Investing in food stocks

Since food is a necessity, investing in food stocks can sound like a lucrative venture. But it involves some risks you need to consider.

What is a food stock?

Food stocks are stocks in any company involved in the production and transportation of food from the farm to your stomach. So you can invest in stocks related to any of the following industries:

These industries keep the world food supply running and are essential to everyday life. For instance, think about how your morning coffee ended up in your cup — it all started in the ground as a coffee bean.
Farmers need water, fertilizers and other resources to grow these beans. Beans then need to be processed, transported, roasted, brewed and finally poured into your cup. This process involves companies making farming equipment and chemicals, transportation services, roasters and employees at cafés around the world — just to name a few players.

Why invest in food stocks?

Because humans need food, some investors may find food stocks consistent and stable. A growing health-conscious population has also made vegan stocks, organic-food stocks and similar securities grow in popularity.
According to Statista, the United States food market revenue in 2020 has amounted to nearly $924.39 million and it’s expected to grow annually by 1.8%. But to invest in food stocks, you need to know what role these companies play in the food-production process and the risks involved.

Restaurant stocks vs. food stocks

Restaurant stocks are a subcategory of food stocks. These include stocks of full-service restaurants, fast-food establishments and snack bars. But they may be particularly volatile. At the beginning of the COVID-19 pandemic, many restaurants were forced to temporarily close and some didn’t come back. The ones that did faced particular challenges, such as smaller menus and capacity.
Still, you can find restaurant stocks tied to large chains that operate throughout the country. Many restaurants are also benefiting from delivery services like DoorDash. In any case, you should carefully evaluate restaurant stocks and the companies behind them before you decide.

Risks of investing in food stocks

Because many industries and companies are involved in food production, it can run into several risks. For instance, weather can severely affect crop production. Political turmoil in a country can substantially impact the food and raw material they export.
Most recently, the COVID-19 pandemic has affected how food is processed, handled and transported. The lockdowns and social distancing rules had harmful effects on the restaurant industry. In some states like New York, restaurants are only beginning to allow patrons inside at limited capacity after having been closed for months.
But simultaneously, some grocery stocks saw a spike. Grocery stocks are other types of food stocks. They belong to supermarkets and other major stores where you can buy food to prepare.
For example, Costco stocks closed around 298. In late October, its stocks closed closer to 373.
Regardless of what types of food stocks you invest in, make sure you carefully analyze your options as well as the risks they may face.

Food stocks

See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

• Costco Wholesale (COST.US)

  Company summary

  Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

  Historical performance

  Stock information

  • Market capitalization: $428288606208
  • P/E ratio: 56.8163
  • PEG ratio: 5.9921
  • Dividend yield: 0.0047%

  Get more detailed information and learn how to buy COST.US stock

• National Beverage (FIZZ.US)

  Company summary

  National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of sparkling waters, juices, energy drinks, and carbonated soft drinks in the United States and Canada. The company's Power+ brand portfolio offers sparkling water products under the LaCroix, LaCroix Cúrate, and LaCroix NiCola brands; non-carbonated water under the Clear Fruit; energy drink and shots under the Rip It brand; juice and juice-based products under Everfresh, Everfresh Premier Varietals, and Mr. Pure brands; and carbonated soft drinks under Shasta and Faygo brands. It serves retailers, as well as various smaller up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. The company was incorporated in 1985 and is headquartered in Fort Lauderdale, Florida. National Beverage Corp. is a subsidiary of IBS Partners, Ltd.

  Historical performance

  Stock information

  • Market capitalization: $4292229376
  • P/E ratio: 23.1566
  • PEG ratio: 4.0188
  • Dividend yield: 0%

  Get more detailed information and learn how to buy FIZZ.US stock

• Darling Ingredients (DAR.US)

  Company summary

  Darling Ingredients Inc. develops, produces, and sells natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. The company operates through three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients. It offers ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy, and fertilizer industries. The company also collects and transforms various animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstock, green energy, natural casings, and hides. In addition, it recovers and converts used cooking oil and animal fats, and residual bakery products into valuable feed and fuel ingredients. Further, the company provides environmental services, including grease trap collection and disposal services to food service establishments. It primarily operates under the Rendac, Sonac, FASA, Ecoson, Rousselot, Gelnex, and CTH brand names. The company was formerly known as Darling International Inc. and changed its name to Darling Ingredients Inc. in May 2014. Darling Ingredients Inc. was founded in 1882 and is headquartered in Irving, Texas.

