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Food Stocks to Invest in 2023
Table of Contents
Continue from consumer staples stock recommendation, we covered beverage stocks to invest in Q2 2023, and now let’s continue with the second consumer staple categories, food stocks.
Let’s recap, why should you invest in consumer staples stocks? It is impossible (or next to impossible) to live without staple items. Staple items are stable because consumers choose staple items when times get tough, avoiding discretionary items (things you want, but don’t need) and that’s what makes them stable.
Food Products Companies
Consumer staple food companies are known for generating steady profits and revenues despite economic fluctuations.
Ingredion Inc (INGR: NYSE)
Ingredion Inc is a global ingredient solutions provider serving customers in more than 120 countries. A variety of specialty starches, sweeteners, and nutrition ingredients are produced by the company for use in food, beverage, industrial, and personal care products. Ingredients include corn-based sweeteners, high-fructose corn syrup, starches, hydrocolloids, sweetening beverages, and foods to improve texture and stability in processed foods.
Ingredion also invests heavily in research and development. It has several innovation centers around the world focused on developing new ingredients and solutions to meet evolving customer needs.
Ingredion Inc had a market capitalization of $6.932B in 2022 and employed approximately 11,700. The company’s 2022 revenue was $7.946B, a 15.26% increase from 2021.
As of April 14, 2023 INGR is trading at $106.22. The consensus rating of 17 analysts named the stock ‘Strong Buy’ with an average price target of $52.35., an upside trend of 65.69%. Along with a high forecast of $125.00 and a low forecast of $50.00.
Chipotle Mexican Grill, Inc. (CMG: NYSE)
Chipotle Mexican Grill, Inc., often known simply as Chipotle is a leading American chain of fast-casual restaurants specializing in serving fresh, made-to-order Mexican-inspired foods. Chipotle operates over 3182 restaurants in the United States, United Kingdom, Canada, Germany, and France.
Chipotle’s menu features a variety of dishes made with high-quality, sustainably-sourced ingredients, including burritos, bowls, tacos, and salads. Fresh, customizable food has resonated with consumers, and its loyal customer base has contributed to the company’s growth.
Furthermore, Chipotle has invested in technology and digital capabilities in order to enhance the customer experience. With the company’s mobile app, customers can order and pay for their food before they arrive, allowing them to skip the line at the restaurant and order and pay ahead of time.
Chipotle Mexican Grill, Inc had a market capitalization of $47.997B in 2022 and employed approximately 104,958, an increase of 7.47% compared to 2021. The company’s 2022 revenue was $8.635B, a 14.41% increase from 2021.
As of April 14, 2023, CMG is trading at $1717.89. The consensus rating of 22 analysts named the stock ‘Strong Buy’ with an average price target of $1,870.67 an upside trend of 5.39%. Along with a high forecast of $2,084.00 and a low forecast of $1,550.00.
General Mills Inc. (GIS: NYSE)
The company General Mills, Inc. is a leading multinational food company engaged in the production, marketing, and distribution of a broad range of consumer products. General Mills operates through its subsidiaries, including Cheerios, Betty Crocker, Pillsbury, Häagen-Dazs, Yoplait, Nature Valley, and Old El Paso. General Mills operates in more than 100 countries and markets its products through various channels, including grocery stores, mass merchandisers, convenience stores, and online retailers.
General Mills’ products are designed to meet consumers’ needs in various food categories, including cereals, baking mixes, refrigerated and frozen dough products, snack bars, frozen meals, yogurt, ice cream, and more. With a loyal customer base around the world, the company’s brands are known for their quality, taste, and convenience.
General Mills had a market capitalization of $37.781B in 2022 and employed approximately 35,000. The company’s 2022 revenue was $6.842B, a 3.92% increase from 2021.
The current market price for GIS is $86.95 as of April 14, 2023. The stock consensus was rated as ‘Hold’ with an average price target of $90.08 and an upside trend of 3.43%. Along with a high forecast of $140.00 and a low forecast of $76.00.
