The Hershey Co
HSY: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$726.00 | Cfynx | Cmzhpwxn |
Hershey's Stalwart Competitive Edge Unlikely To Be Swayed by the Economic Backdrop
Business Strategy and Outlook
While consumers are facing mounting costs in a number of facets of their lives, this has yet to tame their appetite for confectionery and snacking fare, as evidenced by the double-digit organic sales growth Hershey has chalked up the past few quarters. But from our vantage point, this isn't merely a byproduct of a favoarable demand environment. Rather, we applaud the strategic focus CEO Michele Buck has brought to bear over the past six years--ramping up investments in its core domestic brands while pulling back in its international arm (high-single-digit percentage of total sales, where we surmise it lacks a competitive edge).