The J.M. Smucker Co. is set to acquire Hostess Brands, the snack maker behind products like Twinkies, HoHos and Donettes, for approximately $5.6 billion including debt. J.M. Smucker, the maker of jellies, Jif peanut butter and Uncrustables, agreed to take over Hostess Brands, adding Twinkies, Ho Hos and Ding Dongs to its portfolio of snacks. Discover and automatically rebalance your investments based on your interests, portfolio and goals.
Our investment research tools help to ensure you’re furnished with the best resources to make informed investment decisions. They believe these five stocks are the five best companies for investors to buy now… Over the next decades, Kellogg’s was one of the companies that stamped the idea of cereal consumption on the American cultural consciousness. In recent years, the company has acquired other food businesses like Keebler, Kashi, Morningstar Farms, and Pringles, which it purchased from Procter & Gamble. The General Mills story began in 1856 with the Minneapolis Milling Company. The Washburn family acquired the mill and began building a series of other mills along the river, replacing old grinding stones with the first automatic steel rollers.
Top Food Stocks for Q2 2023
This stock is also an excellent option for anyone who is interested in a dividend investing strategy. This food manufacturer has a huge portfolio of popular brands, such as Betty Crocker, Pillsbury, Hamburger Helper, and Cascadian Farms. In addition to their own brand of supermarkets, they also own popular chains like Ralph’s, Fry’s, Smith’s, Food 4 Less, and more. Many of the world’s top food brands have been around for decades and have a very loyal following. Hostess shares were trading up more than 19% at $33.46 Monday morning, while Smucker shares dipped more than 6% at $131.67.
While Hormel has a forward-looking assortment of brands, it manages its business conservatively, as it tends to maintain a strong balance sheet with low amounts of debt. In other words, it has raised its dividend for more than 50 consecutive years, thanks to its continuing financial strength. We have dozens of stocks to choose from, including Top Consumer Staple Stocks.
- Cliff Asness’ AQR Capital Management is one of the 30 hedge funds tracked by Insider Monkey having stakes in Hormel Foods as of the end of the third quarter.
- Coca-Cola gets a lot of attention for its dividend, which hasn’t been reduced since 1963.
- This is partially because of supply chain backups, which made it difficult for them to take full advantage of increased demand.
- They also make a wide range of breakfast cereals, including Cheerios, Lucky Charms, Wheaties, Chex, Cocoa Puffs, and more.
- But there’s a lot more to food stocks than just their defensiveness.
This makes them great choices for a dividend investing strategy. The Invesco Dynamic Food & Beverage ETF is a blend of large, mid, and small-cap stocks. Top holdings include Mondelez, Hershey, General Mills—and other recognizable, consumer-facing names like Coca-Cola and Pepsico. Some of the portfolio is also invested in companies that wholesale to restaurants and fast-food chains, such as Sysco Foods.
Tyson’s most recent earnings reports have been very positive, and this has been reflected in their stock performance. Much of this was because of supply chain shortages, as they had to shut down some of their processing plants to prevent and manage outbreaks of the virus. This means that now could be the right time to buy this stock while it’s relatively affordable. Unilever is a consumer goods company based in the United Kingdom. Since Kellogg’s makes such a large portfolio of products, they aren’t overly reliant on sales of any one product.
Target is a massive retailer that sells grocery products as well as clothing, home goods, entertainment, and more. Their customers are also very loyal, with renewal rates at over 90 percent. They already had a strong delivery model in place and didn’t rely on in-person dining, which helped them keep their sales up. Many of these new restaurants have improved kitchen designs, which make meal prep much more efficient. Chipotle stock has nearly tripled in price after hitting a low point in March 2020. Campbell’s Soup is another food stock with plenty of brand recognition.
These are the food stocks that had the highest total return over the last 12 months. If you want to see more stocks in this selection, check out 5 Best Food Stocks To Buy Now. Since there are so many great food stocks out there, you’ll need to know how to narrow them down. Many people will stop going to restaurants when they fall on hard times. Unlike many other food companies, Tyson struggled during the COVID-19 pandemic.
PEP stock has appreciated at an annualized rate of over 11% in the past three, five, and ten years, respectively. Pepsico is rarely flashy, but the company consistently generates value for its shareholders, leading to strong and steady returns by PEP stock. Tesco is at a great price, less than $12/share, and over the last year, TSCDY has seen a price increase of +20% and a 5-year increase of +64%. “Tesco is cheap at the moment, trading at 1.2x book value and at 0.37x TTM sales. Given the low valuation, I think that TSCDF deserves a small allocation in a diversified portfolio,” writes Unlocking Alpha.
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It owns world famous brands like Heinz, JELL-O, Philadelphia, Lunchables and many others. In the last four quarters, the company has beat estimated EPS each time. This is in an effort to cut down on delivery times as well as be closer to carryout customers. There is risk of some overcrowding, but it’s worked well so far and can improve overall customer experience. Priced at only 11.4 times its trailing 12-month earnings and 11.2 times next year’s expected per-share profits, Tyson Foods is too much of a bargain to pass up. This year’s setbacks and missteps will be in the rear-view mirror soon enough.
