Question · Q3 2025
Megan Klatt asked for an update on the 2026 commentary, specifically regarding the potential for double-digit EPS growth mentioned last quarter, and if anything has changed given moderating cocoa costs and potential tariff relief. She also inquired about the implied Q4 outlook, the drivers of the full-year top-line guide increase, and the outlook for North America confectionery.
Answer
CEO Kirk Tanner confirmed potential for above-algorithm EPS. SVP and CFO Steve Voskuil detailed factors influencing 2026, including consumer demand, innovation (Reese's Oreo), elasticity, and marginally better outlook for cocoa (layering hedges). He noted optimism for tariff relief through trade deals, modeling $200 million incremental tariffs. For Q4, he attributed most impact to international shipment timing, expecting U.S. CMG momentum to continue with additional investment for Halloween/holiday and less cocoa hedge favorability than Q3.