Topic: How To Invest

Q: Pat, may I get your recommendation on Hershey Co. as a stock to own going forward? Thank you.

Article Excerpt

A: Hershey Co., $206.14, symbol HSY on New York (Shares outstanding: 145.4 million; Market cap: $42.2 billion; www.hersheys.com), is the largest U.S. producer of chocolate and non-chocolate confectionery products. Major brands include Hershey’s, Reese’s, Kisses, Cadbury, Ice Breakers, Kit Kat, Almond Joy, Jolly Rancher, Twizzlers, Good ’n’ Plenty, Heath, Whoppers, and Milk Duds. On November 10, 2021, the company announced it would pay $1.2 billion to acquire two firms: Dot’s Pretzels LLC, the owner of Dot’s Homestyle Pretzels; and Pretzels Inc., which handles some manufacturing for Dot’s as well as third parties. The estimated sales for the two businesses were $275 million for the 12 months ended September 2021. Dot’s is the fastest-growing pretzel brand in the U.S.—it accounted for 55% of the pretzel category’s revenue growth in the past year. In just five years, the company has captured 9% of the $2 billion U.S. pretzel market. The acquisitions are Hershey’s second largest to date, behind only the $1.6 billion it paid in 2017…