7 Food Stocks to Buy as Shortages Hit Consumers

On the food side, Lay’s, Doritos, Quaker Oats, and Cheetos are just a few examples from the company’s portfolio. Elevated inflation and economic uncertainty are likely to change consumer behavior, but General Mills has many brands that people are willing to pay for. So far, the company has had no trouble passing on higher prices to consumers. In the third quarter of fiscal 2023, higher prices contributed 16 percentage points to revenue growth, while volumes remained flat despite those higher prices. The fundamental analysis should include a thorough study of the balance sheet, including free cash flow, long and short-term investments, dividend and dividend yield, and long-term debt.

• It’s going to be a very rough road that may not end well, so investors need to carefully weigh the risks.
• The food market is projected to grow at a compounded annual growth rate (CAGR) of 7.3% between 2023 and 2028.
• Its adjusted gross profit rose 14% year-over-year to $1.45 billion.
• Between these brands, Campbell’s has a huge portfolio of food products.
• Both sales and earnings are critical factors in the success of a company.

Operating income plunged in the first quarter, with the beef and pork segments hit particularly hard. Going forward, margins are likely to remain below pandemic-level highs. Meat products will likely continue to be a staple of U.S. diets. If you’re looking to invest in the meat industry, Tyson Foods (TSN -1.05%) is a reasonable choice, especially if you want to bet on the continued consumption of meat. 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.

Food Stocks

The company’s results are partly dictated by supply and demand for beef, pork, and chicken, with margins heavily influenced by pricing. The global food and grocery retail market was worth almost $11.3 trillion https://g-markets.net/helpful-articles/candlestick-chart-in-excel/ in 2021, and it’s likely to grow right along with the population in coming years. There are plenty of companies competing for consumers’ food dollars. The restaurant industry is competitive with tight margins.

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. When investing in the food sector, it is important to research and identify halal companies with strong growth potential and a good track record. In order to determine whether a company is halal, investors can use a stock screener to evaluate the company’s revenue ratio, interest ratio, and debt ratio.

Best Food Stocks to Buy in 2023

Finder.com compares a wide range of products, providers and services but we don’t provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types.

This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. These plant-based food products are distributed to its growing number of Odd Burger-owned and franchised fast food restaurant locations across Canada. In October 2022, the company announced its expansion into the US market targeting 25 states.

Food stocks — which include agriculture, manufacturing, packaged goods and grocers — are one area of the market that’s doing well. For the quarter ending June 30, 2023, it is expected to increase 11.7% and 5.5% year-over-year to $0.75 and $9.31 billion, respectively. Over the past year, the stock has gained 31% to close the last trading session at $41.92. USFD’s net sales for the first quarter ended April 1, 2023, increased 9.5% significantly to $8.54 billion.

Mondelez International

Schedule monthly income from dividend stocks with a monthly payment frequency. All information on Ticker Table is provided for informational purposes only and is not intended as financial advice. Readers are encouraged to do their own due diligence on any of the stocks listed. The company is scheduled to release its next quarterly earnings announcement on Monday, August 21st 2023.

Its 106.77% trailing-12-month return on common equity is 949.7% higher than the 10.17% industry average. Its 14.13% trailing-12-month return on total capital is 124.6% higher than the 6.29% industry average. Likewise, its 3.36x trailing-12-month asset turnover ratio is 271.7% higher than the industry average of 0.90x.

Food industry sectors to watch

Kellogg Company is listed on the NYSE, has a trailing 12-month revenue of around USD$15.7 billion and employs 30,000 staff. Kraft Heinz stock opened the day at $36.79 after a previous close of $36.88. Kraft Heinz is listed on the NASDAQ, has a trailing 12-month revenue of around USD$26.9 billion and employs 37,000 staff. ConAgra Foods stock opened the day at $33.87 after a previous close of $33.88.

