Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have said many times that the best business to own is one that can raise prices without losing its customers to a competitor, run by honest people, purchased at a sensible price. Hershey passes the first two tests with room to spare, and after the worst cocoa cost shock in the company's 132-year history — a shock that cut adjusted earnings per share by 37% in 2025 and the stock price nearly in half from its 2023 peak — the third test is now close enough to passing that we would buy it. The just-filed Q2 2026 10-Q (quarter ended June 28, 2026) shows the recovery is real: gross margin snapped back to 45.3% from 30.5% a year ago, net income was $457.7 million versus $62.7 million, and management raised full-year guidance.
Recent filings analysed: 8-K (2026-07-30), 10-Q (2026-07-30), 8-K (2026-06-09), 8-K (2026-05-28).
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