12 Best Chocolate Stocks to Buy According to Hedge Funds

2. Kellanova (NYSE:K)

Number of Hedge Fund Holders: 64

One of the Best Chocolate Stocks, Kellanova (NYSE:K), formerly Kellogg’s worldwide snacking division, has been a major global producer and marketer of salty snacks, snack bars, frozen breakfast food, meat substitutes, and other packaged goods since separating from the North American cereal company in October 2023. Its products are offered in more than 180 countries and produced in about 20.

Well-known brands like Pringles, Cheez-It, Rice Krispies Treats, Pop-Tarts, Eggo, Nutri-Grain, and Morningstar Farms are among its assortment of products. Kellanova (NYSE:K) sells chocolate products under the RXBAR brand. About half of Kellanova’s total sales come from sales outside of its home market.

Along with a strong portfolio and a track record of growth, the company boasts world-class supply chain and marketing skills, as well as a fast-expanding reach across channels.

Although unfavorable currency translation had a negative effect on net sales, Kellanova’s (NYSE:K) organic-based growth exceeded its long-term target range for the fourth quarter and the entire year. The company’s profit margins expanded more quickly than anticipated, sustaining double-digit operating profit growth in the fourth quarter and the entire year. The fourth quarter and the entire year 2024 saw a double-digit growth pace in earnings per share, mainly due to increased operating profit.

Kellanova (NYSE:K) will not be offering any forward-looking guidance because of the impending merger with Mars, Incorporated. In the first half of 2025, Mars is expected to pay close to $36 billion to acquire the recently independent company.

Matthew Halbower’s Pentwater Capital Management was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 5.30 million shares worth $428.11 million as of Q3.