HSY

Shares of the candy makers, including Hershey (NYSE:HSY) and Tootsie Roll Industries (NYSE:TR), have outperformed the broader market averages in the past six months on the back of strong consumer demand. However, higher ingredients, packaging materials, and manufacturing costs have taken a toll on their margins.  The graph below shows the six-month performance of HSY (+7.3%) and TR (+15.6%) stocks. The S&P 500 Index (SPX) is down over 8%.  While both these companies have increased prices to counter inflation, significantly higher input unit costs remain a drag on their margins. Hershey’s Q2 adjusted gross margin fell 250 basis points due to higher costs.
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