The Hershey Company (HSY): How Sweet It Is

Page 1 of 2

Chocolate has a very sweet history. It’s been called the nectar of the gods and poor man’s champagne. Plus, it’s the go-to, anytime remedy for ailments and adversities. Leave some chocolate around today, and chances are very good it will be gone today. Chocolate rarely hangs around anywhere for very long.

Ah! But such is not the case for The Hershey Company (NYSE:HSY), the heavyweight of chocolate companies. Founded by Milton S. Hershey in 1894, the company of the iconic chocolate bar with the same name is the oldest chocolate company in the United States. Its taste, aroma, and name are well-known worldwide. The company is so revered that the town in Pennsylvania where it is headquartered is proudly named for Hershey.

The Hershey Company (NYSE:HSY)The candy maker is the parent company of such coveted and cult-like treats including Mr. Goodbar, Kit Kat Bars, Whoppers, Reece’s, Hershey Kisses, and Symphony Bars. It also markets a hugely successful line of baking products and syrups.

Fourth-quarter profit jumped a savory 5.4% on higher revenue, thanks to strength in all of its categories. Profit in Q4 totaled a tasty $149.9 million, up from a year ago profit of $142.1 million, or 62 cents a share.

The company raised its full year 2013 per-share earnings outlook to an increase between 10% and 12%, up from a previous target of 8% to 10%.

Hershey’s is set to enter its most robust season with Valentine’s Day and Easter approaching. Mother’s Day, another popular holiday for gifting chocolate, follows. While there is a seasonal lull until Halloween, millions and millions and millions of chocolate lovers never need an occasion to buy, give or eat the stuff.

Some 3 billion pounds of chocolate are consumed worldwide annually. Americans’ love affair with the treat continues to grow. We currently down 11.7 pounds per person every year.

Hershey competes with Cadbury, the British confectionery company owned by Mondelez International Inc (NASDAQ:MDLZ).

Mondelez was spun off from Kraft Foods in October 2012. Its brands include Oreo, Chips Ahoy and Cadbury candies. It also has a prominent position in the gum and coffee markets.  Mondelez has a heavy focus in emerging markets where the “grazing” (I’m not hungry I’ll just pick) phenomenon is just beginning to take hold.

However, the company is facing some headwinds as its deals with increasing commodities prices and how it will pass these mounting costs on to consumers in less affluent markets.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!