7 Best Confectionery, Cookie and Snack Stocks To Buy

4. The Hershey Company (NYSE:HSY)

Number of Hedge Fund Holders: 39

The Hershey Company (NYSE:HSY) produces and markets chocolate, sweets, and snacks through three segments: North America Confectionery, North America Salty Snacks, and International. The company now employs 20,000 people in the U.S. and operates in 80 countries, with a wide range of products including chocolate, non-chocolate confectionery, gum, mints, protein bars, baking ingredients, snack items, and spreads. It is among the best food stocks on our list.

In Q2 2024, The Hershey Company’s (NYSE:HSY) consolidated net sales declined by 16.7% to $2.07 billion. This downturn was primarily driven by inventory reductions across North America Confectionery and International segments, largely due to the implementation of a new ERP system, along with unfavorable shipment timings.

Despite the overall decline in sales, The Hershey Company (NYSE:HSY)’s Salty Snacks portfolio showed positive momentum, with Dot’s Homestyle Pretzels retail sales increasing by 42.3% in the quarter. Gross margin was hit hard, falling to 40.2% from 45.5% due to higher costs and inefficiencies, with operating profit also declining.

Nevertheless, Hershey remains committed to strategic investments, with projected capital expenditures between $600 million and $625 million for 2024. The ongoing implementation of a new ERP system and product innovations in the second half of 2024 are expected to energize key categories and support long-term growth.

The Hershey Company (NYSE:HSY) is focusing on sustainability and social impact through its Cocoa For Good strategy. The company has already reduced emissions by 43% and aims for 50% by 2030, while eliminating 1.7 million pounds of packaging, and accelerating its deforestation commitment to 2025.

Hershey’s stock saw a 0.40% uptick in the past month and a 7.69% YTD increase. Despite revenue and earnings declines, investments in marketing and consumer engagements have bolstered market share. Moreover, strategic investments in digital infrastructure and commitment to innovation offer a promising foundation for future growth.

Additionally, 39 hedge funds have invested $506 million in the company at the end of Q2 2024, as per Insider Monkey’s database. Among these, Holocene Advisors was the company’s leading stakeholder in Q2.