In addition, buying ADM best food stocks exposes you to the global nutraceutical, industrial, and animal feed markets. Thus, you can take a lot of the guesswork out – with ADM, you’re invested in almost everything food-related. Just as Americans were ready to reclaim their lives, the novel coronavirus apparently had other ideas. Record-breaking daily infections present a major setback to reopening plans, with several states either pausing or backtracking their initiatives. About the only good news is that this surge makes food stocks to buy a fundamentally credible argument.

• While organic sales volume slumped 4% in the fiscal third quarter, higher pricing and mix changes more than made up for it.
• General Mills saw huge sales growth in 2020 as a result of the pandemic.
• There’s plenty of economic uncertainty right now, but General Mills’ pricing power should help see it through.
• The global food market generated over $8.27 trillion in sales in 2021, an increase of more than $500 billion from the previous year.
• Adding them to your portfolio when they’re low can actually be a smart strategy for strong returns down the line.

Costco has a very unique business model that makes it one of the best stocks in the grocery sector. However, their most recent earnings report missed analyst expectations in a few key areas, and their stock price went down. Many restaurant stocks struggled during the pandemic, but that wasn’t the case with Chipotle. However, there are a few things about this food company that make it a good long-term investment.

Related investing topics

Finally, the food industry allows investors a wide degree of flexibility. An investor can target commodities, restaurants, food suppliers, equipment manufacturers, logistics and shipping companies, and many others, all within the broader food industry. Here are a few frequently asked questions about consumer staples dividend stocks.

With a large portfolio of excellent brands, Mondelez is definitely a stock to keep your eye on for the long term. Some of the company’s most well-known brands include Oreo, Chips Ahoy, Sour Patch Kids, and Cadbury. Target is a massive retailer that sells grocery products as well as clothing, home goods, entertainment, and more. This fast casual Mexican restaurant has a strong business model that helped keep them afloat even as more customers were staying home.

Number of Hedge Fund Holders: 35

The great majority of retail food and beverage sales are made at supermarkets and grocery stores, and their market share appears to be increasing. Grocery stores and supermarkets held close to 86 percent of the market in 2020. Convenience stores and specialist food retailers are both losing market share. The food industry is composed of companies that focus primarily on offering food and nonalcoholic beverage products. It includes grocery stores, food distribution companies, and other companies offeringconsumer staplesthat consumers either eat or drink.

Firehouse Subs is Restaurant Brands’ smallest chain, but it could easily expand the brand to many thousands of locations over time. All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q reporting period. In Canada, food prices have experienced the fourth-highest level of inflation among product groupings tracked by Statistics Canada, rising by 9.8% year-over-year through August. That trailed only the transportation, energy, and nondurable goods categories in terms of yearly inflation. That’s been borne out during the current inflationary period, as food sales volumes have been essentially flat despite food prices skyrocketing by more than 10% year-to-date.

Investing in Food Stocks

This stock has fluctuated in price over the past year, although they didn’t see the significant losses that many other companies did. Campbell’s Soup is another food stock with plenty of brand recognition. This stock is also an excellent option for anyone who is interested in a dividend investing strategy. While their growth might slow down a bit as the world reopens restaurants, these increased profit margins will help them stay financially stable. This food manufacturer has a huge portfolio of popular brands, such as Betty Crocker, Pillsbury, Hamburger Helper, and Cascadian Farms. Add in a 2.11 percent dividend, and you have a recipe for a great long-term investment.

It really began to charge upward in late 2021 when the earliest hints of inflation started to ripple across markets. As the market continues to writhe throughout 2022, expect Coca-Cola shares to express roughly 54% as much volatility. 5 Beer Stocks to Consider In 2023 We look at five of the best stocks for this unspectacular but steady industry. While McDonald’s offers investors stability, Wendy’s has the opportunity to grow faster as it expands its smaller restaurant base and takes a bigger bite out of breakfast.

Inflation may put some pressure on grocery industry profits, but that’s not a reason to avoid the industry entirely. Mondelez sees organic sales growing by at least 4% this year, and it expects adjusted earnings per share to grow faster as higher prices offset increased costs. The war in Ukraine is having a negative impact on earnings, but the company still expects to produce at least $3 billion of free cash flow for the year. Mondelez expanded organic sales by 8.6% in the first quarter of 2022, and it wasn’t just due to higher pricing. Unit volumes rose in every geographic region, and the company faced no resistance boosting overall pricing by nearly 5%. Having a stable of iconic brands that consumers are unlikely to abandon sets up Mondelez well for an inflationary environment.

On the beverage side of the business, Pepsi, Mountain Dew, and Gatorade top the list. On the food side, Lay’s, Doritos, Quaker Oats, and Cheetos are just a few examples from the company’s portfolio. The COVID-19 pandemic benefited General Mills as consumers increased their consumption of food at home due to restrictions on restaurant dining.

They make chicken, beef, and pork https://forex-world.net/, as well as meat alternatives. Kellogg’s is one of the largest food manufacturing companies in the United States. Although Domino’s pizza might struggle in the short term, it has the good to deliver in the long run.

With pets increasingly viewed as part of the family, pet owners may be reluctant to trade down to cheaper pet food options. Since there are so many great food stocks out there, you’ll need to know how to narrow them down. While many other restaurants have had to close stores as a result of the pandemic, Starbucks is looking at increasing their global footprint.

• Some of the company’s most well-known brands include Oreo, Chips Ahoy, Sour Patch Kids, and Cadbury.
• When a firm doesn’t need to retain earnings for research and development, it often returns some of these profits to shareholders through dividends.
• 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.
• That actually wasn’t the case during the 2008 recession, at least at one point, when sales plunged 7% during one quarter.

To shop at Costco stores, customers need to pay a yearly membership fee. They are planning on opening over 1,000 new stores, many of which will be international. This is reflected in their stock price, which has consistently improved over the last year.

Fundamentally, everyone has to eat, facilitating a perpetual demand channel. Thanks to big open spaces brimming with discounted goods, it’s no wonder why COST stock has offered steady returns. But when the coronavirus-led panic erupted in the U.S., Costco suddenly found itself at the epicenter of a consumer frenzy. In this article, you’ll learn about some of the best consumer staples dividend stocks and how they can stabilize your portfolio. That could change, but the company’s smaller size and vast potential for restaurant growth make it an interesting fast food stock to consider.

It does not include restaurant businesses, many of which are considered cyclical because consumers tend to dine out less during economic slumps. Companies in the food industry include The Kroger Co., Darling Ingredients Inc., and B&G Foods Inc. Both sales and earnings are critical factors in the success of a company. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.