In this article, we will look at the 7 Best Future Food Stocks to Buy According to Analysts.
The food industry is a major contributor to the global economy, evolving over time to cater to dynamic consumer demands, technological advancements, and economic conditions. As per The Business Research Company, the global food and beverage sector in 2024 was valued at around $6.96 trillion, expected to reach $7.4 trillion by 2025. The expansion of the industry has been made possible due to increasing consumer spending, swift urbanization, and higher demand for convenient and healthy food options. On the other hand, companies face challenges in terms of inflationary pressures, supply chain constraints, and changing trade policies.
Today’s food industry is majorly influenced by the increasing demand for healthier and more sustainable food alternatives. The global healthy food market is expected to reach $897 billion by 2025 and grow at a CAGR of 9.7%, reaching $2.2 trillion by 2035, as per Future Market Insights. The shift in the food market is fueled by awareness around diet and its relation to chronic health conditions like obesity, diabetes, and heart disease. Consumers look for clean-label, minimally processed, and plant-based alternatives, which has driven the demand for organic, non-GMO, and fortified food.
Furthermore, the growth in the food-away-from-home (FAFH) sector is also unparalleled. According to the U.S. Department of Agriculture, spending at food service outlets breached pre-pandemic records in 2021 and hit the $2.6 trillion mark in 2023. To drive this growth, limited-service and full-service restaurants contributed around 69% of total FAFH expenditures. This growth emanates from the increasing demand for convenience-driven dining-out options and the growing market for digital ordering platforms. Considering the competition between limited-service and full-service restaurants, menus are evolving. This is made possible through quick-service restaurants adding more premium options and traditional restaurants focusing on convenience and delivery optimization.
However, inflation still remains a major concern for the industry. Grocery prices have risen 1.8%, year-on-year in December 2024, whereas costs for food-away-from-home increased by 3.6%. These surges were driven by increasing production costs and supply chain disruptions. Additionally, according to FAO, Food Price Index saw a monthly increase of 1.6% in February 2025, as food price inflation remains a major concern, driven mainly by increases in prices of sugar, dairy, and vegetable oil. To mitigate these concerns, companies are actively looking to adopt advanced supply chain technologies, price optimization strategies, and sustainability initiatives to control costs and protect margins.
Moreover, technological innovation is playing an important role in transforming the future of the food sector. Robotics and artificial intelligence (AI) are being used to increase production efficiency, optimize supply chains, and decrease food wastage.
Despite these concerns, the long-term prospects for the food industry remain strong. The sector continues to benefit from urbanization, increasing middle-class population, and changing consumer preferences. Accordingly, top food stocks provide an average annual return of 32.25%, posing them as an impressive option for investors. Companies that look to integrate innovation, move forward sustainably, and focus on health-conscious options, are positioned to grow in the future.
With this, let’s now look at the 7 Best Future Food Stocks to Buy According to Analysts, noting stocks with strong growth potential and analyst-backed upside.
An assembly line of automated machines packing a variety of plant-based foods and beverages.
Methodology
To come up with our list of the 7 Best Future Food Stocks to Buy According to Analysts, we first spotted 22 food-related companies with a market capitalization of more than $5 billion. These were then narrowed down to stocks with significant average analyst share price upside and an average rating of Buy or better.
Additionally, we look at the number of hedge funds which have invested in these companies, using Insider Monkey’s Q4 2024 hedge funds database. The list was finalized by placing the stocks in ascending order based on analysts’ upside potential.
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).
7. Restaurant Brands International Inc. (NYSE:QSR)
Potential Upside: 20.35%
Number of Hedge Funds Holders: 31
Restaurant Brands International Inc. (NYSE:QSR) is a global company with a presence in the fast-food industry through multiple popular brands, including Burger King, Tim Hortons, Firehouse Subs, and Popeyes.
For Q4 ended December 31, 2024, the company reported an increase of 2.3% in its comparable sales, a net restaurant growth of 3.4%, while system-wide sales saw a surge of 5.4%. This growth was driven by new offerings at their brands, including Whopper Wednesday in the U.S., the Thanksgiving Sub at Firehouse, and a collaboration with Michelin-starred chef for Popeyes in Spain. Including menu expansion, Restaurant Brands International Inc. (NYSE:QSR) focused on operational optimization through initiatives to improve order accuracy, drive-thru efficiency, and overall customer experience. These efforts helped increase the organic adjusted income by 9%, highlighting the strength of its business model.
