EQUITY RESEARCH — DEEP DIVE

The Hershey Company (HSY)

Sector: Consumer Staples / Confectionery |
Published: 2026-06-13 |
Pages: 9

Price at publication: $181.66 | Market cap: $37.0B

Themes: Quality Compounder Defensive

Executive Summary

The Hershey Company is the dominant U.S. confectioner—owner of Hershey’s, Reese’s, Kit Kat (U.S. license), Jolly Rancher, Twizzlers, and a fast-growing salty-snacks arm (SkinnyPop, Dot’s Pretzels)—trading at roughly $181.66, about 24% below its 52-week high of $239 and well off the $266 peak of 2023. The investment case is straightforward and, in our view, compelling: 2024–2025 earnings were temporarily crushed by an unprecedented spike in cocoa, which rocketed from roughly $3,000 per tonne to as high as $12,000–$13,000, taking well over 700 basis points off gross margin and cutting adjusted EPS from $9.37 in 2024 to roughly $6.3 in 2025.

What’s Inside The Full Report

  • 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
  • Valuation framework — current multiples vs. 5-year historical range
  • Peer comparison table — multiples, margins, balance-sheet metrics
  • Base case, bull case, bear case price targets with explicit math
  • Competitive position and economic moat analysis
  • Management and capital allocation track record
  • Balance sheet review — leverage, credit ratings, distribution coverage
  • Insider activity — recent open-market buys / sells with interpretation
  • Strategic acquisitions and divestitures history
  • Sell-side consensus and where TTCM differs
  • Detailed risk factors specific to the name
  • Bull case and forward catalysts to watch
  • TTCM rating with explicit ADD / TRIM price triggers

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T&T Capital Management LLC is a registered investment adviser. The research presented here reflects the firm’s opinions and is not personalized investment advice. Past performance is not indicative of future results. Form ADV available at adviserinfo.sec.gov.