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The Hershey Co HSY Stock Quote

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Morningstar‘s Stock Analysis HSY

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Is it the right time to buy or sell?
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1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Despite Unrelenting Inflationary Headwinds, Hershey Should Flourish on Consumer-Valued Innovation

Erin Lash, CFA Sector Director

Business Strategy and Outlook

| Erin Lash, CFA |

Wide-moat Hershey's dominance in U.S. confectionery is undeniable (46% share of the chocolate aisle versus just 1% for private label, as cited by the firm, according to IRI). And we don't think consumers’ penchant for indulgent fare is showing signs of waning, as evidenced by the 14% organic growth marks Hershey chalked up in the second quarter. But from our vantage point this isn't merely a byproduct of a favoarable demand environment. More so, we applaud the strategic focus CEO Michele Buck has brought to bear over the past five years--ramping up investments in its core domestic brands while pulling back in its international arm (high-single-digit percentage of total sales, where we surmise it lacks a competitive edge).

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Company Profile HSY

Business Description

Hershey is a leading confectionery manufacturer in the U.S. (around a $25 billion market), controlling around 46% of the domestic chocolate space (per IRI). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the U.S., including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix and Pirate Brands (including the Pirate’s Booty, Smart Puffs, and Original Tings brands) over the past few years.

Contact
19 East Chocolate Avenue
Hershey, PA, 17033
T +1 717 534-4200
Sector Consumer Defensive
Industry Confectioners
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 18,990

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