Hershey Co. Stock: A Sweet Investment Opportunity?

Key Figures

• Market capitalization: $43.5 billion (as of January 1, 2023)
• Annual revenue: $9.6 billion (2022)
• Net income: $2.2 billion (2022)
• Dividend yield: 2.2%

Business Overview

The Hershey Company is a multinational corporation that manufactures, markets, and distributes chocolate, candy, and other confectionery products. Founded in 1894 by Milton S. Hershey, the company is headquartered in Hershey, Pennsylvania, and operates in over 80 countries worldwide.

Hershey's portfolio includes iconic brands such as Hershey's Chocolate, Reese's Peanut Butter Cups, Kit Kat, and Twizzlers. The company also has a strong presence in the international market, with operations in Europe, Asia, and Latin America.

Market Outlook

The global chocolate market is expected to reach $252.8 billion by 2027, growing at a CAGR of 4.5% from 2022 to 2027. This growth is attributed to increasing demand for chocolate in emerging markets, rising disposable income, and the growing popularity of premium chocolate products.

Hershey is well-positioned to benefit from these market trends. The company has a strong brand portfolio, a global distribution network, and a track record of innovation.

Financial Performance

In 2022, Hershey reported annual revenue of $9.6 billion, an increase of 7.6% from the previous year. Net income also increased by 10.5% to $2.2 billion. The company attributed the growth to strong demand for its products, both domestically and internationally.

Revenue Breakdown

Earnings per Share (EPS)

Investment Considerations

Hershey Co. stock is a popular investment choice for many investors. The company has a long history of profitability and dividend payments, and it is expected to continue to benefit from the growing global demand for chocolate.

However, investors should also be aware of the potential risks associated with investing in Hershey stock. These risks include:

• Competition from other chocolate manufacturers
• Changes in consumer preferences
• Economic downturns

Common Mistakes to Avoid

When investing in Hershey Co. stock, it is important to avoid the following common mistakes:

• Buying at the wrong time: Investors should not buy Hershey stock when the market is overvalued.
• Holding for too short a period: Hershey is a long-term investment, and investors should not expect to make a quick profit.
• Overlooking the risks: Investors should be aware of the potential risks associated with investing in Hershey stock before making a decision.

Conclusion

Hershey Co. stock is a good investment for those seeking a long-term investment with a reasonable return. The company has a strong brand portfolio, a global distribution network, and a track record of innovation. However, investors should be aware of the potential risks associated with investing in Hershey stock before making a decision.