Monitor cocoa cost trends and margin trajectory in upcoming quarters; flat EPS masks underlying earnings pressure, suggesting limited near-term upside unless cost recovery improves.
Price Chart
Executive Summary
Tootsie Roll Industries reported first-quarter 2026 net sales of $149.49M, up 2% YoY, but net earnings declined to $17.66M from $18.06M in the prior year, with EPS flat at $0.24. Margins were pressured by high cocoa and chocolate costs, higher taxes, and increased trade promotions.
Key Financial Metrics
Key Facts
- Q1 2026 net sales: $149.488M (+2% YoY from $146.521M)
- Q1 2026 net earnings: $17.661M (down from $18.058M in Q1 2025)
- EPS unchanged at $0.24 despite lower net earnings due to share count reduction from stock dividends
- Gross profit margins negatively impacted by elevated cocoa and chocolate costs
- Effective tax rate increased to 25.1% from 21.6% in Q1 2025
Financial Impact
Revenue increased by $2.97M, but earnings declined by $397K with flat EPS due to tax headwinds and input cost pressures
Risk Factors
- Continued elevated cocoa and chocolate input costs
- Limited pricing power due to consumer resistance to higher prices
- Higher effective tax rate from non-deductible deferred compensation
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-047445 |
| Document: tr-20260422xex99d1.htm | 0001104659-26-047445 |
| Document: 0001104659-26-047445-index-headers.html | 0001104659-26-047445 |
| Document: 0001104659-26-047445-index.html | 0001104659-26-047445 |
| Document: 0001104659-26-047445.txt | 0001104659-26-047445 |
| 8-K Data (Synthetic) | 0001104659-26-047445 |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers