I’m a fan of Reese’s Peanut Butter Cups; indeed, the brand must be doing something right because it generates more than $2 billion in annual sales and is consistently the top-selling candy in the United States, notes Kelly Green in Martin Weiss' advisory service, Weiss Ratings Daily.
Now, the brand goes beyond its humble beginnings with the peanut butter cup, which initially only cost one penny. You can get Reese’s flavored pudding cups, breakfast cereal … there’s even the possibility of a Reese’s combination with Yuengling, America’s oldest brewery.
Last year, Reese’s was taking shots at coffee cake claiming that its Reese’s Snack Cakes were the perfect midmorning snack to accompany your coffee. And this year, they’re taking shots at your grandma’s pumpkin pie. The Reese’s Pie retails for $44.95 — and the 3,000 pies available sold out in less than two hours.
If you didn’t know, Reese’s Peanut Butter Cups are one of 90 brands under The Hershey Company (HSY) umbrella. This is along with other favorites like Kit-Kat, Jolly Rancher, Almond Joy … and of course, all of Hershey’s originals.
The Reese’s history is especially interesting because founder Harry Burnett (H.B.) Reese originally worked on a Hershey Dairy Farm. His success came in 1928 when he started selling the peanut butter cups. His children eventually sold the company to Hershey for $23.5 million in 1963.
And as we’ve seen, Hershey’s continues to rake in billions from the brand every year. In fact, it’s about a quarter of Hershey’s annual revenue.
So why is all of this important to investors? Because earlier this month, The Hershey Company hit the highest Weiss Rating we’ve seen in seven years. It now sits at an “A-” after its most recent earnings call where it saw earnings before interest and taxes (EBIT) increase 26.5% and total revenue increase 18.6%.
Shares of the company are up 21% over the past year and pay a 1.9% dividend. So, if you’re looking for a sweet addition to your portfolio this holiday season, this might just be the stock for you.
