Tootsie Roll Q2 EPS Plunges 22% on Higher Cocoa Costs and Trade Promotions
TR sits 16% above its 52-week low of $33.432 on light trading volume (0.1× avg).
Summary
Tootsie Roll's Q2 earnings per share dropped 22% year-over-year to $0.18, driven by surging cocoa, chocolate, energy, and packaging costs. Net sales slipped 1% as increased trade promotions and advertising spending ate into the top line. Management flagged that some seasonal sales shifted into Q3, partially masking underlying demand. The company expects input cost relief in the second half of 2026 and into 2027 as cocoa and chocolate prices ease, but near-term margin pressure is acute. With a $2.9 billion market cap, this earnings miss and cost squeeze could reset near-term profit expectations.
At the time of this announcement, TR was trading at $38.62 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.9B. The 52-week trading range was $33.43 to $45.06. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.