Dutch Bros Vs. Hershey: Which Stock Is The Better Buy Bef…

NYSE · As of 4:00 PM ET 10/23/26

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Moneyball Superscore77/100

Key data points

Market capMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.$7.29B

Day’s range$40.11 – $41.72

52wk range$36.51 – $74.02

Volume3.4M

Avg volume4.3M

Gross margin24.82%

The case for Hershey

Hershey is a titan in the global snacking industry, managing a massive portfolio that includes Reese’s, Twizzlers, and SkinnyPop. The company sells its products through wholesale distributors, grocery chains, and convenience stores worldwide. Its largest customer is McLane Co., which accounted for nearly 27% of consolidated net sales in 2025. This customer concentration adds a layer of risk to the business, though Hershey’s brand power remains its primary competitive advantage.

In FY 2025, revenue reached approximately $11.7 billion, a 4.4% increase over the previous year. However, the company reported a net income of about $883.3 million, which was a sharp decline from the $2.2 billion earned in 2024. This contraction was largely due to rising costs for raw materials and integration efforts for new acquisitions.

HSY – Hershey

$169.64-$6.00 (-3.42%)

NYSE · As of 4:00 PM ET 10/23/26

Premium Feature

Moneyball Superscore66/100

Key data points

Market capMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.$34.09B

Day’s range$168.94 – $175.15

52wk range$156.16 – $239.48

Volume1.9M

Avg volume1.4M

Gross margin37.93%

Dividend yield3.38%

Risk profile comparison

Dutch Bros faces significant risks from its aggressive expansion strategy and potential execution issues as it enters unfamiliar markets. Supply chain concentration is a primary concern, as the company relies on a limited number of co-packers for its proprietary beverages. It is also vulnerable to price changes for coffee and dairy, along with potential regulatory restrictions on drive-thru concepts. Furthermore, the company must manage rising labor costs and the integration of recent real estate acquisitions.

Hershey faces risks related to the high price volatility of key commodities cocoa, sugar, and dairy. The heavy reliance on McLane creates a significant revenue concentration risk if that relationship were to change. The company also deals with intense competition in the snacking industry and must navigate environmental regulations the EU Deforestation Regulation. Additionally, Hershey must successfully integrate recent acquisitions, such as LesserEvil, to realize their full value.

Valuation comparison

Hershey offers a more traditional value profile, while Dutch Bros commands a significant premium due to its rapid revenue growth.

Which stock would I buy in 2026?

While both companies are in the consumer goods space, they differ in the stages of their business operations. Dutch Bros is expanding aggressively, opening 48 new stores in the second quarter of 2026 alone. It isn’t in every state yet so that it could have plenty of room for future expansion. In comparison, you can walk into almost any convenience store or grocery store across the United States, and you can find multiple different types of candy made by Hershey.
I do Dutch Bros as an investment, and I still think it could have a spot in a portfolio as a high-growth stock worthy of a small, speculative stake. That said, between the two companies, I would rather own Hershey. The main reason is that, given the general uncertainty in the markets, I’d rather own a more mature company that generates hundreds of millions or billions of dollars in net income; Hershey generated $883.3 million in net income in 2025, while Dutch Bros generated less than $80 million.

Hershey is also able to pass on its earnings as dividends, which yield 3.4%, while Dutch Bros does not offer a dividend. Also, while the Hershey stock price is down 5.4% over the past 12 months, Dutch Bros’ s have dropped 27.1%. Hershey may be in a more defensive position, but with all the uncertainty swirling around, that currently gives it an edge over Dutch Bros as an investment.

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About the Author

Jack is a seasoned content strategist with over a decade of experience in financial publishing. He’s directed technology, emerging opportunities, and alternative asset publications to deliver actionable insights to investors.

TMFJackDelaney

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