  Historical performance

  Stock information

  • Market capitalization: $5358326784
  • P/E ratio: 20.7963
  • PEG ratio: 14.47
  • Dividend yield: N/A%

  Get more detailed information and learn how to buy DAR.US stock

• B-and-G Foods (BGS.US)

  Company summary

  B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company's products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, crackers, baking powder and soda, corn starch, nut clusters, and other specialty products. It markets its products under various brands, including Ac'cent, B&G, B&M, Baker's Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary's, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Grandma's Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald's, Mama Mary's, Maple Grove Farms of Vermont, McCann's, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone's, Trappey's, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright's. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.

  Historical performance

  Stock information

  • Market capitalization: $577104832
  • PEG ratio: 7.93
  • Dividend yield: 0.1043%

  Get more detailed information and learn how to buy BGS.US stock

• General Mills (GIS.US)

  Company summary

  General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice. It offers grain, ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and savory snacks, ice cream and frozen desserts, unbaked and fully baked frozen dough products, frozen hot snacks, ethnic meals, side dish mixes, frozen breakfast and entrees, nutrition bars, and frozen and shelf-stable vegetables. The company also manufactures and markets pet food products, including dog and cat food; and operates ice cream parlors. It markets its products under the Annie's, Betty Crocker, Bisquick, Blue Buffalo, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Dunkaroos, Edgard & Cooper, Fiber One, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Gold Medal, Golden Grahams, Häagen-Dazs, Kitano, Kix, Lärabar, Latina, Lucky Charms, Muir Glen, Nature Valley, Nudges, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Tastefuls, Total, Totino's , Trix, True Chews, True Solutions, Wanchai Ferry, Wheaties, Wilderness, and Yoki brands. The company sells its products to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.

  Historical performance

  Stock information

  • Market capitalization: $35480211456
  • P/E ratio: 15.2167
  • PEG ratio: 3.3603
  • Dividend yield: 0.0364%

  Get more detailed information and learn how to buy GIS.US stock

• Kraft Heinz (KHC.US)

  Company summary

  The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

  Historical performance

  Stock information

  • Market capitalization: $36637851648
  • P/E ratio: 27.2973
  • PEG ratio: 0.8171
  • Dividend yield: 0.0528%

  Get more detailed information and learn how to buy KHC.US stock

• Utz Brands (UTZ.US)

  Company summary

  Utz Brands, Inc. engages in manufacture, marketing, and distribution of snack foods. It offers a range of salty snacks, including salty snacks, including potato chips, tortilla chips, pretzels, cheese snacks, pork skins, veggie snacks, pub/party mixes, tortilla chips, salsa and dips, ready-to-eat popcorn, and other snacks under the Utz, Zapp's, ON THE BORDER, Golden Flake, Boulder Canyon, Hawaiian, TORTIYAHS!, etc. The company sells its products to wholesale and other distributors, grocery stores, convenience and drug stores, discount stores, mass merchandisers, membership club stores, hard discounters, and specialty and e-commerce retailers. Utz Brands, Inc. was founded in 1921 and is headquartered in Hanover, Pennsylvania.

  Historical performance

  Stock information

  • Market capitalization: $1353614976
  • Dividend yield: 0.0149%

  Get more detailed information and learn how to buy UTZ.US stock

• Mondelez International (MDLZ.US)

  Company summary

  Mondelez International, Inc., through its subsidiaries, manufactures, markets, and sells snack food and beverage products in the Latin America, North America, Asia, the Middle East, Africa, and Europe. It provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, and cakes and pastries; chocolates; and gums and candies, as well as various cheese and grocery, and powdered beverage products. The company's brand portfolio includes Oreo, Ritz, LU, CLIF Bar, and Tate's Bake Shop biscuits and baked snacks, as well as Cadbury Dairy Milk, Milka, and Toblerone chocolate. It serves supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores, and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, third party distributors, and other facilities, as well as through independent sales offices and agents. The company also sells products directly to businesses and consumers through e-retail platforms, retailer digital platforms, as well as through its direct-to-consumer websites and social media platforms. Mondelez International, Inc. was formerly known as Kraft Foods Inc. and changed its name to Mondelez International, Inc. in October 2012. The company was incorporated in 2000 and is headquartered in Chicago, Illinois.

