In this article, we discuss 11 best future food stocks to buy now.

It is an exciting and interesting time to invest in the food sector as innovative new products debut on the market, complementing a revolution spearheaded by plant-based alternatives to meat, the rise of tech-based delivery services, and the adoption of smart products to unlock growth. Some of the top stocks to consider in this context include Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), among others discussed in detail below. 

These firms are also working on the incorporation of artificial intelligence into the food business, and voice-command features for ordering food are also becoming increasingly popular. These features come with programmed recommendations. In the fast food world, eateries are also offering voice recognition features to remember preferences from previous orders. In addition, restaurants are expanding the menus for kids, considering that more and more parents are shifting to organic and healthier options for children. 

Healthy sweeteners and flour alternatives are important market forces that investors should monitor before investing in the sector. Per data by digital agency Linchpin, digital orders at restaurants around the United States are expected to triple in 2023. This will benefit the more than 200,000 fast food restaurants and 50 million Americans in the US that eat at them everyday. According to the National Restaurants Association in the US, there were close to $88 billion in food sales made by restaurants in September this year despite an increase in prices. 

Our Methodology

The companies that operate in the food sector and are working on innovative new offerings were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Future Food Stocks to Buy Now

11. BRF S.A. (NYSE:BRFS)

Number of Hedge Fund Holders: 6    

BRF S.A. (NYSE:BRFS) focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, margarine, and other products. Some of the famous brands it owns include Sadia, Perdigão, Qualy, Chester, Kidelli, Perdix, Biofresh, Gran Plus, and Banvit. The firm is focusing on three main packaged food markets for the future – the Brazilian poultry and packaged food business, a Halal-centered business focused on the Middle East and Turkey, and China-centric Asian operations. 

On September 27, JPMorgan analyst Lucas Ferreira upgraded BRF S.A. (NYSE:BRFS) stock to Neutral from Underweight with a R$16.50 price target, highlighting that the valuation was looking more reasonable but the firm still had tough competition and lack of visibility. 

At the end of the second quarter of 2022, 6 hedge funds in the database of Insider Monkey held stakes worth $15.1 million in BRF S.A. (NYSE:BRFS), compared to 8 the preceding quarter worth $23.7 million.

Just like Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), BRF S.A. (NYSE:BRFS) is one of the best future food stocks to buy now according to elite investors. 

10. Ingles Markets, Incorporated (NASDAQ:IMKTA)

Number of Hedge Fund Holders: 15  

Ingles Markets, Incorporated (NASDAQ:IMKTA) operates a chain of supermarkets in the southeast United States. As the markets become more volatile, the shares have attracted investors due to the impressive dividend profile of the firm. The company has consistently paid a dividend to shareholders for the past thirty-two years. On September 26, it declared a quarterly dividend of $0.165 per share, in line with previous. In addition to packaged foods, the firm also has interests in the milk and fruit juices market. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Royce & Associates is a leading shareholder in Ingles Markets, Incorporated (NASDAQ:IMKTA), with 761,700 shares worth more than $66.1 million. 

9. Beyond Meat, Inc. (NASDAQ:BYND)

Number of Hedge Fund Holders: 20  

Beyond Meat, Inc, (NASDAQ:BYND) manufactures, markets, and sells plant-based meat products in the United States and internationally. On October 14, Beyond Meat announced a second wave of layoffs as part of a larger effort to improve the revenue outlook to achieve cash flow positive operations during rising global inflation. The firm recently announced a plant-based steak alternative, a product line geared towards healthy eating, that will be available at large retailers like Walmart and Kroger in the coming weeks. 

On October 17, Canaccord analyst Bobby Burleson maintained a Hold rating on Beyond Meat, Inc. (NASDAQ:BYND) stock and lowered the price target to $14 from $15, noting that the company had cut nearly 20% of its workforce due to weaker-than-expected demand and increased competition.  

At the end of the second quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $73 million in Beyond Meat, Inc, (NASDAQ:BYND), compared to 23 in the preceding quarter worth $121.9 million. 

