In this article, we will be taking a look at the 10 best food stocks to buy according to billionaires.
A significant contributor to the global economy, the food business has changed over time to meet shifting consumer needs, technological breakthroughs, and market conditions. The worldwide food and beverage industry was estimated to be worth $6.96 trillion in 2024 and is projected to grow to $7.4 trillion by 2025, according to The Business Research Company. Rapid urbanization, rising consumer spending, and a greater need for quick and healthful food options have all contributed to the industry’s growth. On the other side, businesses must contend with shifting trade regulations, supply chain limitations, and inflationary pressures.
Transformative Trends Shaping the Future of the Food Industry
The growing desire for more sustainable and healthful food options has a significant impact on the food sector today. According to Future Market Insights, the global market for healthy foods is anticipated to reach $897 billion by 2025 and expand at a compound annual growth rate (CAGR) of 9.7% to reach $2.2 trillion by 2035. Awareness of diet and its connection to long-term health issues, including obesity, diabetes, and heart disease, is driving change in the food market. Organic, non-GMO, and fortified food is in high demand as consumers seek clean-label, minimally processed, and plant-based substitutes.
Additionally, the food-away-from-home (FAFH) industry is expanding at an unprecedented rate. Spending at food service establishments broke pre-pandemic records in 2021 and reached $2.6 trillion in 2023, according to the U.S. Department of Agriculture. Full-service and limited-service eateries accounted for about 69% of all FAFH spending to fuel this expansion. The burgeoning market for digital ordering platforms and the rising demand for convenient dining-out options are the main drivers of this expansion. Menus are changing as a result of rivalry between full-service and limited-service eateries. This is made possible by traditional restaurants emphasizing convenience and delivery optimization, while quick-service restaurants are expanding their premium menus.
For the industry, inflation is still a big worry, though. In December 2024, grocery prices jumped 1.8% year over year, while the cost of eating out rose 3.6%. Supply chain interruptions and rising manufacturing costs were the main causes of these spikes. Furthermore, the Food Price Index increased by 1.6% month over month in February 2025, according to the FAO, as food price inflation continues to be a serious concern, mostly due to rising costs for sugar, dairy, and vegetable oil. Businesses are aggressively seeking to implement pricing optimization techniques, sustainability programs, and cutting-edge supply chain technologies to allay these worries and preserve profits.
Furthermore, technological innovation is significantly changing the food industry’s future. Artificial intelligence (AI) and robotics are being utilized to improve supply chains, boost industrial efficiency, and reduce food waste.
The food industry’s long-term prospects are still bright despite these worries. Urbanization, the growth of the middle class, and shifting customer preferences all continue to help the industry. As a result, top food stocks provide investors with an amazing opportunity and an average yearly return of 32.25%. Businesses that prioritize health-conscious options, integrate innovation, and advance sustainably will be well-positioned for future growth.
A worker preparing freshly-baked food in the back of a restaurant at a franchise location.
Our Methodology
For this article, we selected stocks from the First Trust Nasdaq Food & Beverage ETF and the Invesco Dynamic Food & Beverage ETF. These ETFs provided exposure to U.S. companies comprising the food and beverage sector. We then shortlisted these stocks based on the highest number of billionaire holdings tracked by the Insider Monkey Q4 2024 database. In cases where multiple stocks had the same number of billionaire holdings, we used the dollar value of these holdings as a tiebreaker. Finally, the stocks were ranked in ascending order.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 10 best food stocks to buy according to billionaires.
10. United Natural Foods, Inc. (NYSE:UNFI)
Total Number of Billionaires: 7
Dollar Value of Billionaire Holdings: $103,207,740
United Natural Foods, Inc. (NYSE:UNFI) is a leading wholesale distributor of natural, organic, and specialty food products in the U.S. and Canada. It supplies groceries, produce, perishables, supplements, and personal care items to various retailers, including supermarkets and independent grocers. The company earns revenue mainly through wholesale distribution, along with private-label sales, logistics, and merchandising support services.
United Natural Foods, Inc. (NYSE:UNFI) delivered strong results for Q2 FY2025, with revenue rising 4.6% year-over-year to $8.2 billion, surpassing expectations. Its sales of natural products surged 8%, while conventional product sales grew 2.1%. Adjusted EBITDA increased 13% to $145 million, marking six consecutive quarters of sequential improvement. Free cash flow rose by $77 million year-over-year to $193 million, and net leverage dropped to 3.7x—its lowest level since FY2023. As a result, the company’s management raised full-year guidance to $31.3–$31.7 billion in sales and $550–$580 million in adjusted EBITDA, placing it among the best food stocks to watch.
