Latest news with #SkinnyPop
Yahoo
07-05-2025
- Business
- Yahoo
The Hershey Company (NYSE:HSY): A Discounted Sweet Treat
We came across a bullish thesis on The Hershey Company (NYSE:HSY) on ValueInvestorsClub by angus309. In this article, we will summarize the bulls' thesis on HSY. The company's shares were trading at $186.36 when this thesis was published, vs. the closing price of $163.28 on Apr 25. The Hershey Company (HSY): Among Takeover Rumors Hedge Funds Are Buying A close-up of hands deftly molding a bar of chocolate. HSY manufactures and sells confectionery products and pantry items in the United States and internationally through its three segments: North America Confectionery, North America Salty Snacks, and International. It controls 36% of the chocolate market in the US with high single-digit sales coming from international markets like Mexico, Brazil and India. The stock is down almost 40% from its peak in 2023 due to a number of reasons. First, the launch of the weight-loss drug Ozempic by Novo Nordisk has been a popular hit due to its effectiveness. It is estimated that people will consume 20-30% fewer calories due to the influence of this medication, thereby impacting the sales of HSY. Another factor for underperformance is the torrential rains in Ghana and Ivory Coast leading to black pod disease and lower yield. HSY is expected to face higher input costs, which would reduce margins. While these headwinds are valid arguments by bears, HSY has been in the business for over a century. The likelihood of Americans reducing their intake of chocolates seems far-fetched when considering long-term consumption patterns. Moreover, HSY has expanded beyond chocolates and offers products like SkinnyPop popcorn and Dot's Pretzels that can provide a hedge if consumers shy away from high-calorie treats. The concern surrounding mounting input costs can also be dealt with since HSY has the flexibility to pass on increased costs to its customers. This was done in 2023 when a 10% hike in price enabled HSY to increase its revenue by 11% without a major drop in volume. The popularity of Feastables by Mr. Beast is another potential cause for concern. The brand is set to grow exponentially but the ability to capture market share may be constrained by lack of scale in manufacturing and distribution. HSY can also turn the tide by launching healthier versions that may offer direct competition to Feastables. HSY is trading at 15x trailing 12-month earnings, which seems unjustified for a company that saw its earnings grow by almost 15% from 2007 to 2023. The forward dividend yield is close to 3.4%, with ROIC exceeding WACC by 18 percentage points. Factoring in a high capital return, a growing dividend and a multiple higher than the S&P 500, the fair value of HSY's stock is $225. This is 40% higher than the current market price.
Yahoo
01-05-2025
- Business
- Yahoo
Hershey posts robust quarterly results on North America snacks demand
(Reuters) -Hershey posted a smaller-than-expected drop in sales for the first quarter and beat profit estimates on Thursday, helped by steady demand for its salty snacks business in North America. Sales in Hershey's North America snack business, home to Dot's pretzels and SkinnyPop popcorn, got a boost as the company reduced prices after several quarters of hikes. Its quarterly organic volumes in the North America salty snacks business rose 4%, while prices were 3% lower than a year ago. The Reese's Peanut Butter Cups maker also maintained its annual net sales and adjusted earnings forecast, including estimated tariff-related expenses of about $15 million to $20 million for the second quarter. The Trump administration's steep import tariffs and often erratic trade-policy shifts have raised costs for many American businesses and clouded their outlook. Peer Mondelez International had also flagged potential uncertainty around tariffs, after the chocolate maker beat quarterly profit estimates. Hershey benefited from a 2% price hike for its overall business as well as decreased advertising and marketing expenses that helped shield its margins from higher costs of manufacturing and commodities such as cocoa. The company's net sales declined 13.8% to $2.81 billion from a year ago. Analysts had estimated a 14.1% decline to $2.79 billion, per data compiled by LSEG. On an adjusted basis, the company reported profit of $2.09 per share for the quarter ended March 30, compared with estimates of $1.95 per share. Shares of the company were marginally up at $167.80 in premarket trading.
Reuters
01-05-2025
- Business
- Reuters
Hershey posts robust quarterly results on North America snacks demand
May 1 (Reuters) - Hershey (HSY.N), opens new tab posted a smaller-than-expected drop in sales for the first quarter and beat profit estimates on Thursday, helped by steady demand for its salty snacks business in North America. Sales in Hershey's North America snack business, home to Dot's pretzels and SkinnyPop popcorn, got a boost as the company reduced prices after several quarters of hikes. Its quarterly organic volumes in the North America salty snacks business rose 4%, while prices were 3% lower than a year ago. The Reese's Peanut Butter Cups maker also maintained its annual net sales and adjusted earnings forecast, including estimated tariff-related expenses of about $15 million to $20 million for the second quarter. The Trump administration's steep import tariffs and often erratic trade-policy shifts have raised costs for many American businesses and clouded their outlook. Peer Mondelez International (MDLZ.O), opens new tab had also flagged potential uncertainty around tariffs, after the chocolate maker beat quarterly profit estimates. Hershey benefited from a 2% price hike for its overall business as well as decreased advertising and marketing expenses that helped shield its margins from higher costs of manufacturing and commodities such as cocoa. The company's net sales declined 13.8% to $2.81 billion from a year ago. Analysts had estimated a 14.1% decline to $2.79 billion, per data compiled by LSEG. On an adjusted basis, the company reported profit of $2.09 per share for the quarter ended March 30, compared with estimates of $1.95 per share. Shares of the company were marginally up at $167.80 in premarket trading.
