The Hershey Company (HSY)
NYSE:HSY
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The Hershey Company (HSY) AI Stock Analysis

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HSY

The Hershey Company

(NYSE:HSY)

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Neutral 65 (OpenAI - 4o)
Rating:65Neutral
Price Target:
$184.00
▲(0.58% Upside)
Hershey's overall stock score reflects a stable financial position with strong cash flow generation, but is tempered by declining profitability margins and bearish technical indicators. The mixed sentiment from the earnings call and moderately high valuation further contribute to a cautious outlook.
Positive Factors
Revenue Growth
Exceeding revenue expectations indicates strong market demand and effective execution, supporting long-term growth prospects.
Cash Flow Generation
Strong cash flow growth enhances financial flexibility, enabling strategic investments and shareholder returns.
Innovation and Brand Investment
Ongoing innovation and brand investments strengthen competitive positioning and drive sustainable revenue growth.
Negative Factors
Profitability Margins Decline
Declining margins may pressure profitability, requiring effective cost management and pricing strategies to sustain earnings.
Impact of Cocoa and Tariffs
Rising cocoa costs and tariffs could impact cost structure and margins, necessitating strategic sourcing and pricing adjustments.
Pressure in Take-home Chocolate Segment
Increased competition in the chocolate segment may erode market share, requiring innovation and differentiation to maintain leadership.

The Hershey Company (HSY) vs. SPDR S&P 500 ETF (SPY)

The Hershey Company Business Overview & Revenue Model

Company DescriptionThe Hershey Company (HSY) is a leading American confectionery manufacturer known for its iconic chocolate products and snacks. Founded in 1894 and headquartered in Hershey, Pennsylvania, the company operates in the global chocolate and non-chocolate confectionery sectors. Hershey's core product offerings include a wide range of chocolate bars, candies, and snacks, with well-known brands such as Hershey's, Reese's, Kit Kat, and Dove. In addition to its core chocolate products, Hershey also produces a variety of non-chocolate confectionery items and snack foods, catering to diverse consumer preferences across various markets.
How the Company Makes MoneyThe Hershey Company's revenue model is primarily driven by the sales of its confectionery products, which include both chocolate and non-chocolate items. Key revenue streams come from retail sales through supermarkets, convenience stores, and online platforms. Hershey also benefits from partnerships with various retailers and distributors, which enhance its market reach. Additionally, the company invests in advertising and promotional campaigns to drive brand awareness and consumer engagement. Seasonal promotions, particularly around holidays like Halloween and Valentine's Day, further boost sales. Hershey's international expansion and product innovation, such as introducing new flavors and healthier snack options, contribute to its overall earnings.

The Hershey Company Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Breaks down revenue across different regions, revealing where The Hershey Company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Chart InsightsHershey's U.S. revenue shows strong growth, driven by strategic pricing and innovation in salty snacks, despite challenges like cocoa inflation and tariffs. The latest earnings call highlights optimism in pricing strategies and operational efficiencies, projecting a significant gross margin expansion by 2026. The 'All Other' category remains stable, but faces pressure from private labels and declining convenience store traffic. Hershey's focus on technology investments and potential tariff relief could further bolster its growth trajectory, aligning with its long-term ambitions.
Data provided by:Main Street Data

