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.
Our 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.
9. Wingstop Inc. (NASDAQ:WING)
Number of Hedge Fund Holders: 39
Analysts’ Upside Potential as of January 8: 28.83%
Wingstop Inc. (NASDAQ:WING) is among the Best Food Stocks.
On January 7, 2026, TheFly reported that Stifel had reduced its price objective for Wingstop Inc. (NASDAQ:WING) from $300 to $290 while maintaining a buy rating. The analyst pointed out that a number of structural factors are coming together to create a challenging market for the restaurant business in 2026. Targets were changed in accordance with the firm’s industry outlook note.
Barclays reaffirmed its Overweight rating on Wingstop Inc. (NASDAQ:WING) and increased its price goal to $335 from $295 on the same day. The firm updated restaurant group projections as part of its 2026 forecast. The analyst pointed out that the industry continues to have sales difficulties and anticipated that quick-service restaurants would reclaim market share from fast casual and traditional eateries.
The company’s shares rose by 18% right after its last quarter’s results exceeded expectations in November, driven by reduced expenses and a faster rate of store openings, as per Bloomberg.
Wingstop Inc. (NASDAQ:WING) is a restaurant operator that specializes in fries, chicken tenders, bone-in and boneless wings, and chicken sandwiches.
8. Albertsons Companies, Inc. (NYSE:ACI)
Number of Hedge Fund Holders: 40
Analysts’ Upside Potential as of January 8: 38.41%
Albertsons Companies, Inc. (NYSE:ACI) is among the Best Food Stocks.
TheFly reported on January 8, 2026, that BofA dropped its price goal for Albertsons Companies, Inc. (NYSE:ACI) to $20 from $22 and maintained a Neutral rating, noting an updated fiscal 2026 outlook. The firm revised its Fiscal Year 2026 adjusted EPS estimate to $2.12, in line with the firm’s forecast range of $2.08-$2.16. Growth in pharmaceutical and digital channels contributed to Q3 sales and earnings, as per the firm.
On the same day, Telsey Advisory reaffirmed its Outperform rating but reduced its price objective for Albertsons Companies, Inc. (NYSE:ACI) from $24 to $22. According to the analyst, Q3 earnings were higher than anticipated, primarily due to solid growth in digital and pharmacy as well as a sequential improvement in core grocery units. Boosting digital engagement, developing the media collective, improving consumer value, updating capabilities, and increasing productivity were all important measures that improved performance.
Albertsons Companies, Inc. (NYSE:ACI) is one of the largest supermarket operators in the United States.
7. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 48
Analysts’ Upside Potential as of January 8: 21.96%
General Mills, Inc. (NYSE:GIS) is among the Best Food Stocks.
On December 18, 2025, TheFly reported that Deutsche Bank boosted its price objective for General Mills, Inc. (NYSE:GIS) from $50 to $51 while keeping a Hold rating. The firm revised its model in response to the company’s fiscal second-quarter earnings announcement.
Separately, Reuters reported that General Mills, Inc. (NYSE:GIS)’ second-quarter earnings on December 17, 2025, surpassed analyst estimates. Customers continued to eat at home instead of dining out, which supported consumer interest in breakfast cereals and pantry basics, and the company exceeded sales and profit projections. For the quarter that concluded on November 23, net sales fell 7% to $4.86 billion, surpassing analysts’ projections of $4.78 billion. The $1.10 per share adjusted results exceeded the $1.03 forecast. The firm confirmed its yearly forecast, predicting a 10% to 15% drop in profit and organic net sales ranging from a 1% gain to a 1% drop.
Jeff Harmening, the CEO of General Mills, Inc. (NYSE:GIS), noted better momentum in the first half of the fiscal year. However, he defined the quarter as a turbulent operating environment.
General Mills, Inc. (NYSE:GIS) is a multinational food packaging corporation.
6. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 50
Analysts’ Upside Potential as of January 8: 23.76%
Mondelez International, Inc. (NASDAQ:MDLZ) is among the Best Food Stocks.
On January 8, 2026, Mizuho reduced its price target for Mondelez International, Inc. (NASDAQ:MDLZ) from $70 to $67 and retained an Outperform rating, as reported by TheFly. The modification was included in the company’s 2026 forecast for the food manufacturing industry. As noted by Mizuho, fierce competition has squeezed valuations, but healthy living growth is predicted to outperform in 2026. The firm also stated that there are few chances for a widespread valuation recovery due to poor fundamentals and high economic uncertainty.
Separately, on January 5, 2026, Wells Fargo analyst Chris Carey reduced the company’s price objective for Mondelez International, Inc. (NASDAQ:MDLZ) from $72 to $62. The analyst maintained an Overweight rating on the stock. Wells Fargo changed its price projections for 2026 as it gathered models from the Beverage, Food, Household, and Personal Care markets.
The stock is down by 0.06% YTD as of January 9, 2026.
Mondelez International, Inc. (NASDAQ:MDLZ is one of the major players in the global snack market.
5. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Number of Hedge Fund Holders: 52
Analysts’ Upside Potential as of January 8: 21.55%
Domino’s Pizza, Inc. (NASDAQ:DPZ) is among the Best Food Stocks.
On January 8, 2026, TheFly reported that Evercore ISI analyst David Palmer kept Domino’s Pizza, Inc. (NASDAQ:DPZ) at an Outperform rating and reduced the company’s price objective from $510 to $490. According to Evercore, 2025 was a challenging year for the fast food industry in the United States. In its 2026 forecast note for the restaurant business, the firm showed optimism regarding fiscal stimulus, stronger performance, and global expansion.
Stifel analyst Chris O’Cull reduced Domino’s Pizza, Inc. (NASDAQ:DPZ) price objective from $510 to $485 in a separate note dated January 7, 2026, while maintaining a Buy rating. As reported by Stifel, a number of structural factors are coming together in the restaurant business, which the firm anticipates will result in a difficult operating environment in 2026. Stifel’s deeper industry look-ahead study for the market included the price target adjustment.
The stock is down by 2.97% YTD as of January 9, 2026.
Domino’s Pizza, Inc. (NASDAQ:DPZ) is a restaurant company and franchiser with over 21,500 global outlets in over 90 international markets as of the end of the second quarter of 2025.
4. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Number of Hedge Fund Holders: 53
Analysts’ Upside Potential as of January 8: 58.01%
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is among the Best Food Stocks.
The Fly reported on January 8, 2026, that Krisztina Katai, a Deutsche Bank analyst, has started covering the Sprouts Farmers Market, Inc. (NASDAQ:SFM) with a Hold rating and a price target of $88. The resumption was part of Deutsche Bank’s overall restart of coverage of broadlines and food merchants. The firm forecasts that 2026 will be a mixed year for the industry, with food disinflation, less government assistance, and a continuing focus on value by consumers. Deutsche Bank also pointed out that defensive industries like food retail would encounter difficult circumstances. A significant boost that is anticipated in the first half of 2026 is one of the potential tailwinds that Deutsche Bank noted.
On December 31, 2025, Four Corners Property Trust reported that it had paid $8.6 million for a Sprouts Farmers Market, Inc. (NASDAQ:SFM) property. The property is situated in a prominent retail corridor in Tennessee and is operated by a company on a long-term net lease. The transaction’s pricing was set at a cap rate that was comparable to earlier Four Corners Property Trust transactions.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) provides a supermarket experience with an open layout that puts fresh produce at the center of the store.
3. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 54
Analysts’ Upside Potential as of January 8: 20.06%
Sysco Corporation (NYSE:SYY) is among the Best Food Stocks.
