Latest news with #HersheyCompany
Yahoo
2 days ago
- Business
- Yahoo
What Makes The Hershey Company (HSY) a Stable Food Dividend Stock?
The Hershey Company (NYSE:HSY) is included among the 10 Best Food Stocks with Dividends. A close-up of hands deftly moulding a bar of chocolate. The Hershey Company (NYSE:HSY) is a well-known consumer staples company primarily recognized for its confections and snacks. While the company has broadened its product range to include items like popcorn and pretzels, chocolate remains one of its core offerings. Seen as an affordable indulgence, Hershey's chocolate continues to be highly popular, driving steadily increasing sales over time. The Hershey Company (NYSE:HSY) recently revealed it will increase prices for the second time in just over a year, attributing the hike to ongoing high cocoa costs that will lead to a double-digit rise in candy prices. While cocoa prices have dropped from their record high of $12,000 per metric ton, they still trade above $8,000 per metric ton. Many analysts expect these elevated prices to persist in the near term, largely due to last year's adverse weather conditions in Western Africa. The Hershey Company (NYSE:HSY) is also a strong dividend payer, having raised its payouts for 15 consecutive years. The company offers a quarterly dividend of $1.37 per share and has a dividend yield of 2.93%, as of July 27. While we acknowledge the potential of HSY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
6 days ago
- Business
- The Hill
Hershey plans to raise chocolate prices: ‘Reflects the reality of rising ingredient costs'
HERSHEY, Pa. (WHTM) — Some products on the candy aisle are about to get a bit more expensive. The Hershey Company has confirmed it plans to raise prices across its portfolio, blaming the increase on the rising costs of ingredients — particularly cocoa. 'We're committed to delivering the treats consumers love while continuing to invest in making our products and experiences even better,' a Hershey spokesperson said in a statement obtained by Nexstar. 'To support our approach, we're making a price adjustment with our retail customers. This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa.' Is a hot dog a sandwich? The Hot Dog Council has a very strong opinion The Hershey Company, whose brands include Reese's, Almond Joy and Kit Kat, among others, has 'worked hard to absorb these costs' and keep most of its offerings under $4 for years, according to a spokesperson. Price changes are expected to go into effect later this fall, with the average increase to be in the low double-digit percentages, the Associated Press reported, citing Hershey. In some cases, the size of the packs will simply become smaller, according to the AP. Cocoa prices have more than doubled over the past two years due to poor weather and disease in West Africa, which supplies more than 70 percent of the world's cocoa. Cocoa futures, which are binding contracts for a specific quantity of cocoa, stood at $7,380 per metric ton on Wednesday, according to the International Cocoa Organization, which releases a daily average of prices in London and New York. That's down from December's peak of $11,984, but it's still 121 percent higher than two years ago. And the situation remains volatile. According to the International Cocoa Organization, prices surged in early June on concerns about production in Ivory Coast but eased on optimistic forecasts for production in Ghana and Latin America. They rose again in late June after heavy rains in West Africa, which could worsen the outbreak of diseases that harm crops. It's no surprise, then, that Hershey isn't the only candy company raising prices. On Tuesday, Swiss chocolatier Lindt said it raised prices by 15.8 percent in the first half of this year. The company said it was able to offset some of the higher cost of cocoa with long-term contracts but had to pass much of it on to consumers. Cloetta, a Swedish confectionary company, told investors last week that it raised chocolate prices in the second quarter. And Nestle raised U.S. prices for products like Toll House chocolate chips in the spring. Earlier this month, nine members of Pennsylvania's Republican Congressional delegation also sent a letter to the Office of the United States Trade Representative requesting an end to tariffs on unfinished cocoa and chocolate imports. The lawmakers cited the growing cost of cocoa products, and the lack of a domestic alternative. Cocoa trees cannot grow in the United States. 'These imported products fuel a thriving domestic chocolate manufacturing industry that employs tens of thousands of Americans across this country, many of them in Pennsylvania,' the lawmakers said in the letter. Hershey, however, has stressed that the price increases of its candies won't apply to products specially packaged for Halloween. A representative for Hershey was not immediately available to comment further on Halloween pricing.
