Should Hershey’s (HSY) New Reese’s OREO Cup and Snack Launches Prompt Investor Action?

• The Hershey Company recently unveiled its latest snacking innovations and merchandising strategies at the 2025 NACS Show Expo, highlighting new products such as the Reese’s OREO Cup and expanded offerings in salty snacks, protein snacks, and confectionery.
• The debut of the Reese’s OREO Cup, bringing together two top U.S. brands, stands out as a major launch with the potential to drive strong growth in the convenience channel.
• We’ll explore how Hershey’s latest product innovations and data-driven approaches at the NACS Show Expo could shape its investment narrative going forward.

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Hershey Investment Narrative Recap

To be a shareholder in Hershey, you need to believe in the power of its brand innovations, distribution strength in convenience, and diversification beyond chocolate, while staying mindful of ongoing earnings pressures and margin risks from elevated cocoa costs. The latest NACS Show Expo news, showcasing new products and data-driven retail approaches, could support the short-term growth catalyst of increased market share, but does not materially change the primary risk facing Hershey: persistent cocoa price inflation.

Among recent announcements, the debut of the Reese’s OREO Cup, uniting two high-profile brands, stands out as Hershey’s most relevant move, directly feeding the near-term catalyst of innovation-led sales growth. This launch aims to strengthen Hershey’s position in the convenience channel, aligning with the company’s focus on margin preservation and attracting value-conscious consumers.

But while product innovation remains central, investors should not overlook how sustained margin challenges from cocoa costs may affect Hershey’s earnings if prices remain...

Read the full narrative on Hershey (it's free!)

Hershey's outlook forecasts $12.2 billion in revenue and $1.8 billion in earnings by 2028. This scenario assumes annual revenue growth of 4.3% and a $0.2 billion increase in earnings from the current $1.6 billion level.

Uncover how Hershey's forecasts yield a $191.95 fair value, in line with its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community range from US$126.32 to US$196.05, reflecting diverse outlooks on Hershey’s potential. This wide spread of opinions comes as many focus on the impact of high input costs on gross margins and profitability, consider exploring these different viewpoints for further insight.

Explore 12 other fair value estimates on Hershey - why the stock might be worth 33% less than the current price!

Build Your Own Hershey Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hershey research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hershey research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hershey's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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