Investors are increasingly drawn to United Natural Foods, Inc. (NYSE:UNFI) due to its essential role in the grocery supply chain, particularly during periods of economic uncertainty. With consistent margin expansion, ongoing operational improvements, and clear progress in debt reduction—net leverage, the corporation continues to strengthen its financial position and long-term growth potential.
9. The Hershey Company (NYSE:HSY)
Total Number of Billionaires: 9
Dollar Value of Billionaire Holdings: $170,952,138
The Hershey Company (NYSE:HSY) is a leading American manufacturer known for its iconic chocolate and confectionery brands like Hershey’s, Reese’s, Kit Kat, and Kisses. It also offers non-chocolate snacks such as popcorn, pretzels, and protein bars.
The Hershey Company (NYSE:HSY) has been the subject of a lot of discussions lately, particularly due to the pressure on its stock price. However, the company’s strong pricing power, high operational margins, careful capital allocation, and dominant U.S. market share continue to give it a competitive edge, as seen by its return on invested capital. As one of the best food stocks, the company’s diversification plan, which includes its foray into the market for salty snacks, has further strengthened its position. Furthermore, Michele Buck’s leadership of the company’s succession planning ensures that the company’s culture will continue after her eventual retirement.
The Hershey Company (NYSE:HSY)’s consolidated net sales increased 8.7% year over year to $2,887.5 million in the fourth quarter of 2024. The 9.0% rise in organic, constant currency net sales was primarily driven by the expected inventory declines within North America Salty Snacks connected to the Q4 2023 ERP rollout, favorable net price realization of around 3 points, two additional shipping days, and inventory timing benefits.
8. General Mills, Inc. (NYSE:GIS)
Total Number of Billionaires: 12
Dollar Value of Billionaire Holdings: $261,499,735
General Mills, Inc. (NYSE:GIS) stands eighth on our list of the best food stocks. It is a leading American multinational company specializing in branded consumer foods, including cereals, snacks, baking goods, frozen meals, yogurt, pet food, and premium ice cream. The company stands out with its strong portfolio of iconic brands like Cheerios, Häagen-Dazs, Nature Valley, Pillsbury, Betty Crocker, and Blue Buffalo.
General Mills, Inc. (NYSE:GIS) reported mixed results for Q3 of the fiscal year 2025, with net sales declining 5% year-over-year to $4.8 billion, falling short of analysts’ expectations. This decline was mainly due to retailer inventory reductions and unfavorable foreign exchange rates. Their profitability also took a hit, with operating profit down 2% to $891 million, and adjusted operating profit in constant currency dropping 13% to $801 million. Diluted EPS fell 4% to $1.12, while adjusted EPS declined 15% to $1.00.
The corporation’s segment performance varied, with the North American retail segment seeing a 7% decline due to lower volumes and unfavorable price/mix effects. The North American pet segment experienced a significant 20% drop in operating profit, driven by inventory challenges in dry pet food. International sales decreased by 4%, mainly due to currency difficulties, while the food service segment showed resilience, growing by 1%.
In response to these challenges, General Mills, Inc. (NYSE:GIS) is increasing investments in marketing and innovation, focusing on brands like Pillsbury and Blue Buffalo for the fiscal 2026. The company is also implementing cost-efficiency measures through HMM savings and other cost-cutting strategies to fund growth initiatives. Looking ahead, the business has updated its guidance, expecting organic net sales to decline by 2% to 1.5% and adjusted operating profit and EPS to decrease by 8% to 7% in constant currency.
7. Mondelez International, Inc. (NASDAQ:MDLZ)
Total Number of Billionaires: 12
Dollar Value of Billionaire Holdings: $404,923,176
Mondelez International, Inc. (NASDAQ:MDLZ) is a global leader in the snack food industry, specializing in products like confectionery, biscuits, baked snacks, gum, and beverages. The company owns iconic brands such as Oreo, Cadbury Dairy Milk, Ritz, and Toblerone.
Mondelez International, Inc. (NASDAQ:MDLZ)’s 4.3% organic net revenue increase in the year ending December 31, 2024, was driven by the consistent consumer demand for the company’s sugar-based products. Despite rising input costs, the company successfully applied pricing tactics, resulting in a 5.1% increase in gross profit. With a 6.2% growth in revenue, emerging markets played a major role in this expansion.
