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
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!