Are chocolate stocks a good investment during inflation?

Chocolate stocks aren't always the best investment during periods of high inflation. Inflation tends to drive up cocoa prices, which increases costs for chocolate companies. While many try to pass rising prices on to consumers, this can cause them to buy less chocolate, affecting sales.

How do cocoa prices affect chocolate companies?

Cocoa prices can have a major effect on chocolate companies. Rising cocoa prices increase their costs, which affects their margins. While chocolate companies will try to pass on their higher costs to consumers through price increases, that often causes customers to buy less chocolate, slowing sales growth.

What chocolate company does Warren Buffett own?

Warren Buffett's company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) owns See's Candies. The company makes and distributes candy, especially chocolates. Additionally, Berkshire Hathaway owns 325.6 million shares of Kraft Heinz (27.5% of its outstanding stock). Kraft Heinz owns Baker's Chocolate, a leading chocolate brand for professional and home bakers.

Who is the biggest chocolate company?

Mars is the world's leading manufacturer of chocolate.

Do chocolate companies pay dividends?

Yes, many chocolate companies pay dividends. Kraft Heinz had the highest yield among chocolate stocks in mid-2026 at nearly 7%, while Nestle, Mondelez, and Hershey offered yields in the 3% to 4% range.

Are large-cap chocolate stocks safer than smaller chocolate companies?

Large-cap chocolate companies tend to be safer than smaller ones because they often have more mature, diversified businesses that generate healthy profits. A smaller company might not yet be profitable or have a strong balance sheet.

7 Best Chocolate Stocks for 2026 and How to Invest

An in-depth look at the leading chocolate stocks this year. Here's what you need to know.

By Matthew DiLallo – Updated Jun 10, 2026 at 11:02 AM EST | Fact-checked by Frank Bass

Key Points

Nestlé, a major player in the chocolate market, has a diverse product range and pays consistent dividends.
Mondelez International controls popular brands like Cadbury and Oreo, and aims to expand its premium chocolate segment.
Hershey, known for iconic candies like Reese's, is expanding both domestically and internationally, offering solid growth and dividends.

Chocolate stocks are publicly traded companies that manufacture and sell chocolate-based products. Chocolate is one of the most popular sweet treats on the planet. Global annual sales are approaching $130 billion, making it one of the biggest food and beverage markets. As consumers in developing countries acquire more wealth, they consume more chocolate.

Chocolate is a favorite for many investors, too. A handful of snack food conglomerates dominate the industry. Given their size, growth is rather pedestrian. However, if you're after slower but more stable growth paired with dividend income, chocolate stocks can be a tasty option.

Seven top chocolate stocks for 2026

A few massive multinational companies largely control the production and sale of chocolate and related candies. Meanwhile, the largest chocolate goods producer, Mars (responsible for world-famous candies such as Snickers and M&Ms), is privately owned by the Mars family. That leaves investors with few pure play chocolate stocks. Here's a look at the top publicly traded companies with chocolate businesses for investors to consider this year:

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Ticker Information Table
Name and ticker	Current price	Market cap	Dividend yield
Nestlé (OTC:NSRGY)	$105.44	$260.0 billion	3.84%
Mondelez International (NASDAQ:MDLZ)	$60.91	$76.2 billion	3.37%
Hershey (NYSE:HSY)	$182.14	$36.2 billion	3.16%
Chocoladefabriken Lindt & Sprüngli Ag (OTC:CHLSY)	$12.01	$11.3 billion	1.96%
Kraft Heinz (NASDAQ:KHC)	$25.36	$29.7 billion	6.40%
Tootsie Roll Industries (NYSE:TR)	$40.78	$3.0 billion	0.89%
Simply Good Foods (NASDAQ:SMPL)	$13.73	$1.2 billion	0.00%

Data as of Jul 2, 2026. Showing 7 of 7 total entries.

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1. Nestlé

OTC: NSRGY

Nestlé

Today's Change

(2.59%) $2.66

Current Price

$105.44

Key Data Points

Market Cap

$260B

Day's Range

$104.81 - $105.73

52wk Range

$86.98 - $109.59

Volume

248.3K

Avg Vol

423.6K

Gross Margin

45.55%

Dividend Yield

3.84%

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Nestlé (NSRGY +2.59%) is a sprawling empire of food and household staples, as well as a top chocolatier. The Swiss company sells many sweets under the Nestlé name and has rights outside the U.S. to various candy bars, such as Butterfinger, Milky Way, and KitKat.

The company has grown its chocolate business over the years. In late 2023, Nestlé bought a majority stake in Grupo CRM, a premier chocolate company in Brazil. The company sells the Kopenhagen and Brazil Cacau brands.

Nestlé is a top brand in basic consumer staples and has a sizable presence in the global chocolate market. The food company isn't going to provide much in the way of growth, but its products are a daily essential for millions of households worldwide. Nestlé stock also pays a decent dividend and has a long history of gradually boosting its shareholder payout.

