olivLaw · US equity research
The Hershey Company HSY
Sugar & Confectionery Products · SIC 2060 · Vertical: Food products (SIC 20xx)
The Hershey Company is one of the largest confectionery and snack producers in the world, with a leading position in chocolate in North America. In the first half of 2026 the company reported net sales growth driven largely by pricing actions while volumes declined, so future demand trends matter to investors and consumers alike.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, The Hershey Company (HSY) stock was 174.50 USD (+4.15% on the day), with market capitalisation 39.1 bn USD, P/E 0.2 on diluted EPS of 985.32 USD over the last 12 months, dividend yield 2.89%, beta -0.01, 52-week range 157.61–236.28 USD. Latest reported quarter (Q3 2026): revenue of 3.3 bn USD (+3.0% YoY), net income of 580.8 m USD (+110.2% YoY).
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 58.1
- strong (55–70)
- Bollinger (20, 2)
- 159.10 – 175.03
- in the upper half of the band · %B 0.97 · band width 9.5%
- SMA 50 / 200
- 168.68 / 188.47
- mixed trend
- MACD (12, 26, 9)
- 0.42 / -0.34
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.4% | −1.1% | +9.5 pp | — |
| 3 months | −2.8% | −0.5% | −2.4 pp | — |
| 6 months | −6.4% | +4.4% | −10.8 pp | — |
| Year to date | −4.1% | +12.3% | −16.4 pp | — |
| 1 year | +5.2% | +13.5% | −8.4 pp | +8.8% |
| 3 years | −7.2% | +76.4% | −83.6 pp | −8.4% |
| 5 years | −0.5% | +63.7% | −64.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.9 bn | 2.8 bn | 2.6 bn | 3.2 bn | 3.1 bn | 3.1 bn | 2.8 bn | 3.3 bn |
| Cost of revenue | 1.3 bn | 1.9 bn | 1.8 bn | 2.1 bn | 1.9 bn | 1.9 bn | 1.5 bn | 1.8 bn |
| Gross profit | 1.6 bn | 944.3 m | 796.3 m | 1.0 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.5 bn |
| SG&A | 622.7 m | 558.7 m | 603.2 m | 600.5 m | 698.2 m | 576.0 m | 620.6 m | 692.9 m |
| Operating income | 939.1 m | 369.2 m | 192.8 m | 434.6 m | 444.9 m | 640.7 m | 642.6 m | 817.7 m |
| Depreciation & amortisation | 123.8 m | 119.6 m | 123.8 m | 127.8 m | 132.5 m | 133.0 m | 136.1 m | 136.3 m |
| Interest expense | 41.8 m | 50.6 m | 57.3 m | 59.2 m | 57.7 m | 54.8 m | 55.8 m | 53.2 m |
| Pre-tax income | 723.1 m | 323.7 m | 149.1 m | 371.9 m | 369.5 m | 592.7 m | 588.3 m | 768.0 m |
| Income tax | -73.5 m | 99.5 m | 86.4 m | 95.6 m | 49.5 m | 157.6 m | 130.6 m | 187.2 m |
| Net income | 796.6 m | 224.2 m | 62.7 m | 276.3 m | 320.0 m | 435.1 m | 457.7 m | 580.8 m |
| Operating cash flow | 941.6 m | 396.7 m | 112.2 m ≈ | 841.9 m ≈ | 926.6 m | 468.8 m | 419.3 m ≈ | 750.7 m ≈ |
| Capex | 134.5 m | 145.5 m | 85.1 m ≈ | 85.9 m ≈ | 138.1 m | 114.6 m | 89.8 m ≈ | 100.6 m ≈ |
| Dividends paid | 270.5 m | 271.6 m | 271.2 m ≈ | 271.1 m ≈ | 271.3 m | 288.0 m | 286.4 m ≈ | 284.8 m ≈ |
| Share repurchases | 0 | 0 | 0 ≈ | 0 ≈ | 0 | 69.3 m | 370.1 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 7.8 bn | 8.0 bn | 8.1 bn | 9.0 bn | 10.4 bn | 11.2 bn | 11.2 bn | 11.7 bn |
| Revenue YoY | +3.7% | +2.5% | +2.0% | +10.1% | +16.1% | +7.2% | +0.3% | +4.4% |
| Net income | 1.2 bn | 1.1 bn | 1.3 bn | 1.5 bn | 1.6 bn | 1.9 bn | 2.2 bn | 883.3 m |
| Net income YoY | +50.4% | −2.4% | +11.2% | +15.5% | +11.3% | +13.2% | +19.3% | −60.2% |
| Diluted EPS | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | 15.1% | 14.4% | 15.7% | 16.5% | 15.8% | 16.7% | 19.8% | 7.6% |
