TIVP012: Hershey (HSY): A Deliciously Beaten Down Stock? w/ Shawn O'Malley & Daniel Mahncke

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The Investor's Podcast Network

Investing, Education, Business

4.6 • 593 Ratings

🗓️ 23 March 2025

⏱️ 86 minutes

🔗️ Recording | iTunes | RSS

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Summary

In today’s episode, Shawn O’Malley and Daniel Mahnke break down Hershey (ticker: HSY), a company about so much more than chocolate. From Hershey’s Kisses to Reese’s, Skinny Pop, and Dot’s Pretzels, Hershey’s is home to a number of iconic brands and is turning into an increasingly diversified snacking company. In this episode, you’ll learn how Hershey’s was founded, why chocolate brands are hard to scale internationally, why Hershey’s is diversifying into salty snacks, what Hershey’s is doing about a global cocoa shortage, plus so much more! Prefer to watch? Click here to watch this episode on YouTube. IN THIS EPISODE, YOU’LL LEARN 00:00 - Intro 04:41 - Hershey’s unique origin story 16:09 - How the company is responding to global cocoa shortages 22:19 - Why Hershey is unlikely to be acquired and its plans for growth 23:36 - The origins of Hershey’s unconventional ownership structure 29:27 - Why Hershey’s isn’t as popular outside North America 39:53 - What made Hershey’s diversify into salty snacks 42:45 - Why the stock has been so beaten up over the last 18 months 35:12 - How Hershey’s stacks up against competitors 1:00:20 - What is Hershey’s intrinsic value per share 1:07:44 - Whether Shawn & Daniel add HSY to The Intrinsic Value Portfolio And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter. Hershey’s 2023 pitch on the Value Investors Club Forum. Check out Poor Charlie’s Almanack. The History of Hershey. Hershey’s annual financial reports. Check out our previous Intrinsic Value breakdowns: AutoZone, Alphabet, Ulta, John Deere, and Madison Square Garden Sports. Check out the books mentioned in the podcast here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Browse through all our episodes (complete with transcripts) here. Try Shawn's favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Shopify CFI Education TurboTax Airbnb Connect with Shawn: Twitter | LinkedIn | Email Connect with Daniel: Twitter | LinkedIn | Email HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:03.2	Reesies, Twizzlers, Kit Katz, Milk Duds, and of course, Hershey's Kisses.
0:08.4	Those are just a sampling of the iconic snack brands owned by the Hershey Company, ticker
0:13.2	HSY.
0:15.0	That's right.
0:15.4	Today we'll be covering the King of Halloween, a company so beloved that an entire town is
0:20.0	named after it with an accompanying
0:21.8	theme part. Sweet treats are an enduring part of the human experience, and few companies
0:26.9	have as strong brand recognition as Hershey. Yet the stock has been beaten down, getting
0:32.8	nearly cut in half from its peak in May 2023 at some points and continuing to fall through 2024.
0:39.7	The business has faced many challenges from soaring cocoa prices to the popularity of
0:45.6	GLP1 weight loss drugs that have reduced demand for their not-so-healthy snacks.
0:51.5	But the business remains immensely profitable with a strong record of generating
0:56.2	returns and powerful brands behind it.
0:58.9	So the question we'll be exploring today is whether investors are too pessimistic about
1:03.6	this special company.
1:05.5	Like last week, my new co-host, Daniel Manka will be joining me, and last time around he
1:09.7	pitched Nintendo, and now I'll be making
1:12.5	the case for Hershey while he provides me some feedback and some questions. Without further ado,
1:17.7	let's dive into the story, business model, challenges, and valuation of Hershey.
1:26.1	You're listening to the Intrinsic Value podcast by the Investors Podcast Network.
1:30.3	Since 2014, with over 180 million downloads, we've learned directly from the world to best investors.
	...

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