2. Mondelez International

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NASDAQ: MDLZ

Mondelez International

Today's Change

(2.63%) $1.56

Current Price

$60.91

Key Data Points

Market Cap

$76B

Day's Range

$59.57 - $61.06

52wk Range

$51.20 - $71.15

Volume

8.4M

Avg Vol

8.4M

Gross Margin

31.19%

Dividend Yield

3.37%

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Mondelez (MDLZ +2.63%) is another snack food giant, and on the chocolate side, you'd know the company by its ownership of brands such as Oreo, Cadbury, Chips Ahoy!, Milka, and more. In 2025, it ranked No. 2 in the chocolate market, with a 12.3% share.

Mondelez is the former snacking division of Kraft Foods (now Kraft Heinz (KHC +1.44%)), which spun off the business to shareholders in 2012. The company has bulked up its chocolate business since then, buying premium chocolate company Hu in 2021 and leading Mexican chocolate and candy company Ricolino a year later. It also reportedly explored acquiring Hershey in late 2024. Mondelez would like to continue expanding its premium chocolate business if it finds a deal at the right price.

This snacking specialist has also been expanding its presence in the health food segment as the global consciousness of healthy eating grows. It pays a dividend, too, and has consistently raised the payout since becoming an independent business.

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3. Hershey

NYSE: HSY

Hershey

Today's Change

(1.94%) $3.47

Current Price

$182.14

Key Data Points

Market Cap

$36B

Day's Range

$179.03 - $183.24

52wk Range

$160.07 - $239.48

Volume

2.2M

Avg Vol

2.1M

Gross Margin

35.56%

Dividend Yield

3.16%

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The U.S.-based chocolatier Hershey (HSY +1.97%) is responsible for some of the most popular candies around. Besides the various products bearing its name, the company also makes Reese's, Almond Joy, Heath, Milk Duds, York Peppermint Patties, and others, as well as an expansive portfolio of baking products. Hershey's has also been expanding into snacking, buying SkinnyPop, Dot's Homestyle Pretzels, Pirate's Booty, and LesserEvil in recent years.

Although the Swiss claim dominance in high-end chocolate, Hershey is one of the fastest-growing businesses on this list. Hershey's has organically grown its revenue at a 4% annual rate over the last three years. Meanwhile, it has delivered solid annual earnings, free cash flow, and total shareholder return growth as its sweets and snacks brands have remained top of mind in North America and expanded into new international markets. Paired with the growth this business offers, Hershey also pays a dividend that it's been raising almost every year for decades.

4. Lindt & Sprungli

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OTC: LDSVF

Chocoladefabriken Lindt & Sprüngli Ag

Today's Change

(2.69%) $315.06

Current Price

$12050.00

Key Data Points

Market Cap

$27B

Day's Range

$12050.00 - $12050.00

52wk Range

$9000.00 - $142302.63

Volume

Avg Vol

8.4

Gross Margin

38.57%

Dividend Yield

1.97%

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NASDAQ: KHC

Kraft Heinz

Today's Change

(1.40%) $0.35

Current Price

$25.36

Key Data Points

Market Cap

$30B

Day's Range

$25.05 - $25.52

52wk Range

$21.04 - $29.19

Volume

411.1K

Avg Vol

14.3M

Gross Margin

33.45%

Dividend Yield

6.40%

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While Kraft Heinz (KHC +1.44%) spun off most of its chocolate business when it created Mondelēz, the company still has some exposure to the chocolate market.

Kraft Heinz owns Baker's Chocolate, which sells bulk chocolates (including white and unsweetened) used by professional and home bakers. Additionally, the company's Jello-O brand sells chocolate-flavored instant puddings and pie fillings.

6. Tootsie Roll Industries

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NYSE: TR

Tootsie Roll Industries

Today's Change

(1.85%) $0.74

Current Price

$40.78

Key Data Points

Market Cap

$3.0B

Day's Range

$40.04 - $40.97

52wk Range

$32.69 - $45.06

Volume

230.2K

Avg Vol

206.7K

Gross Margin

35.25%

Dividend Yield

0.89%

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Tootsie Roll Industries (TR +1.85%) is a family-run confectionery company that has been selling candies since 1896. The company sells many familiar candy brands, including Tootsie Roll, Andes Mints, Charleston Chew, and Cella's Chocolate-Covered Cherries. It uses chocolate to make many of its candies.

The company's growth rate has slowed considerably over the past year as customers have become more resistant to higher prices. Tootsie Roll has been trying to pass through price increases to offset the impact of higher cocoa and chocolate prices. On a positive note, cocoa and chocolate have fallen from their 2025 peak, which Tootsie Roll Industries should begin to realize in late 2026 and into early 2027.

