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.
|KO||The Coca-Cola Company||$60.07||-2.48%||259.8B|
|CPB||Campbell Soup Company||$51.30||17.82%||15.4B|
|GIS||General Mills, Inc.||$76.31||11.99%||45.0B|
|MKC||McCormick & Company, Incorporated||$74.58||-26.80%||20.0B|
|HSY||The Hershey Company||$237.11||15.83%||48.6B|
|MDLZ||Mondelez International, Inc.||$65.08||-3.56%||88.7B|
|TSN||Tyson Foods, Inc.||$61.41||-38.03%||22.1B|
|HRL||Hormel Foods Corporation||$45.18||-4.80%||24.7B|
|KDP||Keurig Dr Pepper Inc||$35.20||-8.74%||49.9B|
|MNST||Monster Beverage Corporation||$102.51||21.26%||53.5B|
|KHC||The Kraft Heinz Company||$39.54||13.88%||48.4B|
|LW||Lamb Weston Holdings, Inc.||$99.06||54.13%||14.3B|
|POST||Post Holdings, Inc.||$94.44||39.19%||5.6B|
|PPC||Pilgrim's Pride Corporation||$23.61||-17.51%||5.6B|
|LANC||Lancaster Colony Corporation||$184.70||19.28%||5.1B|
|SAFM||Sanderson Farms, Inc.||#N/A||#N/A||#N/A|
|SMPL||The Simply Good Foods Company||$37.65||5.64%||3.7B|
|CALM||Cal-Maine Foods, Inc.||$54.25||29.29%||2.4B|
|HAIN||The Hain Celestial Group, Inc.||$21.20||-41.52%||1.9B|
|YUM||YUM! Brands, Inc.||$129.34||3.41%||36.4B|
|CMG||Chipotle Mexican Grill, Inc.||$1,722.86||18.58%||47.8B|
|DRI||Darden Restaurants, Inc.||$149.59||6.78%||18.2B|
|DPZ||Domino's Pizza, Inc.||$357.20||-17.76%||12.6B|
|SHAK||Shake Shack Inc.||$59.07||-14.04%||2.5B|
|PZZA||Papa John's International, Inc.||$92.97||-21.79%||3.3B|
|USFD||US Foods Holding Corp.||$37.80||5.68%||8.5B|
|BYND||Beyond Meat, Inc.||$17.19||-71.00%||1.1B|
|CAG||Conagra Brands, Inc.||$36.26||3.66%||17.3B|
|THS||TreeHouse Foods, Inc.||$48.13||33.18%||2.7B|
|SJM||JM Smucker Co||$150.00||9.41%||16.0B|
|CAKE||Cheesecake Factory, Inc.||$39.48||3.76%||2.0B|
|JJSF||J&J Snack Foods Corp.||$143.85||-4.19%||2.8B|
Examples of Food Stocks
Food stocks can be a great investment opportunity for those looking to diversify their portfolio and invest in a stable industry. The global food and beverage market is projected to reach $5 trillion by 2020, making it a lucrative industry for investors.
Below are some examples of Food stocks and brief overviews of how the companies operate.
- Nestle – Nestle is a Swiss multinational food and drink company. It is the largest food company in the world by revenue. Nestle has a diverse portfolio of products, including baby food, chocolate, coffee, and pet food. Its strong brand recognition and consistent financial performance make it a solid choice for investors.
- PepsiCo – PepsiCo is an American multinational food and beverage corporation. The company is known for its flagship product, Pepsi, as well as its other popular brands, such as Frito-Lay, Gatorade, and Tropicana. PepsiCo has a strong international presence and a diversified product portfolio, making it a great choice for investors.
- Kraft Heinz – Kraft Heinz is an American food company formed by the merger of Kraft Foods Group and H.J. Heinz Company. It is the fifth-largest food and beverage company in the world by revenue. Kraft Heinz is known for its popular brands, such as Heinz Ketchup, Kraft Macaroni and Cheese, and Planters Peanuts. Its strong brand recognition and consistent financial performance make it a solid choice for investors.
- Archer Daniels Midland – Archer Daniels Midland (ADM) is an American global food processing and commodities trading corporation. It is the largest agricultural processor in the world. ADM’s diverse business operations, including trading, transportation, and food processing, make it a great choice for investors looking for a more diversified food stock.
- General Mills – General Mills is an American multinational manufacturer and marketer of branded consumer foods. It is the sixth-largest food company in the world. General Mills is known for its popular brands such as Cheerios, Yoplait, and Pillsbury. Its strong brand recognition and consistent financial performance make it a solid choice for investors.
About the Food Industry
The food industry is a broad and diverse sector that encompasses the production, processing, packaging, distribution, and sale of food and beverages. The industry is one of the oldest and most essential industries in the world, as it provides a basic human need – sustenance. The global food and beverage market is projected to reach $5 trillion by 2020, with an expected growth rate of 3.5% per year.
The food industry is divided into several segments, including:
- Agriculture: This segment involves the production of raw food products, such as fruits, vegetables, grains, and meats. It includes activities such as farming, ranching, and fishing.
- Processing: This segment involves converting raw food products into finished goods, such as canned goods, frozen foods, and packaged goods. It includes activities such as milling, canning, and freezing.
- Packaging: This segment involves packaging food products for distribution and sale. It includes activities such as bottling, canning, and packaging.
- Distribution: This segment involves the transportation and distribution of food products from producers to retailers and consumers. It includes activities such as warehousing, logistics, and transportation.
- Retail: This segment involves the sale of food products to consumers. It includes activities such as grocery stores, supermarkets, and convenience stores.
The food industry is a highly regulated sector, with strict standards and regulations in place to ensure the safety and quality of food products. The industry is also subject to fluctuations in weather, commodity prices, and consumer demand. In addition, the food industry is facing more challenges such as population growth, climate change, and sustainability, which are leading to changes in food production, processing, and consumption.
The food industry is a vital and dynamic sector that is essential to the global economy. It provides jobs and income for millions of people, and plays an important role in meeting the basic needs of people around the world.
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.