The stocks of companies in the food business are termed as food stocks. The companies include food and beverage producers, meat producers, restaurants, grocery stores, delivery services, agriculture, farms, and dairy companies.
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.
Therefore, food stocks are considered as stable and risk-free investments. The demand for food never goes down; hence food stocks are not affected by a reduction in demand or economic downturns.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| KO | The Coca-Cola Company | $48.49 | -15.93% | 208.4B |
| PEP | PepsiCo, Inc. | $138.59 | -3.03% | 191.5B |
| CPB | Campbell Soup Company | $46.58 | -4.53% | 14.1B |
| GIS | General Mills, Inc. | $55.97 | 4.21% | 34.2B |
| MKC | McCormick & Company, Incorporated | $91.87 | 6.40% | 24.5B |
| K | Kellogg Company | $58.30 | -15.92% | 20.0B |
| HSY | The Hershey Company | $148.20 | -4.19% | 21.9B |
| MDLZ | Mondelez International, Inc. | $56.25 | 2.11% | 80.4B |
| TSN | Tyson Foods, Inc. | $66.52 | -22.59% | 19.6B |
| HRL | Hormel Foods Corporation | $45.41 | -3.85% | 24.5B |
| BRFS | BRF S.A. | $3.82 | -52.37% | 16.8B |
| KDP | Keurig Dr Pepper Inc | $31.47 | 12.23% | 44.3B |
| MNST | Monster Beverage Corporation | $88.20 | 31.45% | 46.6B |
| KHC | The Kraft Heinz Company | $32.91 | 8.22% | 40.2B |
| LW | Lamb Weston Holdings, Inc. | $78.15 | -13.83% | 11.4B |
| POST | Post Holdings, Inc. | $98.94 | -9.46% | 6.5B |
| PPC | Pilgrim's Pride Corporation | $20.40 | -26.80% | 5.0B |
| LANC | Lancaster Colony Corporation | $174.46 | 6.95% | 4.8B |
| SAFM | Sanderson Farms, Inc. | $142.25 | -5.85% | 3.2B |
| SMPL | The Simply Good Foods Company | $27.40 | 8.60% | 2.6B |
| CALM | Cal-Maine Foods, Inc. | $37.43 | -1.76% | 1.8B |
| HAIN | The Hain Celestial Group, Inc. | $39.96 | 60.10% | 4.0B |
| MCD | McDonald's Corporation | $213.38 | 1.01% | 159.0B |
| YUM | YUM! Brands, Inc. | $107.09 | 2.01% | 32.3B |
| CMG | Chipotle Mexican Grill, Inc. | $1,494.18 | 71.80% | 41.8B |
| DRI | Darden Restaurants, Inc. | $121.98 | 4.18% | 15.9B |
| DPZ | Domino's Pizza, Inc. | $380.37 | 33.42% | 15.0B |
| SBUX | Starbucks Corporation | $103.91 | 12.91% | 122.0B |
| SHAK | Shake Shack Inc. | $111.21 | 62.47% | 4.6B |
| PZZA | Papa John's International, Inc. | $98.82 | 48.53% | 3.3B |
| SYY | Sysco Corporation | $75.19 | -9.00% | 38.3B |
| USFD | US Foods Holding Corp. | $34.77 | -15.89% | 7.7B |
| BYND | Beyond Meat, Inc. | $140.70 | 17.75% | 8.8B |
| CAG | Conagra Brands, Inc. | $34.38 | 6.51% | 16.8B |
| THS | TreeHouse Foods, Inc. | $40.52 | -12.28% | 2.3B |
| SJM | JM Smucker Co | $114.24 | 6.10% | 13.0B |
| CAKE | Cheesecake Factory, Inc. | $42.36 | 7.29% | 1.9B |
| DENN | Denny's Corporation | $15.51 | -25.82% | 989.0M |
| JJSF | J&J Snack Foods Corp. | $153.09 | -17.86% | 2.9B |
Factors to Consider Before Investing in Food Stocks
Food stocks hold a low-risk high-return profile. However, not all food companies and food stocks are able to generate attractive returns. Investors must consider the fundamentals of the food companies before investing in their stocks.
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. The overall valuation of food companies should also be analyzed.
Investors should also look at the competitive standing of the food stocks they choose to invest in. With numerous players in the food sector, investors should only invest in food stocks that offer sustainable competitive advantages over their peers.
Which Food Stocks Should I Buy?
Among a large number of profitable food stocks, we have compiled a list of the best food stocks for investors to select from.
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.
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