China Concerns Create 5:1 Upside Opportunity For Hershey
Valkyria Capital Partners
Valkyria Capital Partners
Jun. 9, 2015, 10:43 PM
- San Francisco is one step closer to becoming the first U.S. city to require warning labels on sugary drinks after government officials approved a new measure.
- The San Francisco Board of Supervisors and Mayor still have to sign off on the anti-soda ordinances.
- Some juice products, flavored milk products, and sports drinks will be included in the targeted beverage category if they contain a certain threshold of added sugar.
- Health advocates say they will make a second run at passing a sugar tax in San Francisco. They are also aiming for a broader push beyond California on consumer sugar warnings.
- The beverage industry has reacted to uneven demand in the U.S. for soda drinks in part with product innovation (craft, cane sugar, energy, protein) aimed at millennials.
- Related stocks: KO, PEP, DPS, COT, MNST, OTCQB:JSDA, REED, FIZZ, HSY, DF,
Jun. 1, 2015, 12:49 PM
- Iconic food and beverage brands continue to grow out of favor with U.S. consumers, according to a new report from Rabobank.
- Many Q1 earnings reports tipped off weakness at well-known F&B brands.
- The bank notes that the increasing purchase power of the millennial generation is a major factor in the shift as e-commerce accounts for a higher mix of purchasing.
- A willingness of major retail chains such as Target (NYSE:TGT), Kroger (NYSE:KR), and Costco (NASDAQ:COST) to attempt to differentiate themselves with new concepts and products has also contributed to well-known brands slipping.
- Rabobank thinks major food and beverage players can still show strong growth rates if they are nimble with their strategy and use M&A wisely to catch fresh brands on the upswing.
- Related stocks: K, GIS, CPB, MDLZ, PEP, KO, HSY, SJM, DPS, KRFT, OTCPK:NSRGY, OTCPK:NSRGF.
Apr. 27, 2015, 5:33 PM
- Hershey (NYSE:HSY) declares $0.535/share quarterly dividend, in line with previous.
- Forward yield 2.28%
- Payable June 15; for shareholders of record May 26; ex-div May 21.
Apr. 24, 2015, 7:00 AM
- Apollo Global Management (NYSE:APO) and Dean Matropoulus are looking to sell Hostess after only holding the brand for about two years, according to the New York Post.
- Sources indicate at least one buyer is willing to pay the $2B price tag.
- Hostess was sold out of bankruptcy for $410M and now operates under a more cost-efficient structure.
- Analysts think Hostess could be grown to a billion-dollar brand.
- Snack rivals includes Mondelez International (NASDAQ:MDLZ), Hershey (NYSE:HSY), Flower Foods (NYSE:FLO), and Grupo Bimbo (OTCPK:GRBMF).
Apr. 23, 2015, 8:36 AM
- Hershey (NYSE:HSY) reports net sales rose 4.6% excluding unfavorable foreign currency translation in Q1.
- Segment sales: North America: $1.71B (+2.9%); International & other: $230.8M (+8.5%).
- Adjusted gross margin rate improved 10 bps to 46.6%.
- EBIT margin fell 200 bps to 20.3%.
- FY2015 Guidance: Net sales: +4.5% to +5.5%; Gross margin rate: +155 bps to +165 bps; GAAP EPS: $4.17 to $4.28; Adjusted EPS: $4.30 to $4.38;
- HSY -1.86% premarket.
Apr. 23, 2015, 7:10 AM
- Hershey (NYSE:HSY): Q1 EPS of $1.09 misses by $0.07.
- Revenue of $1.94B (+3.7% Y/Y) misses by $20M.
Apr. 22, 2015, 5:30 PM
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Apr. 20, 2015, 7:29 AM
Apr. 10, 2015, 1:02 PM
- Hershey (HSY +0.1%) says it will source enough cocoa from sustainable sources to easily meet demand for chocolate brands Brookside, Kit Kat, Kisses, and Hershey's.
- The sustainable sourced cocoa amount will continue to increase to reach a level that will include other global brands such as Reese's in 2017.
- The company set some ambitious targets on cocoa sourcing earlier this year.
Apr. 2, 2015, 7:25 AM
- The board at Hershey (NYSE:HSY) has appointed CEO John Bilbrey to be the Chairman of the Board on top of his current position.
