In 2025, Hershey (NYSE: HSY) outperformed Mondelez (NASDAQ: MDLZ) despite rising cocoa prices impacting both companies. Hershey stock has nearly doubled Mondelez’s performance. The companies’ ability to manage rising costs during peak candy demand season will determine the better investment.

Cocoa prices surged due to unfavorable weather in West Africa, tightening supply for major confectioners like Hershey and Mondelez. GLP-1 weight-loss drugs also impacted consumer demand for sweets. These factors led investors to view candy stocks as a risky investment.

Hershey’s diversification strategy, including expanding beyond chocolate into snacks like Shaq-A-Licious XL Gummies, has shielded it from higher cocoa prices. Mondelez has relied on cost-cutting measures to preserve margins, but it lags behind Hershey in earnings growth, highlighting the need to prove its ability to pass on price hikes.

MDLZ stock has more upside potential based on conventional metrics, but Hershey has seen bullish upgrades recently. Passing along price hikes to consumers has been a key strength for Hershey, while Mondelez aims to do the same this quarter. Analysts are optimistic about both stocks, with Hershey receiving notable upgrades.

Read more at NASDAQ.: Hershey vs. Mondelez: Which Stock Wins Chocolate Season?