Moreover, a key development for Restaurant Brands International Inc. (NYSE:QSR) was the $158 million acquisition of Burger King China in February 2025, making QSR the business’s sole owner. This move was made in an effort to revamp its operations in the region where the growth slowed due to geopolitical factors and lower average restaurant sales. To counter risks, the company is seeking a new local partner for capital and to propel future expansion.
On the other hand, other international markets such as France, Australia, and the UK have proven to be strong, collectively adding 10% to system-wide sales growth. Tim Hortons Canada also surpassed $1 billion in adjusted operating income for the first time, a major landmark. This was driven by 15 consecutive quarters of growth in terms of traffic and expansion in Western Canada.
While Burger King U.S. and Firehouse Subs faced strain, the latter, in particular, seeing weaker profitability because of lower category demand, franchisee profitability remained the company’s top priority. As the company is strategically placed for long-term growth, with a focus on unit expansion, menu innovation, and digital advancements, Restaurant Brands International Inc. (NYSE:QSR) is one of the top picks for the Best Future Food Stocks to Buy.
6. Ingredion Incorporated (NYSE:INGR)
Potential Upside: 22.44%
Number of Hedge Funds Holders: 36
Ingredion Incorporated (NYSE:INGR) is a key player in the ingredient solutions industry. The company supplies starches, sweeteners, and biomaterials for global food, beverage, and industrial markets.
Ingredion Incorporated (NYSE:INGR) reported an increase of 4% in organic net sales for the quarter ended December 31, 2024. This increase was fostered by strong demand in its Texture & Healthful Solutions segment. Due to enhanced demand for yogurt, beverages, and frozen foods, sales volumes increased for the second consecutive quarter. As consumers returned to their in-office routine and placed a stronger focus on convenience, specialty starches by Ingredion played an important part in enhancing food products’ texture and functionality.
However, Ingredion Incorporated (NYSE:INGR) observed lower demand from Latin America, especially from the beverage market in Mexico. This decrease led to a decline in net sales for the region. Despite this, the company deployed pricing strategies to mitigate varying corn costs and currency volatility. As a result of successful pricing, the company reported gross profit margins to be 24%, increased from 21.3% in 2023, where adjusted operating income increased by 5%.
A key development that came in 2025 was the company’s $50 million investment in its Cedar Rapids, Iowa facility in February. This investment went toward the modernization and expansion of its industrial starch production. With this, the company is enhancing its position in the sustainable packaging sector through production capabilities to benefit from the increasing demand for biodegradable and recyclable packaging. Moreover, Ingredion made moves to elevate cost efficiency through supply chain optimization, which includes the closure of three smaller facilities in the UK, Brazil, and Canada.
Thus, Ingredion Incorporated (NYSE:INGR) remains laser-focused on advancing its high-value ingredient solutions portfolio while keeping finances in check. With this, Ingredion remains a compelling pick among the Best Future Food Stocks to Buy.
5. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Potential Upside: 23.90%
Number of Hedge Funds Holders: 83
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the top companies in the fast-casual dining industry. The company focuses on fresh ingredients, digital expansion, and operation efficiency.
Chipotle reported a 15% annual sales growth, hitting the $11.3 billion mark for the year ended December 31, 2024. The company also reported a 7.4% improvement in comparable sales and above 5% transaction growth. Accounting for 35% of total revenue, digital sales generated $3.9 billion, and restaurant-level margins increased to 26.7%.
On the other hand, for Q4, Chipotle Mexican Grill, Inc. (NYSE:CMG) saw an increase of 13% in sales, up to $2.8 billion, driven by a 5.4% increase in comparable sales. Although the company observed some turbulence around the holiday season, it sustained positive transaction growth through operational improvements as well as strong brand engagement. Furthermore, Chipotle maintained its aggressive expansion strategy and opened 304 new locations in 2024, including 257 Chipotlanes, elevating its drive-thru and digital ordering capabilities.
Furthermore, the company is hyper-focused on improved restaurant efficiency through improvement in throughput and deployment of new kitchen equipment, adding to enhanced service times and order accuracy. In line with this, the company is expecting to streamline food preparation while upholding quality through the introduction of produce slicers at all its locations. Moreover, Chipotle Mexican Grill, Inc. (NYSE:CMG) introduced a limited-time menu offering, Chipotle Honey Chicken, after successful market testing.