| Free cash flow | 1.3 bn | 1.4 bn | 1.3 bn | 1.6 bn | 1.8 bn | 1.6 bn | 1.9 bn | 1.8 bn |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 925.9 m USD
- Financial debt
- 4.9 bn USD
- Net debt
- 4.0 bn USD
- Equity
- 4.6 bn USD
- Total assets
- 13.7 bn USD
- Debt / equity
- 1.06x
- Current ratio
- 1.19x
- ROE
- 18.9%
- ROA
- 6.6%
- FCF margin
- 15.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 8.1 bn | 9.0 bn | 10.4 bn | 11.2 bn | 11.2 bn | 11.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Cost of revenue | 4.4 bn | 4.9 bn | 5.9 bn | 6.2 bn | 5.9 bn | 7.8 bn | SEC (XBRL)· 17 Feb 2026verified |
| Gross profit | 3.7 bn | 4.0 bn | 4.5 bn | 5.0 bn | 5.3 bn | 3.9 bn | SEC (XBRL)· 17 Feb 2026verified |
| Research & development | 37.6 m | 40.1 m | 46.9 m | 50.0 m | 55.8 m | 61.7 m | SEC (XBRL)· 17 Feb 2026verified |
| SG&A | 1.9 bn | 2.0 bn | 2.2 bn | 2.4 bn | 2.4 bn | 2.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Operating income | 1.8 bn | 2.0 bn | 2.3 bn | 2.6 bn | 2.9 bn | 1.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Depreciation & amortisation | 294.9 m | 315.0 m | 379.0 m | 419.8 m | 455.3 m | 503.7 m | SEC (XBRL)· 17 Feb 2026verified |
| EBITDA | 2.1 bn ≈ | 2.4 bn ≈ | 2.6 bn ≈ | 3.0 bn ≈ | 3.4 bn ≈ | 1.9 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Interest expense | 153.5 m | 129.8 m | 140.1 m | 161.5 m | 174.3 m | 224.8 m | SEC (XBRL)· 17 Feb 2026verified |
| Pre-tax income | 1.5 bn | 1.8 bn | 1.9 bn | 2.2 bn | 2.5 bn | 1.2 bn | SEC (XBRL)· 17 Feb 2026verified |
| Income tax | 219.6 m | 314.4 m | 272.3 m | 310.1 m | 252.7 m | 330.9 m | SEC (XBRL)· 17 Feb 2026verified |
| Net income | 1.3 bn | 1.5 bn | 1.6 bn | 1.9 bn | 2.2 bn | 883.3 m | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.1 bn | 329.3 m | 463.9 m | 401.9 m | 730.7 m | 925.9 m | SEC (XBRL)· 17 Feb 2026verified |
| Receivables | 615.2 m | 671.5 m | 711.2 m | 823.6 m | 800.4 m | 729.5 m | SEC (XBRL)· 17 Feb 2026verified |
| Inventories | 964.2 m | 988.5 m | 1.2 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 17 Feb 2026verified |
| Current assets | 3.0 bn | 2.2 bn | 2.6 bn | 2.9 bn | 3.8 bn | 3.6 bn | SEC (XBRL)· 17 Feb 2026verified |
| Property, plant & equipment, net | 2.3 bn | 2.6 bn | 2.8 bn | 3.3 bn | 3.5 bn | 3.5 bn | SEC (XBRL)· 30 Apr 2026verified |
| Goodwill | 2.0 bn | 2.6 bn | 2.6 bn | 2.7 bn | 2.7 bn | 3.0 bn | SEC (XBRL)· 17 Feb 2026verified |
| Intangibles (excl. goodwill) | 1.3 bn | 2.0 bn | 2.0 bn | 1.9 bn | 1.9 bn | 2.5 bn | SEC (XBRL)· 17 Feb 2026verified |
| Total assets | 9.1 bn | 10.4 bn | 10.9 bn | 11.9 bn | 12.9 bn | 13.7 bn | SEC (XBRL)· 17 Feb 2026verified |
| Accounts payable | 580.1 m | 692.3 m | 970.6 m | 1.1 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Short-term debt | 74.0 m | 939.4 m | 693.8 m | 719.8 m | 1.3 bn | 218.5 m | SEC (XBRL)· 17 Feb 2026verified |
| Long-term debt | 4.1 bn | 4.1 bn | 3.3 bn | 3.8 bn | 3.2 bn | 4.7 bn | SEC (XBRL)· 30 Apr 2026verified |
| Current liabilities | 1.9 bn | 2.5 bn | 3.3 bn | 3.0 bn | 3.9 bn | 3.0 bn | SEC (XBRL)· 17 Feb 2026verified |