The Hershey Company Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call portrays a mixed sentiment. While there is strong growth in salty snacks and positive contributions from innovation, challenges such as disappointing Halloween sales and ongoing cocoa cost pressures weigh on the positive aspects.
Q3-2025 Updates
Positive Updates
Salty Snacks Growth
Salty snacks saw a 14% year-over-year increase in consumption, driven by strong performance in brands like SkinnyPop and Dot's, which gained market share and showed robust growth.
Positive Innovation Impact
Innovation, particularly the REESE'S Oreo launch, has driven category growth and market engagement, with plans for a strong pipeline in 2026 and 2027.
Everyday CMG Business Double-Digit Growth
The everyday CMG business experienced double-digit growth over the past four weeks, indicating strong consumer demand and effective pricing strategy.
Negative Updates
Disappointing Halloween Sales
Halloween sales were slower than expected, with a notable dependence on the last week of sales to meet projections, partly attributed to the holiday falling on a Friday.
International Segment Loss
The international segment reported a loss due to higher cocoa costs and competitive pricing pressures, with challenges expected to persist until cocoa becomes deflationary.
Cocoa Cost Challenges
Cocoa costs remain 70% higher than in 2023, impacting margins, with inflationary pressures expected to continue into 2026 despite some recent moderation.
Company Guidance
During The Hershey Company’s third quarter 2025 Q&A session, the company provided guidance concerning its expectations for 2026, emphasizing a focus on balanced growth and long-term investment. Hershey anticipates a non-algorithm year for both top and bottom lines, with potential for above-algorithm EPS growth, contingent on factors such as elasticity and cocoa costs. The company noted that cocoa costs have moderated but remain 70% higher than 2023 levels, with some expected inflation in 2026. Hershey plans to rebuild margins gradually while maintaining its revenue growth algorithm of 2% to 4%. Despite challenges like Halloween sales softness, the company highlighted strong everyday confectionery growth and robust innovation pipelines, with a focus on consumer insights and strategic pricing to ensure competitiveness. The guidance remains cautious amid variable factors, with a commitment to investing in brand strength and market positioning for long-term success.

The Hershey Company Financial Statement Overview

Summary
The Hershey Company demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have declined, the company has improved its leverage position. Overall, Hershey maintains a stable financial position with potential for future growth.
Income Statement
75
Positive
The Hershey Company shows consistent revenue growth, with a TTM growth rate of 1.72%. However, there is a noticeable decline in profitability margins, with the TTM gross profit margin at 37.74% compared to 47.32% in 2024. Net profit margin also decreased to 11.84% from 19.83% in 2024. Despite these declines, the company maintains a solid revenue base and profitability, indicating stable operations.
Balance Sheet
70
Positive
The company's debt-to-equity ratio has improved to 1.07 in the TTM period, down from 1.16 in 2024, indicating better leverage management. However, the return on equity has decreased to 29.44% from 47.11% in 2024, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced asset structure.
Cash Flow
80
Positive
Hershey's cash flow performance is strong, with a significant free cash flow growth rate of 36.66% in the TTM period. The operating cash flow to net income ratio is healthy at 0.66, and the free cash flow to net income ratio is 0.74, indicating efficient cash generation relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.49B11.20B11.16B10.42B8.97B8.15B
Gross Profit4.30B5.30B5.00B4.50B4.05B3.70B
EBITDA2.26B3.10B2.75B2.44B2.24B1.94B
Net Income1.36B2.22B1.86B1.64B1.48B1.28B
Balance Sheet
Total Assets13.58B12.95B11.90B10.95B10.41B9.13B
Cash, Cash Equivalents and Short-Term Investments1.16B730.75M401.90M463.89M329.27M1.14B
Total Debt5.74B5.45B5.13B5.12B5.38B4.82B
Total Liabilities9.01B8.23B7.80B7.65B7.66B6.89B
Stockholders Equity4.56B4.71B4.10B3.30B2.76B2.23B
Cash Flow
Free Cash Flow2.16B1.93B1.55B1.81B1.59B1.26B
Operating Cash Flow2.29B2.53B2.32B2.33B2.08B1.70B
Investing Cash Flow-793.17M-960.31M-1.20B-787.38M-2.22B-531.28M
Financing Cash Flow-985.97M-1.30B-1.15B-1.42B-681.14M-499.23M

The Hershey Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price182.93
Price Trends
50DMA
183.65
Negative
100DMA
181.09
Positive
200DMA
172.41
Positive
Market Momentum
MACD
-1.44
Negative
RSI
57.15
Neutral
STOCH
84.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSY, the sentiment is Positive. The current price of 182.93 is above the 20-day moving average (MA) of 174.92, below the 50-day MA of 183.65, and above the 200-day MA of 172.41, indicating a neutral trend. The MACD of -1.44 indicates Negative momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 84.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSY.

