Best food stocks: 7 Best Food Stocks to Buy Now

Dividends are periodic payments made to investors from a company’s profits. When a firm doesn’t need to retain earnings for research and development, it often returns some of these profits to shareholders through dividends. We selected the following food stocks based on optimistic analyst ratings, strong hedge fund sentiment, and future growth potential. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q database of 895 elite hedge funds.

• Much of this was because of supply chain shortages, as they had to shut down some of their processing plants to prevent and manage outbreaks of the virus.
• In addition, buying ADM stock exposes you to the global nutraceutical, industrial, and animal feed markets.
• Estimates vary depending on the source, but the average Costco shopper typically makes about $100,000 a year.
• Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
• Their stock price has gone down slightly over the past few months, and some experts think it’s undervalued.
• The company has been a strong dividend stock throughout its history and currently boasts a 20-year dividend payout raise streak.

Because food stocks are so essential, they can weather through tough economic climates to provide strong returns in the long run. Even during tough economic times, consumers will still need their essential food products. Of course, the one problem is that we’re in an economic crisis, which would see consumers saving every penny. At the same time, a reduction in discretionary spending may translate to shoppers paying an extra premium for quality foods. At the same time, novel coronavirus cases are rising, leading to fears of another shutdown. The Trump administration has downplayed the uptick in infections and assured the American people that a second shutdown won’t happen.

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. You’ll also want to consider their recent business decisions as well as the dividends they offer. Tyson’s most recent earnings reports have been very positive, and this has been reflected in their stock performance. This means that now could be the right time to buy this stock while it’s relatively affordable. This is partially because of supply chain backups, which made it difficult for them to take full advantage of increased demand. They’ve also been making an effort to expand into the global market, which helps them increase their revenue streams.

Food Stocks: Restaurants

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The longer-term catalyst is that world population is growing, which will require more crop production, thus necessitating more of its chemicals and agricultural solutions. Right now it’s a bit of a guess as Campbell Soup management has stated that price increases could come again in the next few months. That actually wasn’t the case during the 2008 recession, at least at one point, when sales plunged 7% during one quarter. Investing in Camping Stocks More people are camping and doing outdoor activities. Investing in Restaurant Stocks Going out to eat is a universal pleasure. Pizza chain Papa John’s has long played second fiddle to the larger Domino’s.

Fastest Growing Food Stocks

About 8.5% of U.S. best food stocks now come from Wendy’s breakfast offerings, no small feat given that McDonald’s is the go-to fast food breakfast option for many commuters. PepsiCo trades for around 26 times forward earnings, which is not exactly cheap. But the quality of the company’s brands certainly justifies a premium valuation. General Mills’ pet segment, the result of the 2018 acquisition of Blue Buffalo, is particularly well positioned. Pet ownership boomed during the pandemic, and sales of premium pet foods have been on the rise for years.

Coca-Cola gets a lot of attention for its https://forex-world.net/, which hasn’t been reduced since 1963. It’s just one more indication that investors can count on KO stock in times of turbulence. A few factors, including its five-year monthly beta of 0.54, attest to that notion.

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Given the uncertainty, the “shotgun” platform of KHC stock makes its contextually attractive. And when you consider how robust shares have been recently, it seems most of Wall Street agrees. With young people unlikely to pick up farming as a new skill, K shares should enjoy a steady return to demand as we work through this crisis together.

• The term «brick-and-mortar» refers to a traditional business that offers its products and services to its customers in an office or store, as opposed to an online-only business.
• That could change, but the company’s smaller size and vast potential for restaurant growth make it an interesting fast food stock to consider.
• Investopedia does not include all offers available in the marketplace.
• U.S. consumers already derive the majority of their calories from plant-based sources, and the companies above offer plenty of plant-based options.

Food stocks are among the safest havens for investors during economic downturns like the one we’re experiencing, as they are the most essential consumer staple there is. No matter how much people are struggling financially, they have to buy food to eat. While General Mills, Tyson Foods, Mondelez International, and PepsiCo are great overall picks in the food industry, companies in more specialized sectors are worth a look as well. The company’s focus is on snack brands, and it sells products in more than 150 countries.

PepsiCo’s first-quarter results put the company’s pricing power on display. Organic revenue soared, thanks to a 10% increase in effective net pricing and a 3% boost in volume. Like Mondelez, consumers are so far accepting higher prices for PepsiCo’s products. The global food and grocery retail market was worth nearly $11.3 trillion in 2021, and it’s likely to grow right along with the population in coming years.

Consumer staple stocks with high dividends and high yield consumer staples stocks. An in-depth look at the leading fast food stocks in the U.S stock market this year. Among them is the shift to healthier and more natural meals, snacks and ingredients, which carry a premium price tag. The healthy snacks category has enjoyed close to 20% sales growth over the past two years. The company has run into some late pandemic headwinds, not to mention an onslaught of competitors. Revenue declined in the fourth quarter of 2021, and rising costs led to a massive net loss.

Number of Hedge Fund Holders: 35

Here are the top three food stocks with the best value, the fastest growth, and the most momentum. Stocks in this sector are some of the oldest and most well-known brands in the world, but their stocks tend to lag in booming markets. Consumer staples stocks are companies that sell inelastic products like food, beverages and cleaning supplies. The consumer price index increased 8.5% in July but the rise in the cost of food was even higher, at 10.9%. The cost of food in the at-home category grew even more rapidly, at 13.1%.

There’s a limit to PepsiCo’s pricing power, but the company hasn’t found it yet. Elevated inflation and economic uncertainty are likely to change consumer behavior, but General Mills has many brands that people are willing to pay for. While organic sales volume slumped 4% in the fiscal third quarter, higher pricing and mix changes more than made up for it. The best food companies have strong brands that compel consumers to pay up for their products, and they also enjoy economies of scale that keep costs low. Pricing power and cost advantages are particularly important now, with inflation squeezing budgets and supply chain costs rising.

As a pivotal necessity in any circumstance, KR stock represents consistent demand. No matter how technologically advanced we become as a society, we still need to eat. The dramatic escalation of the outbreak has made Kroger one of the most important food stocks to buy. Though a big improvement over the 32% adjusted rate that we saw in April, this metric is still incredibly elevated.

Even with its capital-heavy model, Starbucks has managed to open almost 35,000 locations worldwide. Despite the slowdown, Domino’s is positioned to increase its restaurant count substantially. The company expects to boost its restaurant base by as much as 8% annually over the next few years, which will help keep sales increasing even as existing restaurants face sluggish growth.