| Total liabilities | 6.9 bn | 7.7 bn | 7.6 bn | 7.8 bn | 8.2 bn | 9.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Equity | 2.2 bn | 2.8 bn | 3.3 bn | 4.1 bn | 4.7 bn | 4.6 bn | SEC (XBRL)· 30 Apr 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.7 bn | 2.1 bn | 2.3 bn | 2.3 bn | 2.5 bn | 2.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Capex | 441.6 m | 495.9 m | 519.5 m | 771.1 m | 605.9 m | 454.6 m | SEC (XBRL)· 17 Feb 2026verified |
| Free cash flow | 1.3 bn ≈ | 1.6 bn ≈ | 1.8 bn ≈ | 1.6 bn ≈ | 1.9 bn ≈ | 1.8 bn ≈ | SEC (XBRL)· 17 Feb 2026derived |
| Investing cash flow | -531.3 m | -2.2 bn | -787.4 m | -1.2 bn | -960.3 m | -1.3 bn | SEC (XBRL)· 17 Feb 2026verified |
| Financing cash flow | -499.2 m | -681.1 m | -1.4 bn | -1.1 bn | -1.3 bn | -803.4 m | SEC (XBRL)· 17 Feb 2026verified |
| Dividends paid | 640.7 m | 686.0 m | 775.0 m | 889.1 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 17 Feb 2026verified |
| Share repurchases | 211.2 m | 457.9 m | 389.0 m | 264.9 m | 494.2 m | 0 | SEC (XBRL)· 17 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 61 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 39.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet75
- Valuation34
- Quality88
- Growth33
- Returns73
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 122.76 – 204.29 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)122.76 – 204.29 (Mid 153.85)WACC 8.8% · starting FCFF 2.3 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 9.0%
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E130.66 – 170.09 (Mid 149.57)5 companies used · median multiple 18.7x · quartiles 16.3x – 21.2xADM, BG, MDLZ, MNST, PEP
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 61/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 22.6% | 80 (vs peers) | 11% |
| Net margin · Quality | 14.6% | 88 (vs peers) | 7% |
| FCF conversion · Quality | 118.3% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 3.9% | 33 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | 1.4x | 75 (on a fixed band) | 11% |
| Interest coverage · Balance sheet | 11.5x | 100 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.2x | 37 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | 21.8x | 33 (vs peers) | 11% |
| EV/EBITDA · Valuation | 14.0x | 9 (on a fixed band) | 11% |
| FCF yield · Valuation | 5.4% | 68 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 4.0% | 57 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 53.3% | 95 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet75/100 · 3/3 factors with a value
- Growth· partial33/100 · 1/2 factors with a value
- Quality88/100 · 3/3 factors with a value
- Returns73/100 · 2/2 factors with a value
- Valuation34/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
HERSHEY CO (HSY). Latest full fiscal year: 2025; data up to 2026-09-27.
Figures computed from the financial statements: revenue 11.7 bn USD in 2025; YoY growth 4.4%; net margin 14.6%; ROE 38.0%; net debt/EBITDA 1.4x.
The estimated value range is 126.71–187.19 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 151.71 USD, the price of 174.50 USD leaves a potential of -13.1% (value / price − 1) and a margin of safety of -15.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 61/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 22.6%
- Net margin: 14.6%
- FCF conversion: 118.3%
- Net debt / EBITDA: 1.4x
- Interest coverage: 11.5x
- Payout ratio (FCF): 53.3%
What contradicts it
- EV/EBITDA: 14.0x
Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y.
