In this article, we will take a look at the 5 best vegan stocks to buy now. For a detailed analysis of the vegan market and trends, go directly to the 10 Best Vegan Stocks to Buy Now.
5. Nomad Foods Limited (NYSE: NOMD)
Number of Hedge Fund Holders: 28
European frozen food giant Nomad Foods Limited (NYSE: NOMD) lands the 5th spot in our list of the 10 best vegan stocks to buy now. The food company was founded in 2014 and is headquartered in Feltham, U.K. Nomad Foods offer Green Cuisine vegan food products under the Iglo brand. Green Cuisine’s product line includes burgers, falafel, veggie fingers, and chicken-free nuggets sold in over 25,000 supermarkets in Europe, including Sweden and Finland.
The company has a market cap of $5.2 billion. Shares of NOMD surged 41.5% over the past twelve months. The company’s revenue in 2020 came in at $3 billion, an 8.2% increase compared to $2.7 billion in 2019. In March 2021, Credit Suisse analysts have given Nomad an Outperform ranking. The target price was set at $ 32.
Investment firm FAM FUNDS mentioned that despite the global financial crisis, Nomad Foods Limited remains one of the most profitable frozen food firms in its Q4 2020 investor letter:
“The proceeds (from a sold equity) were primarily invested into a new idea — Nomad Foods (NOMD), a producer of branded frozen food products in Europe. Product categories include fish, vegetables, and meat substitutes. Management’s plan is to continually improve the brands they control while seeking opportunities to buy and upgrade similar companies. In the past, key members of senior management pursued this strategy at other businesses and created significant returns for shareholders. As COVID-19 rolled across Europe, Nomad became one of the few beneficiaries of the pandemic as consumers stopped visiting restaurants and increasingly ate at home.”
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4. Hormel Foods Corporation (NYSE: HRL)
Number of Hedge Fund Holders: 31
Hormel Foods Corporation (NYSE: HRL) ranks 4th on the list of best vegan stocks to buy now. In 2019, Minnesota-based pork giant Hormel Foods Corporation (NYSE: HRL) launched its vegan food products dubbed Happy Little Plants. Soy-based vegan ground beef with 20 grams of protein per serving is its flagship product. Now the vegan food brand has a wide variety of plant-based offerings, including soy-based pepperoni topping and pea-protein-based Italian-style pizza topping. Hormel Foods Corporation is also well-known for its SPAM and SKIPPY brands.
The company has a market cap of $25.5 billion and a revenue of $2.5 million in the first quarter of 2020. Shares of HRL increased 4.5% over the past twelve months.
There were 31 hedge funds that reported owning stakes in Hormel Foods Corporation (NYSE: HRL) at the end of the fourth quarter, up from 30 funds a quarter earlier. The total value of these stakes at the end of Q4 is $523 million.
3. Kellogg Company (NYSE: K)
Number of Hedge Fund Holders: 37
Michigan-based Cereal giant Kellogg Company (NYSE: K) ranks 3rd on the list of the 10 best vegan stocks to buy now. The company is world-famous for its breakfast cereal brands such as Corn Flakes and Froot Loops. But the company is also a rising vegan and vegetarian food producer with brands such as MorningStar Farms, Kashi, Incogmeato, and Gardenburger. The multinational food giant offers veggie breakfast sausage, bacon strips, vegan cheeseburgers, and veggie dogs. And recently, MorningStar Farms unveiled its new plant-based chicken tenders.
The company has a market cap of $21.9 billion. The stock has gained 11.5% in the last three months. Kellogg Company’s revenue in 2020 came in at 13.7 billion. In February 2021, Morgan Stanley analysts have given Kellogg an Equal Weight ranking. The target price was set at $ 60.
There were 37 hedge funds that reported owning stakes in Kellogg Company (NYSE: K) at the end of the fourth quarter, up from 35 funds a quarter earlier. The total value of these stakes at the end of Q4 is $567.3 million.