Yahoo
25-04-2025
- Business
- Yahoo
Hershey opens new chocolate plant as part of $1B supply chain upgrade
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Hershey last week opened a 250,000-square-foot chocolate processing facility in Hershey, Pennsylvania, the company's first new manufacturing plant in the city in more than 30 years. The Reese Chocolate Processing facility, named after brand founder H.B Reese, took nearly three years to complete. It will provide chocolate for brands such as Reese's, Kit Kat and Hershey's. The confection and salty snacks maker said the project is part of a multi-year, $1 billion investment that also includes the addition of 13 production lines and the upgrading of 11 existing lines across Hershey's North American facilities. As companies look to boost production and improve the efficiency of their existing supply chain, more are adding, expanding or even closing older facilities across their networks. The new Hershey's plant is located on a 55-acre site that is part of the company's existing Reese's campus. The site has nearly 100 full-time employees and will add more positions as operations expand. 'Our ability to make and deliver products both quickly and efficiently is a key component of our growth strategy,' Will Bonifant, vice president of supply chain strategy and manufacturing at Hershey, said in a statement. 'We've made significant investments to speed production, increase capacity and develop our workforce for the future to make more of the iconic brands consumers love.' Hershey has recently stepped-up efforts to boost innovation across its portfolio that includes everything from Kisses and Reese's to gummies and Dot's pretzels. While Hershey has used M&A to expand its portfolio, a major part of its ability to innovate comes from efforts it has taken to grow production capacity. In 2023, for example, Hershey purchased two popcorn operations from a co-manufacturer to increase production capacity and flexibility for its SkinnyPop brand. And when it purchased Dot's in 2021, a key part of that $1.2 billion deal was buying manufacturing locations to increase output as demand increased. Recommended Reading Hershey to buy healthier snacks maker LesserEvil
Boston Globe
19-03-2025
- Boston Globe
Denese Butler of HGTV on Frankenhouses, portable speakers, and Skinny Pop
Do you prefer booking trips through a travel agent or on your own? I book trips on my own, which allows me the freedom to come up with experiences tailored to our personal interests. I generally prefer to leave some planning for Mike because I generally tend to go with the flow. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Thoughts on an 'unplugged' vacation? An unplugged vacation is so ideal for R&R but it's difficult to achieve when managing the demands of running a business. I always tend to carve out an hour or so during my vacations to tend to urgent calls, respond to texts, or sift through emails that require my attention. One day, I genuinely hope to reach a point when I can confidently unplug and fully immerse myself in the experience without any distractions or interruptions. Advertisement What has been your worst vacation experience? While Jamaica is undeniably a vibrant country, I unfortunately ended up getting food poisoning during my visit. As a result, the possibility of returning has been unfortunately tainted by the experience of being ill for an entire day. The good news is that despite the setback, I am hopeful that my perspective will change in the future so that I can fully enjoy and appreciate the beauty and charm that the country has to offer. What is your favorite childhood travel memory? Spending almost an entire summer in Grenada, a beautiful island in the West Indies and my father's homeland, was unforgettable. My sister and I loved the rich culture [and] living like locals. We stayed with my grandmother and enjoyed spending time with my cousins and their friends, learning new games and pastimes. It was really a great time. Advertisement Do you vacation to relax, to learn, or for the adventure of it all? I live for all the above. I typically go into vacations with not too high of an expectation. However, if I get to experience at least one of the three key elements, I've won! What book do you plan on bringing with you to read on your next vacation? The book I plan on finishing is called 'Raising Cain: Protecting the Emotional Life of Boys' by Dan Kindlon and Michael Thompson. If you could travel with one famous person/celebrity, who would it be? Hands down, my husband. He truly is the best travel partner I could ever ask for. Most of the time, you really get to understand how people are when you travel with them. And to be honest, the experiences we share while exploring new places highlight both our strengths and quirks, making every trip unforgettable. What is the best gift to give a traveler? I would definitely say a wireless speaker. For me, music serves as my coffee, providing that essential pick-me-up. It's fascinating how music can significantly elevate your mood and transform your day. What is your go-to snack for a flight or a road trip? Skinny Pop popcorn. It's light and flavorful. What is the coolest souvenir you've picked up on a vacation? I'm a real sucker for beautiful jewelry and stylish hats. It's tough for me because both have undeniably become my top favorites over the years. What is your favorite app/website for travel? I don't use apps. My travel locations are inspired by word of mouth. Advertisement What has travel taught you? It's perfectly all right if things do not always unfold as planned. Take in the moment fully, appreciate the culture around you, and take each day as it comes. What is your best travel tip? Embrace the culture. You've selected that particular destination for a reason, and it presents a wonderful opportunity to learn, grow, and expand your understanding of how others live. Engaging with the local customs and traditions can deepen your experience and offer valuable insights into diverse perspectives. Juliet Pennington can be reached at