Versus the vertical median
Food products (SIC 20xx) · same major group (2-digit SIC) · compared with 8 companies
Only companies with a capitalisation between 4.9 bn and 314.5 bn (within 8× of the company's); 81 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PEPPepsico Inc | 194.1 bn | 18.7 | 50.1% | 10.8% | +2.3% | −4% / −15% |
| MDLZMondelez International, Inc. | 85.3 bn | 21.2 | 15.5% | 10.2% | +5.8% | +17% / −5% |
| KDPKeurig Dr Pepper Inc. | 50.1 bn | 37.2 | 5.7% | 7.1% | +8.2% | +32% / +17% |
| MNSTMonster Beverage Corp | 47.8 bn | 22.4 | 25.7% | 23.1% | +10.7% | +30% / +77% |
| HSYHershey Co | 35.4 bn | 19.7 | 38.0% | 14.6% | +4.4% | +5% / −7% |
| ADMArcher-Daniels-Midland Co | 33.7 bn | 13.8 | 10.7% | 3.0% | −6.2% | +17% / −4% |
| KHCKraft Heinz Co | 30.1 bn | — | -9.0% | -14.0% | −3.5% | −0% / −28% |
| GISGeneral Mills, Inc. | 19.2 bn | — | -10.6% | -4.9% | −5.4% | −24% / −44% |
| BGBunge Global SA | 18.6 bn | 16.3 | 7.2% | 1.2% | +32.4% | +1% / −12% |
1- and 3-year price returns: for HSY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 102.54 Total return -41% · Per year -41% | 181.34 Total return 4% · Per year 4% | 273.21 Total return 57% · Per year 57% |
| 3 years | 98.36 Total return -44% · Per year -17% | 195.82 Total return 12% · Per year 4% | 324.12 Total return 86% · Per year 23% |
| 5 years | 94.34 Total return -46% · Per year -12% | 211.47 Total return 21% · Per year 4% | 384.50 Total return 120% · Per year 17% |
- Exit P/E± 48.96
- Net margin± 34.27
- Annual revenue growth± 28.29
- Annual dilution± 2.88
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).
In brief
The Hershey Company is one of the largest confectionery and snack producers in the world, with a leading position in chocolate in North America. In the first half of 2026 the company reported net sales growth driven largely by pricing actions while volumes declined, so future demand trends matter to investors and consumers alike 123.
SWOT
Strengths
- The company owns widely recognized brands and a leading position in chocolate in North America, supported by innovation and a diversified confectionery and snacks portfolio.
- An efficient distribution network and substantial production capacity, most of it located in the United States, support reliable delivery to retail customers.
- Growth in salty snacks and recent acquisitions have diversified sources of growth beyond traditional confectionery.
Weaknesses
- Dependence on one distributor for a significant share of sales creates concentrated exposure to a single channel.
- Volumes in confectionery declined, and consumer price sensitivity has limited the effect of price increases on sales.
- Raw material costs, especially cocoa, have produced volatile results, including losses on hedging instruments.
Opportunities
- Expansion into snacks and adjacent categories through acquisitions and innovation could open new snacking occasions.
- If logistics and sourcing costs stabilize, margins could hold near recent levels or continue to improve.
- Efficiency and automation programs announced for 2026 could support profitability over the medium term.
Threats
- Tariffs and retaliatory trade measures could affect costs and access to export markets.
- Regulatory changes on food and colors could raise costs and shift consumer preferences.
- Intensifying competition from other snacks and from retailer store brands could press prices and volumes.
Risks
- Cocoa price volatilityhigh
Cocoa prices have been volatile and remain structurally elevated, and the company has reported significant losses on derivative instruments. If supply from producing regions is disrupted, costs could rise quickly.
- Customer concentrationmedium
A single distributor accounts for a significant share of sales, so a loss or reduction of orders from this customer could materially affect results.
- Price elasticity of demandhigh
Price increases have been followed by volume declines. If consumers keep reducing purchases, revenue could be affected even as prices rise.
- Tariffs and geopolitical riskmedium
U.S. tariffs, retaliatory trade measures and regional conflicts can affect transport costs, sourcing and exports, and their effects are difficult to predict.
- Regulation and reputationmedium
Changing food regulation and any product quality issues could lead to recalls, fines and damage to brand reputation.
Investment thesis
What would need to be true (bull case)
- If the margin recovery seen in the second quarter holds and salty snack growth stays strong, the company could exceed its current revenue growth outlook.
- Its leading position in North American chocolate and strong brand recognition could support price increases without major share loss.
- If cocoa prices continue to ease, raw material costs could decline and efficiency programs could sustain margins over the medium term.
What would break the thesis
- Falling confectionery volumes, particularly in the second quarter, suggest the effect of price increases could be limited or temporary.
- If tariffs and geopolitical tensions intensify, logistics and sourcing costs could erode gains made through margins.
- Reliance on one major distributor and on certain product categories could amplify the impact of a slowdown in demand or a change in ordering behavior.
