• Tue, Jun. 13, 2:55 PM
    • Susquehanna analyst Pablo Zuanic issues an update on the food and beverage sector after digesting the latest IRI scanner data.
    • Monster Beverage (NASDAQ:MNST): No improvement in energy drinks, sales down 0.9% Y/Y for the four weeks ending June 4. Price +1.1% Y/Y.
    • Hershey (NYSE:HSY): Sales down 1.9% Y/Y for the four-week tracking period.
    • Kellogg (NYSE:K): Total sales down 4.3% Y/Y, driven lower by a 10% drop in the snack bars category.
    • General Mills (NYSE:GIS): Sales growth decline decelerated to -5.6% vs. -7.1% for prior four weeks.
    • Kraft Heinz: "Slightly worsening trends, we may need to cut our 2Q17 estimate", writes Zuanic.
    • Mondelez International (NASDAQ:MDLZ): "Worsening trends, with 2Q about 1pt worse than 1Q."
    • National Beverage Corp (NASDAQ:FIZZ): +58.5% four-week growth vs. +55.0% prior four weeks and +65% in Q1.
    • Coca-Cola (NYSE:KO): Carbonated soft drink volume -2.1% vs. -3.9% industry average.
    • PepsicCo (NYSE:PEP): Carbonated soft drink volume -8.1% vs. -3.9% industry average.
    • Dr Pepper Snapple (NYSE:DPS): Carbonated soft drink volume flatvs. -3.9% industry average.
    • Beer check: "Beer industry volume declined after a relatively stable period, with BUD, TAP, SAM with worsening declines vs. STZ growing."
    Tue, Jun. 13, 2:55 PM | 30 Comments
  • Wed, Jun. 7, 2:52 AM
    • The U.S. and Mexican governments have reached an "agreement in principle" designed to avert a trade war over sugar, setting the course for bigger talks on rewriting NAFTA.
    • While American producers failed to endorse the deal, the pact will go through a final drafting stage, during which the two sides will try to make it easier for them to "come on board," said U.S. Commerce Secretary Wilbur Ross.
    • Previously: Sugar dispute goes into overtime (Jun. 06 2017)
    • ETFs: CORN, SGG, CANE, SGAR
    Wed, Jun. 7, 2:52 AM | 1 Comment
  • Fri, Jun. 2, 7:19 AM
    • Susquehanna's Pablo Zaunic trims its price target on Hershey (NYSE:HSY) after setting a lower M&A premium and seeing some risk of chocolate and other sweets losing shelf space in key parts of the stores.
    • The analyst also notes the commodities costs are starting to bottom.
    • "We cut our estimates through 2019, and take a 5% peer premium on our tax-adjusted EBITDA, with our price target now $115 by Dec’17," writes Zuanic. The previous price target was $119.
    • Shares of Hershey are up 12% YTD.
    Fri, Jun. 2, 7:19 AM | 3 Comments
  • Tue, May 2, 3:24 PM
    • The Hershey Company (NYSE:HSY) declares $0.618/share quarterly dividend, in line with previous.
    • Forward yield 2.31%
    • Payable June 15; for shareholders of record May 25; ex-div May 23.
    Tue, May 2, 3:24 PM
  • Wed, Apr. 26, 7:49 AM
    • Hershey (NYSE:HSY) reports Q1 profit ahead of estimates as its gross margin rate of 47.5% topped the consensus estimate of 46.8%. Cost savings initiatives and supply chain productivity improvement helped lift the margin rate.
    • Net volume was up 0.7% during the quarter, while the company realized a two point benefit due to lower levels of trade.
    • Looking ahead, Hershey says it expects full-year sales to fall at the low end of its range for 2% to 3% growth and sees EPS of $3.31 to $3.55.
    • "We anticipate that our innovation, as well as our consumer marketing plans, will enable us to build on our first-quarter U.S. CMG market share gains," says CEO Michele Buck.
    • Shares of Hershey are up 0.64% premarket to $109.15.
    Wed, Apr. 26, 7:49 AM | 3 Comments
  • Wed, Apr. 26, 7:02 AM
    • Hershey (NYSE:HSY): Q1 EPS of $1.31 beats by $0.06.
    • Revenue of $1.88B (+2.7% Y/Y) misses by $10M.
    • Press Release
    Wed, Apr. 26, 7:02 AM | 1 Comment
  • Tue, Apr. 25, 5:30 PM
  • Fri, Mar. 24, 10:36 AM
    • Susquehanna analyst Pablo Zuanic bumps up his price target on Hershey (HSY -0.2%) after factoring in the changes to the company and the board of the controlling trust.
    • "We would not expect the new trust to make such a momentous decision (diversification) until 2019 at the earliest," notes Zuanic.
    • "In the meantime, HSY shares trade at 10% premium to peers (22.2x 1yF PE), which in our view captures the near/medium term upside (a better innovation cycle; more aggressive profit margin targets; M&A optionality). Definitely not a stock to short given these various tailwinds despite the premium, but we would not see HSY outperforming the peer group in the year ahead," he adds.
    • Susquehanna has a Neutral rating and $119 price target on Hershey.
    Fri, Mar. 24, 10:36 AM | 2 Comments
  • Fri, Mar. 24, 3:58 AM
    • Hershey (NYSE:HSY) and the trust that control it are filling positions on their respective boards following a year marked by a $23B acquisition overture from Mondelez (NASDAQ:MDLZ) and a series of resignations.
