Will Hershey’s (HSY) New Reese’s OREO Cup Redefine Its Convenience Channel Strategy?

• The Hershey Company recently unveiled a slate of product innovations at the 2025 NACS Show Expo, including the debut of the Reese's OREO Cup and expanded offerings across its snacking portfolio, highlighting data-driven convenience channel strategies.
• This initiative brings together two top brands, Reese's and OREO, for one of the brand's largest launches while showcasing Hershey's focus on growing salty and sweet snack categories in convenience stores through impactful merchandising techniques and new flavor extensions.
• We’ll explore how the Reese’s OREO Cup launch and Hershey’s convenience growth initiatives could impact the company’s investment thesis.

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Hershey Investment Narrative Recap

To be a Hershey shareholder today, you need to believe that brand strength, product innovation, and execution in fast-growing channels like convenience stores can offset short-term pressures on profits. While the Reese’s OREO Cup and expanded salty snacks lineup reinforce Hershey’s focus on growth categories, the most immediate catalyst remains the company’s ability to stimulate sales and margin expansion in the face of elevated cocoa prices and tariff-related cost risks, which the recent expo news does not materially change.

Among the latest announcements, the debut and rapid traction of the Reese’s OREO Cup at the NACS Expo stands out, as it demonstrates Hershey’s active new product pipeline and targeted growth in convenience stores. This innovation is positioned to drive incremental sales and repeat purchases as part of the company’s effort to manage headwinds, especially in segments less affected by cocoa costs.

But in contrast, investors should also remain alert to the impact of further increases in cocoa prices and rising input costs that ...

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

Hershey's narrative projects $12.2 billion revenue and $1.8 billion earnings by 2028. This requires 4.3% yearly revenue growth and a $0.2 billion earnings increase from $1.6 billion today.

Uncover how Hershey's forecasts yield a $189.18 fair value, in line with its current price.

Exploring Other Perspectives

Fourteen Simply Wall St Community members estimate Hershey’s fair value between US$100.50 and US$196.05, suggesting both lower and upper-end targets. With cocoa prices squeezing margins, such a wide range underscores how your expectations around cost pressures could shape your outlook for HSY’s shares.

Explore 14 other fair value estimates on Hershey - why the stock might be worth as much as $196.05!

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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