What to watch
- Volume trends in North America Confectionery and consumer response to price increasesQ3 2026
- Updated guidance for net sales growth and adjusted EPS, and the effect of tariffs and any tariff refundsQ3 2026
- Cocoa cost trends and their effect on gross margin, including derivative mark-to-market effects2026
- Progress on removing synthetic colors and the costs of reformulating products2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).
The business
Hershey is a global confectionery company incorporated in Delaware, known for chocolate, sweets, mints and snacks sold under more than 85 brand names in approximately 65 countries 1. It reports three segments: North America Confectionery, North America Salty Snacks and International, a structure that reflects how management allocates resources and assesses performance 1. Sales go mainly to wholesale distributors, grocery chains, mass merchandisers, drug stores and vending companies, and one distributor, McLane Company, accounted for 27% of consolidated net sales in 2025 1.
Market context
Hershey operates in highly competitive markets in North America and selected international markets, competing with global multinationals, national companies, regional firms and large retailers with substantial resources 1. The company is the largest producer of quality chocolate in North America, and in the U.S. its candy, mint and gum category grew 4.9% in 2025 while its share declined slightly 1.
The salty snacks segment is expanding, with consumer takeaway rising in 2025 and share gains, while confectionery faces price and competitive pressure from other snacking categories 12. If price elasticity persists, demand for confectionery could remain under pressure even when nominal sales grow.
Trends
- Cocoa and raw material costsmixed
Cocoa prices stayed volatile and structurally elevated, and although they improved during 2026, the company recorded large unfavorable mark-to-market losses on commodity derivatives in 2025 12. If cocoa prices keep easing, margins could benefit meaningfully.
- Tariffs and geopolitical uncertaintyheadwind
Tariffs on U.S. imports and retaliatory measures had a material negative effect on 2025 results, and the conflict in the Middle East has added uncertainty 12. If tariffs expand or persist, logistics and sourcing costs could rise.
- Food regulation and changing preferencesheadwind
U.S. authorities and the FDA are imposing new rules on nutrition, labeling and food dyes, and the company decided to remove certified colors from its snacks by the end of 2027 1. This could bring reformulation costs but also opportunities for products perceived as healthier.
Competitive position
Hershey competes in fragmented markets with many global, national and regional rivals, some of them large private companies or retailers with considerable resources 1. Competition rests on innovation, quality, price, brand recognition and loyalty, marketing effectiveness and the ability to meet consumer preferences 1. The company also notes rising competition from other snack items 1.
In salty snacks the company competes with other popcorn and pretzel brands, and internationally it faces local and regional producers 1. The ability to hold shelf space and sustain promotions at retail remains a key factor in its competitive position 1.
- Mondelez InternationalMDLZ
Global snacks and confectionery producer, named here as a representative competitor in snacking categories within the general competitive framework the company describes
- Large private confectionery firms
Large private confectionery companies with substantial international operations, identified by the company as principal competitors
- Large retailers with private label
Large retailers competing through store-brand products in candy and snack categories
- Regional and local snack makers
Regional and local snack producers present in markets where the company sells, including outside the U.S.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Halloween gets pricier as chocolate costs climb — Hershey may feel the pinchCNBC — Top News · 30 Oct 2026 · EN
- Capitals recall Jonny Brodzinski from Hershey as illness takes toll on forward corpsSurge — GDELT DOC · 17 Oct 2026 · RO
- Hershey’s Dividend Is Finally Growing Again After a Nearly 2-Year FreezeYahoo Finance — News · 12 Sept 2026 · EN
- 1 Stat That Makes Hershey Stock Hard to Ignore Heading Into FallYahoo Finance — News · 30 Aug 2026 · EN
- Nvidia Is World’s Most Valuable Company and Cheaper Than HersheyBloomberg Markets · 08 Jul 2026 · EN
- Hershey Bull Sees World Cup, America 250 Lifting Chocolate SalesBloomberg Markets · 29 May 2026 · EN
- Hershey Bets on Agentic AI to Rethink $2B in Marketing SpendHacker News · 18 May 2026 · EN
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report02 Sept 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report30 Jul 2026
- Current report30 Jul 2026Results of operations · Financial statements and exhibits
- Current report09 Jun 2026Departure or appointment of officers · Financial statements and exhibits
- Current report28 May 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report08 May 2026Shareholder vote · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report30 Apr 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / The Hershey Company · 17 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / The Hershey Company · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Hershey Company · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.