Is Hershey is a Good Buy?

When it comes to investing, everyone wants to find that golden nugget. Well, Hershey, the iconic chocolate company, might just be that treat. With a worldwide presence and a large consumer base, this beloved company is a powerhouse in the comfort food world. Let’s unwrap why Hershey is a stock worth adding to your portfolio and if Hershey is a Good Buy.

A Brand That’s Loved Worldwide

Hershey is more than just a chocolate maker; it’s a beloved brand. From the classic milk chocolate bar to the famous Reese’s Peanut Butter Cups, to pretzels and popcorn; Hershey’s products have a special place in people’s hearts. This brand loyalty means customers keep coming back for more. And when customers are happy, that’s a good sign for investors. I currently own this stock and I am very pleased with it. It’s worldwide recognition and its ability to weather tough times is a solid pick for me.

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Solid Financial Performance

Digging into the numbers, Hershey has shown impressive growth over the years. The company consistently reports strong revenues and healthy profit margins. By focusing on premium products and expanding its offerings, Hershey keeps its sales on a steady rise. When a company shows this kind of financial strength, it’s like having a solid foundation for a house. It’s stable and reliable.

Here we can see how their revenue has steadily increased over the last few years. In 2021 we have 8.971B in sales to end of 2023 we have $11.430B. That is a sizeable jump.

• Hershey revenue for the quarter ending March 31, 2024 was $3.253B, a 8.87% increase year-over-year.
• Hershey revenue for the twelve months ending March 31, 2024 was $11.430B, a 6.42% increase year-over-year.
• Hershey annual revenue for 2023 was $11.165B, a 7.16% increase from 2022.
• Hershey annual revenue for 2022 was $10.419B, a 16.14% increase from 2021.
• Hershey annual revenue for 2021 was $8.971B, a 10.08% increase from 2020.

And if we look at profit from the revenue, we can see they performed very well in this area as well.

• Hershey gross profit for the quarter ending March 31, 2024 was $1.676B, a 21.25% increase year-over-year.
• Hershey gross profit for the twelve months ending March 31, 2024 was $5.292B, a 14.15% increase year-over-year.
• Hershey annual gross profit for 2023 was $4.998B, a 11.09% increase from 2022.
• Hershey annual gross profit for 2022 was $4.499B, a 11.12% increase from 2021.
• Hershey annual gross profit for 2021 was $4.049B, a 9.38% increase from 2020.

Diversification in Product Offerings

Hershey isn’t just about chocolate bars anymore. The company has branched out into various categories, including snacks, baking products, and even healthier options. This diversification helps Hershey tap into different markets and appeal to a wider audience. Think of it as a buffet: the more options available, the more people will want to dig in. Currently, the company boasts an impressive 90 brands and products that they sell.

Some of the below products they sell are;

• Kit Kats
• Mr. Goodbar
• Twizzlers
• Jolly Rancher
• Skinny Pop
• Dots Pretzels

Strong Dividend History

For income-focused investors, Hershey has a sweet treat—a consistent dividend payout. The company has a solid history of paying and increasing dividends, making it an attractive choice for those looking for steady income. They have been paying a dividend since 1995! That is a solid time frame and if that was not enough to sell you, they have had 15 years of consecutive dividend increase. They currently sit at a 2.89% dividend yield with an annual payout of $5.48. For any investor, this is a solid choice.

Innovative Marketing Strategies

Hershey knows how to keep things fresh. With creative marketing campaigns and a strong presence on social media, Hershey stays relevant in a competitive industry. By connecting with younger consumers through engaging content and collaborations, the company continues to attract new fans. Just like a good storyteller, Hershey captures attention and keeps audiences coming back for the next chapter.

We have all seen their commercials and let us be honest, they have some of the best in the business. Their most iconic advertisement would be the Christmas themed holiday bells.

If Embed fails, click for the Hershey Holiday Commercial.

Resilience in Tough Times

No one can predict the future, but Hershey has shown resilience during economic downturns. When the going gets tough, people still crave comfort food, and chocolate is a big part of that. Hershey’s ability to withstand challenges means it can be a safe haven in an unpredictable market. Here is a snippet from Hershey’s website, “…cocoa sales were up 126 percent; Hershey’s baking chips were up 75 percent; Hershey’s toppings were up 59 percent and Hershey’s syrup was up 48 percent.”

Conclusion: A Tasty Investment Opportunity

Is Hershey is a Good Buy? With a strong brand, solid financials, diverse products, reliable dividends, innovative strategies, and resilience in tough times, Hershey stands out as a compelling investment. It’s more than just a chocolate company; it’s a symbol of comfort and joy for millions. If you’re considering where to place your investment, Hershey might just be the sweet spot you’re looking for. I am currently investing in this company and plan to hold for a long time, possible a forever buy. I don’t see this as a bad investment and I think it will be a good pick for any portfolio.

Disclaimer

I am not a financial advisor or licensed stock broker. This is my opinion. It’s essential to consider that no investment is without risks. As with any investment decision, thorough research and consideration of your financial goals and risk tolerance are crucial.

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