Hershey Names New CEO, Continuing Leadership Shuffle. The Stock Falls.

Kirk Tanner will become CEO of Hershey on Aug. 18. (Marco Bello/Bloomberg)

Hershey continued the turnover of its top management on Tuesday by naming Wendy’s Chief Executive Officer Kirk Tanner to run the snack and candy company.

The stock slid 3.2% to $169.93, its lowest closing price since June 30, according to Dow Jones Market Data.

Tanner, who has led Wendy’s since February 2024, previously was CEO of PepsiCo Beverages North America, where he oversaw a business with a portfolio that included popular brands like Pepsi, Gatorade, and Pure Leaf. He spent over three decades at PepsiCo.

Tanner starts as president and CEO on Aug. 18. He replaces Michele Buck, who announced earlier this year that she was retiring.

“With a track record of driving growth in complex global businesses, Kirk brings a focused, results-driven mind-set,” Mary Kay Haben, lead independent director and chair of the CEO search committee, said in a statement. “His deep experience in snacks, beverages, M&A and innovation—combined with public company CEO and board roles—makes him well suited to lead Hershey into the future.”

Hershey has faced various pressures including rising cocoa prices, rising tariffs costs, and souring consumer appetite for snacks. In the first quarter ended March 31, the company reported adjusted earnings per share of $2.09, down 31.9% from a year ago. Revenue also slipped 13.8% to $2.81 billion from the year prior.

In its May earnings call, Hershey projected a 30% dip in earnings per share for the first half of the year, and estimated a 40% decrease for the second half. While the candy maker expects tariff costs will amount to $15 million to $20 million in the second quarter, it anticipates a 2% growth in net sales for the rest of the year.

Despite its recent weaker earnings, the stock has performed relatively well year to date compared with other big players in the packaged food industry. Hershey stock has climbed 0.3% while shares of Campbell’s and General Mills have dropped 26% and 18.7% since January, respectively.

In the near term, how the stock will perform will be dependent on a relief of consumer anxiety and commodity pressures, particularly with the stabilization of cocoa prices, says Stephens Inc. analyst Jim Salera, who recently rated the stock a Buy. “More longer term, what Hershey is going to need to do to continue to be successful is continue to focus on innovation, experiential flavor, and making sure their products are delivering on taste and quality with the consumer.”

Hershey has recently switched up its top management. Stacy Taffet in March was named Hershey’s chief growth officer. She is tasked with helping the company accelerate growth and strengthen global sales, the company said. Earlier this year, Hershey appointed Andrew Archambault and Veronica Villasenor, a Hershey veteran of 22 years, to lead its North American confectionery and salty snacks departments, respectively. Archambault joined from Keurig Dr Pepper.

Wendy’s named Chief Financial Officer Ken Cook as interim CEO on Tuesday, and its board launched a search process for a new leader.

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