Although the company did face cost pressures due to labor inflation and ingredient pricing, Chipotle Mexican Grill, Inc.’s (NYSE:CMG) focus on operational excellence, digital growth, and expansion of its restaurants positions it for long-term growth, putting in a strong position among the Best Future Food Stocks to Buy.
4. CAVA Group, Inc. (NYSE:CAVA)
Potential Upside: 48.69%
Number of Hedge Funds Holders: 47
CAVA Group, Inc. (NYSE:CAVA) continues to expand the footprint of Mediterranean cuisine as a dominant force in the fast-casual restaurant industry. Operating across the U.S., the company serves dips, spreads, and dressings through grocery stores as well.
CAVA reported a 36.8% increase in revenue, year-on-year, with same-restaurant sales growing 21.2% and a 15.6% increase in traffic for Q4 ended December 31, 2024. CAVA Group, Inc. (NYSE:CAVA) had its presence at 367 locations at year-end, emanating an 18.8% YoY expansion and also maintaining strong unit economics, with average unit volumes reaching $2.9 million in 2024, up from $2.6 million in 2023. Although food and labor costs rose moderately because of a nationwide rollout of steak and wage investments, the company posted an improvement in restaurant-level profit margins.
Furthermore, under its expansion strategy, CAVA Group, Inc. (NYSE:CAVA) entered the Midwest with a successful debut in Chicago and planned openings in Detroit and Indianapolis to further its presence in the region. The company’s upcoming expansion in Pittsburgh points to a deeper push into the Mid-Atlantic region. On a consolidated basis, the company is expecting to open 62 to 66 new locations in 2025, representing a growth of at least 17%, through a strong development pipeline.
Moreover, operational enhancements were important to the company’s strong performance. The company saw improved efficiency across locations through a revamped labor deployment model. Technology investments, like AI-driven kitchen monitoring and new kitchen display systems, have improved order accuracy and service speed. CAVA also observed increased engagement from its loyalty program, improving visit frequency and higher spending per customer.
With this, CAVA is well-equipped to capture long-term market share while improving profitability, as demand for Mediterranean cuisine increases. Conclusively, with the company’s capability to move forward with aggressive expansion, coupled with operational discipline and customer-related innovations, CAVA Group, Inc. (NYSE:CAVA) remains a top pick among the Best Future Food Stocks to Buy.
3. Lamb Weston Holdings, Inc. (NYSE:LW)
Potential Upside: 51.57%
Number of Hedge Funds Holders: 47
Lamb Weston Holdings, Inc. (NYSE:LW) is a key player in the global frozen potato market. It provides frozen potatoes, commercial ingredients, and appetizers, serving across the globe, including the U.S., Canada, and Mexico.
The company reported an 8% decrease in its net sales to $1.6 billion for the quarter ended November 24, 2024. This decrease was driven by lower global demand and soaring manufacturing costs. Due to lower restaurant traffic and pressure from competitors, volume decreased 6%. However, the company remains determined to foster long-term growth through cost-cutting initiatives and operational efficiency improvement.
Accordingly, Lamb Weston Holdings, Inc. (NYSE:LW) is implementing a restructuring plan to improve efficiency and bring production up to speed with current market conditions. The company is expected to generate around $55 million in pre-tax cost savings for fiscal 2025 through permanent facility closures, short-term production cuts, and a decrease in workforce. The company is also investing in supply chain optimization and is reducing manufacturing costs to enhance profitability.
Despite short-term concerns, Lamb Weston Holdings, Inc. (NYSE:LW) exhibited grit in several areas. The company reported $1.07 billion in sales for its North American segment, focusing on strategic pricing to recover volume. Lamb Weston also continues to increase its global presence, with expansions in China, the Netherlands, and Argentina, fostering sustained growth.
Lamb Weston reevaluated its forecast for the full-year fiscal 2025 to reflect changing operating dynamics, lowering forecasted net sales to a range of $6.35 billion to $6.45 billion. It is expected that diluted EPS will be between $3.05 and $3.20. These changes mirror short-term challenges; however, the company is poised for long-term growth with its planned expansions.
Thus, Lamb Weston Holdings, Inc. (NYSE:LW) remains a formidable choice among the Best Future Food Stocks to Buy.
