Tyson holds 33 different brands, with many of them recognizable by any American. In times of economic volatility, some sectors are more resilient than others. One of them is the food industry, as food is ultimately one of these items we HAVE to spend on. Balance risk by investing in packaged foods, beverages, and restaurants. McDonald’s Corporation is the top quick-service restaurant (QSR) chain by revenue, and operates in many regions of the globe.
Food Stocks: Restaurants
To compile our list of the 11 best food stocks to buy according to Wall Street analysts, we looked for the largest food companies by market cap. We also reviewed our own rankings, financial media reports, and various online resources to compile a list of the best food stocks. Next, we focused on the top food stocks that analysts believe have the most potential for growth. We ranked the 11 best food stocks to buy based on their average price target upside potential according to analysts as of July 8, 2025.
The 12 Best Food Stocks To Buy For A Full Portfolio
Although their earnings per share missed analyst expectations, the company’s global sales growth actually went up year over year. PepsiCo (PEP -1.72%) is another packaged food company with a large portfolio of leading brands. On the beverage side of the business, Pepsi, Mountain Dew, and Gatorade top the list.
- This stock has fluctuated in price over the past year, although they didn’t see the significant losses that many other companies did.
- QSR is expected to report $8.53 billion in sales in 2024 (+21.42%), $9.58 billion in 2025 (+12.33%) and $9.85 billion by 2026 (+2.89%).
- Food stock companies have the capabilities to maintain profit margins and often pass production costs to consumers without even facing a significant sales drop, effectively acting as an inflation hedge.
- This shift is driven by increasing health awareness among consumers, leading to responsible food production.
United Natural Foods, Inc. (NYSE:UNFI)
The company did very well in 2020 and even managed to increase their profit margins and cash flow. 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. It’s going to be a very rough road that may not end well, so investors need to carefully weigh the risks. These have included declining sales volumes in North America, particularly in its snack and beverage businesses, due to consumer pullback amid inflation and shifting preferences.
Key Data Points
- Koyfin’s Screener offers a ‘Hotels, Restaurants and Leisure’ category for a focused view on food stocks, simplifying the search with access to over 100K global securities and more than 5,900 filters.
- In cases where multiple stocks had the same number of billionaire holdings, we used the dollar value of these holdings as a tiebreaker.
- With a large portfolio of excellent brands, Mondelez is definitely a stock to keep your eye on for the long term.
Unlike many other food companies, Tyson struggled during the COVID-19 pandemic. This means that now could be the right best food stocks time to buy this stock while it’s relatively affordable. Because many of the items they sell are considered essentials, they are a good defensive stock for tough economic times.
General Mills has also acknowledged the need to address higher prices and is actively working to bring consumers greater value through price reductions and promotions. The company appears to be hoping that aggressive global expansion will give them the leverage to earn back their prepandemic margins and are expected to grow revenues at a fair clip in the coming years. Shake Shack is expected to report $1.25 billion in sales in 2024 (+14.94%), $1.44 billion in 2025 (+15.00%) and $1.63 billion by 2026 (+13.38%). The collective is one of the more mature companies on our list with more modest growth expectations. Nevertheless, the ‘land and expand’ strategy that QSR deploys for its brands across different countries does offer promising expansion opportunities for years to come.
Investing in Growth Stocks
Greggs is expected to report £2.02 billion in sales in 2024 (+11.36%), £2.21 billion in 2025 (+9.78%) and £2.42 billion by 2026 (+9.17%). The global shifts toward ESG (Environmental, Social, and Governance) drive innovation in the food industry. Increasing environmental concern makes companies attractive to both investors and consumers who are focused on providing plant-based, organic, and low-waste products. This shift is driven by increasing health awareness among consumers, leading to responsible food production. As such, there’s a strong demand seen in the organic food market where significant innovations are taking place.
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Supply chain interruptions and rising manufacturing costs were the main causes of these spikes. Businesses are aggressively seeking to implement pricing optimization techniques, sustainability programs, and cutting-edge supply chain technologies to allay these worries and preserve profits. After a well-timed stock issuance earlier this year, the company now has a cash runway of 2-3 years which it can use to fund the CapEx required for its growth plans. Costing Kura between $1.8 million and $2.2 million to build each store, the payback period is attractive. The company has plans to expand beyond 3,000 in the next few years and is currently undergoing an aggressive CapEx expansion plan that is said to peak around 2025. Aside from store rollouts, Greggs has plans to capture additional revenues by expanding store opening hours into evening trade and embracing digital and delivery operations.
Key Investment Insights for Wingstop (WING):
Campbell’s products are also household names that you can find in grocery stores around the country. This stock has fluctuated in price over the past year, although they didn’t see the significant losses that many other companies did. In addition to their namesake soup products, the company also owns Pepperidge Farm, Prego, Swanson, and Snyder’s-Lance. Not only did their sales increase across most sectors, but they also saw their profit margins increase. They also make a wide range of breakfast cereals, including Cheerios, Lucky Charms, Wheaties, Chex, Cocoa Puffs, and more. This food manufacturer has a huge portfolio of popular brands, such as Betty Crocker, Pillsbury, Hamburger Helper, and Cascadian Farms.
The meat industry is contending with factors like inflation that may lead consumers to choose cheaper cuts or reduce meat consumption. Tyson’s beef business has been facing challenges, including a decline in the nation’s cattle herds. Thus, food companies are striving to strike a balance between driving innovation, aligning with consumer trends, and managing inflationary pressures. Furthermore, technological innovation is significantly changing the food industry’s future.
Artificial intelligence (AI) and robotics are being utilized to improve supply chains, boost industrial efficiency, and reduce food waste. In this article, we will be taking a look at the 10 best food stocks to buy according to billionaires. Kura Sushi is expected to report $246.03 million in sales in 2024 (+31.27%), $312.43 million in 2025 (+26.99%) and $388.60 million by 2026 (+24.38%).
The company focuses on innovation and digital adoption for instance, McDelivery, mobile app, and loyalty programs, etc. Food Stocks are attractive investment assets for investors who might seek long-term growth and avoid significant volatility. Meanwhile, they can also generate income through divided payments over a certain period. The future is powered by artificial intelligence, and the time to invest is NOW. This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits. Each data center powering large language models like ChatGPT consumes as much energy as a small city.