12 Best Chocolate Stocks to Buy According to Hedge Funds

6. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 31

One of the Best Chocolate Stocks, Hormel Foods Corporation (NYSE:HRL) had previously concentrated on meat. It then expanded to provide other protein products and established itself as a branded food firm. The company sells its products through a variety of channels, including overseas (6%), US food service (32%), and US retail (62% of fiscal 2024 sales). Perishable food accounted for 72% of fiscal 2024 sales, while shelf-stable food accounted for 28%.

Hormel Foods Corporation’s (NYSE:HRL) portfolio consists of prominent brands like Justin’s, Hormel Natural Choice, Planters, Skippy, and SPAM. Renowned for its high-quality products, Justin’s maintains its dominance in the natural confectionery market by providing substitutes such as USDA organic, non-GMO chocolate candy pieces, chocolate butter, and spreads. In their respective categories, many of these have the top or second-largest market share.

According to the report for the fourth quarter of 2024, Hormel Foods Corporation (NYSE:HRL)’s net sales were $3.1 billion, operating income was $294 million, and adjusted operating income was $308 million, indicating that the company had a strong operating performance while incurring non-operational expenses that were excluded from the adjusted figure for profitability.

For the 2024 holiday season, one of the company’s brands, PLANTERS, unveiled new Toasted Marshmallow Hot Chocolate Cashews along with returning seasonal favorites and a $1,000 charity and fan contest. Innovative tastes, a giveback program, and strong brand recognition may all improve customer loyalty and engagement, which would boost overall revenue growth.

Israel Englander’s Millennium Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 4.23 million shares worth $133.99 million as of Q3.