In this article, we will discuss: 12 Best Food Stocks to Buy in 2026.
New dietary standards released by the Health and Human Services and Agriculture departments in the United States sparked mixed reactions from the restaurant industry. Some operators welcomed the concentration on healthier food, as reported by CNBC on January 8, 2026. The five-year guidelines call for consuming more protein and full-fat dairy while sticking to reduced processed meals and sugary drinks. While predominantly targeted at eating at home, the guideline states, “when dining out, choose nutrient-dense options.”
According to CNBC, one restaurant lobbying executive who participated in White House meetings stated that the final guidance could have been substantially worse for the industry. However, the executive warned that it may still drive Americans to eat at home instead of dining out. Nonetheless, the change was welcomed by certain fast-casual chains. Sweetgreen, one of the fast casual restaurant chains, expressed excitement about the new Food Pyramid’s goal to promote whole, unprocessed, and real foods.
With that said, here are the 12 Best Food Stocks to Buy in 2026.
Methodology:
We sifted through the ETFs and online rankings to form an initial list of the 20 Best Food Stocks to Buy in 2026. From the resultant dataset, we chose the 12 Best Food Stocks with the highest number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. We also considered the analysts’ upside potential of over 20% as of January 8. Finally, we ranked these stocks in ascending order based on hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Nomad Foods Limited (NYSE:NOMD)
Number of Hedge Fund Holders: 32
Analysts’ Upside Potential as of January 8: 37.10%
Nomad Foods Limited (NYSE:NOMD) is among the Best Food Stocks.
On January 8, 2026, TheFly reported that Mizuho trimmed Nomad Foods Limited (NYSE:NOMD)’s price goal from $17 to $15. The analysts maintained an Outperform rating on the stock. The change takes into account the prognosis for food producers in 2026. Healthy living growth is projected to exceed in 2026, as per analysts, but valuations have been constricted due to competition worries. Mizuho pointed out poor fundamentals and high levels of economic uncertainty, showing little chance of a broad value recovery.
Deutsche Bank reduced Nomad Foods Limited (NYSE:NOMD)’s price target from $18 to $16 on November 7, 2025, and retained a Buy rating.
The stock is down by 3.28% YTD, as of January 9, 2026.
The company anticipates delivering full-year earnings that are close to the lower end of its current forecast range. Organic sales for the entire year are projected to be close to the bottom of the company’s flat to -2% range. It is anticipated that the corporation’s full-year Adjusted EBITDA will be close to the lower end of its -3% to -7% year-over-year range, and its Adjusted EPS will be near the lower end of its €1.64 to €1.76 range.
Nomad Foods Limited (NYSE:NOMD) is a packaged food company that manufactures and distributes branded frozen foods in Western Europe.
11. Shake Shack Inc. (NYSE:SHAK)
Number of Hedge Fund Holders: 33
Analysts’ Upside Potential as of January 8: 20.15%
Shake Shack Inc. (NYSE:SHAK) is among the Best Food Stocks.
The Fly reported on January 7, 2026, that Barclays kept its Overweight rating on Shake Shack Inc. (NYSE:SHAK) and lowered the price goal to $110 from $115. The change reflects outlooks for the restaurant industry in 2026, where sales difficulties are still present. Barclays is optimistic about foodservice distribution and anticipates that quick service will reclaim market share from fast casual and casual dining.
Deutsche Bank raised Shake Shack Inc. (NYSE:SHAK) from Hold to Buy on January 6, 2026, with a price objective of $105 instead of $115. Early in 2026, the company outlined a solid growth outlook and pointed to a promising catalyst route. The restaurant setup for 2026 is favorable, signaling the possibility of a sector rebound, and shares are trading at near-trough valuation levels, according to analysts.
According to the company’s latest earnings report, same-store sales jumped by 4.9% YoY in Q3 2025, partly due to a 1.3% YoY boost in traffic.
The stock is up by 10.47% YTD, as of January 9, 2026.
Shake Shack Inc. (NYSE:SHAK) is a roadside burger company.
10. Pilgrim’s Pride Corporation (NASDAQ:PPC)
Number of Hedge Fund Holders: 37
Analysts’ Upside Potential as of January 8: 23.32%
Pilgrim’s Pride Corporation (NASDAQ:PPC) is among the Best Food Stocks.
Grupo Santander’s analyst, Guilherme Palhare,s raised Pilgrim’s Pride Corporation (NASDAQ:PPC) from Neutral to Outperform with a $56 price objective, as reported by TheFly on December 11, 2025.
On December 9, 2025, Barclays maintained its Equal Weight rating. The firm is reducing its price objective for Pilgrim’s Pride Corporation (NASDAQ:PPC) from $49 to $45. Agriculture markets are anticipated to experience mixed outcomes in 2026, according to analyst Benjamin Theurer. Barclays maintains a neutral to positive stance on fertilizer, underlines that biofuel legislation would affect grain traders, and prefers seed over crude protein. Protein trends from 2025 are anticipated to continue in 2026.
The company reported $4.8 billion in net sales and $492.6 million in operating income with a margin of 10.4% in the third quarter of 2025. Demand remained high in both foodservice and retail. Prepared foods surged by more than 25% year over year. The corporation maintains about 1.0x net leverage, aims to invest $500 million in U.S. investments, and plans for expansion with key customers.
Pilgrim’s Pride Corporation (NASDAQ:PPC) is the second-largest poultry producer in the United States, as per Morningstar.