- The combination of the CEO and Chairman duties is a strong vote of confidence in Bilbrey.
- Shares of Hershey have almost doubled since Bilbrey took the helm in 2011.
Mar. 26, 2015, 12:37 PM
- Deutsche Bank thinks 3G Capital will be back in the food sector for a major acquisition faster than some other investment firms anticipate.
- 3G put itself in a stronger position to make a major purchase by not adding debt in the Kraft deal.
- Analyst Eric Katzman sees some food names trading with a premium as the 3G shadow hangs over the sector, while others have downside risk with M&A speculation not making as much sense.
- Premium on: ConAgra (NYSE:CAG), General Mills (NYSE:GIS), Mondelez International (NASDAQ:MDLZ), Pinnacle Foods (NYSE:PF), PepsiCo (NYSE:PEP).
- Premium off: Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY), Hormel (NYSE:HRL), Kellogg (NYSE:K), J.M. Smucker (NYSE:SJM).
- Previously: Investors snapping up food stocks (Mar. 25 2015)
- Previously: Beer fallout from Kraft buyout (Mar. 25 2015)
- Previously: Kraft-Heinz merger has a few ETFs on the move (Mar. 25 2015)
Mar. 9, 2015, 7:00 AM
- WhiteWave Foods (NYSE:WWAV) is in talks to buy U.K. firm Quorn, according to Sky News.
- Quorn, which is owned by P-E firm Exponent Private Equity, distributes food to more than 2K Wal-Mart stores.
- Hain Celestial (NASDAQ:HAIN) are Hershey (NYSE:HSY) have been mentioned as other potential bidders for Quorn.
Mar. 6, 2015, 10:46 AM
- Global consumer staples stocks are weaker than market averages as concerns on market pricing and F/X sit in the background.
- The 1.21% gain in the U.S. Dollar Index isn't going unnoticed by traders.
- Notable decliners include General Mills (NYSE:GIS) -1.6%, Colgate-Palmolive (NYSE:CL) -2.0%, Unilever (NYSE:UL) -1.9%, General Mills (GIS) -1.8%, Mondelez International (NASDAQ:MDLZ) -1.9%, Post Holdings (NYSE:POST) -1.8%, Hershey (NYSE:HSY) -1.8%, Coca-Cola (NYSE:KO) -1.2%.
- The Consumer Staples ETF (NYSEARCA:XLP) is down 1.2% versus S&P 500 -0.4%.
- Other staples ETFs: VDC, FXG, RHS, FSTA, PSL, PSCC
Feb. 26, 2015, 7:01 PM
- Patricia Little, currently the CFO of staffing services firm Kelly Services (NASDAQ:KELYA), has been named Hershey's (NYSE:HSY) new CFO, effective March 16.
- Hershey's last permanent CFO, David Tacka, announced in September he'd be retiring by the end of 2014. Accounting chief Richard McConville has been serving as interim CFO.
Feb. 19, 2015, 3:06 PM
- New recommendations from the USDA's Dietary Guidelines Advisory Committee call for reduced consumption of sugar in the U.S. in order to help alleviate obesity.
- A tax on foods with high sugar content has been part of the discussion.
- Analysis from the group on sugar supplement aspartame was mixed.
- The consumption of sodas by children is of particular concern to the group which also issued broader guidelines on dietary health.
- Food lobbyists are expected to challenge some of the proposals.
- Related stocks: KRFT, MDLZ, PEP, KO, HSY, RMCF, MNST, TR.
Feb. 18, 2015, 4:19 PM
- Hershey (NYSE:HSY) presented today at the CAGNY conference.
- Digital initiatives and a move toward healthier ingredients were two major themes of the talk.
- A new $250M share repurchase agreement was unveiled by management.
- The company also reiterated its previous guidance of 2015 revenue growth of 5.5% to 7.5% and EPS of $4.30-$4.38 vs. $4.36 consensus.
- HSY closed today +1.0% with some late momentum.
The Hershey Co. produces chocolate and sugar confectionery products. It operates in the geographic regions North America and International & Others. The North America segment is responsible for our chocolate and sugar confectionery market position in the United States and Canada. This includes... More
Sector: Consumer Goods
Country: United States
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