10 Best Food Stocks To Buy According to Hedge Funds

7. International Flavors & Fragrances Inc. (NYSE:IFF)

Number of Hedge Fund Holders: 52

International Flavors & Fragrances (NYSE:IFF) is a New York-based company that has established itself as a global leader in delivering innovative solutions for the food, health, beauty, and pharma industries. The company operates through four primary segments namely Nourish, Health & Biosciences, Scent, and Pharma Solutions.

International Flavors & Fragrances (NYSE:IFF) had a strong third quarter, with revenue surpassing $2.9 billion, reflecting a 9% increase on a comparable currency-neutral basis. The company experienced broad-based growth across its business units with significant volume improvements across all areas.

The company’s continued focus on productivity initiatives has also led to a 16% increase in operating EBITDA for the quarter. Moreover, leveraging the margin strength from the previous two quarters, International Flavors & Fragrances (NYSE:IFF) achieved another successful quarter of margin expansion. The EBITDA margin reached 19.4%, reflecting an improvement of 180 basis points compared to Q3 of 2023.

Due to its strong volume growth, the company has also raised its full-year 2024 guidance. It now expects sales to be between $11.1 billion and $11.3 billion, up from the previous range of $10.8 billion to $11.1 billion. Meanwhile, operating EBITDA is projected to be between $2.1 billion and $2.17 billion, an increase from the prior range of $1.9 billion to $2.1 billion. The company is also a strong dividend payer, becoming one of the best food stocks on our list.