- Over the years, companies that specialized in distributing packaged food went public, offering investors the chance to invest in food and beverage stocks.
- Since then the company has been growing it’s portfolio to more than 50 brands like Crisco, Green Giant, Ortega and others.
- The company went public in 2016 after private investors rehabbed the company.
- While you never want any one stock, or even one industry, to dominate your portfolio, food stocks are a safe bet and a great choice for setting up the foundation of your stock investments.
- Ultimately, people have to eat to survive and convenience is a big selling point.
- The agricultural and industrial revolutions brought about huge changes in how food was consumed.
The Consumer Staples Select Sector SPDR Fund (XLP) is another great ETF to watch, and one of the largest funds specifically dedicated to consumer staples. Around 25% of the fund is invested in food retailers like Walmart, and around 40% in beverage companies like rival soft drink companies Coca-Cola and Pepsico. There are also investments in consumer goods companies like Procter & Gamble (the name behind Crest and Charmin) should i buy apple stock and Philip Morris International. Mondelez sees organic sales growing by 5% to 7% this year, and free cash flow should be at least $3.3 billion, up about 10% from 2022. The company expects to use this cash flow for roughly $2 billion of share repurchases this year on top of its quarterly dividend. The app allows you to create personalized collections such as the best food stocks, USA Fintech, or Mid-cap stocks.
B&G Foods
While many other restaurants have had to close stores as a result of the pandemic, Starbucks is looking at increasing their global footprint. However, their most recent earnings report missed analyst expectations in a few key areas, and their stock price went down. Their revenue increased by 7.1 percent, and they transitioned easily to a low-contact business model. This fast casual Mexican restaurant has a strong business model that helped keep them afloat even as more customers were staying home. Not only did their sales increase across most sectors, but they also saw their profit margins increase.
Online channels and delivery apps have brought in millions of new buyers during the pandemic. Pizza is a huge market in the U.S., and Domino’s has gained market share. Currently, some estimates put it at close to 50% of the pizza delivery market. That outpaces competitors and allows for better economies of scale. That actually wasn’t the case during the 2008 recession, at least at one point, when sales plunged 7% during one quarter.
Earnings should come in somewhere between $3.30 and $3.35 per share, up from prior guidance of $3.20 to $3.30. Investors who keep close tabs on the company will know Tyson hasn’t exactly had an easy time with the coronavirus. The meat-packing industry proved particularly vulnerable to COVID-19 infections, and this name was no exception. Some of its facilities were even forced to shut down due to uncontrolled outbreaks, and at least one wrongful death lawsuit was filed against the company in May. Managers at one of its plants were alleged to have made bets as to how many employees would be infected with COVID-19.
Food Companies Stocks
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. Between these brands, Campbell’s has a huge portfolio of food products.
A recent report suggested that the global avocado market will grow at an annualized rate of 7% throughout the next decade. Inflationary pressures will continue to impact companies around the world. How they adjust to meet demand and expectations will be the difference between the winners and losers, and NGVC is positioning itself to reap the benefits. The original Kraft Foods Group began in 1923, set out to execute a broad merger strategy to unify a fragmented ice cream industry. Heinz was formed in 1869 by a German immigrant focused on making horseradish before switching to a focus on its now-famous ketchup.
Should You Buy Food Stocks?
They are particularly well known for their cereal brands, but they also make other popular breakfast foods and snack items. Despite the challenges of the current economy, they were able to keep their prices stable, which drove revenue growth. While earnings per share numbers missed the mark, their revenue remained stable. Costco has a very unique business model that makes it one of the best stocks in the grocery sector.
Food Stocks FAQ
After merging with 28 other mills in 1928, the company became called General Mills and began paying dividends to shareholders. To this day, General Mills has remained one of the only companies on Wall Street to pay dividends every single year. The stock has taken a huge hit, but Beyond Meat is a stock to consider if you believe in the long-term potential of plant-based protein.
Mondelez isn’t offering guidance for the coming year, knowing the pandemic’s future impact (or lack thereof) is uncertain. It’s estimating revenue growth of 3.5% for all of the current fiscal year, though, and in the meantime, analysts are calling for top-line growth of 3.7% in 2021. Both outlooks underscore how unfazed the company’s slow but steady growth trajectory is by outside forces.
At the start of 2022, Starbucks had more than 34,300 company-operated and licensed stores. Another is that properly chosen, food stocks add stability to a portfolio — especially the big manufacturers with powerful brands, which provide a moat against competitors. Still, there’s no doubt that food companies are some https://bigbostrade.com/ of the best inflation-proof stocks, which is one good reason to own them. It’s not the country’s biggest grocer; that honor technically belongs to Walmart. Kroger is the biggest food-focused grocery store chain, though, with more than 2,800 stores in 35 states driving annual revenue of more than $120 billion.
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. This means they can bounce back strong from tough economic times.