• Not shockingly, Gurufocus.com warns its readers that Whole Earth is a possible value trap.
• This includes avoiding products that are derived from pork or alcohol and ensuring that all meat is slaughtered and processed in a humane and ethical manner.
• Get to know the list of crypto mining companies that are leading the industry.
• The most mature pure-play plant-based food stock on the market, Los Angeles-based Beyond Meat first launched its brand nearly a decade ago.
• Through its joint venture Merit Functional Foods, Burcon has a protein production facility in Manitoba, Canada, that makes pea and canola proteins for the food and beverage industry.

Our information is based on independent research and may differ from what you see from a financial institution or service provider. When comparing offers or services, verify relevant information with the institution or provider’s site. Some of these risks are long-standing, while others are the result of geopolitical tensions, climate issues, and other developing concerns. The food sector, as represented by the S&P 1500 Food Products Industry Index, has provided a one-year trailing total return of -0.4%, compared with an 8% drop in the Russell 1000 Index over the last year. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Tyson’s profits are starting to take a hit due to cost inflation and other factors, but bottom-line fluctuations are an inevitable part of this industry.

Real Good Food (RGF) Stock Forecast, Price & News

Like animal meat, plant-based meat is a source of protein, and is also composed of fat, vitamins, minerals and water. Else Nutrition products are sold on Walmart.com and Kroger.com, and the company has added more products to its offerings at Sprouts Farmers Markets. Finder.com is an independent comparison platform and
information service that aims to provide you with information to help you make better decisions.

It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. It is ranked #3 out of 80 stocks in the B-rated Food Makers. It has a B grade for Growth, Value, Momentum, Stability, and Quality. On April 24, 2023, SYY announced its Riverside Electric Vehicle Hub vision.

This is in an effort to cut down on delivery times as well as be closer to carryout customers. There is risk of some overcrowding, but it’s worked well so far and can improve overall customer experience. Starbucks is based out of Seattle, and it’s expanded rapidly. At the start of 2022, Starbucks had more than 34,300 company-operated and licensed stores. McDonald’s has continued to pay investors higher dividends. The company has certainly earned its status as a dividend king, having increased its dividend every year for at least 50 years.

The Meals & Beverages segment engages in the retail and foodservice businesses in the United States and Canada. This means that even small investors can invest indirectly in insect food stocks through share ownership in established companies in the food & beverage sector. But it’s always wise to limit your exposure to risky investments like best altcoins. Tyson Foods is a modern, multi-national, protein-focused food company producing approximately 20% of the beef, pork, and chicken in the United States. Operating out of multiple subsidiaries, the company is widely known for its prepared foods and meat products sold in grocery stores under such brands as Jimmy Dean and Hillshire Farm.

Investors have noticed, and the stock has risen at an average annual rate of 24% over the past five years. Analyst estimates are scarce, but the P/E based on earnings for the past 12 months is a mere 7. Take Pepsico (PEP), maker of potato chips (Lay’s) as well as soft drinks and oatmeal (Quaker). In the company’s most recent quarter, earnings were up 22% compared with the same period last year. The First Trust Nasdaq Food & Beverage (FTXG), an exchange-traded fund, returned 6.2% in 2022, beating the S&P 500 Index, the large-cap benchmark, by more than 24 percentage points. The ETF has a broad portfolio that includes Lamb Weston (LW), an Idaho-based maker of frozen potato products, and Bunge (BG), a 200-year-old company that’s the world’s largest processor of oilseeds.

In the first quarter of 2023, Tyson reported 0.8% growth in volume and 1.7% growth in average pricing. The COVID-19 pandemic benefited General Mills as consumers increased their consumption of food at home due to restrictions on restaurant dining. The company’s core North America retail segment, driven by strength in organic products, meals, and baking, performed well throughout the pandemic. Packaged food giant General Mills (GIS 0.15%) owns a wide variety of well-known brands. The company’s brand portfolio includes Pillsbury, Cheerios, Häagen-Dazs, Progresso, Green Giant, Yoplait, and many others.

More people are starting to travel again and are looking for quick bites to eat along the way. Social gatherings are picking up, and this trend is helping traditional restaurants as well. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Overall, MDLZ has been a steady performer among food stocks to buy. This actually compares very favorably to the S&P 500 index, which dipped almost 4% during the same period.