Yum! Brands Inc. (YUM:NYSE)
Yum Brands Inc is a global restaurant company that is currently presented through four segments KFC, Pizza Hut, Taco Bell, and Habit Burger Grill. Yum Brands Inc initially created in 1997 as Tricon Global Restaurants, Inc. from PepsiCo’s fast food division as the parent corporation of KFC, Pizza Hut and Taco Bell restaurant companies. Later in March 2002, Yorkshire announced it would merge with Tricon Global Restaurants to form Yum! Brands.
It is noteworthy that Yum Brands today operates 55,000 restaurants in more than 150 countries and territories, making it one of the world’s largest restaurant companies. In addition to their convenience, affordability, and delicious food offerings, the company’s brands have earned a loyal following around the world for their convenient, affordable, and tasty food offerings.
Yum! Brands had a market capitalization of over $37.781B and the company’s 2022 revenue was $6.842B, a 3.92% increase from 2021.
As of April 14, 2023, YUM is trading at $134.66. The consensus rating of 17 analysts named the stock ‘Strong Buy’ with an average price target of $146.50 with an upside trend of 6.86%. Along with a high forecast of $170.00 and a low forecast of $117.00.
Bellring Brands Inc (BRBR:NYSE)
BellRing Brands Inc. founded in 2019 is a leading global manufacturer and marketer of nutritional and performance protein supplements. There are several subsidiaries of BellRing Brands that operate under its umbrella, including Premier Nutrition Corporation, Dymatize Enterprises LLC, and PowerBar Inc. BellRing products are designed to support the active lifestyles of athletes, fitness enthusiasts, and fitness enthusiasts with a variation of products, including ready-to-drink shakes, powders, bars, and other snacks, under its various brands, such as Premier Protein, Dymatize, PowerBar, and Joint Juice.
As a result of strategic partnerships and acquisitions, BellRing Brands continues to expand its market reach across the U.S., Europe, and Asia.
BellRing Brands had a market capitalization of over $4.6B as of April 2023. The company’s revenue in 2022 was $1.372B, a 10.024% rise year-over-year.
As of the time of analysis, April 14, 2023, BRBR is trading at $33.78. The consensus rating of 12 analysts named the stock ‘Strong Buy’ with an average price target of $37.42 with an upside trend of 8.42%. Along with a high forecast of $42.00 and a low forecast of $29.00
McDonald's Corp (MCD:NYSE)
McDonald’s Corporation, the global fast-food icon is one of the world’s largest restaurant chains, with more than 38,000 locations in over 100 countries. The brand is best known for its hamburgers, french fries, and other fast-food staples. Mcdonalds’ initiative of injecting localize elements into the menu had added extra value to their expansion. For instance, in India with Burger Masala, Shrimp Burgers in South Korea, Prosperity and Foldover in Malaysia, and many more. There have been many changes in the company’s menu over the years, but its core offerings have remained the same over the years.
McDonald’s is a publicly-traded company with a market capitalization of over $211B, and employs over 200,000 people worldwide. The company’s revenue in 2022 was $13.207B, a 4.98% rise year-over-year.
The current market price for GIS is $289.07 as of April 14, 2023. The stock consensus was rated by 28 analysts as a ‘Strong Buy’ with an average price target of $301.64 and an upside trend of 4.26%. Along with a high forecast of $330.00 and a low forecast of $262.00
Q2 2023 Earning Announcement Schedule
Ingredion Inc – Wednesday, May 3, 2023.
Chitpotle Mexican Grill Inc – Tuesday, April 25 2023 after market close.
General Mills Inc – Tuesday, June 27, 2023
Yum! Brands, Inc. (*expected*) – Friday, May 3, 2023, before the market open
Bellring Brands Inc – Tuesday, May 9, 2023, at 9:00 a.m. EDT
McDonalds Corp – Tuesday, April 25, 2023 before the market opens.
Many food companies have established brand names and loyal customers, so they’re more protected against competition. Having a strong sense of security can make companies more attractive to investors who are looking for companies with long-term growth potential and stability.
The key takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.
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None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance.
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