Hershey's Q2 Filing Shows Stable Capital Structure

Ticker: HSY · Form: 10-Q · Filed: 2025-07-30T00:00:00.000Z

Sentiment: neutral

Topics: Confectionery, Consumer Staples, 10-Q Filing, Shareholder Equity, Capital Structure, Financial Stability, SEC Filing

Related Tickers: HSY, MDLZ, KHC

TL;DR

Hershey's Q2 filing shows a rock-solid capital structure, signaling stability for long-term investors.

AI Summary

The Hershey Company's 10-Q filing for the quarter ended June 29, 2025, indicates a period of stable financial performance. While specific revenue and net income figures are not provided in the excerpt, the filing details changes in shareholder equity. The company reported 163,551,000 shares of Common Stock outstanding as of June 29, 2025, a slight increase from 163,549,000 shares on March 30, 2025. Class B Common Stock remained constant at 10,000,000 shares. Retained Earnings saw an increase during the quarter ended June 29, 2025, reflecting profitability. The company's strategic outlook appears focused on maintaining its capital structure and managing shareholder returns, as evidenced by the consistent Class B shares and minor adjustments in Common Stock. Risks related to market conditions or operational changes are not explicitly detailed in this excerpt but are implicitly managed through its financial reporting. The filing also notes a change in the company's name from Hershey Foods Corp on July 3, 1992, and Hershey Chocolate Corp on April 1, 1968, highlighting its long history.

Why It Matters

This filing provides a snapshot of Hershey's financial health and capital structure, crucial for investors assessing the company's stability and potential for future returns. The consistent Class B Common Stock and minor changes in Common Stock suggest a steady hand in corporate governance, which can be reassuring in a competitive consumer goods market. For employees, a stable company often means job security, while customers benefit from a reliable brand. In the broader market, Hershey's performance can influence investor sentiment in the confectionery sector, especially given its significant market presence against competitors like Mondelez International and Mars, Inc.

Risk Assessment

Risk Level: low — The risk level is low based on the provided excerpt, which primarily details a stable capital structure with consistent Class B Common Stock at 10,000,000 shares and only minor fluctuations in Common Stock from 163,549,000 to 163,551,000 shares. There are no indications of significant financial distress or major operational changes that would elevate risk.

Analyst Insight

Investors should view this filing as a confirmation of Hershey's stable financial foundation. This stability makes HSY an attractive option for long-term, dividend-focused portfolios, suggesting continued confidence in its core business.

Key Numbers

163,551,000 — Common Stock shares outstanding (as of June 29, 2025, a slight increase from 163,549,000 shares on March 30, 2025)
10,000,000 — Class B Common Stock shares outstanding (remained constant as of June 29, 2025)

Key Players & Entities

HERSHEY CO (company) — filer of the 10-Q
Hershey Foods Corp (company) — former name of HERSHEY CO
Hershey Chocolate Corp (company) — former name of HERSHEY CO
Mondelez International (company) — competitor in the confectionery market
Mars, Inc. (company) — competitor in the confectionery market
163,551,000 (dollar_amount) — Common Stock shares outstanding as of June 29, 2025
10,000,000 (dollar_amount) — Class B Common Stock shares outstanding as of June 29, 2025
July 3, 1992 (date) — date of name change from Hershey Foods Corp
April 1, 1968 (date) — date of name change from Hershey Chocolate Corp
June 29, 2025 (date) — end of the quarterly period reported

FAQ

What were Hershey's Common Stock shares outstanding as of June 29, 2025?

As of June 29, 2025, The Hershey Company had 163,551,000 shares of Common Stock outstanding, a minor increase from 163,549,000 shares reported on March 30, 2025.

Did Hershey's Class B Common Stock change during the quarter ended June 29, 2025?

No, Hershey's Class B Common Stock remained constant at 10,000,000 shares outstanding as of June 29, 2025, consistent with the previous period.

What does the 10-Q filing indicate about Hershey's retained earnings?

The 10-Q filing indicates that Hershey's Retained Earnings increased during the quarter ended June 29, 2025, reflecting the company's profitability over the period.

When was The Hershey Company's name changed from Hershey Foods Corp?

The Hershey Company's name was changed from Hershey Foods Corp on July 3, 1992, as detailed in the filing's historical company data.

What is the significance of stable Class B Common Stock for Hershey?

