13 Most Profitable Food Stocks

food stocks to buy

Nomad Foods’ meat-free Green Cuisine is the fastest-growing frozen meat-free brand in Europe. The brand’s product offerings include plant-based Chicken-Free Nuggets and Fishless Fingers. Finder monitors and updates our site to ensure that what we’re sharing is clear, honest and current.

The food market is projected to grow at a compounded annual growth rate (CAGR) of 7.3% between 2023 and 2028. With this future potential in mind, here the Investing News Network takes a look at the top plant-based food stocks by market capitalization in the US and Canadian markets. Hormel Foods Corporation stock opened the day at $42.10 after a previous close of $41.96. Hormel Foods Corporation is listed on the NYSE, has a trailing 12-month revenue of around USD$12.4 billion and employs 20,000 staff. Although there are many potential risks to investing in food stocks, this industry also has a number of advantages.

food stocks to buy

It will require finding environment-friendly and sustainable food production methods and food sources with high nutritional content. Whether we like it or not, insect food will be humanity’s future. Chipotle doesn’t have as wide of a reach as McDonald’s or Starbucks.

Investors Go Cold on Food Stocks

There are some unique reasons these companies made the cut. Moreover, you’ll find some more insight and other investing opportunities. Investing in food companies can lead to investing in a wide range https://g-markets.net/helpful-articles/the-difference-between-hammer-inverted-hammer-doji/ of different companies. Food stocks are considered a defensive investment that is immune to economic shifts. Meaning the stock price of food companies is cyclical and rises when the economy is hot.

  • This suggests a possible upside of 62.0% from the stock’s current price.
  • Burcon NutraScience Corporation stock opened the day at C$0.18 after a previous close of C$0.19.
  • Here are a few things to remember when investing in food stocks.
  • Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
  • Street expects SYY’s EPS and revenue for the quarter ending June 30, 2023, to increase 15.7% and 5.4% year-over-year to $1.33 and $19.98 billion, respectively.

This innovative project aims to convert the company’s distribution center into a central location for its electrified fleet. Plant-based meat is produced from a variety of plant-based sources, such as lentils, chickpeas, soy, peas, chia seeds, beans, mushrooms and wheat gluten. The plant-based meat manufacturing process involves slicing, spiralizing and extruding machines; it may also use wet texturization technology, which involves adding moisture during the extrusion process. In 2021, several companies garnered more than US$100 million in 13 separate funding rounds. One of the biggest winners was privately held Impossible Foods, which completed a US$500 million raise for lifetime funding of over US$2 billion.

How is plant-based meat made?

As the popularity of pet ownership is increasing, so is the demand for healthy pet food ingredients. As expected over the past few years, Shake Shack has seen an increase in online orders. Online channels and delivery apps have brought in millions of new buyers during the pandemic. This fast-food chain is one of the most recognizable in the world. With about 34,000 restaurants, McDonald’s serves more than 69 million people every day.

  • However, it’s down nearly 9% in the trailing year, presenting a relative discount.
  • Odd Burger’s product line includes over 30 plant-based protein products and sauces specifically designed for fast food.
  • The American plant-based food stocks below were compiled using TradingView’s stock screener on February 7, 2023.
  • The stock peaked at more than $90 a share in 2017 and now trades at less than half that.
  • As well, investment resource Gurufocus.com warns readers that it might be modestly overvalued.

The U.S. Department of Agriculture maintains an “All Farm Index” of prices paid for U.S. crops. The index then shot up between mid-2020 and late 2022, from 110 to 137, but the curve is leveling off. Even in the case of food, higher prices dampen demand and encourage more investment in supply.

McDonald’s Serves Up Huge Dividends

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. Mondelez expanded organic sales by 12.3% in 2022, driven by 2.7% volume growth and a 9.6% rise in average pricing. Having a stable of iconic brands that consumers are unlikely to abandon sets up Mondelez well for an inflationary environment.

Elliott Wave Forecast is a leading technical analysis firm helping traders around the world make smarter trading decisions. Daily coverage of Stocks, ETFs, Indices, Forex, Commodities, Bonds & Cryptocurrencies. Get to know the list of crypto mining companies that are leading the industry. The stock of the company remained bullish during 2021 and for the major part of 2022. Tyson Foods is also the leading protein provider to many national restaurant chains, including quick service, casual, mid-scale, and fine dining restaurants.

Archer Daniels Midland Company (NYSE:ADM)

Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. He launched his hedge fund in 1956 with $105,100 in seed capital. Back then they weren’t called hedge funds, they were called “partnerships”. Warren Buffett took 25% of all returns in excess of 6 percent. I also like a smaller chain, Ingles Markets (IMKTA), which operates in the Southeast and has a market capitalization (shares times stock price) of just $1.8 billion.

For investors, it’s also good to note that it’s a Canadian company. In 2014, Burger King and Tim Hortons joined forces with a $12.5 billion merger. Tim Hortons is a leading Canadian coffee and restaurant chain. So this top food stock gives investors great international exposure. Presently, Wall Street analysts peg KR as a consensus hold.

Customized to investor preferences for risk tolerance and income vs returns mix. They form a massive part of the economy as each and every person consumes food in some form. An average American family spends about $7,700 on food per year, thus taking the annual spending on food to over $1 trillion in the US. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

Specialty food stocks

The American plant-based food stocks below were compiled using TradingView’s stock screener on February 7, 2023. Companies listed on the NASDAQ and NYSE were considered and are listed by market cap size. Sign up with an online broker or platform to invest in one or more of these packaged food stocks. Burcon NutraScience Corporation stock opened the day at C$0.18 after a previous close of C$0.19. Burcon NutraScience Corporation is listed on the TO, has a trailing 12-month revenue of around CAD$363,913 and employs 24 staff. Beyond Meat, Inc. develops, manufactures, markets, and sells plant-based meat products in the United States and internationally.

food stocks to buy

United Natural Foods, Inc. , together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. We round up a selection of stocks in or related to the health food industry, weighting the list more heavily towards popular mid- and large-cap US stocks. In this article, we discuss the 12 best food stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Food Stocks To Buy Now. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Food stocks are also cyclical, so they will likely see earnings fall in bad weather conditions. This is because bad weather conditions can harm crop yields and reduce supply. Poor management has crushed shares of Kraft Heinz (KHC) despite its spectacular array of brands, which include Oscar Mayer, Jell-O and Ore-Ida, among many others.

Archer-Daniels-Midland Company (NYSE:ADM)

These are the food stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated. Due to the constant and ever-increasing demand for food, food stocks will always remain profitable and safe avenues for investment. Investors should invest in stocks of organic food companies and discretionary food companies that are expected to benefit from the trend of healthy food habits in the present times. The food industry is a highly regulated sector, with strict standards and regulations in place to ensure the safety and quality of food products.