Hershey's Savory Snack Sales Soar: Can the 28% Increase Be Sustained?

Hershey's Impressive Growth in Salty Snacks

The Hershey Company (HSY) experienced notable expansion in its North American Salty Snacks division during the final quarter of 2025, driven by robust consumer demand and sustained momentum across its brand lineup.

Highlights from the Salty Snacks Segment

During the fourth quarter, sales in this segment climbed 28% year-over-year, reaching $357 million. This surge was fueled in part by the acquisition of LesserEvil, which contributed about 10% to the total, while organic sales at constant currency grew by 18.2%. Increased volume accounted for roughly 14% of the organic growth, reflecting heightened consumer interest, broader variety pack offerings, and shipment timing related to early 2026 programs.

Additionally, the quarter benefited from an extra shipping day compared to the previous year. Improved pricing, mainly due to reduced promotional spending, added around 4% to the growth. However, these gains were somewhat tempered by a planned decrease in sales to private label clients.

Retail performance remained strong. Excluding LesserEvil, Hershey’s U.S. salty snack sales in the multi-outlet and convenience channels rose 15.6% over the 12 weeks ending December 28, 2025. SkinnyPop popcorn saw retail sales increase by over 8%, Dot’s Homestyle Pretzels grew by more than 20%—maintaining its status as the top pretzel brand—and Pirate’s Booty sales advanced by about 3%, thanks to expanded distribution and in-store promotions.

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Profitability also saw improvement, with segment income rising 38.1% to $75.3 million and margins widening by 160 basis points to 21.1%. These results were supported by higher volumes, lower promotional costs, and operational efficiencies, despite increased advertising expenses and some challenges from product mix.

Overall, Hershey’s North American Salty Snacks business continues to gain traction, bolstered by expanding its customer base, securing additional shelf space, and ongoing innovation. Over the past three months, Hershey’s stock has climbed 28.4%, outpacing the industry’s 26.4% growth, and currently holds a Zacks Rank #1 (Strong Buy).

Other Noteworthy Stocks

• Mama's Creations, Inc. (MAMA): Specializing in fresh, deli-prepared foods in the U.S., Mama’s Creations currently holds a Zacks Rank #1. Consensus estimates project sales and earnings growth of 39.9% and 44.4%, respectively, for the current fiscal year, with an average earnings surprise of 133.3% over the last four quarters.
• The Simply Good Foods Company (SMPL): This company develops, markets, and sells snacks and meal replacements both in North America and internationally. SMPL carries a Zacks Rank #2 (Buy), with consensus estimates suggesting a 1.6% increase in earnings for the current fiscal year and an average four-quarter earnings surprise of 5.5%.
• Ollie's Bargain Outlet Holdings, Inc. (OLLI): Operating as a retailer of closeout and surplus merchandise in the U.S., OLLI has a Zacks Rank #2. Projections indicate sales and earnings growth of 16.7% and 17.7%, respectively, for fiscal 2025, with an average earnings surprise of 5.2% over the past four quarters.

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