Hershey Company (HSY)

Over the past six months, The Hershey Co. (HSY) stock price has experienced fluctuations. In Q3 2025, Hershey reported adjusted EPS of $1.30 and revenue of $3.18 billion, surpassing expectations, but the stock closed down due to contracting gross margins. Elevated cocoa prices have been a significant headwind, leading to margin compression. Challenges in its seasonal business, particularly Halloween, impacted performance. Analyst ratings and price targets have varied, with upgrades from Piper Sandler, Wells Fargo, Morgan Stanley and Goldman Sachs. Hershey is focusing on innovation, sustainability, and expanding its product portfolio, including plant-based chocolates and low-sugar options, and implementing a "Triple A" program for cost savings.

Demand for The Hershey Company's products exhibits clear seasonality, particularly tied to holidays. The holiday season, especially Q4, is critical for hot cocoa sales, accounting for 35% of annual sales in North America. Strategic seasonal launches, such as limited-edition flavors and holiday bundles, reinforce brand loyalty. The company has faced challenges in its seasonal business, with a disappointing early Halloween performance in 2025 attributed to warmer weather and seasonality effects. Despite these challenges, Hershey has also seen robust non-seasonal consumption across all segments. The company leverages seasonal demand patterns and diversifies into premium and functional variants to expand its market dominance.

The Hershey Company is a global confectionery and snack food powerhouse operating within the Consumer Staples sector, specifically in the Confectioners industry. It is one of the world's largest chocolate manufacturers and a leading producer of chocolate and non-chocolate snack food products in North America. Hershey's business is segmented into North America Confectionery, North America Salty Snacks, and International, with a product portfolio including iconic brands such as Hershey's, Reese's, Kisses, and SkinnyPop.

The Hershey Company has a significant global presence, with products sold in approximately 80 countries. The United States accounts for the majority of its net sales (87.2%), but it also has a strong international footprint across Asia, Latin America, the Middle East, Europe, Africa, and North America. Hershey operates 13 production sites, with 10 in the United States, 2 in Mexico, and 1 in Malaysia. Key international markets include Canada, Mexico, Brazil, India, and China.

The Hershey Company has solidified its global reputation as a powerhouse in the snack world, known for its iconic brands and consistent product innovation. Hershey's iconic cocoa mix has been a staple in American kitchens for decades, with 84% of U.S. households recognizing its brand. The company is committed to global cocoa sustainability and was a founding member of the World Cocoa Foundation in 2000. Hershey has continued to expand its portfolio through strategic partnerships and acquisitions, including partnerships with JAKKS Pacific and Costco, and acquisitions of LesserEvil and Sour Strips.

The Hershey Company's ownership is heavily dominated by institutional investors, who hold approximately 76.00% to 88% of the company's stock. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Capital International Investors, State Street Corp, Charles Schwab Investment Management Inc, and Geode Capital Management, Llc. The Milton Hershey School Trust is also a significant shareholder, holding 28% of shares outstanding. Individual investors hold about a 12% stake, and insiders own approximately 0.43% of the stock.