In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Beyond Meat, Inc, (NASDAQ:BYND) was one of them. Here is what the fund said:

“What about the other asset class that has attracted the most attention from the investment community in recent times? Beyond Meat, Inc, (NASDAQ:BYND) is the other company whose valuations we did not understand and whose share price has also declined drastically in the last year and a half.”

8. Hormel Foods Corporation (NYSE:HRL)

Number of Hedge Fund Holders: 27

Hormel Foods Corporation (NYSE:HRL) develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers internationally. On September 21, Planters, a subsidiary of Hormel Foods, announced that their new peanut-shaped peanut packaging uses 8% less plastic than its dry nuts’ standard packaging. This move is a part of a larger plan by the firm to become more environmentally responsible in line with new ESG initiatives sweeping the business world. 

On September 22, Argus analyst John Staskak maintained a Buy rating on Hormel Foods Corporation (NYSE:HRL) stock and lowered the price target to $53 from $54, noting that the company posted record sales that are helping to offset the impact of inflation. 

Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Hormel Foods Corporation (NYSE:HRL), with 2.97 million shares worth more than $140.8 million. 

In its Q3 2021 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Hormel Foods Corporation (NYSE:HRL) was one of them. Here is what the fund said:

“Hormel Foods Corporation (NYSE:HRL) – the maker of SPAM and Applegate Turkey (among many other products), is down over 20% since peaking last year, largely on fears of higher cost. We expect the company will be able to raise prices to offset cost inflation as they have always been able to do win their past.”

7. Dover Corporation (NYSE:DOV)

Number of Hedge Fund Holders: 30    

Dover Corporation (NYSE:DOV) provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. On August 31, Dover revealed an extra share repurchase program with Bank of America to buy back $500 million of its stock. The program will be part of the company’s existing repurchase authorization for 20 million shares. The final settlement is expected to be completed prior to the end of the fourth quarter of 2022. 

On October 13, investment advisory Deutsche Bank maintained a Hold rating on Dover Corporation (NYSE:DOV) stock and raised the price target to $137 from $132. Analyst Nicole Deblasea issued the ratings update. 

At the end of the second quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $420.4 million in Dover Corporation (NYSE:DOV), compared to 27 the preceding quarter worth $428.9 million.

6. DoorDash, Inc. (NYSE:DASH)

Number of Hedge Fund Holders: 31    

DoorDash, Inc. (NYSE:DASH) operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. On September 19, DoorDash stated that it has entered into a partnership with EG America, a convenience store retailer to offer on-demand delivery of convenience essentials. This will allow customers to order EG convenience brands through DoorDash’s app and website. 

On August 23, Wolfe Research analyst Deepak Mathivanan reiterated an Outperform rating on DoorDash, Inc. (NYSE:DASH) stock with a $110 price target, highlighting that the company’s underlying fundamentals were solid, with significant profitability growth at the core of the US restaurant business.  

Among the hedge funds being tracked by Insider Monkey, Beijing-based investment firm Hillhouse Capital Management is a leading shareholder in DoorDash, Inc. (NYSE:DASH), with 4.7 million shares worth more than $301 million.

In addition to Starbucks Corporation (NASDAQ:SBUX), McDonald’s Corporation (NYSE:MCD), and Yum! Brands, Inc. (NYSE:YUM), DoorDash, Inc. (NYSE:DASH) is one of the best future food stocks to buy now according to elite investors. 

5. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 41     

The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. On October 19, Teads, a global media platform, announced its partnership with The Kraft Heinz Company and Dentsu International to develop the next paradigm in digital marketing, a project named Teads Attention Program. 

On October 14, Morgan Stanley analyst Pamela Kaufman maintained an Equal Weight rating on The Kraft Heinz Company (NASDAQ:KHC) stock and lowered the price target to $37 from $41, noting the strong pricing-led organic sales growth of the firm despite significant gross margin pressures. 

4. Mondelez International, Inc. (NASDAQ:MDLZ)

Number of Hedge Fund Holders: 48     

Mondelez International, Inc. (NASDAQ:MDLZ) manufactures, markets, and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa, and Europe. On November 1, the firm posted earnings for the third quarter of 2022, reporting earnings per share of $0.74, beating market estimates by $0.05. The revenue over the period was $7.76 billion, up 8.1% year-on-year and beating estimates by $320 million. 

