If you’re looking for investment opportunities, the food and drink sector has plenty to offer. After all, everybody has to eat and drink! Whether it’s grabbing a quick bite on the go, cooking up something special at home, or stocking up on snacks and beverages from the grocery store, customers spend on brands in the food and drink industry every day.
If you’re looking to add some flavour to your investment portfolio, the food and drink sector could be just the thing. So, pull up a chair and let’s dig into some of the tastiest investment opportunities out there!
Going Out
We all love eating out - whether it’s grabbing a quick burger or sitting down for a coffee break. The food and drink sector’s restaurant and fast-food giants can often offer strong, stable returns, making them great choices for investors looking to get into this space.
Here are some of the biggest names in the restaurant and fast-food industry that should definitely be on your radar:
- McDonald’s
The Golden Arches need no introduction. Founded in 1940, McDonald’s has grown into the largest fast-food chain in the world, with over 38,000 locations. Their secret to stability? McDonald’s dominates the fast-food space with a consistently loved menu, affordable prices, and global expansion. With a well-established brand and consistent revenue streams, McDonald’s remains a popular investment with those looking for long-term growth. At the time of writing in October 2024, McDonald’s is a ‘Buy’ according to analysts. - Domino’s Pizza
Pizza is always a crowd-pleaser, and Domino’s has mastered the art of delivering it quickly and conveniently. Known for their tech-savvy approach (they even have an app to track your pizza delivery!), Domino’s has become a leader in the pizza industry. After a recent dip, analysts predict that Domino’s might increase in price by 34.95% in the next 12 months, making it a ‘Buy’. - Yum! Brands
If you’ve ever had a craving for Taco Bell, KFC, or Pizza Hut, then you’ve already experienced the culinary magic of Yum! Brands. With over 50,000 restaurants worldwide, this company is a fast-food giant. The diverse portfolio of beloved brands allows Yum! Brands to cater to a wide audience, potentially offering greater stability to investors. Yum! is currently considered a ‘Buy’. - Chipotle Mexican Grill
Founded in 1993, Chipotle has expanded rapidly, and its focus on sustainable ingredients has won over a loyal customer base. Analysts think Chipotle stock might grow by 15.01% in the next year, recovering from a dip after its popular CEO Brian Niccol left to lead Starbucks. - Starbucks Corporation
Speaking of Starbucks … With over 30,000 stores worldwide, Starbucks is a global phenomenon. Starbucks has a premium brand, loyal customer base, and has shown recent expansion into new markets like China. It also now has Brian Niccol at the helm!
Ingredients Suppliers
Behind every delicious meal, there’s a whole supply chain of ingredient providers working to deliver the goods to both home cooks and restaurants. These companies may not always be in the spotlight, but they play a critical role in the food industry.
Here are a couple of key players when it comes to ingredients:
- McCormick & Company
There’s a good chance a few of the seasonings on your kitchen spice rack came from McCormick. Founded in 1889, McCormick has grown into the largest spice and seasoning company in the world. - Tyson Foods
Tyson Foods is a heavyweight in the meat and poultry industry, providing chicken, beef, and pork to restaurants and retailers worldwide. Founded in 1935, Tyson has a strong reputation for quality and reliability, and they’re a key player in the food supply chain, as a major supplier to both homes and restaurants.
On The Shelves
Whether it’s grabbing a soda, a snack, or a pantry staple, grocery shopping is a regular part of life. Companies that sell food and drink in stores have the benefit of constant demand, which makes them some of the most stable and reliable investments in the market. If you’re looking for well-established companies with strong brands that people buy week in, week out, this section is for you.
Here are some of the big names in the grocery sector:
- The Coca-Cola Company
As one of the most recognizable brands in the world, Coca-Cola has been quenching thirsts since 1886. The company’s dominance in the beverage industry extends far beyond soda - they own everything from water and sports drinks to tea and coffee brands. Coca-Cola’s massive global distribution network makes it a consistent performer on the stock market. There’s also Coca-Cola Europacific Partners, or CCEP on the stock market, which is at the time of writing rated a ‘Buy’ and predicted to grow by 5.10% in the next year. - Mondelez International
Mondelez is the company behind some of the world’s most beloved snacks, including Oreo cookies, Ritz crackers, and Cadbury chocolate. Founded in 2012 as a spinoff from Kraft Foods, Mondelez has grown into a global snack powerhouse. Right now, Mondelez stock is considered by analysts to be a ‘Buy’, and predicted to go up by 13.76% in the next 12 months. - General Mills Inc
General Mills is a household name, thanks to popular products like Cheerios, Pillsbury, and Haagen-Dazs. Founded in 1866, this food giant offers a diverse portfolio of food products. - The Kraft Heinz Company
A merger between Kraft Foods and Heinz in 2015 created one of the largest food companies in the world. Kraft Heinz is known for its iconic brands, including Heinz ketchup and Kraft macaroni and cheese. Analysts call Kraft-Heinz a ‘Buy’ right now, and predict it might rise in price in the next year by 12.90%. - The Hershey Company
Hershey has been satisfying sweet tooths since 1894 with its famous chocolates and candies. With a strong brand and a loyal customer base, Hershey continues to be a key player in the confectionery market. - The Simply Good Foods Co
Known for its Atkins-branded diet products and high-protein snacks, The Simply Good Foods Co is a growing player in the health and wellness space. With more consumers focusing on healthy eating, Simply Good Foods is well-positioned to capitalise on the demand for nutritious, low-sugar, and high-protein foods. Simply Good Foods is currently called a ‘Buy’ by analysts, who think it might increase in price by 19.08% in the next 12 months.
Conclusion: A Buffet of Opportunities
The food and drink sector is one of the most dependable areas for investment, offering a variety of opportunities across fast food, restaurants, ingredients suppliers, and consumer goods.
If you’re looking for a sector where demand never wavers, food and drink is a buffet of tasty investment opportunities waiting for you to dig in! You can find up to date information about these and other food and drink companies in our ‘Food and Drink’ neme - handpicked stocks that we have selected for Nemo Money’s investors to check out.
Start your investment journey today with Nemo Money. New users who register receive a 50% registration bonus - whatever you top up your account with, up to $50, we will add 50% of that for you to invest however you like.
All stock information is correct at the time of writing.
