3 actions that make your favorite snacks



SSometimes investment opportunities present themselves in the most unexpected places. In this segment of Backstage Pass, registered on October 6, 2021, Fool contributors Brian Withers, Rachel Warren and Demitri Kalogeropoulus, share their all-time favorite snacks and the known actions that make them.

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Brian withers: I saw this article and it was just supposed to be on the show today. Goldfish, it’s all about Goldfish crackers. Yes, the Goldfish Crackers are having a moment. Piper sandler, an investment research firm surveyed 10,000 teens with a variety of questions, including tips on their favorite snack foods.

Piper Sandler said 12% of teens surveyed cited goldfish as their favorite snack, and it was No.1. It has grown significantly since her previous poll in the spring by 9%.

It is gaining ground, it is taking market share in the teen market. I don’t know if it’s enough news for me to go buy Campbell Soup (NYSE: CPB) share stock symbol [laughs] CPB.

But it’s a great way to wrap up the hour. What’s your favorite snack? We are going to research stocks by looking at our stomachs. [laughs] What’s your favorite snack? Who is the manufacturer and is it a public company? We step back, we start with the snack. Rachel, you’re the first.

Rachel Warren: First of all I have to say I loved Goldfish crackers as a kid. i am so happy that [laughs] a new generation eats them. [laughs] It just filled me with joy. In any case, everything is fine. I have to go get some, I wonder if I can find some here in Italy. I’m not the biggest nibbler in the world, but I’ll say if I’m going to snack I’m probably going to eat mixed nuts and dried fruit.

But if I just don’t want to be amazingly healthy, I’ll eat chocolate, and often dark chocolate. Of course, when I make chocolate, there really is nothing better than a huge bar of special Hershey’s dark chocolate. [laughs]

Which brings me to, there is a stock that is publicly traded here. The Hershey Company (NYSE: HSY) has been listed on the stock exchange since 1978. Ticker symbol, HSY. It’s a company that I feel everyone knows at least a little bit because we buy all of their chocolates.

The company actually had a very good second quarter earnings report. Personally, I have never written about this stock before. As a consumer, I was interested to see how their finances were doing. Consolidated net sales increased 17% year-over-year in the last quarter, and net income increased 12% year-over-year.

I think it also shows that people know and love Hershey’s products. There is certainly a big increase in the number of nibbles, I often think of the house during the [laughs] pandemic, I know I was, and being locked inside for so long.

But I also think it’s just this general brand appeal that people know and love. Yes, an interesting business for sure.

Withers: Ask here. I guess, since Teladoc went public, was Hershey a better investment or Teladoc?

It’s Hershey, barely. [laughs] Hershey has 79% return, Teladoc has 67% return. I think Hershey’s has a small dividend. Here is.

Warren: Wow.

Withers: Skip the Teladoc meeting, [laughs] go buy a chocolate bar.

Warren: Go get some chocolate. [laughs]

Withers: Demitri, what’s your snack?

Demitri Kalogeropoulos: Let’s see. I love nuts, I also love to snack on nuts myself. Pistachios, cashews, almonds, I love crunchy things. It’s still in my house and in my pantry. I have all of these things in my house right now and they all have the same mark on them and this is Kirkland. There is absolutely one Kirkland maker that you can buy, it’s a publicly traded company, and it’s Costco (NASDAQ: COT). Ticker, COT.

It’s a fantastic business. I know most Motley Fool members know this, it’s a great business model. They are the price leader, it is their approach to be the price leader in consumer staples through incredible efficiency, incredible inventory turnover and uses a subscription retail model to let you sell the lowest prices that competitors cannot touch.

They seem to have a Kirkland version of just about every very popular product that they sell right next to anything you might buy. In many cases, the product I find is as good, if not better at times, than the brand name.

Withers: Definitely they have some high quality snacks when you go to Costco and there is plenty to choose from for sure. It is an excellent choice. We don’t often have them at home because I would eat way too much of them, but Ruffle chips are absolutely favorite.

It is a product of Frito-Lay, the snack subsidiary of PepsiCo (NASDAQ: PPE). PEP stock symbol. If I look at the past 12 months for these three companies, they all significantly beat Teladoc’s [laughs] 12 month returns.

Warren: [laughs] Oh good.

Withers: Hey, I’m a shareholder too, but it’s interesting. Who would have thought that by coming out of the coronavirus, snack foods would have been a great way to invest.

Brian Withers owns shares of Teladoc Health. Demitri Kalogeropoulos owns shares in Costco Wholesale. Rachel Warren owns shares of Teladoc Health. The Motley Fool owns shares and recommends Costco Wholesale and Teladoc Health. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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