The Hershey Company is heading into autumn with strong pricing power and seasonal demand, as its revenue growth outpaces a more than 120% surge in cocoa costs over the past six months. Despite the triple-digit rise in a core ingredient, second-quarter net sales climbed 6.6% year over year, and adjusted earnings per share jumped 57%. Hershey's research shows 82% of parents plan to buy chocolate in October, prompting the company to launch its largest-ever Halloween lineup, "Hersheyween," running from late summer into the fourth quarter. The stock trades at a slight premium to packaged-goods peers but offers a 3.2% dividend yield and is well below its 52-week high of $239. For income-focused investors, Hershey remains a reasonable buy, as cocoa prices have not yet driven consumers away.
Hershey CoHershey's pricing power lets revenue grow 6.6% despite cocoa costs surging over 120%, with adjusted EPS up 57%.
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