According to TheFly, on January 7, 2026, Citi reduced its price target for Sysco Corporation (NYSE:SYY) from $82 to $81. It kept a neutral rating on the stock. The revision was part of Citi’s overall 2026 projection upgrade for the food distributors category. Citi claimed that distributors have a stronger position than restaurants.
Meanwhile, Barclays confirmed its Overweight rating and increased its price objective for Sysco Corporation (NYSE:SYY) from $86 to $88 on the same day. The change was made in response to Barclays’ 2026 restaurant group outlook. The company stated that the industry is still experiencing sales difficulties. Barclays forecasts that fast-casual and casual dining styles will lose market share to quick-service restaurants. The firm stated that despite persistent industry challenges, it is still optimistic about foodservice distribution.
The stock is up by 1.11% YTD as of January 9, 2026.
The company reaffirms that it anticipates sales to increase by 3% to 5% in fiscal 2026 and that adjusted profit is projected to rise by 1% to 3% annually. Sales in the U.S. foodservice segment rose by 2.9% in the latest quarter, compared to 4.6% a year ago.
Sysco Corporation (NYSE:SYY) is the largest US foodservice distributor, accounting for 17% of the highly fragmented domestic market worth $370 billion, as per Morningstar.
2. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 55
Analysts’ Upside Potential as of January 8: 25.44%
The Kroger Co. (NYSE:KR) is among the Best Food Stocks.
The Fly reported on January 8, 2026, that Deutsche Bank has resumed coverage of The Kroger Co. (NYSE: KR), with a $75 price target and a Buy rating. The firm anticipates 2026 to be a mixed year and has restored coverage across food stores and broadlines. Food disinflation, less government handouts, and consumers’ persistent focus on value were all mentioned by Deutsche as important factors influencing the outlook. The firm identified tailwinds, such as the possibility of significant stimulus during the first half of 2026, even though defensive industries like food retail might face a difficult setup.
On the same day, Barclays trimmed its price objective for The Kroger Co. (NYSE:KR) from $75 to $68 and maintained its Equal Weight rating. As noted by Barclays, the food retail industry, hardlines, and broadlines are all expected to improve by 2026. The company anticipates a growth in the market for discretionary products and believes that expected consumer tax savings and interest rate reductions could provide a slight boost.
The Kroger Co. (NYSE:KR) is one of the major grocery retailers in the United States.
1. US Foods Holding Corp. (NYSE:USFD)
Number of Hedge Fund Holders: 57
Analysts’ Upside Potential as of January 8: 20.82%
US Foods Holding Corp. (NYSE:USFD) is among the Best Food Stocks.
On January 8, 2026, TheFly reported that the Defense Logistics Agency had awarded US Foods Holding Corp. (NYSE:USFD) a maximum $198.26 million firm-fixed-price contract with economic price adjustment. The indefinite-delivery, indefinite-quantity contract covers a full line of food and beverage products and was awarded as a sole-source purchase under 10 U.S. Code 3204 and FAR 6.302-1. The award has no option periods and is set up as a 465-day bridge contract. The ordering period closes on April 17, 2027, and the performance will take place in Virginia. The Army, Navy, Air Force, Marine Corps, and Coast Guard are among the military services that use them. The defense working capital funds for fiscal years 2026 through 2027 will provide funding. Defense Logistics Agency Troop Support is the contracted activity.
Separately, Citi analyst Karen Holthouse reduced US Foods Holding Corp. (NYSE:USFD)’s price objective from $99 to $90 on January 7, 2026, and retained a Buy rating. The modification reflects changes made to Citi’s 2026 prognosis for the food distributors group as a whole. Distributors are in a better position than the restaurant industry as a whole, according to Citi.
US Foods Holding Corp. (NYSE:USFD) is a food service distributor in the United States that supplies food and non-food items to government buildings, supermarkets, restaurants, healthcare facilities, and educational institutions.
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Disclosure: None. 12 Best Food Stocks to Buy in 2026 is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
