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Hershey's Pricing Stays Firm: Can HSY's Volumes Stabilize Next?
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Key Takeaways
Hershey posted 6.2% organic sales growth in Q3, driven almost entirely by net price realization.
HSY volumes showed slight improvement, led by Salty Snacks, while other areas remained pressured.
HSY now has most pricing in place, putting the spotlight on future volume stabilization.
The Hershey Company’s (HSY - Free Report) third-quarter 2025 results show that pricing continues to be the primary driver of performance. Organic, constant-currency net sales grew 6.2% during the quarter, with nearly all of the growth coming from the net price realization of approximately six points. This indicates that pricing actions implemented over the past two years are still flowing through the business.
During the third-quarter earnings call, management noted that pricing announced in 2025 made only a modest contribution in the period. As a result, the current sales lift is mainly tied to earlier pricing actions rather than new increases. Management also highlighted that these pricing moves are increasingly being reflected on shelves following close collaboration with retail partners, providing better visibility into underlying demand trends.
Volume performance remained mixed. At the consolidated level, volumes were slightly positive, supported by strength in Salty Snacks and the timing of international shipments. However, some parts of the business experienced modest volume declines, primarily reflecting the impact of price elasticity, changes in customer programming and product mix dynamics. This uneven performance suggests that while pricing remains firm, volume trends have yet to stabilize consistently across the portfolio.
The third quarter reinforced that pricing continues to do most of the work. Strong net price realization helped offset ongoing cost pressures from commodities, tariffs and unfavorable mix. Management also emphasized that recent pricing actions have only partially covered the inflation absorbed over the past two years, particularly with cocoa prices still significantly elevated versus 2023 levels.
With most pricing actions now in place, focus is gradually shifting toward volumes. As pricing comparisons ease over time, the key question is whether demand can stabilize and improve more broadly. The latest results point to some early signs of resilience, but they also suggest that a clear and sustained volume recovery has not yet taken shape. For now, the Zacks Rank #3 (Hold) company’s pricing remains a major support, while volume stabilization remains the next key variable to watch closely.
Image Source: Zacks Investment Research
Shares of HSY have gained 3.1% in the past six months compared with the industry’s growth of 0.2%.
3 Consumer Staple Stocks to Consider
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Monster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings indicates an increase of 9.7% and 22.8%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1.
The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings suggests growth of 1% and 187.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
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Hershey's Pricing Stays Firm: Can HSY's Volumes Stabilize Next?
Key Takeaways
The Hershey Company’s (HSY - Free Report) third-quarter 2025 results show that pricing continues to be the primary driver of performance. Organic, constant-currency net sales grew 6.2% during the quarter, with nearly all of the growth coming from the net price realization of approximately six points. This indicates that pricing actions implemented over the past two years are still flowing through the business.
During the third-quarter earnings call, management noted that pricing announced in 2025 made only a modest contribution in the period. As a result, the current sales lift is mainly tied to earlier pricing actions rather than new increases. Management also highlighted that these pricing moves are increasingly being reflected on shelves following close collaboration with retail partners, providing better visibility into underlying demand trends.
Volume performance remained mixed. At the consolidated level, volumes were slightly positive, supported by strength in Salty Snacks and the timing of international shipments. However, some parts of the business experienced modest volume declines, primarily reflecting the impact of price elasticity, changes in customer programming and product mix dynamics. This uneven performance suggests that while pricing remains firm, volume trends have yet to stabilize consistently across the portfolio.
The third quarter reinforced that pricing continues to do most of the work. Strong net price realization helped offset ongoing cost pressures from commodities, tariffs and unfavorable mix. Management also emphasized that recent pricing actions have only partially covered the inflation absorbed over the past two years, particularly with cocoa prices still significantly elevated versus 2023 levels.
With most pricing actions now in place, focus is gradually shifting toward volumes. As pricing comparisons ease over time, the key question is whether demand can stabilize and improve more broadly. The latest results point to some early signs of resilience, but they also suggest that a clear and sustained volume recovery has not yet taken shape. For now, the Zacks Rank #3 (Hold) company’s pricing remains a major support, while volume stabilization remains the next key variable to watch closely.
Image Source: Zacks Investment Research
Shares of HSY have gained 3.1% in the past six months compared with the industry’s growth of 0.2%.
3 Consumer Staple Stocks to Consider
The Vita Coco Company, Inc. (COCO - Free Report) develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago reported figures. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Monster Beverage Corporation (MNST - Free Report) engages in the development, marketing, sale and distribution of energy drink beverages and concentrates in the United States and internationally. MNST currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Monster Beverage's current fiscal-year sales and earnings indicates an increase of 9.7% and 22.8%, respectively, from the year-ago actuals. MNST delivered a trailing four-quarter earnings surprise of 5.5%, on average.
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1.
The Zacks Consensus Estimate for United Natural’s current fiscal-year sales and earnings suggests growth of 1% and 187.3%, respectively, from the year-ago reported figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.