Hershey Company Project
Virginia Hampton
BUSN 5440
Hershey’s Project
6. Historical Stock Price
Over the past 4 years, the Hershey Company’s stock has steadily risen from the high 30s to today’s price $89.25 per share. Why is Hershey enjoying such growth in a prolonged recession?
---- Insert 5-yr chart here -----
Hershey as a company is over 100 years old. They have had bad times and good but have managed to keep a cool head in difficult situations. This has resulted in building a solid brand based on the name and reputation of Milton Hershey, their commitment to excellence particularly with their supply chain, sound management that looks ahead and reasons back. Regarding the stock price, shareholders want value and that added dividend is a bonus for investing in the company. How many ways can chocolate and confectionery products become profitable and maintain that status? The senior management at the corporation always has an ear to the ground. It is no secret. The North American chocolate market has matured but Hershey sales are still strong with the added baking goods to shore up sales. Hershey has expanded overseas with a failed attempt to buy Cadbury (lost out to Kraft) but they moved ahead in licensing other products overseas. The company is very inventive in trying to keep ahead of their competitors. This all ties in with the stock price. The price is a numeric measure of value but the value itself if a compilation of evaluating opportunities dealing with food and other government regulations, rising commodity prices, crop failures and civil unrest particularly in West Africa where the premium cocoa is harvest. All these issues - huge in scope - are reflected in the stock price as are such intangibles as the company name and reputation. In short, the past should be evaluated along with the present.
8. (a) Analyze the current dividend policy of your company. If it does not pay a dividend, should it?
Hershey Company pays quarterly dividends which have
BUSN 5440
Hershey’s Project
6. Historical Stock Price
Over the past 4 years, the Hershey Company’s stock has steadily risen from the high 30s to today’s price $89.25 per share. Why is Hershey enjoying such growth in a prolonged recession?
---- Insert 5-yr chart here -----
Hershey as a company is over 100 years old. They have had bad times and good but have managed to keep a cool head in difficult situations. This has resulted in building a solid brand based on the name and reputation of Milton Hershey, their commitment to excellence particularly with their supply chain, sound management that looks ahead and reasons back. Regarding the stock price, shareholders want value and that added dividend is a bonus for investing in the company. How many ways can chocolate and confectionery products become profitable and maintain that status? The senior management at the corporation always has an ear to the ground. It is no secret. The North American chocolate market has matured but Hershey sales are still strong with the added baking goods to shore up sales. Hershey has expanded overseas with a failed attempt to buy Cadbury (lost out to Kraft) but they moved ahead in licensing other products overseas. The company is very inventive in trying to keep ahead of their competitors. This all ties in with the stock price. The price is a numeric measure of value but the value itself if a compilation of evaluating opportunities dealing with food and other government regulations, rising commodity prices, crop failures and civil unrest particularly in West Africa where the premium cocoa is harvest. All these issues - huge in scope - are reflected in the stock price as are such intangibles as the company name and reputation. In short, the past should be evaluated along with the present.
8. (a) Analyze the current dividend policy of your company. If it does not pay a dividend, should it?
Hershey Company pays quarterly dividends which have