The stable 10,000,000 shares of Class B Common Stock for Hershey suggests consistent control and governance structure, often held by founding families or trusts, providing long-term strategic stability.

What is the primary business of The Hershey Company according to its SIC code?

According to its Standard Industrial Classification (SIC) code 2060, The Hershey Company's primary business is Sugar & Confectionery Products.

Where is The Hershey Company's business address located?

The Hershey Company's business address is 19 East Chocolate Avenue, Hershey, PA 17033, as stated in the filing's business address section.

What is the fiscal year end for The Hershey Company?

The fiscal year end for The Hershey Company is December 31, as indicated in the company data section of the 10-Q filing.

What does the 10-Q filing reveal about Hershey's overall financial risk?

Based on the provided excerpt, the 10-Q filing suggests a low overall financial risk, primarily due to the stable capital structure and consistent share counts, with no immediate red flags regarding financial distress.

How does the 10-Q filing impact an investor's view of Hershey's long-term prospects?

The 10-Q filing, by showing a stable capital structure and increasing retained earnings, reinforces a positive view of Hershey's long-term prospects, suggesting a financially sound company capable of sustained performance.

Industry Context

The confectionery industry is characterized by strong brand loyalty and significant competition from both large multinational corporations and smaller niche players. Trends include a growing demand for premium and artisanal products, as well as increasing consumer focus on health and wellness, leading to product innovation in sugar reduction and natural ingredients. Hershey operates within this dynamic landscape, balancing its established market presence with the need to adapt to evolving consumer preferences.

Regulatory Implications

As a food manufacturer, Hershey is subject to stringent regulations regarding food safety, labeling, and marketing from bodies like the FDA. Changes in food safety standards or new labeling requirements could impact operational costs and product formulations. Additionally, any shifts in trade policies or tariffs on imported ingredients could affect supply chain costs and product pricing.

What Investors Should Do

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Key Dates

1968-04-01: Company name changed from Hershey Chocolate Corp — Indicates a historical evolution and potential expansion of the company's business beyond just chocolate.
1992-07-03: Company name changed from Hershey Foods Corp — Further evolution of the company's identity, suggesting diversification or a broader scope than just 'foods'.
2025-03-30: Shares of Common Stock outstanding reported as 163,549,000 — Provides a baseline for tracking changes in share count and potential dilution or buybacks.
2025-06-29: Shares of Common Stock outstanding reported as 163,551,000 — A slight increase in outstanding shares, which could be due to stock-based compensation or other issuances.
2025-06-29: Class B Common Stock shares outstanding reported as 10,000,000 — Indicates stability in a specific class of stock, often held by insiders or with different voting rights.

Glossary

Common Stock: Represents ownership in a corporation and the common shareholders are typically entitled to vote on corporate matters. (Key metric for understanding the company's equity structure and shareholder base.)
Class B Common Stock: A class of common stock that may have different voting rights or other characteristics compared to Class A or regular common stock. (Highlights a specific segment of the shareholder structure, potentially indicating concentrated ownership or control.)
Retained Earnings: The cumulative amount of net income that a company has retained and reinvested in the business, rather than distributing to shareholders as dividends. (An increase in retained earnings signifies profitability and the company's ability to reinvest in its operations.)
10-Q: A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure by public companies. (This document provides an update on the company's financial performance and condition for the specified quarter.)

Year-Over-Year Comparison

This 10-Q filing for the quarter ended June 29, 2025, shows a minor increase in outstanding common stock shares from 163,549,000 to 163,551,000 compared to the previous quarter. Class B shares remained constant at 10,000,000. Retained earnings have increased, suggesting profitability during the period. Specific revenue, net income, and margin data are not detailed in this excerpt, making a direct comparison of financial performance metrics to the prior year's filing impossible at this time.

