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.
Best Food Stocks
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| KO | The Coca-Cola Company | $71.71 | 29.25% | 309.1B |
| PEP | PepsiCo, Inc. | $171.38 | 1.31% | 235.4B |
| CPB | Campbell Soup Company | $48.36 | 22.43% | 14.4B |
| GIS | General Mills, Inc. | $74.62 | 19.24% | 41.4B |
| MKC | McCormick & Company, Incorporated | $84.09 | 12.54% | 22.6B |
| K | Kellogg Company | $80.65 | 53.62% | 27.8B |
| HSY | The Hershey Company | $191.81 | -3.62% | 38.8B |
| MDLZ | Mondelez International, Inc. | $72.99 | 6.57% | 97.5B |
| TSN | Tyson Foods, Inc. | $59.76 | 21.36% | 21.3B |
| HRL | Hormel Foods Corporation | $31.66 | -15.66% | 17.4B |
| BRFS | BRF S.A. | $4.45 | 118.14% | 40.9B |
| KDP | Keurig Dr Pepper Inc | $37.19 | 19.16% | 50.4B |
| MNST | Monster Beverage Corporation | $51.59 | -1.81% | 50.5B |
| KHC | The Kraft Heinz Company | $35.17 | 6.29% | 42.5B |
| LW | Lamb Weston Holdings, Inc. | $64.91 | -29.62% | 9.3B |
| POST | Post Holdings, Inc. | $116.11 | 37.12% | 6.8B |
| PPC | Pilgrim's Pride Corporation | $48.12 | 113.20% | 11.4B |
| LANC | Lancaster Colony Corporation | $177.25 | 8.96% | 4.9B |
| SAFM | Sanderson Farms, Inc. | #N/A | #N/A | #N/A |
| SMPL | The Simply Good Foods Company | $34.85 | 2.77% | 3.5B |
| CALM | Cal-Maine Foods, Inc. | $76.84 | 61.70% | 3.4B |
| HAIN | The Hain Celestial Group, Inc. | $8.95 | -12.60% | 804.1M |
| MCD | McDonald's Corporation | $302.98 | 17.55% | 217.3B |
| YUM | YUM! Brands, Inc. | $139.24 | 11.34% | 39.1B |
| CMG | Chipotle Mexican Grill, Inc. | $57.17 | 53.11% | 78.3B |
| DRI | Darden Restaurants, Inc. | $164.12 | 15.24% | 19.3B |
| DPZ | Domino's Pizza, Inc. | $430.66 | 13.17% | 15.1B |
| SBUX | Starbucks Corporation | $97.43 | 6.91% | 110.4B |
| SHAK | Shake Shack Inc. | $101.73 | 73.10% | 4.3B |
| PZZA | Papa John's International, Inc. | $53.13 | -22.45% | 1.7B |
| SYY | Sysco Corporation | $77.74 | 19.27% | 38.2B |
| USFD | US Foods Holding Corp. | $61.55 | 57.50% | 15.1B |
| BYND | Beyond Meat, Inc. | $6.40 | -30.74% | 416.2M |
| CAG | Conagra Brands, Inc. | $32.72 | 22.14% | 15.7B |
| THS | TreeHouse Foods, Inc. | $41.41 | -4.32% | 2.1B |
| SJM | JM Smucker Co | $121.21 | -0.21% | 12.9B |
| CAKE | Cheesecake Factory, Inc. | $40.97 | 38.41% | 2.1B |
| DENN | Denny's Corporation | $6.58 | -23.13% | 338.0M |
| JJSF | J&J Snack Foods Corp. | $172.87 | 6.06% | 3.4B |
- BRF S.A. (BRFS) – BRF S.A. is a Brazilian company that is one of the largest food companies in the world. It produces a wide range of products including processed foods, fresh meats, and convenience food products.
- Beyond Meat, Inc. (BYND) – Beyond Meat is a producer of plant-based meat substitutes. The company offers an array of imitation meat products made from pea protein.
- Conagra Brands, Inc. (CAG) – Conagra is an American packaged foods company that makes and sells products under various brand names that are available in supermarkets, restaurants, and food service establishments.
- Cheesecake Factory, Inc. (CAKE) – The Cheesecake Factory is an American restaurant company, famous for its upscale, casual dining establishments, and particularly known for its extensive dessert menu, featuring a variety of cheesecakes.
- Cal-Maine Foods, Inc. (CALM) – Cal-Maine Foods is the largest producer and marketer of shell eggs in the United States.
- Chipotle Mexican Grill, Inc. (CMG) – Chipotle Mexican Grill is an American fast-food chain that serves a simple menu of burritos, tacos, burrito bowls, and salads, made with fresh ingredients.
- Campbell Soup Company (CPB) – Campbell Soup is a global food company that makes a range of high-quality soups and simple meals, beverages, snacks, and packaged fresh foods.
- Denny’s Corporation (DENN) – Denny’s is a full-service pancake house/coffee shop/fast casual family restaurant chain. It operates over 1,600 restaurants across the United States.
- Domino’s Pizza, Inc. (DPZ) – Domino’s Pizza is an American multinational pizza restaurant chain founded in 1960. It is the largest pizza seller worldwide in terms of sales.
- Darden Restaurants, Inc. (DRI) – Darden Restaurants is an American multi-brand restaurant operator. It owns several casual dining restaurant chains, including Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen.
- General Mills, Inc. (GIS) – General Mills is a multinational manufacturer and marketer of branded consumer foods, including breakfast cereals, yogurt, ready-to-serve soup, canned vegetables, baking mixes, and ice cream.
- The Hain Celestial Group, Inc. (HAIN) – Hain Celestial is an American food company whose main focus is foods and personal care products. Their product range includes herbal teas, whole grain foods, and organic produce.
- Hormel Foods Corporation (HRL) – Hormel Foods is an American food products company primarily known for its brand-name foods like Spam luncheon meat, Dinty Moore stews, and Hormel chili.
- The Hershey Company (HSY) – The Hershey Company is one of the largest chocolate manufacturers in the world. It produces a wide variety of chocolates and candies, and is also known for its Hershey’s Milk Chocolate bar and Reese’s Peanut Butter Cups.
- J&J Snack Foods Corp. (JJSF) – J&J Snack Foods Corporation is an American manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages for the foodservice and retail supermarket industries.
- Kellogg Company (K) – Kellogg’s is an American multinational food manufacturing company, known for its breakfast cereals like Corn Flakes, Frosted Flakes, and Rice Krispies.
- Keurig Dr Pepper Inc (KDP) – Keurig Dr Pepper is an American beverage conglomerate. Its east-coast division sells coffee and other beverages, and Keurig brewers. As of July 2018, the company also sells sodas, juices, and other soft drinks from its Dr Pepper Snapple division in Texas.
- The Kraft Heinz Company (KHC) – Kraft Heinz is an American multinational food and beverage company with brands like Kraft, Heinz, Planters, and Oscar Mayer.
- The Coca-Cola Company (KO) – Coca-Cola is a multinational beverage corporation, offering over 500 brands in more than 200 countries and territories. They are best known for their flagship product, Coca-Cola.
- Lancaster Colony Corporation (LANC) – Lancaster Colony is a manufacturer and marketer of specialty food products for the retail and foodservice markets. Brands include Marzetti, New York Bakery, and Sister Schubert’s.
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.
