Hershey Company

General Mills (GIS) has a market cap of $40.3 billion. Its stock rose by 3.2% to close at $67.86 per share on June 29, 2016.

Campbell Soup (CPB) has been disappointing investors with its sales and has missed the analysts’ consensus estimates in the past three quarters.

Sugar prices for March futures contracts were trading near the key support of $14 per pound on January 26. Prices fell for the third consecutive trading day.

McCormick’s (MKC) top-line growth has improved significantly over the past two quarters, thanks to incremental sales of its acquired brands, which contributed more than half of this growth.

Farmer Brothers’ (FARM) gross profit in 4Q15 increased by $3.7 million, or 8.2%, to $49.2 million. It recorded a 4Q14 gross margin of $45.5 million.

Mondelēz may be looking to sell its Europe cheese and grocery business. It plans to invest in profitable power brands as part of its transformation agenda.

Mondelez International (MDLZ) has a market cap of $71.2 billion. It rose by 0.35% to close at $45.58 per share on July 19, 2016.

On July 28, 2016, the S&P Consumer Staples slightly outperformed the S&P Consumer Discretionary and the S&P 500 with returns of 0.48%, 0.23%, and 0.16%, respectively.

McCormick (MKC) reported stellar top-line growth in the past several quarters.

On August 10, the Kraft Heinz Company reported its 2Q15 results for Kraft Foods and H.J. Heinz for the periods ending June 27 and June 28, respectively.

Shares of Conagra Brands (CAG) were up 9.5% on a year-to-date basis as of February 22. Incremental sales from a recent acquisition drove the stock higher.

Most analysts providing recommendations for Mondelēz International (MDLZ) have maintained a positive outlook on its stock.

Conagra Brands (CAG) is expected to announce its fiscal 2Q18 earnings on Thursday, December 21, 2017. Analysts expect the company to continue to report higher EPS (earnings per share) despite the headwinds to its margins.

J.M. Smucker (SJM) reported net sales of $1.9 billion in the first fiscal quarter, which increased ~9% YoY but fell short of analysts’ estimate.

General Mills (GIS) expects its adjusted EPS to increase 1.0%–2.0% on a constant currency basis in fiscal 2018.

Hershey (HSY) announced its fiscal 4Q17 results on February 1. Hershey’s revenue declined 1.5% YoY to $1.94 billion and missed the estimates by 0.97%.

McCormick has outperformed its peers with its margin performances in the past several quarters and has managed to expand its margins at an exceptional rate.

Mondelēz International (MDLZ) has been streamlining its business and reducing costs to improve its profitability.

Sugar prices continued their sharp downward movement on January 27, 2016, and breached the key support level of $14 per pound.

Hershey (HSY) posted better-than-expected 2Q17 results, which it released on June 26. Hershey’s sales and earnings per share beat Wall Street’s expectations.

The Hain Celestial Group’s net sales in the United States rose 3% YoY (year-over-year) to $332.8 million in the last quarter. Net sales in the United Kingdom fell 7.8% to $184.90 million.

As of April 27, 2017, Hershey (HSY) was trading at a 12-month forward PE (price-to-earnings) ratio of 21.8x.

What affected margins Like most of its peers’ margins, Conagra Brands’ (CAG) margins remained pressured during fiscal 2Q18, despite higher sales. Increased input costs and higher brand investments weighed on the profitability of the company. The company’s margins benefited from higher volumes and supply-chain productivity savings in fiscal 2Q18. However, elevated costs remained a drag. […]

Flows into investment-grade bond funds were negative for the week ended August 26, making it the fifth successive week of outflows. It was the largest outflow of 2015 so far.

Hershey (HSY) is all set to report its fiscal 2Q16 earnings results on July 28 before the market opens.

Recently, multiple analysts lowered their target prices on both Mondelēz (MDLZ) and the Hershey Company (HSY) stock.

General Mills (GIS) is slated to announce its fiscal 3Q18 earnings on Wednesday, March 21.

Hershey plans to position dark chocolate as a lifestyle choice in the US. It has thus begun promoting its dark chocolate brands for specific consumption.

Cocoa futures contracts on the Intercontinental Exchange (or ICE) for March delivery rose by 0.98% and settled at $2,791 per metric ton on January 28, 2016.

Hershey is the largest producer of chocolate in North America. It is a global leader in chocolate, sugar confectionery, and chocolate-related products.

Most analysts lowered their target prices on General Mills stock following the release of its results for the second quarter of fiscal 2019.

J.M. Smucker (SJM) has continued to disappoint on the sales front this year, having posted declines in sales for the past several quarters.

The Kraft Heinz Company (KHC) reported weaker-than-expected 4Q17 earnings on February 16, 2018.

The average broker target price for Hershey has risen to $95.5 from $91.23. This represents an increase of 14% from the stock’s closing price of $109.12 on July 20, 2016.

