1 Stat That Makes Hershey Stock Hard to Ignore Heading Into Fall
As cocoa prices continue to rebound, Hershey is confident it can keep consumers buying chocolate.
The Hershey Company is poised for a strong autumn, buoyed by pricing power and seasonal demand. A crucial statistic highlighting the company's resilience is its revenue growth compared to cocoa costs, which have surged more than 120% over the past six months. Despite this significant rise in the cost of a core ingredient, Hershey's net sales increased by 6.6% year over year in Q2.
Adjusted earnings per share saw an impressive 57% rise during the same period. This underscores the company's robust brand and its capacity to maintain sales without alienating customers. According to Hershey's research, 82% of parents plan to buy chocolate in October, with intentions to purchase gummies and sour candy even earlier.
In response, the company is preparing for Hersheyween, its largest-ever Halloween promotion running from the end of summer into the fourth quarter.
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