Hershey: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 29, 2026, Hershey (NYSE:HSY) projected organic sales growth of 2% to 4% for 2027. The manufacturer faces macro consumer headwinds in convenience stores, yet relies on pricing discipline and product innovation to protect operating performance. Three key takeaways from management explain how the business is positioning itself for future growth.

1. Product Innovation Increases 50% To Drive 2027 Sales Growth

Management relies on fresh product releases rather than price cuts to capture market share. The expanded innovation pipeline for research and development (R&D) will contribute three times more top-line growth in 2027 than in 2026.

When we look into 2027, we have a 50% increase on our innovation pipeline. We are going to be much more competitive on innovation.
-- Kirk Tanner, President and Chief Executive Officer

2. Revenue Growth Management Preserves Category Pricing Power

Category pricing remains disciplined, with no broad price rollbacks. Management uses revenue growth management (RGM), which optimizes pricing structures and package sizes, to deliver value through targeted promotions.

Category growth has been driven largely by innovation and new ideas. We are, though, investing in consumer value through pack and price, through targeted promotions.
-- Kirk Tanner, President and Chief Executive Officer

3. Digital Automation and Efficiency Support Long-Term Margins

Capital investments in supply chain technology aim to drive long-term recovery in gross margin, which measures the share of revenue left after production costs. Automation in factories helps offset higher logistics expenses and supports earnings per share (EPS).

One is digitization and factory automation. That's underway. There's a lot of white space we're going after over the next couple of years to drive manufacturing efficiencies.
-- Dave Hulays, Senior Vice President and Chief Financial Officer

Looking Ahead

Consumer shopping trips remain soft at convenience stores due to fuel costs, but demand in mass retail and e-commerce helps balance channel performance. The business maintains structural advantages through automated manufacturing plants, multi-pack production lines, and flexible commodity hedging for cocoa inputs. Management tracks logistics optimization and promotional returns to evaluate operational progress.

I am confident the investments we have made in R&D innovation in our pipeline for 2027 and 2028 make us much more competitive.
-- Kirk Tanner, President and Chief Executive Officer

Strategic priorities remain focused on brand investments and core channel execution.

Our posture remains the same. We'll invest in growth levers, marketing, innovation, and merchandising, and we're doing that to support 2027, but also to prep for and support 2028.
-- Dave Hulays, Senior Vice President and Chief Financial Officer

The Motley Fool has positions in and recommends Hershey. The Motley Fool has a disclosure policy.