Although we continue to rate Hershey overweight, we believe the stock could see some pressure today given the deceleration in organic sales growth relative to recent quarters and lower than expected gross margins. |
The news flow from overseas regarding (avian influenza) is getting worse, not better. |
We are more concerned about the downside risk to our earnings-per-share numbers from lower chicken prices than about the Mexican operation. Chicken prices for leg quarters and boneless skinless breast prices are near three-year lows. |