The Hershey Company (HSY): One Stable High Growth/High Margins Business

Bottom line

The Hershey Company (NYSE:HSY) not only is a leading company, but is also constantly innovating and looking for more growth. The only factor of concern is its presence outside of the US, which accounts for only 16% of net sales. Mondelez International Inc (NASDAQ:MDLZ) solid presence in these markets is significantly damaging Hershey’s international prospects. However, Hershey’s outlook is very promising.

Mondelez International Inc (NASDAQ:MDLZ) should remain a leader in the snacks market due to its strong international presence and distribution network. The only short-term concern I notice is its reduction in operating margins due to more advertising expenses. Nonetheless, I am confident that they will turn into future profits.

Despite being a small cap company, Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF)’s outlook seems favorable. However, I cannot foresee big increases in sales at this point but rather organic growth with small increments in its top-line.

Damian Illia has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article One Stable High Growth/High Margins Business originally appeared on Fool.com.

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