1415 ET - By Grace Yoon Hershey had a tough setup in its first quarter driven by increased price sensitivity to packaged foods, say BNP Paribas analysts. The firm says there is a broader drop in consumer demand in the chocolate business which has led to a slowdown primarily in day-to-day sales, rather than seasonal or holiday business. The analysts say a primary driver of the slowdown has been more expensive packages--that is, everyday chocolate items with a $3-or-higher average unit price are becoming a larger contributor to the deceleration than items under $3, suggesting consumers are balking at more expensive bags. Hershey Chief Financial Officer Steve Voskull said in a conference call the first two weeks of June came in softer than anticipated. But the analysts are optimistic that performance will improve in the second half of 2026 with Hershey's Americana programming, or patriotic events and rides at Hershey Park, and with the release of a movie on Hershey's founder, scheduled to premiere in November. (grace.yoon@wsj.com)

(END) Dow Jones Newswires

July 13, 2026 14:15 ET (18:15 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.