Skip to main content

Can You Make a Mint Investing With a Sweet Tooth?

It seems the whole western world is showing off holiday foods and all things peppermint. Oreo has its mint filling, and Starbucks has its peppermint mochas. Hershey Co. has its kiss in mint chocolate and red and green M&M’s.

“These big companies are always looking to stay relevant with their customers,” says trend analyst Daniel Levine, director of The Avant-Guide Institute in New York.

But is relevance enough to make a profit from peppermint?

“It depends. I think that you can’t see the trend that early around the Christmas time, although it could build into something if it were a sustainable drink. For instance, if mint lattes were actually going to be something that we’re still desiring in about May, then you’ve got a new trend,” says Mag Black-Scott, CEO and founder of Beverly Hills Wealth Management in California.

Here’s a quick review of some publicly traded companies with tasty holiday treats.

Hershey Co. (ticker: HSY). Although mint kisses and red and green M&M’s are becoming a holiday staple, they might not be enough to pull Hershey from the holiday doldrums. Some management missteps in China are still dragging down the stock’s results, says Tigress Financial Partners analyst Philip Van Deusen, who gives the stock a neutral rating. “They’ve spent a significant amount of capital in China, and things really didn’t pan out. That looks to be like something that they’re going to have to work through not just the next year, but possibly a couple of years,” he says.

Yet there is hope, says Morningstar analyst Erin Lash, who considers HSY stock slightly undervalued, since China only accounts for about 5 percent of the company’s total sales base, and Hershey has been making a big effort to offer new products, updated packaging and marketing behind those products.

Hershey is also known for its attention to detail, particularly when working with stores to stake out the best places to position its products. “So, for instance, placing confectionary offerings underneath checkouts, in between self-checkouts and at curbside locations makes sure its offerings are getting in front of consumers where they’re shopping,” Lash says.

That kind of focus could be pretty sweet for HSY stock.

Mondelez International (MDLZ). Oreos are the go-to cookie in the U.S.: Sales for the 103-year-old oh-so-sweet sandwich cookie have grown by 60 percent since 2005. And now there’s a holiday peppermint version.

Mondelez’s business in North America is particularly focused on what it terms “biscuits,” aka cookies and crackers. Chocolate sales for Mondelez only occur outside North America.

“Since splitting from Kraft just more than three years ago, Mondelez has been challenged by slowing growth around the world as well as its own executional stumbles in select markets like China, Brazil, Russia and Canada. Those efforts seem to have been corrected; however, its profitability still lags its packaged food peers. And so its current strategic focus has been on driving profit improvement, operating margin improvement, particularly within North America,” says Lash, who rates the stock as slightly undervalued. Mondelez stock is up 21 percent for the year.

Although MDLZ stock remained nearly flat during the third quarter, its strong performance over the last three years helped make it a popular choice among hedge funds, with a net 20 more funds reporting owning a stake in the company as of the end of September, compared to June.

Starbucks Corp. (SBUX). Are mint lattes here to stay? Cheaper gas prices mean more money for coffees, and November restaurant spending was up 6 percent from a year ago. Even when people cut back on spending, they don’t seem to cut back on their Starbucks habit. “Starbucks has become, I think, ingrained into the culture of coffee drinkers,” Black-Scott says.

Starbucks is ahead of other chains on mobile payments and opened its first “express” store this year in New York’s financial district, where customers can place their orders and pay for them through the Starbucks app before they get to the counter. “Customers are coming to expect that faster, better customer service from every brand that we work with,” Levine says.

Starbucks now offers flavored coffees, and the company made moves when it was too heavy in certain areas. “For instance, in Paris, they pulled back because the ubiquitous Paris cafe held sway over, yes, even Starbucks, other than for the American tourist,” Black-Scott says. “We’ve seen them move into tea; we’ve seen them move into snack foods. We’re seeing them broaden out their base. I think it’s through shrewd marketing and analysis.”

More from U.S. News

16 Things Investors Should Know About Crowdfunding

8 Smart Ways to Invest in Metal Stocks

8 Stocks to Profit From America’s Love of Burgers

Can You Make a Mint Investing With a Sweet Tooth? originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story