Additionally, Mondelez International, Inc. (NASDAQ:MDLZ) showed its strong financial footing by returning $4.7 billion to shareholders through dividends and share buybacks. A $0.47 quarterly dividend per share, due on April 14, 2025, was just announced by the board. Thus, this outstanding result, which contributed to the company’s shares rising by nearly 11% YTD, strengthened investor confidence in Mondelez’s portfolio.
To increase its market reach, Mondelez International, Inc. (NASDAQ:MDLZ) has also looked into new products and strategic partnerships. One significant move that let the business reach a larger audience with its well-known brands, such as Ritz and Oreo, was its multi-year partnership with Inter Miami CF. To attract a larger audience, Mondelez has also used innovative pricing and packaging techniques. For Oreo, Ritz, and Chips Ahoy!, for instance, it has developed new stack packs that provide affordable serving sizes. The company has also moved to diversify its portfolio by purchasing a controlling stake in Evirth, particularly in China’s expanding market for frozen to chilled baked snacks.
6. Domino’s Pizza, Inc. (NASDAQ:DPZ)
Total Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $1,392,251,707
Domino’s Pizza, Inc. (NASDAQ:DPZ), a fast-food pizza restaurant, has a well-established food delivery system of its own. By not relying on outside delivery partners, the company can save money on fees and have complete control over the delivery process and customer experience, making it one of the best food stocks to take into account.
In the US, Domino’s Pizza, Inc. (NASDAQ:DPZ)’s market share has steadily increased, going from 13.5% in 2015 to 22.9% in 2024. There were over 1,750 new stores opened between 2015 and 2023. With the addition of 24 new sites in the US, the company expanded its system store count to 6,930 in fiscal Q3 2024. Additionally, there was a 5.1% growth in the business’s retail sales in the US. According to fiscal Q3 2024, its same-store sales increased by 3% for the fourth consecutive quarter. These positive results drove the company’s market share gains.
Domino’s Pizza, Inc. (NASDAQ:DPZ)’s strong internal delivery system provides a continuous competitive advantage. Furthermore, the company’s global operations have space to expand. To boost net store growth and create sales momentum in the global market, the company is implementing plans and strategies. For instance, it is focusing on aggressive promotional pricing to convey a constant value message to value-seeking clients, optimizing aggregator orders, and developing its company to include dine-in in addition to delivery.
5. McDonald’s Corporation (NYSE:MCD)
Total Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $830,620,361
McDonald’s Corporation (NYSE:MCD) is a fast food chain with over 40,000 locations in over 100 countries. The firm’s operations are separated into three segments: International Operated Markets, International Developmental Licensed Markets & Corporate, and the United States. The company also operates and franchises restaurants. Lattes, cappuccinos, mochas, blended ice frappés, smoothies, triple-thick shakes, and even seasonal limited-edition drinks are among the coffee alternatives available in its McCafé category.
Since McDonald’s Corporation (NYSE:MCD) has become a global household name, the corporation has a competitive advantage in the market. It has increased its yearly dividend per share for the last 48 years and has paid a dividend since 1976. The corporation is well-positioned to maintain this trend due to its size and market position.
John Ivankoe, a J.P. Morgan analyst, maintained a Buy rating on McDonald’s Corporation (NYSE:MCD) on March 20 and set a $300.00 price target. On March 17, Stephan Lingnau, an analyst with Erste Group, also raised the company’s rating from Hold to Buy, citing its “very high and stable operating margin that is well above that of its competitors.” In the upcoming quarters, the analyst anticipates that the company will have a steady performance and that its stock price will “continue to rise.”
4. Tyson Foods, Inc. (NYSE:TSN)
Total Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $349,702,882
Tyson Foods, Inc., (NYSE:TSN) is a food company that operates in the Beef, Chicken, Pork, and Prepared Foods segments. Tyson, Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Aidells, and other brands are part of its portfolio. Another year of perhaps positive growth is reflected in the company’s fiscal Q1 2025 results. Adjusted operating income, sales, and profits per share were among the major measures that saw year-over-year growth for the third consecutive quarter.
In fiscal Q1 2025, Tyson Foods, Inc., (NYSE:TSN)’s adjusted operating income increased by $248 million, which is a significant 60% increase. Additionally, adjusted earnings per share increased by a noteworthy 65%, and the adjusted operating income margin grew by 170 basis points from the previous year. The net leverage ratio of the company was 2.3 times at the end of the quarter, which is a significant improvement from 4.1 times at the end of 2023.
Overall, the company’s fiscal Q1 2025 figures indicate the highest quarterly performance in over two years, which is encouraging, and the company stands fourth among the other best food stocks on our list.