  Historical performance

  Stock information

  • Market capitalization: $80258146304
  • P/E ratio: 21.2837
  • PEG ratio: 4.839
  • Dividend yield: 0.0313%

  Get more detailed information and learn how to buy MDLZ.US stock

• Bellring Brands LLC (BRBR.US)

  Company summary

  BellRing Brands, Inc., together with its subsidiaries, provides various nutrition products in the United States. The company offers ready-to-drink (RTD) protein shakes, other RTD beverages, powders, nutrition bars, and other products primarily under the Premier Protein and Dymatize brands. It distributes its products through club, food, drug, mass, eCommerce, specialty, and convenience channels. BellRing Brands, Inc. was incorporated in 2019 and is headquartered in Saint Louis, Missouri.

  Historical performance

  Stock information

  • Market capitalization: $9735033856
  • P/E ratio: 40.5806
  • Dividend yield: N/A%

  Get more detailed information and learn how to buy BRBR.US stock

• Beyond Meat (BYND.US)

  Company summary

  Beyond Meat, Inc., a plant-based meat company, engages in the development, manufacture, marketing, and sale of plant-based meat products under the Beyond brand name in the United States and internationally. The company sells a range of plant-based meat products that replicates beef, pork, and poultry meats. It sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools. The company was formerly known as Savage River, Inc. and changed its name to Beyond Meat, Inc. in September 2018. Beyond Meat, Inc. was incorporated in 2008 and is headquartered in El Segundo, California.

  Historical performance

  Stock information

  • Market capitalization: $237992048
  • PEG ratio: 40.7473
  • Dividend yield: N/A%

  Get more detailed information and learn how to buy BYND.US stock

• Albertsons Companies (ACI.US)

  Company summary

  Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. It operates stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and pharmacies, in-store branded coffee shops, adjacent fuel centers, distribution centers, and manufacturing facilities, as well as various digital platforms. Albertsons Companies, Inc. was founded in 1860 and is headquartered in Boise, Idaho. Albertsons Companies, Inc. operates as a subsidiary of Albertsons Investor Holdings LLC.

  Historical performance

  Stock information

  • Market capitalization: $10978643968
  • P/E ratio: 11.0819
  • PEG ratio: 2.9346
  • Dividend yield: 0.0317%

  Get more detailed information and learn how to buy ACI.US stock

• The Hain Celestial Group (HAIN.US)

  Company summary

  The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, Europe, and internationally. The company offers infant formula; infant and toddler formula, infant cereals, baby food pouches, snacks and frozen toddler and kids' foods; frozen desserts and plant-based beverages such as soy, rice, oat, and spelt; and condiments, as well meat-free dishes and meals. It also provides cooking and culinary oils, vinegars, and condiments; nutritional oils and supplements; broths and soups; yogurts; and nut butters. In addition, the company offers hot-eating desserts, refrigerated and frozen meat-alternative snacks and meals, vegetables and lentils, jams, fruit spreads, jellies, honey, natural sweeteners, syrups, dessert sauces, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips; and personal care products that include hand, skin, hair, and sun care oral care products, as well as deodorants, baby food, sunscreens, and other products under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores. The company was incorporated in 1993 and is headquartered in Hoboken, New Jersey.

  Historical performance

  Stock information

  • Market capitalization: $643083904
  • PEG ratio: 0.8449
  • Dividend yield: N/A%

  Get more detailed information and learn how to buy HAIN.US stock

What ETFs track the food category?

If you’re not into stock picking, you may consider investing in stock ETFs. These have become popular in recent years because they offer access to a diversified basket of stocks. Here are some food stock ETFs you may be interested in.

• Invesco Dynamic Food & Beverage ETF (PBJ)
• WBI BullBear Rising Income 1000 ETF (WBIE)
• First Trust Nasdaq Food & Beverage ETF (FTXG)

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Bottom line

Because food will be consistently in demand, food stocks may sound like stable investments. But they carry risks and require careful analysis.
Before you start investing in food stocks, compare stock trading platforms.

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