2. Tyson Foods, Inc. (NYSE: TSN)
Number of Hedge Fund Holders: 38
Tyson Foods, Inc. (NYSE: TSN) ranks 2nd in our list of the 10 best vegan stocks to buy now. In 2019, Arkansas-based Tyson Foods, Inc. unveiled its plant-based protein brand Raised and Rooted. Among its plant-based offerings are spicy chicken-free nuggets and tenders. Last year, Tyson Foods expanded its vegan food product offerings in Europe. Among Tyson Foods’ alternative plant-based brands are Ballpark and Jimmy Dean. Tyson Foods continues to invest in startup companies interested in alternative proteins through Tyson Ventures. Among the VC fund’s latest investments is cell-based meat producers Memphis Meats and Future Meat Technologies and mushroom-based meat producer Mycotechnology.
The company has a market cap of 29 billion and total sales of $10.5 billion in the first quarter of 2021. Shares of TSN climbed 30% over the past twelve months. On April 9, Stephens & Co. maintains an Overweight ranking for TSN, with a price target of $90.
There were 38 hedge funds that reported owning stakes in Tyson Foods, Inc. (NYSE: TSN) at the end of the fourth quarter, up from 36 funds a quarter earlier. The total value of these stakes at the end of Q4 is $867.5 million.
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1. Restaurant Brands International Inc. (NYSE: QSR)
Number of Hedge Fund Holders: 39
Topping the 10 best vegan stocks to buy now is Restaurant Brands International Inc. (NYSE: QSR). Although Restaurant Brands doesn’t manufacture vegan food or alternative meat products, the company operates Burger King, the first fast-food chain to offer a plant-based burgers menu. In 2019, Burger King was one of the first fast-food franchises to enter the vegan market, collaborating with Impossible Foods to introduce the Impossible Whopper, a vegan burger. Restaurant Brands International Inc.’s stock has gained 42% in the last year. The company also operates Tim Hortons and Popeyes brands.
The company has a market cap of $19.9 billion. Restaurant Brands International Inc.’s revenue in 2020 came in at $30.7 billion. The income of the Burger King segment in 2020 was $20 billion. Northcoast analysts gave restaurant Brands International a Neutral ranking in April 2021.
Investment management firm Pershing Square Holdings Ltd. highlighted Restaurant Brands International Inc. growth during the pandemic in its Q4 2020 investor letter:
“QSR’s franchised business model is a high-quality, capital-light, growing annuity that generates high-margin brand royalty fees from three leading brands: Burger King, Tim Hortons, and Popeyes. The company nimbly navigated difficult market conditions in 2020 by assisting franchisees while maintaining its long-term growth potential.
As the COVID-19 pandemic began, management undertook a series of steps to secure and strengthen the business. The company quickly bolstered safety procedures and shifted marketing spend to highlight the off-premise options available to customers while supporting its franchisees with fee/cap ex deferrals and liquidity programs. Throughout the year, the company accelerated its digital investments by expanding its delivery footprint, modernizing its drive-thru experience, increasing mobile ordering adoption, and improving its loyalty programs.
While the pandemic negatively impacted the company’s sales, comparable sales have already recovered or are well on their way to recovery. Burger King U.S. returned to growth in January; Tim Hortons improved to a high-single-digit decline in Canada during the fourth quarter, and Popeyes U.S. grew 16% in 2020. To accelerate the recovery at Tim Hortons in Canada, the company has committed additional funds to bolster its advertising and support continued enhancements to its Tim’s Rewards program.
We continue to believe each of Restaurant Brands’ concepts will emerge stronger from this crisis as their business models are competitively advantaged in a socially distant and more budget-conscious consumption environment. The company continues to invest in drive-thru, delivery, and digital. We believe QSR’s long-term unit growth opportunity is still intact, and we expect unit growth to return to its mid-single-digit growth rate this year. As investors begin to see the results of these efforts, and underlying sales trends at each of its brands continue to improve, QSR’s share price should more accurately reflect our view of its business fundamentals.”
You can also take a peek at the 20 Most Profitable Fast-Food Chains and 10 Cheap Oil Stocks Under $10.