3. PepsiCo, Inc. (NASDAQ:PEP)
Total Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $2,120,308,323
PepsiCo, Inc. (NASDAQ:PEP) manufactures, markets, distributes, and sells beverages, food, and snacks. The business is divided into the following segments: Asia Pacific, Australia and New Zealand, and China Region (APAC); Latin America (LatAm); Europe, Africa, Middle East, and South Asia (AMESA); Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); and PepsiCo Beverages North America (PBNA).
PepsiCo, Inc. (NASDAQ:PEP) produced $12.5 billion in operating cash flow in the fiscal year 2024 and has a healthy cash position. Additionally, the business maintained a consistent revenue of $91.8 billion, which was somewhat higher than the previous year. In this fiscal year, it intends to pay out dividends to stockholders totaling about $7.6 billion.
Additionally, the company’s net income improved to $9.6 billion, while operating profit increased to $12.8 billion from $11.9 billion in the fiscal year 2023. PepsiCo, Inc. (NASDAQ:PEP) anticipates a mid-single-digit increase in core constant currency earnings per share (EPS) and low-single-digit growth in organic revenue for 2025. According to billionaires, it ranks third on our list of the best food stocks.
2. The Kroger Co. (NYSE:KR)
Total Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $4,457,191,128
The Kroger Co. (NYSE:KR) is a major U.S. grocery retailer with 2,750 stores under banners like Kroger and Fred Meyer. It offers groceries, pharmacy products, fuel, and private-label goods such as Simple Truth. The company earns revenue mainly through retail sales, with additional income from pharmacy services, fuel, e-commerce, and advertising partnerships.
The Kroger Co. (NYSE:KR)’s Q4 2024 earnings call, held on March 6, 2025, highlighted steady growth and strategic progress across key areas of its business. Its Identical sales without fuel rose by 2.4%, which reflected strong momentum in grocery, pharmacy, and digital sales. This performance was supported by the business’s customer-focused approach, which emphasizes fresh, high-quality products and personalized promotions.
The company’s gross margin improved by 54 basis points, which was driven by the sale of Kroger Specialty Pharmacy and reduced inventory shrink. At the same time, digital sales remained a strong contributor to overall performance, with continued investments in automation and technology aimed at improving profitability in this channel.
The Kroger Co. (NYSE:KR)’s alternative profit businesses also played a key role in boosting margins, with media revenue growing 17% year-over-year (excluding the extra week in 2023). The company’s strategy to expand into health and wellness and media continues to deliver high-margin gains, supporting overall earnings stability. Adjusted EPS stood at $1.14, flat compared to the previous year when excluding the 53rd week.
On the profitability front, the corporation’s improved gross margin and strong performance from its private-label “Our Brands” offset rising operating expenses. These expenses were influenced by incentive plans, wage investments, and the Specialty Pharmacy divestiture.
Looking ahead, a notable development is The Kroger Co. (NYSE:KR)’s new agreement with Express Scripts, which grants ESI customers access to medications and health services at KR pharmacies. Though not yet factored into guidance, this deal could strengthen the company’s position in the growing health and wellness segment.
1. The Kraft Heinz Company (NASDAQ:KHC)
Total Number of Billionaires: 15
Dollar Value of Billionaire Holdings: $10,606,160,943
The Kraft Heinz Company (NASDAQ:KHC) tops our list for being one of the best food stocks. It is a global leader in the food and beverage industry that was formed in 2015 through the merger of Kraft Foods and Heinz. The company manufactures a variety of goods, such as meat, dairy, sauces, drinks, and other commodities.
In Q4 2024, The Kraft Heinz Company (NASDAQ:KHC) reported a mixed bag of results, with increased profitability offsetting decreased revenue. Due mostly to unexpected tax benefits and fewer outstanding shares, the company posted an adjusted EPS of $0.84, up $0.06 from market estimates. However, due to a decline in organic sales, its Q4 revenue was reported at $6.58 billion, which was 5% lower year-over-year and marginally less than the $6.66 billion forecast. Stifel updated its forecast for The Kraft Heinz Company (NASDAQ:KHC) in light of these findings, lowering the price objective from $32 to $31 but maintaining a Hold rating.
According to the Insider Monkey database, 43 hedge funds owned stakes in The Kraft Heinz Company (NASDAQ:KHC) in Q4 2024, up from 39 in the previous quarter. The consolidated value of these stakes is nearly $11 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
Overall, KHC ranks first among the 10 best food stocks to buy according to billionaires. While we acknowledge the potential of food companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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