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Tootsie Roll Could Melt Like Hershey

It's likely to face the same headwinds Hershey's been facing.

Updated from 6:59 a.m. EDT

By Stockpickr Staff Columnist Peter Winkler




disclosed to the public that its profit will take a hit as a result of rising prices for cocoa and corn sweeteners. The chocolate giant, which makes chocolate bars and Reese's Cups, among other items, announced that it would increase prices by 10% in an effort to compensate for this spike in underlying commodity prices. And despite this, the company announced that its 2008 and 2009 sales and profit targets would still come in at the lower end of street expectations.

On that news, Hershey stock took a hit.

With that in mind, I decided to take a quick look at another stable chocolate company, which is likely to see the same headwinds that Hershey is currently facing:

Tootsie Roll



Everyone knows these guys -- the company has been in business since the early 1800s. However, by all accounts and valuation metrics, Tootsie is poised to follow in Hershey's footsteps.

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