On October 14, investment advisory Morgan Stanley maintained an Overweight rating on Mondelez International, Inc. (NASDAQ:MDLZ) stock and lowered the price target to $63 from $70. Analyst Pamela Kaufman issued the ratings update. 

At the end of the second quarter of 2022, 48 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Mondelez International, Inc. (NASDAQ:MDLZ), compared to 48 in the previous quarter worth $1.6 billion.

3. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 49  

The Kroger Co. (NYSE:KR) operates as a retailer in the United States. The food and drug stores operated by the firm offer products such as natural foods, drugs, general merchandise, fresh seafood, organic produce, apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys. The firm recently bought rival Albertsons in a deal worth $25 billion. 

On October 17, investment advisory Jefferies maintained a Hold rating on The Kroger Co. (NYSE:KR) stock and lowered the price target to $45 from $52. Analyst Rob Dickerson issued the ratings update. 

2. Walmart Inc. (NYSE:WMT)

Number of Hedge Fund Holders: 67   

Walmart Inc. (NYSE:WMT) engages in the operation of retail, wholesale, and other units worldwide. On September 26, Walmart launched its two immersive experiences in the Metaverse platform, Roblox, named Walmart’s Universe of Play and Walmart Land. Walmart Land will bring fashion, style, and entertainment items to 52 million daily users on Roblox.

On October 18, Jefferies analyst Corey Tarlowe maintained a Buy rating on Walmart Inc. (NYSE:WMT) stock and raised the price target to $165 from $161, noting that the company seems well positioned in the present macro environment. 

Among the hedge funds being tracked by Insider Monkey, Fort Lauderdale Florida-based investment firm GQG Partners is a leading shareholder in Walmart Inc. (NYSE:WMT), with 9.8 million shares worth more than $1.2 billion. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Walmart Inc. (NYSE:WMT) was one of them. Here is what the fund said:

“The pandemic has created challenges for businesses large and small; one major challenge for large essential retailers such as ClearBridge holdings Home Depot, Walmart Inc. (NYSE:WMT) and Costco has been ensuring adequate staffing to meet demand under trying conditions. All three instituted enhanced pay practices during the pandemic, with raises, unplanned bonuses and other benefits helping compensate employees for their efforts in a difficult environment. In September 2020 Walmart raised wages for 165,000 employees, including a number of entry positions to $15 an hour. It followed this in February with a raise for 425,000 workers that moved its average pay above $15 an hour.”

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 252    

Amazon.com, Inc. (NASDAQ:AMZN) engages in the retail sale of consumer products and subscriptions in North America and internationally. On October 19, Amazon stated that it is proceeding into home insurance by launching Amazon Insurance Store in the United Kingdom by partnering up with local insurers Ageas UK, LV General Insurance, and Co-op. The firm said it would add more insurers to the store in the coming years. 

On October 17, Cowen analyst John Blackledge maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) stock and lowered the price target to $195 from $214, noting that the company was exiting its historical $78 billion fulfilment and logistics investment spend in 2020-2021, a catalyst coupled with accelerating top-line growth.

At the end of the second quarter of 2022, 252 hedge funds in the database of Insider Monkey held stakes worth $30 billion in Amazon.com, Inc. (NASDAQ:AMZN), compared to 271 the preceding quarter worth $48 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Amazon.com, Inc. (NASDAQ:AMZN) was one of them. Here is what the fund said:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth (…read more)

You can also take a peek at 10 Best Bargain Stocks To Buy Right Now and 10 Best Infrastructure Stocks To Buy Now.

Follow Insider Monkey on Twitter

Suggested Articles:

• 11 Best Mineral Stocks To Buy Now
• 10 Best November Dividend Stocks
• 11 Safe Stocks To Buy According To Hedge Funds

Disclosure. None. 11 Best Future Food Stocks to Buy Now is originally published on Insider Monkey.