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Although Hershey 's stock has had a choppy performance as of late, CNBC's Jim Cramer suggested the worst of the chocolate maker's issues could be behind it, citing new management. "They've been very conservative when talking about the future. But I like that," he said. "Frankly, I think that, even if the stock hasn't bottomed yet, it's probably close to a bottom, although this one only works if you believe in Kirk Tanner's leadership." Hershey has been struggling for the past two years, Cramer said, attributing the iconic candy maker's issues to the rise of GLP-1 weight loss drugs and high cocoa prices. He added that the stock has taken a turn over the past month, going from a high of around $196 to about $169 by Friday's close. Tariffs, inflation and high cocoa prices are putting candy makers across the board under pressure. Chocolate prices have surged nearly 30% since last Halloween and almost 78% in the past five years, CNBC reported. CEO Kirk Tanner took the reigns at Hershey in August. Cramer called Tanner a pro, noting that he previously served as CEO of Wendy's and spent about 30 years as an executive at PepsiCo . Cramer said he thought Hershey's Thursday earnings report looked fairly positive. He pointed to net sales that came in above the estimates, as well as 6.2% organic sales growth. Although much of that growth was driven by price increases, Cramer said the figure is a good number for any packaged foods company — especially as some analysts were expecting around 3.6% organic growth. But at the same time, he said Wall Street was disappointed by Hershey's "modest" increase of its full-year forecast because it posted a large earnings beat. Management also seemed cautious on the earnings call, Cramer continued, saying the Halloween season started slower than expected and reporting weaker business in Mexico. But Cramer noted that Hershey's quarter was better than many others it reported over the past few years. He suggested the company was cautiously optimistic and doesn't want to "stick their collective neck out for something they might not be able to deliver." He added that Tanner has just started his role, and management emphasized "they're playing for the long-term," not necessarily this current quarter or next year. "Honestly, if you don't have any position in Hershey, and you want to diversify away from the pure tech like so many others are trying to do, It's tempting," he said. "Tempting to put on a small position here, with the stock down at the lowest levels since early July." Hershey did not immediately respond to request for comment.
