Tootsie Roll Industries Sees Growth Boosted by Cost Inflation in Q3

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Tootsie Roll Industries ($NYSE:TR), Inc. has seen its growth bolstered in the third quarter due to rising costs of ingredients. The company, which manufactures and markets a variety of products including Tootsie Rolls, Dots, Junior Mints, and Charleston Chew, has been reliant on cost inflation to increase its profits in the current fiscal year. The company’s stock price has also seen an uptick as investors view the inflation of costs as a positive indication of the company’s direction. It is one of the oldest candy companies in the world and is the largest manufacturer of chewy candies in the United States. The company also manufactures and markets a number of other products such as Sugar Babies, Tootsie Pop Drops, and Tootsie Fruit Rolls.

The company has seen its growth aided by an increase in costs of ingredients as well as higher demand for its products. The higher cost of ingredients such as cocoa, sugar, and other flavorings have allowed the company to increase its margins. This is especially beneficial as rising costs often cannot be passed along to consumers due to competitive pressures in the industry.

Stock Price

Tootsie Roll Industries saw a significant growth boost in their third quarter, due to cost inflation. On Friday, the stock opened at $33.2 and closed at $33.7, representing a 1.9% increase from the previous closing price of $33.1. This marks a positive trend for the company as they continue to expand their operations and reach consumers around the world. Tootsie Roll Industries has achieved notable success in recent years due to their focus on innovation and competitive pricing. The company’s commitment to producing high-quality products at an affordable cost has allowed them to remain a leader in the confectionary market.

This recent surge in their stock price is a testament to the confidence investors have in the company’s future prospects. Going forward, Tootsie Roll Industries is poised for continued success as they look to capitalize on cost inflation and meet consumer needs. The company’s long-term strategy of staying ahead of trends and providing value for their customers will undoubtedly result in further growth and success for the organization. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for TR. More…

Key Ratios Snapshot

Some of the financial key ratios for TR are shown below. More…

Analysis

As GoodWhale, a leading firm in analyzing fundamentals, we have conducted a detailed assessment of TOOTSIE ROLL INDUSTRIES. Our Star Chart analysis revealed that TOOTSIE ROLL INDUSTRY has a high health score of 9/10. This indicates that the company has strong cashflows and debt, allowing it to safely ride out any crisis without the risk of bankruptcy. In addition, TOOTSIE ROLL INDUSTRIES is classified as a ‘gorilla’, which suggests that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are looking for a stable and reliable company with strong fundamentals will be interested in TOOTSIE ROLL INDUSTRIES. Thus, it is likely to be an attractive investment for those who prefer more conservative stocks. More…

Peers

In the United States, the competition among Tootsie Roll Industries Inc, J&J Snack Foods Corp, B&G Foods Inc, and Treehouse Foods Inc is fierce. All four companies are fighting for market share in the $23 billion non-chocolate candy industry. While Tootsie Roll Industries Inc has the largest market share, its competitors are not far behind. J&J Snack Foods Corp is the second largest player with a market share of 17.4%, followed by B&G Foods Inc with 8.6% and Treehouse Foods Inc with 4.4%.

– J&J Snack Foods Corp ($NASDAQ:JJSF)

J&J Snack Foods Corp is a leading manufacturer and marketer of snack foods and beverages. The company’s products include soft pretzels, frozen desserts, sandwiches, and more. J&J Snack Foods Corp has a market cap of 3.01B as of 2022 and a Return on Equity of 4.56%. The company’s products are sold in supermarkets, convenience stores, and other retail outlets throughout the United States.

– B&G Foods Inc ($NYSE:BGS)

B&G Foods Inc, a holding company, engages in the manufacture, sale, and distribution of branded and non-branded food products in the United States, Canada, and Puerto Rico. The company operates in two segments, Branded Products and Specialty Products. It offers shelf-stable and frozen foods under the Ac’cent, Bicentenario, B&G, B&M, Back to Nature, Beechnut, Better Valu, Brer Rabbit, Canoleo, Cream of Rice, Cream of Wheat, Devonsheer, Don Pepino, Earth’s Best, Emerald Valley Kitchen, Emeril’s, Grandmas, Green Giant, GG Bran Crispbread, Home Style Bistro, Joan of Arc, Las Palmas, Le Sueur, Mama Celeste, Mama Rosie’s, Maple Grove Farms, MaraNatha, McCall’s, Mrs. Dash, New York Style, Old London, Ortega, Polaner, SnackWell’s, Spice Islands, Spring Tree, Sugar Twin, Temptations, Trappey’s, TrueNorth, Underwood, Victoria, Weber, Wright’s, and Yoplait Greek yogurt brands. The company sells its products through its sales force to grocery stores, supermarkets, mass merchandisers, warehouse clubs, discount drug stores, military commissaries and exchanges, and other institutional foodservice providers. B&G Foods Inc was founded in 1896 and is headquartered in Parsippany-Troy Hills Township, New Jersey.

– Treehouse Foods Inc ($NYSE:THS)

Treehouse Foods Inc. is a packaged food and beverage manufacturing company headquartered in Oak Brook, Illinois. The company was founded in 2004, and has since acquired and merged with several other food companies. Treehouse Foods Inc. has a market cap of $2.67B as of 2022, and a Return on Equity of 1.75%. The company manufactures and sells a variety of food and beverage products, including snacks, condiments, and meal kits. Treehouse Foods Inc. has a diversified product portfolio and a strong presence in the United States packaged food industry.

Summary

The company achieved these results despite an overall softening of the US confectionary market. TRI’s long-term growth drivers remain stable, including strong brand recognition and efficient supply chain operations.