HERSHEY, Pa. - The Hershey Company (NYSE:HSY), currently valued at $31.87 billion by market capitalization, announced today that Michele Buck, the current Chairman, President, and CEO, will retire on June 30, 2026. Until a successor is named, Buck will continue in her leadership roles and subsequently serve as a senior advisor to ensure a smooth transition.
The confectionery and snack giant has initiated a search for its next CEO, considering both internal and external candidates. A special committee has been formed to oversee the process, working with a nationally recognized search firm. Buck, who will mark her 20th year with Hershey this year, expressed pride in the company's achievements and its culture of innovation, which she believes has been central to Hershey's success in serving customers and creating shareholder value. Under her leadership, the company has maintained strong profitability with a 43% return on equity and an impressive gross margin of 44.5%.
Victor Crawford, the Lead Independent (LON:IOG) Director of the Board, praised Buck's transformative impact on the company, highlighting her role in expanding Hershey's snacking categories and driving international growth. The board is focused on a seamless leadership transition, with Buck's guidance during the process.
Hershey reaffirmed its financial outlook for the full year of 2024 and plans to release its 2025 outlook in February, aligning with its regular earnings announcement schedule. According to InvestingPro, analysts expect the company to remain profitable this year, with projected earnings per share of $9.10 for 2024. For deeper insights into Hershey's financial health and future prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, which cover over 1,400 US stocks.
The Hershey Company has a storied history of over 130 years, known for its iconic brands such as Hershey's, Reese's, and Kit Kat. It operates with a commitment to ethical and sustainable practices and has a significant philanthropic legacy, including the Milton Hershey School, founded to provide educational opportunities for children. The company's financial strength is evidenced by its 54-year track record of consistent dividend payments, with 15 consecutive years of dividend increases. Currently trading near its 52-week low, InvestingPro analysis suggests the stock may be undervalued based on its Fair Value calculations.
The press release also contained forward-looking statements regarding Hershey's business outlook and financial performance, cautioning that actual results may vary due to various risks and uncertainties.
This news is based on a press release statement from The Hershey Company.
In other recent news, Hershey's CEO Michele Buck is expected to step down, with a transition expected to be completed by July 2026, according to Semafor. In the meantime, Hershey has sought regulatory approval to purchase over 90,000 metric tons of cocoa, a significant increase from current limits. This move comes amid global cocoa shortages and escalating prices, which have raised concerns among investors about Hershey's profitability. Analysts from JPMorgan (NYSE:JPM) and Citi have maintained neutral and sell ratings on Hershey shares, respectively, with price targets of $171 and $159. Both firms have expressed concerns about the impact of high cocoa prices on Hershey's earnings. BofA has reinstated Hershey with a neutral rating and a price target of $180. Furthermore, Hershey Trust Co. declined a preliminary takeover bid from Mondelez International Inc (NASDAQ:MDLZ)., and Michael Del Pozzo, President of Hershey's U.S. Confection division, is set to leave the company. These are recent developments in the Hershey Co . scenario.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.