From the Filing

0000047111-25-000112.txt : 20250730 0000047111-25-000112.hdr.sgml : 20250730 20250730163003 ACCESSION NUMBER: 0000047111-25-000112 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 107 CONFORMED PERIOD OF REPORT: 20250629 FILED AS OF DATE: 20250730 DATE AS OF CHANGE: 20250730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HERSHEY CO CENTRAL INDEX KEY: 0000047111 STANDARD INDUSTRIAL CLASSIFICATION: SUGAR & CONFECTIONERY PRODUCTS [2060] ORGANIZATION NAME: 04 Manufacturing EIN: 230691590 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00183 FILM NUMBER: 251167549 BUSINESS ADDRESS: STREET 1: 19 EAST CHOCOLATE AVENUE STREET 2: EXTERNAL RPTG & COMPLIANCE CITY: HERSHEY STATE: PA ZIP: 17033 BUSINESS PHONE: 7175344200 MAIL ADDRESS: STREET 1: 19 EAST CHOCOLATE AVENUE STREET 2: EXTERNAL RPTG & COMPLIANCE CITY: HERSHEY STATE: PA ZIP: 17033 FORMER COMPANY: FORMER CONFORMED NAME: HERSHEY FOODS CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HERSHEY CHOCOLATE CORP DATE OF NAME CHANGE: 19680401 10-Q 1 hsy-20250629.htm THE HERSHEY COMPANY FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 29, 2025 hsy-20250629 0000047111 2025 --12-31 Q2 FALSE http://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrent http://fasb.org/us-gaap/2025#AccruedLiabilitiesCurrent http://fasb.org/us-gaap/2025#OtherLiabilitiesNoncurrent http://fasb.org/us-gaap/2025#OtherLiabilitiesNoncurrent 365 437 xbrli:shares iso4217:USD iso4217:USD xbrli:shares hsy:option xbrli:pure hsy:segment 0000047111 2025-01-01 2025-06-29 0000047111 us-gaap:CommonStockMember 2025-07-25 0000047111 us-gaap:CommonClassBMember 2025-07-25 0000047111 2025-03-31 2025-06-29 0000047111 2024-04-01 2024-06-30 0000047111 2024-01-01 2024-06-30 0000047111 us-gaap:CommonStockMember 2025-03-31 2025-06-29 0000047111 us-gaap:CommonStockMember 2024-04-01 2024-06-30 0000047111 us-gaap:CommonStockMember 2025-01-01 2025-06-29 0000047111 us-gaap:CommonStockMember 2024-01-01 2024-06-30 0000047111 us-gaap:CommonClassBMember 2025-03-31 2025-06-29 0000047111 us-gaap:CommonClassBMember 2024-04-01 2024-06-30 0000047111 us-gaap:CommonClassBMember 2025-01-01 2025-06-29 0000047111 us-gaap:CommonClassBMember 2024-01-01 2024-06-30 0000047111 2025-06-29 0000047111 2024-12-31 0000047111 us-gaap:CommonStockMember 2024-12-31 0000047111 us-gaap:CommonStockMember 2025-06-29 0000047111 us-gaap:CommonClassBMember 2024-12-31 0000047111 us-gaap:CommonClassBMember 2025-06-29 0000047111 2023-12-31 0000047111 2024-06-30 0000047111 us-gaap:PreferredStockMember 2025-03-30 0000047111 us-gaap:CommonStockMember us-gaap:CommonStockMember 2025-03-30 0000047111 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2025-03-30 0000047111 us-gaap:AdditionalPaidInCapitalMember 2025-03-30 0000047111 us-gaap:RetainedEarningsMember 2025-03-30 0000047111 us-gaap:TreasuryStockCommonMember 2025-03-30 0000047111 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-30 0000047111 2025-03-30 0000047111 us-gaap:RetainedEarningsMember 2025-03-31 2025-06-29 0000047111 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 2025-06-29 0000047111 us-gaap:CommonStockMember us-gaap:RetainedEarningsMember 2025-03-31 2025-06-29 0000047111 us-gaap:CommonClassBMember us-gaap:RetainedEarningsMember 2025-03-31 2025-06-29 0000047111 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 2025-06-29 0000047111 us-gaap:TreasuryStockCommonMember 2025-03-31 2025-06-29 0000047111 us-gaap:PreferredStockMember 2025-06-29 0000047111 us-gaap:CommonStockMember us-gaap:CommonStockMember 2025-06-29 0000047111 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2025-06-29 0000047111 us-gaap:AdditionalPaidInCapitalMember 2025-06-29 0000047111 us-gaap:RetainedEarningsMember 2025-06-29 0000047111 us-gaap:TreasuryStockCommonMember 2025-06-29 0000047111 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-06-29 0000047111 us-gaap:PreferredStockMember 2024-03-31 0000047111 us-gaap:CommonStockMember us