The Hershey Company (NYSE: HSY) is entering the fall season with strong pricing power and robust seasonal demand. A key indicator of its performance is the company’s ability to grow revenue despite a more than 120% increase in cocoa costs over the past six months.
In the second quarter, Hershey reported net sales up 6.6% year over year, while adjusted earnings per share rose sharply by 57%. This demonstrates the strength of Hershey’s brands and its capacity to pass higher input costs to consumers without eroding demand.
Seasonal research indicates that 82% of parents plan to purchase chocolate for Halloween, with interest in gummies and sour candy beginning even earlier. Recognizing this trend, Hershey is rolling out a “Hersheyween” promotion—its most extensive Halloween‑themed product lineup—spanning from late summer through the fourth quarter.
Hershey’s shares currently trade at a modest premium to some packaged‑goods peers and offer a 3.2% dividend yield, a payout that has been consistently maintained for decades. The stock is trading below its 52‑week high of $239 and remains largely flat for the year.
Overall, Hershey’s solid fundamentals—strong revenue growth, resilient earnings, and a reliable dividend—position the company well to navigate rising cocoa costs and capitalize on seasonal demand. As the chocolate season unfolds, Hershey appears poised to sustain its market momentum.
