Management Transition: Michele Buck, the current CEO, is retiring, and Kirk Vashaw will take over in mid-August. Buck emphasized a strong culture and sustained investments over time, which has driven Hershey's growth even amid recent headwinds like rising cocoa prices and tariffs. Kirk's relevant consumer packaged goods experience positions him well as a new leader.

Pricing Strategy: Hershey has announced significant pricing increases to address rising costs from cocoa and maintain margin recovery. For 2025, the company is modeling an elasticity of approximately 1:1 with the new pricing, expecting mid-teens revenue growth attributable to these price increases and a substantial profit benefit in 2026.

Gross Margin Recovery Expectations: Hershey anticipates gross margin expansion of 500 basis points or more in 2026 from current levels, with pricing initiatives, cost savings, and operational efficiencies playing key roles. However, cocoa futures are still expected to remain inflationary in 2026, which could impact the overall effectiveness of the pricing strategy.