On October 1, 2015, Reuters reported that Mondelēz was looking to divest its cheese and grocery business in its Europe segment.

Flows into investment-grade bond funds were negative for the week ended August 21, making it the fourth successive week of outflows. The funds saw net outflows of $1.09 billion.

Hershey has set a goal of sourcing 100% cocoa from certified cocoa farms. In fiscal 2014, it sourced 30% certified cocoa.

The Hershey Company (HSY) has a market cap of $24.2 billion. Its stock rose by 16.8% to close at $113.49 per share on June 30, 2016.

Given the challenging operating environment, food manufacturers are looking to expand in the fast-growing categories within the food segment.

The 12-month forward PE (price-earnings) multiple of Mondelēz International (MDLZ) rose 0.8% to 20.9x on February 8 in reaction to the company’s 4Q16 results and 2017 outlook.

As of October 16, 2015, Hershey was trading at a PE multiple of 21.5x forward earnings, and its competitor Mondelez was trading at 23.6x forward earnings.

Most of the analysts covering Campbell Soup maintain a “hold” rating on the company’s stock given its lackluster performance and persisting challenges.

Kellogg (K) announced the acquisition of Chicago Bar Company, the manufacturer of RXBAR, for $600 million.

The Hershey Company (HSY) has a market cap of $23.8 billion. It rose by 0.71% to close at $111.67 per share on August 29, 2016.

Hershey is planning to stop using GMO sugar, milk from cows treated with growth hormones, artificial colors and flavors, and high fructose corn syrup.

The cocoa futures contract on the Intercontinental Exchange, or ICE, for March delivery fell 4.2%. It settled at $2,810 per metric ton on January 20.

Coffee Holding (JVA) reported its 3Q15 financial results on September 14, 2015. Net sales increased to $27.0 million compared to $26.6 million in 3Q14.

On June 7, 2017, Kraft Heinz (KHC) was trading at a 12-month forward PE (price-to-earnings) ratio of 24.8x, which is higher than its peers.

J.M. Smucker (SJM) reported fiscal 3Q18 sales of $1.9 billion in fiscal 3Q18, which surpassed analysts’ estimate and increased 1.3% YoY.

Like other packaged food manufacturers, the Campbell Soup Company’s (CPB) gross margins took a hit as a result of increased commodity prices and higher freight costs.

On January 21, 2016, sugar no. 11 futures contracts for March delivery rose by 1.9% on the Intercontinental Exchange, ending the day at $14.45 per pound.

Hershey is the fastest-growing confectionery company in China, and Hershey expects China to become its second-largest market behind the US by 2017.

Kellogg (K) is scheduled to announce its fourth-quarter results on February 7. Analysts expect Kellogg’s top line to maintain its momentum.

Are these dislocations warnings or opportunities? Unfortunately, we won’t know until all the Brexit dust settles…

J.M. Smucker’s (SJM) adjusted gross margin fell 10 basis points to 38.4% in fiscal 3Q18 due to increased freight costs and an inventory obsolescence charge.

The Hershey Company (HSY) has a market cap of $21.3 billion. It fell by 10.8% to close at $99.65 per share on August 30, 2016.

Current recommendations As of January 30, 15 of 20 analysts covering Mondelēz International’s stock had a “buy” rating. Five analysts had a “hold” recommendation, and there were no “sell” recommendations. On January 5, 2017, Berenberg Bank initiated coverage on Mondelēz International’s stock with a “buy” rating and a price target of $51. Consensus “buy” rating […]

Cocoa futures contracts on the Intercontinental Exchange (or ICE) for March delivery fell by 2.3% and settled at $2,764 per metric ton on January 27, 2016.

So far in 2018, the S&P 500 Consumer Discretionary Index has risen 13.7%, outperforming the S&P 500 Index’s rise of 3.9%.

The packaged food manufacturers in the US have been disappointing on the margins front as weak sales and a prolonged price war among retailers have been taking a toll on their profitability.

At the end of fiscal 2014, Mead Johnson had nine in-house manufacturing plants around the world, with supply in more than 50 countries.

General Mills (GIS) management remains upbeat on the net sales growth rate for fiscal 2019 and expects 9%–10% growth, led by the Blue Buffalo acquisition.

Credit Suisse downgraded Hershey (HSY) stock to “underperform” from “neutral” and lowered the target price to $80 from $90.

The Kellogg Company posted weaker-than-expected sales in the first quarter following which its stock fell more than 5% in the premarket session on May 2.

Mondelēz International (MDLZ) is slated to report its 1Q17 results on May 2. Analysts expect MDLZ to report average adjusted earnings per share of $0.50 in 1Q17, representing year-over-year growth of 4.2% when compared with 1Q16.

Sugar continued to trade below key moving averages on January 28. Prices fell to a 4-month low, with this being their longest slump since September 2015.

