico, Brazil, and the U.K. [6] Company Strategy and Development Direction - The company aims to accelerate sustainable sales growth, restore margins, and position Hershey for long-term success [3] - Strategic priorities for 2026 include delivering top-line growth, driving sustainable margin improvement, and evolving the strategy for future competitiveness [8][12] - The company plans to introduce innovative products and increase media investments to support brand growth [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging environment marked by cocoa inflation and macroeconomic volatility [3] - The outlook for 2026 includes expected net sales growth of 4% to 5%, with a focus on innovation and brand investment [19] - Management is cautious about potential demand headwinds, including health trends and consumer financial pressures [20] Other Important Information - The AAA Program has generated over $300 million in net savings over the past two years, with an additional $100 million projected for 2026 [7] - The acquisition of LesserEvil is expected to contribute approximately 150 basis points to growth in 2026 [19] - Capital expenditures for 2026 are projected to be between $425 million and $475 million, focusing on technology investments [23] Q&A Session Summary Question: What are the expectations for 2026 sales growth? - The company expects full-year 2026 total net sales growth of between 4% and 5%, driven by pricing, innovation, and brand investment [19] Question: How will the company address margin recovery? - The company anticipates a gross margin recovery of around 400 basis points in 2026, supported by pricing and productivity initiatives [20] Question: What are the plans for capital allocation in 2026? - The company will prioritize reinvestment in the business, including M&A, and plans to raise dividends by 6% [23]

Financial Data and Key Metrics Changes - Total Hershey net sales increased by 7% in Q4 2025, with full-year growth of 4.4% [4][13] - Consolidated net sales for 2025 reached approximately $11.7 billion, reflecting a 4.4% increase year-over-year [13] - Adjusted gross margin for Q4 was 38.3%, a decrease of 650 basis points compared to the previous year due to commodity inflation and tariff expenses [16] Business Line Data and Key Metrics Changes - North America Confectionery net sales increased by 5.3% in Q4, with net price realization contributing approximately 10 points to growth [14] - North America Salty Snacks segment net sales surged by 28% in Q4, with organic constant currency growth of 18.2% [14] - The international segment saw a slight increase in net sales by 0.4% in Q4, but organic constant currency net sales declined by 1.9% [15] Market Data and Key Metrics Changes - U.S. confection retail sales growth was in line with the category in Q4, driven by strong innovation and holiday programming [4] - The U.S. salty snacking business experienced a retail sales growth of 15.6% in Q4, contributing to an 11.3% increase for the full year [5] - International segment achieved full-year organic constant currency net sales growth of 2.2%, with market share gains in Mexico, Brazil, and the U.K. [6] Company Strategy and Development Direction - The company aims to accelerate sustainable sales growth and restore margins while positioning itself for long-term success [3] - Strategic priorities for 2026 include delivering top-line growth, improving margins, and evolving the organization for future competitiveness [8][12] - The company plans to introduce innovative products and increase brand investments to drive category excitement and growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging environment marked by cocoa inflation and macroeconomic volatility [3] - The outlook for 2026 includes expected net sales growth of 4% to 5%, with a focus on strategic pricing and innovation [19] - Management is cautious about potential demand headwinds, including health trends and consumer financial pressures [20] Other Important Information - The AAA Program has generated over $300 million in net savings over the past two years, with an additional $100 million projected for 2026 [7] - The company completed the acquisition of LesserEvil, enhancing its position in the salty snacks market [17] - Capital expenditures for 2026 are projected to be between $425 million and $475 million, focusing on technology investments [23] Q&A Session Summary Question: What are the expectations for 2026 net sales growth? - The company expects total net sales growth of 4% to 5% for 2026, with contributions from the acquisition of LesserEvil [19] Question: How is the company addressing commodity inflation? - The procurement team effectively navigated cocoa markets, using hedging strategies to mitigate inflation impacts [7] Question: What are the plans for advertising and brand investment in 2026? - The company plans to increase media investment by double digits, supporting momentum across its business [21]

Financial Data and Key Metrics Changes - Total Hershey net sales increased by 7% in Q4 2025, with full-year growth of 4.4% [4][15] - Consolidated net sales for 2025 reached approximately $11.7 billion, reflecting a 4.4% increase year-over-year [15] - Adjusted gross margin for Q4 was 38.3%, a decrease of 650 basis points compared to the previous year, primarily due to commodity inflation and tariff expenses [18] Business Line Data and Key Metrics Changes - North America Confectionery net sales increased by 5.3% in Q4, with net price realization contributing approximately 10 points to growth [16] - North America Salty Snacks segment net sales surged by 28% in Q4, with organic constant currency growth of 18.2% [16] - The international segment saw a slight increase in net sales by 0.4% to $256 million, but organic constant currency net sales declined by 1.9% [17] Market Data and Key Metrics Changes - Retail sales growth in the U.S. salty snacking business accelerated to 15.6% in Q4, resulting in an 11.3% increase for the full year [5] - Hershey's U.S. confection retail sales growth was in line with the category, reflecting strong performance in innovation and holiday programming [4] - The international segment achieved full-year organic constant currency net sales growth of 2.2%, with market share gains in Mexico, Brazil, and the U.K. [6][7] Company Strategy and Development Direction - The company aims to deliver top-line growth at or above market categories, restore margins, and increase investments for sustainable growth in 2027 and 2028 [9] - Strategic priorities for 2026 include driving sustainable top-line growth, restoring margins, and evolving the strategy for future competitiveness [9][12] - The company plans to introduce innovative products and activate major cultural moments to enhance brand presence [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026, highlighting the momentum from 2025 and the ability to navigate macroeconomic challenges [3] - The company is monitoring factors such as consumer financial pressure and health trends, which could impact future performance [8] - For 2026, the company expects net sales growth of 4% to 5%, with a focus on innovation and brand investment [20] Other Important Information - The AAA Program has generated over $300 million in net savings over the past two years, with an additional $100 million projected for 2026 [8] - The company completed the acquisition of LesserEvil, enhancing its position in the salty snacks market [19] - Capital expenditures for 2026 are projected to be between $425 million and $475 million, with a focus on technology investments [24] Q&A Session Summary Question: What are the expectations for 2026 net sales growth? - The company expects total net sales growth of 4% to 5% for 2026, with contributions from the acquisition of LesserEvil [20] Question: How is the company addressing commodity inflation? - The company is utilizing agile hedging and sourcing strategies to mitigate the impact of cocoa inflation [8] Question: What are the plans for advertising and brand investment in 2026? - Advertising and related consumer spending are expected to increase by double digits, supporting momentum across the business [22]

Currently, Bhalla is vice-president (Canada & global customers) at The Hershey Company, whose mainstay portfolio includes chocolate and confectionery brands such as Kisses, Reese's, Jolly Rancher and SkinnyPop. The impending transition at Dabur, which makes Vatika shampoo, Real juices and chyawanprash, comes against the backdrop of a series of Hindustan Unilever, According to Bhalla's LinkedIn profile, he has had an over eight-year tenure at The Hershey Company in diverse roles across Canada, Asia-Pacific, ...

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]