5 Best Food Stocks to Buy for Q1 2025

The global food market is a multi-trillion-dollar industry and is expected to continue growing. This beginner friendly guide picks five of the best food stocks to buy right now.
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Updated on Jul 4, 2024
Reading time 7 minutes

The food industry includes grocery stores, manufacturers, and other companies selling non-alcoholic beverages. Many food-related stocks also fall into the consumer staples sector and are considered recession-proof. Use our handy guide to find the best stocks to buy in the food sector. 

What are the top food stocks to buy?

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Our experts have analysed the market and found the best food stocks to buy for 2025. You can find our selections in the table below, and if you want to buy any stock, just click the buttons. Or keep scrolling to learn more about each company.

#Stock symbolCompany nameLearn more
1ADMArcher-Daniels-MidlandLearn more >
2CMGChipotle Mexican GrillLearn more >
3KOCoca-ColaLearn more >
4MDLZMondelez InternationalLearn more >
5CAVACAVA GroupLearn more >
List selected by our team of analysts, updated February 2025.

1. Archer-Daniels-Midland (AMD)

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  • Market Cap: $30.2 billion
  • P/E ratio:10.9
  • Dividend yield: 3.26%
  • 2023 revenue: $93.9 billion
  • Stock price: $61.50

Archer-Daniels-Midland is one of the biggest food companies globally. It belongs in a small grou of four companies known as ABCD, which also includes Bunge, Cargill, and Dreyfus. 

ADM, like the other three, is in the business of cultivating, buying, moving, processing, and trading agricultural products like corn and soybeans. It operates globally and makes billions of dollars every year. 

ADM stock price has done well over the years as it jumped by over 40% in the past decade. It has done this well because of the growing demand for food items around the world.

Most recently, however, the company has come under pressure after declaring some accounting issues and an investigation by the DoJ. Still, I expect that the firm will do well once the investigation ends. Besides, demand is expected to remain strong in the coming years. 

Also, the company is a dividend aristocrat that has rewarded investors well by hiking its dividends for over 30 years.

2. Chipotle Mexican Grill (CMG)

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  • Market Cap: $87 billion
  • P/E ratio:57
  • Dividend yield: N/A
  • 2023 revenue: $9.87 billion
  • Stock price: $3,146

Chipotle Mexican Grill is another quality food stock to consider. It is a leading company that has revolutionized the restaurant industry in the United States. It did that by popularizing the trends in the Mexican restaurant sector.

Over the years, its revenue has jumped from over $5.5 billion in 2019 to over $9.8 billion in 2024. It has also become one of the most profitable names in the industry as its net income jumped from over $300 million to over $1.2 billion.

This growth was helped by its investments in food delivery and new store openings. Analysts expect that its growth will continue in the coming years. The average estimate is that its revenue will grow to $11.36 billion this year and $12.9 billion in 2025.

The key concern, however, is that Chipotle is highly overvalued since it was trading at a forward P/E ratio of 57, higher than the sector median of 17.9.

3. Coca-Cola (KO)

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  • Market Cap: $275 billion
  • P/E ratio: 22.6
  • Dividend yield: 3.04
  • 2023 revenue: $45.7 billion
  • Stock price: $63.70

Coca-Cola is a well-known company recognised globally and considered one of the most iconic brands in the world. It started as a small beverage company in Atlanta, Georgia, and has expanded to be an international brand with a presence in nearly every country. While Coca-Cola doesn’t focus on food, it still falls under the food and beverage sector. 

Berkshire Hathaway, owned by Warren Buffet, is a significant shareholder in Coca-Cola, with over 400 million shares in the company. Buffet, known as one of the world’s best investors, has stated that he has no plans to sell his Coca-Cola stock.

Coca-Cola is part of the Dividend Aristocrats Club, a list of companies that have consistently raised dividends for at least 25 years. In 2020, even during difficult times, Coca-Cola prioritised increasing its dividend. This makes it an attractive stock for those seeking stable and reliable dividends from the food sector.

4. Mondelez International (MDLZ)

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  • Market Cap: $90.9 billion
  • P/E ratio:19
  • Dividend yield: 2.5%
  • 2023 revenue: $36 billion
  • Stock price: $67.3

Mondelez is one of the biggest companies in the food industry, where it focuses on snacks. Some of its top products are the likes of Oreo, 7Days, Cadbury, and Bournvita among others.

Mondelez has been growing since it was spun off from Krafft Group in 2012. Its annual revenue has jumped from over $25 million in 2019 to over $36 billion in 2023. Expectations are that it will make over $38 billion in 2024.

The company has also become highly profitable even as the cocoa price has jumped to a record high. It made over $4.5 billion in 2023 and this trend could continue.

Mondelez has some well-known brands, a strong balance sheet, and the ability to hike prices when conditions allow. It is also fairly valued since it has a price-to-earnings ratio of 19, lower than the S&P 500 index’s 21.

