10 High Growth Food Stocks to Buy

6. Starbucks Corporation (NASDAQ:SBUX)

Number of Hedge Fund Holders: 70

5-year Revenue CAGR: 11.37%

Starbucks Corporation (NASDAQ:SBUX) continues to expand its presence worldwide and drive long-term growth through its strategic initiatives. The company is a leading specialty coffee roaster, marketer, and retailer, with a diverse brand portfolio that includes Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, and Starbucks Reserve.

Starbucks Corporation (NASDAQ:SBUX) announced its “Back to Starbucks” initiative during its most recent earnings call, with the goal of revitalizing its reputation as a premier coffeehouse. For the quarter ended December 29, 2024, the company reported $9.4 billion in total revenue, while global comparable store sales went down by 4%. This decline in same-store sales was primarily due to lower foot traffic, particularly in China, where an uncertain macroeconomic climate and increased competition hampered performance.

To address these issues, Starbucks Corporation (NASDAQ:SBUX) is aggressively optimizing its store portfolio and streamlining operations. Additionally, the company is simplifying its menu and refining its pricing strategies. Starbucks has eliminated the extra charge for non-dairy milk customizations in an effort to increase customer satisfaction. Furthermore, the brand is attempting to reintroduce itself through broader marketing campaigns rather than relying solely on discount-based promotions.

Furthermore, Starbucks Corporation (NASDAQ:SBUX) is expanding significantly in the Middle East, with plans to open 500 new locations over the next five years. However, geopolitical tensions in the region, particularly the war in Gaza, have had an impact on sales, with boycotts resulting in revenue decline. In China, the company is looking into strategic partnerships to help it sustain long-term growth in an increasingly competitive consumer market.

Despite these short-term challenges, Starbucks Corporation (NASDAQ:SBUX) remains resilient, with 70 hedge funds holding stakes in the company, as of Q4 2024, indicating high investor confidence. Moreover, Starbucks’ stock price has risen 21.38% in the last six months, partially supported by investors’ confidence in the company’s turnaround strategy. Thus, it gets a place in our list of the 10 High Growth Food Stocks to Buy.