    • The departures followed criticism of poor governance, excessive compensation and unnecessary expenses at the Hershey Trust by its overseer, the Pennsylvania attorney general.
    Fri, Mar. 24, 3:58 AM | 4 Comments
  • Thu, Mar. 23, 3:20 PM
    • German gummy bear maker Haribu plans to open its first production facility in the U.S., according to Reuters.
    • The company is said to be looking at property in Wisconsin for the facility. Haribu hopes to be producing locally for the U.S. market by 2020.
    • Haribu claims that it's the fastest growing candymaker in the U.S. Some of the main rivals for Haribu are Mondelez International (NASDAQ:MDLZ), Hershey (NYSE:HSY) and Mars.
    Thu, Mar. 23, 3:20 PM | 9 Comments
  • Fri, Mar. 17, 10:51 AM
    • While it's no surprise that 3G-backed Kraft Heinz (NASDAQ:KHC) had one of the best adjusted EBITDA margin rates in the packaged food sector with a 31.0% mark in 2016, the company nipping at its heels could be a shocker to some.
    • Hostess Brands (NASDAQ:TWNK) ranked second with an adjusted EBITDA margin last year of 29.5% of sales.
    • Adjusted EBITDA margin rate marks for another names in the sector: Amplify Snack Brands (NYSE:BETR) 29.0%, B&G Foods (NYSE:BGS) 22.7%, J.M. Smucker (NYSE:SJM) 21.7%, Hershey (NYSE:HSY) 21.7%, Pinnacle Foods (NYSE:PF) 21.0%, Post Holdings (NYSE:POST) 18.3%, McCormick & Company(NYSE:MKC) 17.5%, Lancaster Colony (NASDAQ:LANC) 17.5%, Snyder's-Lance (NASDAQ:LNCE) 17.5%, Flower Foods (NYSE:FLO) 11.4%, TreeHouse Foods (NYSE:THS) 10.4%.
    • H/T Bloomberg's Tara Lachapelle.
    • Source: Hostess Brands Investor Presentation (.pdf)
    Fri, Mar. 17, 10:51 AM | 14 Comments
  • Tue, Feb. 28, 5:08 PM
    • Hershey (NYSE:HSY) -0.3% AH after announcing a 15% global workforce reduction as part of its "Margin for Growth" program intended to grow its core candy business and expand its snacks offerings and generate 22%-23% adjusted operating profit margin by year-end 2019; HSY had ~16,300 full-time and 1,680 part-time employees worldwide at year-end 2016.
    • HSY expects cost savings from the plan of $150M-$175M by year-end 2091, and says the plan will result in pre-tax charges of $375M-$425M, including one-time layoff costs of $80M-$100M.
    • HSY also expects FY 2017 adjusted EPS to increase 7%-9% and come in at $4.72-$4.81 vs. $4.64 analyst consensus estimate, and reaffirms its net sales growth target of 2%-3%.
    Tue, Feb. 28, 5:08 PM | 13 Comments
  • Tue, Feb. 28, 7:47 AM
    • Societe Generale moves off a sour outlook on Hershey (NYSE:HSY).
    • The French firm takes the food stock up to Hold from Sell and lifts its price target to $110 vs. $107.80 yesterday close.
    • "We think there’s very limited downside to Hershey’s growth from here and a more consumer-oriented portfolio should drive LFL growth to a longer-term range of 3-4%," writes analyst Warren Ackerman.
    • "We also expect the increased focus on operational efficiency and targets to deliver “top-quartile” performance to drive margins up by 200bp by 2020e, which is our base case," he adds.
    Tue, Feb. 28, 7:47 AM | 1 Comment
  • Tue, Feb. 21, 10:29 AM
    • A number of food-related stocks are trading higher after Kraft Heinz ends its pursuit of Unilever.
    • Notable movers include Amira Nature Foods (ANFI +2.2%), Amplify Snack Brands (BETR +1.3%), Pinnacle Foods (PF +1.2%), Kellogg (K +2.3%), General Mills (GIS +3.3%), Hershey (HSY +1.2%), Seneca Foods (SENEB), Reed's (REED +2.5%), J.M. Smucker (SJM +5.1%), Conagra Brands (CAG +1.3%) and Farmer Bros. (FARM +1.5%).
    • In most cases, the share price movements are a reversal of Friday's action when it looked like Kraft Heinz was taking quite a bit of the 3G M&A punch out of the sector.
    • Mondelez International is up 4.82% on heavy volume.
    • Previously: Mondelez International jumps with Kraft Heinz still on the prowl (Feb. 21)
    • Previously: Unilever tumbles as Kraft kills $143B bid (Feb. 20)
    Tue, Feb. 21, 10:29 AM | 1 Comment
  • Fri, Feb. 17, 7:52 AM
    • Campbell Soup (NYSE:CPB), Hershey (NYSE:HSY) and General Mills (NYSE:GIS) are all slightly lower in early trading in reaction to news that Kraft Heinz made a merger run at Unilever.
    • All three food stocks are down about 0.50% in premarket action.
    Fri, Feb. 17, 7:52 AM | 7 Comments
  • Thu, Feb. 16, 7:13 AM
    • Argus lifts its rating on Hershey (NYSE:HSY) to Buy from Hold on a more favorable view of valuation.
    • The investment firm's price target of $125 reps 15% upside potential for the food stock.
    • Shares of Hershey are up 5% YTD, level with the return of the S&P 500.
    Thu, Feb. 16, 7:13 AM | 5 Comments