Newsweek
6 days ago
- Business
- Newsweek
Hershey's Price Hike Explained
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Hershey Company plans on raising its prices to cope with the "unprecedented" costs of cocoa. The company, known for Reese's Peanut Butter Cup as well as its signature milk chocolate and Hershey's Kisses, confirmed the change to various media outlets this week. Hershey said that persistently high cocoa prices had forced it to raise prices by a "lower double-digit" percentage. Newsweek has contacted the company via its website outside of regular business hours for comment. Why It Matters Hershey is one of the largest chocolate companies in the U.S. by both market share and sales, which reached over $11.2 billion last year. But global cocoa prices have rocketed in recent years due to a worldwide supply shortage stemming from a combination of factors including weather conditions and disease outbreaks in West Africa, where much of the world's cocoa is grown. Cocoa prices on the New York commodities market are three times as high as they were in 2022. The company has not confirmed the exact price increases it will be putting in place, nor which specific products will be affected, but the change will likely effect many of the chocolate bars that Americans purchase most frequently. What To Know Hershey said it informed its retail customers last week that it would be making the change. The company previously announced pricing actions last August, after outgoing CEO Michele Buck said the high costs of cocoa would significantly hurt the company's bottom line. This was prior to another surge in cocoa prices later in 2024. According to data from TradingView, cocoa futures rose nearly 170 percent over the year, peaking at more than $12,000 in mid-December. Hershey's chocolate bars are shown on July 16, 2014 in Chicago, Illinois. Hershey's chocolate bars are shown on July 16, 2014 in Chicago, Illinois. Photo Illustration byCocoa futures and prices have adjusted, the latter currently trading at around $8,100 per metric ton, though these still remain more than double the levels of just two years ago. In its 2024 annual report, released in February, Hershey predicted that high cocoa prices would "put significant pressure on 2025 earnings." Hershey told news outlets this week that the price increases were "not related to tariffs or trade policies," but rather reflected "the reality of rising ingredient costs including the unprecedented cost of cocoa." In an earnings call in May, Hershey said it anticipated between $15 million and $20 million in "tariff expenses" in the second quarter of this year. What People Are Saying A spokesperson for Hershey told CNN the price hike "reflects the reality of rising ingredient costs including the unprecedented cost of cocoa." "We've worked hard to absorb these costs and continue to make 75% of our product portfolio available to consumers for under $4.00," they added. What Happens Next? Hershey has not specified when the price increases will come into effect. During the May earnings call, Hershey's CEO said cocoa production was expected to rebound in the year. "There are reasons to believe that this year's crop marks the beginning of a multi-year growth cycle in cocoa supply," said Buck. She is set to retire in August, to be succeeded by Wendy's CEO Kirk Tanner.
Yahoo
22-07-2025
- Business
- Yahoo
Hershey to raise chocolate prices as cocoa costs remain high
(Reuters) -Hershey has told retailers it will be taking a double-digit price increase on average across its confection portfolio due to a surge in costs of cocoa, a company spokesperson said on Tuesday. The maker of Reese's Peanut Butter Cups declined to comment on the specifics of the pricing action as discussions with its retail partners are underway. "This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa," the spokesperson said. Cocoa prices have risen sharply in the last two years and touched a record in December due to supply problems in Ghana and the Ivory Coast. Since then, the price of cocoa has fallen to an eight-month low, though it remains above levels seen earlier in the decade. During Hershey's quarterly earnings call in May, CEO Michele Buck said the company was working to absorb high input costs by adjusting the pack size and pricing together, especially on seasonal items. These actions would lead to higher prices in the second and third quarter, she had said. (Reporting by Savyata Mishra and Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona and Devika Syamnath)
Yahoo
18-07-2025
- Business
- Yahoo
Here's What to Expect From Hershey's Next Earnings Report
With a market cap of $34.7 billion, The Hershey Company (HSY) is a leading global manufacturer of chocolate, non-chocolate confectionery, salty snacks, and pantry items, with operations spanning over 80 countries. It operates through three key segments - North America Confectionery, North America Salty Snacks, and International, offering a wide range of products under iconic brands such as Hershey's, Reese's, Kit Kat, and SkinnyPop. The Hershey, Pennsylvania-based company is expected to announce its fiscal Q2 2025 earnings results before the market opens on Wednesday, Jul. 30. Ahead of this event, analysts expect Hershey to report an adjusted profit of $1 per share, down 21.3% from $1.27 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. More News from Barchart Insider Trading Alert: Here's Who Bought Nvidia and AMD Stock Before the U.S. Chip Deal with China Dear Tesla Stock Fans, Mark Your Calendars for July 23 Robinhood Keeps Hitting New Highs. How Should You Play HOOD Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts expect the chocolate bar and candy maker to report an adjusted EPS of $5.81, down nearly 38% from $9.37 in fiscal 2024. However, adjusted EPS is projected to rebound, growing 4.1% year-over-year to $6.05 in fiscal 2026. Shares of HSY have declined 10.8% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 13.6% surge and the Consumer Staples Select Sector SPDR Fund's (XLP) 3.8% return over the same period. Despite reporting better-than-expected Q1 2025 adjusted EPS of $2.09, Hershey shares fell marginally on May 1 due to a 31.9% year-over-year EPS decline and a 13.8% drop in net sales to $2.8 billion, missing the estimate. Additionally, volume headwinds from ERP-related inventory laps, holiday timing shifts, and reduced shipping days. Furthermore, management guided for a full-year adjusted EPS of $6 - $6.18, reflecting a mid-30% decline from 2024, adding to investor concerns. Analysts' consensus view on Hershey's stock is cautious, with a "Hold" rating overall. Among 22 analysts covering the stock, one recommends "Strong Buy," 16 suggest "Hold," one advises "Moderate Sell," and four "Strong Sells." As of writing, the stock is trading above the average analyst price target of $159.36. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