The primary reason behind Wall Street’s favorable outlook on Kraft has been the company’s rich history of acquiring big brands.

Of the 20 analysts providing recommendations on Hershey stock, 12 analysts maintained a “hold” rating and six analysts gave it a “sell” rating.

The consumer confidence index fell by 8.7 points to 90.4 in November 2015 compared to the upwardly revised level of 99.1 in October 2015. It was well below the consensus estimate of 99.6.

The Campbell Soup Company (CPB) continued to report sluggish margins as higher-than-expected inflation in commodities and transportation costs remained a drag.

Among the 18 analysts tracking General Mills, 13 recommended a “hold,” four recommended a “buy,” and one recommended a “sell.”

General Mills (GIS) has a market cap of $39.7 billion. Its stock rose by 0.56% to close at $66.77 per share on June 23, 2016.

In the past four quarters, McCormick (MKC) has been impressive with its stellar top-line growth due to incremental sales from acquired brands.

Campbell Soup (CPB) is expected to announce its fiscal 1Q18 results on Tuesday, November 21, 2017.

Hershey reported revenues of $7.4 billion in fiscal 2014, compared to Nestle’s revenue of 91.9 billion. But Hershey is mainly into confectionery.

Of the 22 analysts providing ratings for Mondelēz stock, 82% suggest a “buy,” and 18% recommend a “hold.”

A big part of Mondelēz’s cost transformation plan hinges on improving manufacturing facilities and practices. It has closed, sold, or upgraded 78 plants since 2012.

J.M. Smucker’s (SJM) fiscal 2Q18 margins could take a hit from lower volumes and higher spending.

The rise in the cocoa prices could hurt food and beverage companies as it raises the cost of inputs. Dean Foods (DF) fell by 1.1% on January 15, 2016.

Sugar No. 11 futures contracts on the Intercontinental Exchange, for March delivery, fell by 0.57% on January 26. Sugar prices fell due to stronger supply cues from Brazil.

Price movement Hershey (HSY) has a market cap of $21.8 billion. It rose 7.2% to close at $102.40 per share on October 28, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 7.4%, 8.2%, and 16.8%, respectively, on the same day. HSY is trading 7.2% above its 20-day moving average, 3.7% above […]

Analysts expect Mondelēz International (MDLZ) to post sales of $6.0 billion in 2Q17, a fall of ~4.4% YoY (year-over-year).

Shares of General Mills (GIS) are up 19.6% on a YTD basis as of February 22, outperforming most of the company’s peers.

Kraft Heinz (KHC) is set to announce its 1Q18 results on May 2. Analysts expect the company’s sales and earnings to fall year-over-year.

Campbell Soup (CPB) has missed analysts’ EPS (earnings per share) expectations in the past three quarters.

Mead Johnson (MJN) believes 2016 will be a year of transition for the company. It plans to invest heavily in reshaping its portfolio and boosting investments in new channels in China.

Recently, Hershey stock showed a strong recovery. However, the company didn’t have an impressive first-quarter performance.

Hershey (NYSE:HSY) stock has fallen during today’s trading session. The company announced its first-quarter results before the opening bell.

On January 7, Credit Suisse upgraded Kellogg’s (NYSE:K) stock to “outperform” from “neutral,” and increased its target price to $78 from $60.

Campbell Soup (CPB) will announce its fiscal 2020 first-quarter result on December 4. We expect CPB to continue this trend in sales and earnings.

Mondelēz’ restructuring program will cost $3.5 billion, with $2.5 billion in cash. The program is expected to deliver cost savings of $1.5 billion by 2018.

This year, J.M. Smucker (SJM) stock has risen 13.1%, underperforming most peers and broader markets. Let’s look at what’s limiting the stock.

Today, Kraft Heinz posted its third-quarter earnings, which beat analysts’ consensus estimates. The revenues fell short of analysts’ estimates.

So far, Kraft Heinz stock has taken a beating this year. The stock has fallen about 35% on a YTD basis as of Tuesday, which indicates limited downside risk.

Kraft Heinz is scheduled to report its third-quarter earnings before the markets open on October 31. We expect the company to post weak third-quarter results.

General Mills announced mixed fiscal 2020 first-quarter results today. The company’s revenue disappointed and fell short of Wall Street estimates.

Kraft Heinz stock fell about 20% in August and significantly underperformed the broader markets. The stock isn’t attractive despite its low valuation.

Campbell Soup (CPB) stock rose about 3.9% in the pre-market session on Friday. The company posted better-than-expected fiscal fourth-quarter results.

Food companies haven’t had much to cheer about in 2017. Moderating demand for their products amid the consumer shift toward on-the-go healthy foods has weighed upon top line growth.

J.M. Smucker (SJM) posted weaker-than-expected fiscal first-quarter results. The company’s first-quarter sales and margin missed analysts’ estimate.