Is HSY (The Hershey Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HSY is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (14.10% vs ≤33% threshold), interest income ratio (0.24% vs ≤5% threshold), and cash & securities ratio (2.42% vs ≤33% threshold).

The Hershey Company is a global leader in the confectionery industry, famous for its chocolate bars, mints, and baking ingredients. Operating mainly across North America and international markets, it produces popular pantry items, salty snacks, and gum alongside its iconic sweets. For Muslim investors, Hershey represents a solid halal investment opportunity within the consumer defensive sector. The company successfully passes all AAOIFI Shariah screens, meaning its core business activities and financial practices align strictly with Islamic finance principles. From a financial perspective, Hershey demonstrates strong, compliant fundamentals with a conservative debt-to-market cap ratio of 14.1%. Its interest income is extremely minimal at 0.24% of revenue, ensuring investors do not need to worry about significant dividend purification. While the stock is currently fully compliant, halal investors should continue to monitor Hershey's future acquisitions in the broader snack space to ensure new product lines, particularly meat snacks, remain free from non-halal ingredients like pork. The Hershey Company operates in the Consumer Defensive sector under the Food Confectioners industry and is headquartered in Hershey, PA, US. The company is led by CEO Kirk C. Tanner and employs approximately 18,540 people.

HSY was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. HSY passed 4 of these 4 screens.

Although HSY passes all shariah screens, it does earn $28.4M in interest income (0.24% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.24 to purify the income.

HSY was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.