According to researchers in Spain, eating cocoa-rich dark chocolate after a big meal can help people with cirrhosis of the liver. The antioxidant flavanols in chocolate are supposed to be good for your blood pressure. Of course, chocolate will always be popular since it can reduce free radicals, increase serotonin levels, and it tastes good. Now investors have a valid excuse for eating more chocolate and buying chocolate stocks. Here are some stocks in the chocolate business that may be worth taking a bite out of.
Hershey (HSY), founded in 1894, is the largest manufacturer of chocolate in North America and one of the largest chocolate and candy companies in the world. Hershey's Kisses were invented in 1901 and their chocolate chips were introduced in 1928. The stock has a P/E of 24, with a flavorful, I mean favorable yield of 2.9%.
Rocky Mountain Chocolate Factory Inc. (RMCF) is a very low cap stock [and should therefore be considered very speculative], based in Durango, Colorado, which makes and markets caramels, creams, mints, and truffles. The company, which was founded in 1981, has over 300 franchise locations in 40 states, along with Canada and the United Arab Emirates. The P/E is 18, and their yield is 64.2%. This is a very low cap stock and should be considered very speculative.
Cadbury plc (OTC:CDSCY) is a London based confectionery and beverage company, which was founded in 1783. Some of their products include cocoa powder and milk chocolate bars. Their brands include Cadbury Creme Egg, Cadbury Dairy Milk, Clorets, and Dentyne. The stock has a net profit margin of 6.1% and a return on average equity of 11.9%.
The Swiss based company Nestle (OTCPK:NSRGY) is involved in a lot of businesses including pharmaceuticals and nutrition products, but most consumers know it for its chocolate and candy business. Their net profit margin was 23%.
Lindt & Sprungli AG (OTC:LDSVF) is another Swiss based company. They produce premium chocolate, which includes the brands Lindt, Ghirardelli, and Caffarel.
Barry Callebaut (OTC:BYCBF) is yet another Switzerland based company, which produces cocoa, chocolate and candy products.
Even Tootsie Roll Industries Inc. (TR) produces chocolate candy. The stock has a P/E of 29.5 and a yield of 1.2%.
Disclosure: Author doesn't own any of the above.