5. CAVA Group (CAVA)

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  • Market Cap: $9.7 billion
  • P/E ratio:257
  • Dividend yield: N/A
  • 2023 revenue: $727 million
  • Stock price: $87.5

CAVA Group is another excellent food stock to buy. It is a Mediterranean restaurant company that is hoping to change the industry the way Chipotle did. 

Along the way, the company is achieving strong revenue growth. It generated over $728 million in 2023, higher than the $564 million it made a year earlier. Unlike other companies that grow unprofitably, CAVA has managed to make a small profit. 

This trend will likely continue in the coming years, with analysts expecting its revenue will be $900 million and $1.08 billion in the next two financial years. Analysts also believe that it has more upside.

Like Chipotle, however, the key concern is that the company is highly overvalued as it has a forward P/E ratio of 257. This means that the management must deliver strong revenue and profitability growth. 

Where to buy the best food stocks

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You can buy any of the stocks listed on this page using the brokerage platforms below. Selected by our team of experts, these platforms are a top choice for beginners and experienced investors. Click on any link below to get started in just a few minutes.

We found 4 online brokers for users based in

eToro review
4.6
eToro
Min. Deposit $100
Fees 1%
No. assets 50+
Demo account Yes

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Plus500 review
4.5
Plus500
Min. Deposit $100
Fees From 2%
No. assets 2800+
Demo account Yes

Plus500 review

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

Public.com review
4.4
Public
Min. Deposit $20
Fees 1-2%
No. assets 9000+
Demo account No

Public.com review

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What is a food stock?

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It’s the stock of a company that is involved in the food industry. This can include grocery stores, distributors, sellers, and agricultural businesses. Food stocks can be lucrative companies to invest in because food is a necessary commodity, essential for life and will always be in demand. 

Are food stocks a good investment?

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Yes, food stocks can be a good investment if you pick the right companies. Food is essential to life and will always be in demand. As the global population grows, the demand for food will only increase. This should help companies operating within the sector, although it is important to understand the type of business you’re investing in.

In recent years, there has been a slow shift towards healthier food and non-meat products, which you should consider when deciding. Businesses that rely heavily on snack type, or junk food may suffer if a healthier diet becomes more popular. That being said, many of the largest food companies are already diversifying their offerings to include more nutritious food. 

The food industry is essential and expected to grow and investing in it now could be a good idea if you’re looking for growth from your stock investments. Whatever you decide to do, it’s a good idea to keep up to date with the latest news and market analysis, which you can do on any of the links below.

Methodology: How we choose the best food stocks

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At Invezz, our mission is to empower our readers with the most accurate and reliable financial information. Our curated selection of the best stocks in specific industries is designed to provide investors with well-researched, expertly reviewed stock recommendations. Our team follows a rigorous process to ensure our readers receive high-quality, trustworthy stock selections.

  • Initial screening. Our team of experienced stock market analysts conducts an initial screening of stocks within the chosen industry. This involves analyzing a broad range of companies based on key financial metrics such as revenue growth, profitability, debt levels, and market capitalization.
  • Earnings reports and financial analysis. Analysts review the latest earnings reports of shortlisted companies. This includes a detailed assessment of financial statements, looking for consistent earnings growth, strong balance sheets, and positive cash flow trends. Special attention is given to year-over-year performance and quarterly results.
  • Sector analysis. A comprehensive sector analysis is conducted to understand the macroeconomic factors affecting the industry. This includes examining market trends, competitive landscape, regulatory changes, and technological advancements. Our analysts utilize industry reports, market research, and economic forecasts to gain a holistic view of the sector.
  • Analyst recommendations. We consider recommendations from reputable sources such as Barron’s and Zacks. These sources provide expert opinions and ratings on stocks, which serve as an additional layer of validation for our selections. Incorporating external analyst recommendations ensures that our curated stocks are backed by a consensus of expert views.
  • Internal review. After the initial selection by our analysts, the chosen stocks are reviewed by a sub-editor. The sub-editor ensures that the analysis is clear, concise, and adheres to Invezz’s editorial guidelines. This review process helps maintain the quality and readability of our content, making it accessible to a broad audience.
  • Quarterly updates. To ensure our stock recommendations remain relevant and up-to-date, we update the curated section quarterly. Each update cycle involves re-evaluating the stocks based on the latest financial reports, industry developments, and market conditions. This regular update process ensures that our recommendations reflect the most current information available.

Our approach combines expert analysis, comprehensive research, and regular updates to deliver reliable and insightful investment recommendations. Read more about our review process and editorial policy.


Sources & references

Crispus Nyaga

Crispus Nyaga

Market Analyst

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Crispus is a Financial Analyst for Invezz covering the stock, cryptocurrency and forex markets. He’s an experienced analyst with more than 8 years of industry experience. His analysis is featured on industry leaders including macrostreet.com,  SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, to name a few....