Hershey Looks Delectable On Lucrative Buyouts & Strong Brands

By Zacks Investment ResearchStock MarketsMar 08, 2020 09:34PM ET

www.investing.com/analysis/hershey-looks-delectable-on-lucrative-buyouts--strong-brands-200514480

Hershey Looks Delectable On Lucrative Buyouts & Strong Brands

By Zacks Investment Research | Mar 08, 2020 09:34PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

AAPL

-0.08%

Add to/Remove from Watchlist

HSY

+0.37%

Add to/Remove from Watchlist

SJM

-0.42%

Add to/Remove from Watchlist

BGS

+0.90%

Add to/Remove from Watchlist

MDLZ

+1.55%

Add to/Remove from Watchlist

The Hershey Company (NYSE:HSY) has been benefiting from well-chalked measures to boost portfolio strength, including acquisitions and innovations. These factors have been driving the company’s revenues. Further, Hershey’s enhanced pricing policies and efforts to augment operating efficiency have been yielding.

Factors Driving Growth

Buyouts have played an important role in augmenting Hershey’s revenues. In this regard, the company’s acquisition of ONE Brands, LLC, completed in September 2019, is bolstering the nutrition bar category. In fact, ONE Brands is expected to have a positive impact of 1 point on net sales in 2020. In August 2019, the company announced minority investments in Fulfil Holdings Ltd. and Blue Stripes L.L.C., both of which are slowly picking up pace in the snacking space.

Hershey acquired Pirate Brands from B&G Foods (NYSE:BGS) in September 2018 to bolster its snacking business. Additionally, the company has been gaining from Amplify Snack Brands, which was acquired in January 2018 to expand in the snacking category. Moreover, the acquisition of New York-based premium chocolate snacking brand, barkTHINS, (April 2016) has been aiding the company’s better-for-you snacks portfolio. Other food companies like Smucker (NYSE:SJM) and Mondelez (NASDAQ:MDLZ) are also benefiting from acquisitions.

Coming back to Hershey, it regularly brings innovation to its core brands to meet consumer demands and needs that are not addressed by its current portfolio. In this respect, it is optimistic about its Kit Kat Duos innovation along with the expansion plans of the THiNS platform. Further, the company expects to launch York THiNS and Reese's white THiNS by March. Moreover, an important strategy of the company is to create a unique and holistic portfolio for every season, which can meet consumers’ seasonal shopping needs.

Moreover, Hershey is progressing well with its efforts to enhance operating efficiency. In this respect, the company’s SKU rationalizing efforts have been fruitful. In addition, Hershey has been gaining from its Margin for Growth multi-year program. The program is intended to improve overall operating margin through supply chain optimization, streamlining the operating model and reduction of administrative expenses. Additionally, the company has undertaken initiatives to improve the price mix. We note that Hershey’s continued focus on augmenting net price realization is expected to support gross margin growth in the future.

We believe that these upsides are likely to help the company maintain its solid footing.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Hershey Company (The) (HSY): Free Stock Analysis Report

The J. M. Smucker Company (SJM): Free Stock Analysis Report

B&G Foods, Inc. (BGS): Free Stock Analysis Report

Mondelez International, Inc. (MDLZ): Free Stock Analysis Report

Original post

Zacks Investment Research

Zoom Stock: Leading the Video Market After Skype’s Exit By Gabriel Osorio-Mazzilli - Mar 05, 2025

As the digital economy starts to go online across businesses and the world, investors have to be aware of the companies and services that will be at the forefront of this...

Dow's Resilience Tested by Tariff Actions and Economic Signals By Zain Vawda - Mar 05, 2025

Wall Street Indexes remain under pressure today but have held above the lows we saw on Tuesday as the Trump administration tariffs came into force. The announcement of tariffs on...

3 Safe-Haven Stocks to Buy Amidst a Global Trade War By Jesse Cohen - Mar 05, 2025 5

These stocks provide a compelling case as safe-haven stocks in the face of an escalating trade war. Each company operates within sectors that are relatively resilient to economic...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.90%

Mar 06, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	42,653.3	-352.9	-0.82%
US 500	5,784.9	-57.6	-0.99%
Dow Jones	43,006.59	+485.60	+1.14%
S&P 500	5,842.63	+64.48	+1.12%
Nasdaq	18,552.73	+267.57	+1.46%
S&P 500 VIX	23.37	+1.44	+6.57%
Dollar Index	104.170	-0.082	-0.08%

Crude Oil WTI	66.53	+0.22	+0.33%
Brent Oil	69.50	+0.20	+0.29%
Natural Gas	4.372	-0.078	-1.75%
Gold	2,907.44	-18.56	-0.63%
Silver	32.975	-0.159	-0.48%
Copper	4.7495	-0.0445	-0.93%
US Soybeans	1,019.88	+7.88	+0.78%

U.S. 10Y	4.305	+0.038	+0.89%
U.S. 30Y	4.598	+0.039	+0.86%
U.S. 5Y	4.086	+0.028	+0.69%
U.S. 3M	4.324	+0.010	+0.23%
US 10Y T-Note	110.59	-0.25	-0.23%
Euro Bund	127.50	-0.35	-0.28%
10-2 Yield Spread	27.17	+1.56	+6.09%

Apple	235.74	-0.19	-0.08%
NVIDIA	117.30	+1.31	+1.13%
Alphabet A	173.02	+2.10	+1.23%
Tesla	279.10	+7.06	+2.60%
Amazon.com	208.36	+4.56	+2.24%
Netflix	990.92	+18.34	+1.89%
Meta Platforms	656.47	+16.47	+2.57%

Hershey Looks Delectable On Lucrative Buyouts &amp; Strong Brands

Related Articles

Hershey Looks Delectable On Lucrative Buyouts & Strong Brands