The Hershey Company Risk Analysis

The Hershey Company disclosed 15 risk factors in its most recent earnings report. The Hershey Company reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

The Hershey Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$36.34B26.8131.01%3.00%4.71%-23.03%
64
Neutral
$8.19B9.659.65%8.06%-4.11%72.17%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
62
Neutral
$73.37B21.2413.07%3.42%4.13%-5.19%
60
Neutral
$2.73B30.5910.48%0.89%0.34%0.85%
49
Neutral
$11.37B-21.32%4.09%2.54%-293.39%
42
Neutral
$12.64M-56.79%8.09%17.25%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HSY
The Hershey Company
182.93
13.16
7.75%
CAG
Conagra Brands
17.38
-7.99
-31.49%
SJM
JM Smucker
106.69
-1.01
-0.94%
RMCF
Rocky Mountain Chocolate Factory
1.57
-1.11
-41.42%
TR
Tootsie Roll
39.95
8.81
28.29%
MDLZ
Mondelez International
55.78
-6.74
-10.78%

The Hershey Company Corporate Events

Hershey Reports Strong Sales Amid Cost Challenges
Oct 31, 2025

The Hershey Company, a leading player in the confectionery and snacking industry, is renowned for its iconic chocolate products and diverse snack offerings. The company recently reported its financial results for the third quarter of 2025, showcasing a notable increase in net sales driven by strategic brand investments and market-leading execution.

Private Placements and Financing
Hershey Enters New $1.875 Billion Credit Agreement
Neutral
Oct 21, 2025

On October 21, 2025, The Hershey Company entered into a new five-year credit agreement with several financial institutions, allowing it to borrow up to $1.875 billion, with an option to increase by $1 billion. This new agreement replaces a previous credit facility established in April 2023, which allowed for borrowing up to $1.35 billion. The updated credit agreement is expected to enhance Hershey’s financial flexibility for general corporate purposes.

The most recent analyst rating on (HSY) stock is a Hold with a $189.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

Executive/Board Changes
Hershey Board Member Juan R. Perez Announces Retirement
Neutral
Aug 27, 2025

On August 21, 2025, Juan R. Perez announced his retirement from The Hershey Company‘s Board of Directors and its associated committees, effective October 3, 2025. His decision to retire was not due to any disagreements with the company’s operations or policies, indicating a smooth transition for the board and no immediate impact on the company’s strategic direction.

The most recent analyst rating on (HSY) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

Executive/Board Changes
Huong Maria T. Kraus Appointed Hershey’s New Chairman
Neutral
Aug 18, 2025

Following the retirement of Michele G. Buck, Huong Maria T. Kraus has been appointed as the new Chairman of the Board of The Hershey Company, effective August 18, 2025. Ms. Kraus, who joined the Board in May 2023 and has extensive experience in governance and finance, also holds leadership roles at Hershey Trust Company and Milton Hershey School, indicating a strong continuity in strategic oversight for the company.

The most recent analyst rating on (HSY) stock is a Hold with a $202.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Hershey Appoints Chris Brandt to Board of Directors
Positive
Aug 4, 2025

On July 30, 2025, The Hershey Company announced the appointment of Chris Brandt to its Board of Directors, effective August 11, 2025. Brandt, with over 25 years of marketing experience in the food and beverage industry, currently serves as President and Chief Brand Officer of Chipotle Mexican Grill. His extensive background in marketing and brand management is expected to enhance Hershey’s strategic initiatives in these areas.

The most recent analyst rating on (HSY) stock is a Hold with a $204.00 price target. To see the full list of analyst forecasts on The Hershey Company stock, see the HSY Stock Forecast page.

Hershey Company Reports Strong Q2 2025 Sales Growth
Jul 31, 2025

The Hershey Company, a leading player in the confectionery and salty snacks industry, is renowned for its iconic chocolate products and innovative snacking solutions. The company operates primarily in the North American market, with a growing international presence.

Hershey’s Earnings Call: Innovation Amid Challenges
Jul 31, 2025

The Hershey Company’s recent earnings call presented a cautiously optimistic outlook, with a balanced sentiment reflecting both significant achievements and ongoing challenges. The company highlighted its innovation and pricing strategy as key strengths, while also expressing hope for potential tariff relief. However, challenges such as cocoa inflation, tariffs, and a high tax rate were acknowledged as notable risks that temper the overall positive sentiment.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025