You’ve probably seen the commercial. A cartoon owl takes three bites, crunches into a Tootsie Pop, and declares that the world may never know. It’s a classic. But in the world of high-stakes investing, Tootsie Roll Industries Inc stock (ticker: TR) is a bit of a mystery itself.
Honestly, most people look at the candy aisle and see a nostalgic relic. They think the company is just sitting there, unchanged since Leo Hirschfield started making chewy rolls in 1896. But if you look at the ticker today, January 16, 2026, you'll see a stock that just hit a series of 52-week highs over the last year. It’s currently trading around $37.12.
Is it a "boring" stock? Sure. But in a market that feels like a rollercoaster, boring can be beautiful.
Why Tootsie Roll Industries Inc Stock Defies Market Logic
To understand this company, you have to understand the Gordon family. This isn't your typical Silicon Valley startup where the founders cash out at the first sight of a billion dollars. Ellen Gordon, the Chairman and CEO, is 93 years old. She’s been on the board since 1969.
The family owns about 65% to 67% of the company. Because of a dual-class share structure, they have total control. If they don’t want to sell the company, it’s not getting sold. Period.
This creates a weird dynamic for Tootsie Roll Industries Inc stock. While Wall Street analysts often beg for a "strategic buyout" by a giant like Hershey or Nestlé, the Gordons have consistently said "no thanks." They play the long game. We’re talking decades, not quarters.
The 3% Secret Everyone Misses
If you look at the dividend yield on your brokerage app, you’ll see something unimpressive—around 0.97%. You might think, "Why bother?"
But there is a "hidden" return here. For decades, the company has issued a 3% stock dividend every single April.
Basically, they give you more shares just for holding the ones you have. If you sell those extra shares, your "effective" yield is actually closer to 4%. It’s an old-school way of rewarding loyalty that most modern companies have abandoned. It’s quirky, it’s rare, and it’s one reason why the "Dividend Kings" list often includes them if you count those consistent annual increases.
Breaking Down the 2025 Financials
Let’s talk real numbers. In their Q3 2025 report (the 10-Q released in November), the company posted net sales of $232.7 million. That was up 3% from the previous year.
It wasn't all sunshine, though.
Cocoa prices have been a nightmare. You've probably seen the headlines about "Chocolate-mageddon" due to crop failures in West Africa. Tootsie Roll isn't immune. In their filings, they explicitly warned that as old supply contracts expire in 2026, they’ll be facing much higher ingredient costs.
They’ve been raising prices to compensate. So far, consumers are paying up, but management admitted there’s some "resistance" to these higher price tags.
The Balance Sheet is a Vault
One thing that makes investors feel safe here is the lack of debt. They have more cash than debt. In a world where companies are drowning in interest payments, Tootsie Roll is basically a fortress.
- Total Trailing 12-Month Revenue: $729.62 million
- Net Earnings (TTM): Roughly $93.77 million
- Market Cap: $2.71 billion
They aren't trying to be the next Nvidia. They just want to sell Junior Mints, Dubble Bubble, and Andes Crème de Menthe at a steady profit.
Tootsie Roll Industries Inc Stock: The "Permanent" Holding
People often ask if they should "buy the dip" on TR. The truth is, there aren't many big dips. The stock has a low "Beta," which is just a fancy way of saying it doesn't move as much as the rest of the market.
When the S&P 500 is screaming upward, TR usually lags behind. But when the market crashes? TR tends to sit there, chewing its candy, relatively unfazed.
Common Misconceptions
- "They are a prime takeover target." People have said this for 40 years. It hasn't happened. The Gordon family’s control makes a hostile takeover impossible.
- "Candy is a dying industry." Actually, "affordable luxuries" like a $1.50 box of candy tend to do better during recessions. It’s called the "Lipstick Effect."
- "The stock is illiquid." It is true that the volume is lower than a blue-chip stock, but with an average daily volume of over 150,000 shares, most retail investors won't have trouble getting in or out.
Actionable Insights for Investors
If you’re looking at Tootsie Roll Industries Inc stock, don't treat it like a growth play. Treat it like a high-yield savings account that occasionally gives you free candy (in the form of shares).
Watch the Cocoa Market: Keep a close eye on commodity prices in 2026. If cocoa prices don't stabilize, profit margins will get squeezed, and the stock might tread water for a while.
Mark the April Calendar: If you want that 3% stock dividend, you usually need to be a shareholder of record by early March. Check the specific "Ex-Dividend" dates as they are announced in early 2026.
Check the 10-K in February: The full-year 2025 earnings are expected around February 11-17, 2026. This will be the first real look at how they plan to handle those expiring supply contracts they mentioned last year.
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Diversification is Key: Because TR is so domestic-heavy (over 90% of sales are in the U.S.), it’s a pure play on the American consumer. If you want international exposure, this isn't the stock for you.
Tootsie Roll Industries Inc stock is a slow-motion success story. It’s for the investor who values sleep over excitement. It’s not flashy, but it’s been around since the 19th century for a reason.
Next Steps:
Review your portfolio's exposure to the consumer staples sector. If you are over-indexed in high-volatility tech, a stable, cash-rich company like Tootsie Roll might provide the "anchor" you need. Dig into the most recent 10-Q filing on the SEC Edgar database to see the specific breakdown of their rising manufacturing costs before the February earnings call.