7. The Simply Good Foods Company

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NASDAQ: SMPL

Simply Good Foods

Today's Change

(1.70%) $0.23

Current Price

$13.73

Key Data Points

Market Cap

$1.2B

Day's Range

$13.36 - $13.85

52wk Range

$10.21 - $34.19

Volume

Avg Vol

2.9M

Gross Margin

32.52%

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Benefits and risks of investing in chocolate stocks

Investing in chocolate stocks has its pros and cons. Some of the benefits include:

Steady growth: Demand for chocolate tends to be fairly stable and steadily growing.
Income: Many publicly traded chocolate companies pay dividends.
Inflation hedge: Most chocolate companies can pass higher costs through to consumers.

On the other hand, some cons include:

Changing consumer tastes: Chocolate companies need to innovate as consumer preferences shift, including the current trend toward healthier options with less sugar.
Cocoa prices: Cocoa costs can be volatile. While many chocolate companies aim to pass on cost inflation to customers by raising prices, many consumers have started buying less chocolate in response to rapidly rising prices.
Limited pure-play options: Most of the top chocolate companies also sell salty snacks, candies, and other food products, making them less of a pure-play on the growth in chocolate demand.

Should you invest in chocolate stocks?

The chocolate market is growing at a solid rate. Analytics group Future Market Insights projects that the global chocolate market will grow at a 3.3% compound annual rate over the next decade. That would see the global chocolate market nearly hit $180 billion by 2035.

That's not a blistering growth rate by any means. Further, industry profitability can fluctuate due to volatility in cocoa and chocolate prices. Despite that, the expected continued growth of the global chocolate market, along with the dividends many of these companies pay, suggests that chocolate stocks could still deliver tasty total returns for investors in the coming years. So, if gradual growth accompanied by dividend income is what you're after, these chocolate stocks could be right up your alley.

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FAQ

Investing in chocolate stocks: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Hershey. The Motley Fool has positions in and recommends Hershey. The Motley Fool recommends Kraft Heinz, Nestlé, and Simply Good Foods. The Motley Fool has a disclosure policy.

7 Best Chocolate Stocks for 2026 and How to Invest

An in-depth look at the leading chocolate stocks this year. Here's what you need to know.

Key Points

Seven top chocolate stocks for 2026

1. Nestlé

Key Data Points

2. Mondelez International

Key Data Points

3. Hershey

Key Data Points

4. Lindt & Sprungli

Key Data Points

Key Data Points

6. Tootsie Roll Industries

Key Data Points

7. The Simply Good Foods Company

Key Data Points

Benefits and risks of investing in chocolate stocks

Should you invest in chocolate stocks?

Related investing topics

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Best Beverage Stocks to Buy in 2026 and How to Invest in Them

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Best Vegan Stocks to Buy in 2026: Are They Right For Your Portfolio?

FAQ

Investing in chocolate stocks: FAQ

Are chocolate stocks a good investment during inflation?

Are chocolate stocks a good investment during inflation?

How do cocoa prices affect chocolate companies?

How do cocoa prices affect chocolate companies?

What chocolate company does Warren Buffett own?

What chocolate company does Warren Buffett own?

Who is the biggest chocolate company?

Who is the biggest chocolate company?

Do chocolate companies pay dividends?

Do chocolate companies pay dividends?

Are large-cap chocolate stocks safer than smaller chocolate companies?

Are large-cap chocolate stocks safer than smaller chocolate companies?

About the Author

Read Next

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Premium Investing Services

Seven top chocolate stocks for 2026

Key Data Points

2. Mondelez International

Key Data Points

Key Data Points

4. Lindt & Sprungli

Key Data Points

6. Tootsie Roll Industries

Key Data Points

7. The Simply Good Foods Company

Key Data Points

Benefits and risks of investing in chocolate stocks

Should you invest in chocolate stocks?

Top Agriculture Stocks for 2026 and How to Invest

Best Beverage Stocks to Buy in 2026 and How to Invest in Them

Best Industrial Stocks to Buy in 2026 and How to Invest in Them

Best Vegan Stocks to Buy in 2026: Are They Right For Your Portfolio?

Investing in chocolate stocks: FAQ

Are chocolate stocks a good investment during inflation?

Are chocolate stocks a good investment during inflation?

How do cocoa prices affect chocolate companies?

How do cocoa prices affect chocolate companies?

What chocolate company does Warren Buffett own?

What chocolate company does Warren Buffett own?

Who is the biggest chocolate company?

Who is the biggest chocolate company?

Do chocolate companies pay dividends?

Do chocolate companies pay dividends?

Are large-cap chocolate stocks safer than smaller chocolate companies?

Are large-cap chocolate stocks safer than smaller chocolate companies?

Key Data Points

How to invest in chocolate stocks

5. Kraft Heinz