2. Wingstop Inc. (NASDAQ:WING)
Potential Upside: 56.26%
Number of Hedge Funds Holders: 36
Wingstop Inc. (NASDAQ:WING) is one of the top companies in the fast-casual dining industry, making it a top choice among the Best 7 Food Growth Stocks to Buy. It serves various types of wings, along with tenders, chicken sandwiches, and fries.
The company reported record financials for fiscal 2024, making it its 21st consecutive year of same-store sales growth. Driven majorly by transaction growth, domestic same-store sales increased by 19.9%, while system-wide sales increased 36.8% to $4.8 billion. Furthermore, it recorded an adjusted EBITDA of $212 million, an increase of 44.8%. Wingstop Inc. (NASDAQ:WING) added a record 349 restaurant locations to its portfolio in 2024, demonstrating strong demand among franchisees and its aim to achieve over 10,000 locations.
For Q4, the company reported a 10.1% increase in same-store sales, and digital sales reached 70% as it continued its strong momentum. The company’s proprietary tech stack, My Wingstop, was important in driving engagement, increasing its digital database to over 50 million customers. Moreover, Wingstop Inc. (NASDAQ:WING) observed improved brand visibility, increasing reach among young consumers, driven through its strategic partnerships with the NBA, NFL, and WWE.
Additionally, the company continues to prioritize operational improvements, such as the roll-out of an AI-powered kitchen system to improve efficiency, decrease wait time, and increase demand. Franchisees continue to report record cash flows, with average unit volumes surpassing the $2.1 million mark. Its development pipelines remain strong, with around 2,000 restaurants under development agreements. Thus, the company has projected unit growth to be between 14% and 15%, furthering its strategy for long-term growth.
Wingstop Inc. (NASDAQ:WING) is also looking to expand its menu to increase its customer base, including the recent launch of crispy chicken tenders, hand-sauced in its signature flavors, which was met with strong demand. Accordingly, the company gave away one million tenders in an effort to market the new product and to drive engagement.
Conclusively, Wingstop Inc. (NASDAQ:WING) remains set for long-term growth due to its strong financial position, aggressive expansion strategy, and menu innovation, making it one of the Best future food stocks to buy.
1. Darling Ingredients Inc. (NYSE:DAR)
Potential Upside: 57.06%
Number of Hedge Funds Holders: 40
Darling Ingredients Inc. (NYSE:DAR) is a global company operating in the bio-nutrient solutions and the renewable energy sector. Its operations span across three segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.
The company reported net sales of $1.4 billion for Q4 ended December 28, 2024, while net income surged to $101.9 million, or $0.63 per diluted share, up from $84.5 million in the previous year. However, operating income declined, down to $122.4 million, mainly due to decreased fat prices. The net sales for the full year were $5.7 billion, while net income stood at $278.9 million. Accordingly, Darling Ingredients Inc. (NYSE:DAR) was able to repay a debt of $353 million to increase its financial stability.
Moreover, the Diamond Green Diesel joint venture’s strong performance was one of the main takeaways for 2024, generating $179.8 million in cash dividends for Darling Ingredients for the year. The company also successfully launched the world’s largest sustainable aviation fuel unit, enhancing its position in the renewable energy sector. Furthermore, Darling Ingredients Inc. (NYSE:DAR) has identified opportunities from the 45Z clean fuel production tax credit, which is expected to provide stability for the monetization of renewable fuel incentives.
Darling Ingredients Inc. (NYSE:DAR) was also able to improve margins across its business segments, with its feed ingredients segments’ gross margin increasing from 21.5% in Q3 to 22.6% in Q4. This improvement was made possible due to stabilized rendering volumes and enhanced waste fat recovery. On the other hand, the food ingredients segment also saw betterment in terms of gross margins, which rose from 23.9% to 25.7%. This was supplemented by higher sales and increasing demand for collagen-based products such as Nextiva.
Looking ahead, Darling Ingredients Inc. (NYSE:DAR) partnered with GreenGasUSA to launch its first project into running for renewable natural gas at its Dublin, GA, facility. This initiative looks to convert biogas from wastewater streams into pipeline-quality RNG, resulting in a reduction in emissions while introducing an additional income stream. Thus, the company is committed to expanding similar projects to reinforce its purpose of sustainable growth, making it to our list of the Best Future Food Stocks to Buy.
Overall, Darling Ingredients Inc. (NYSE:DAR) ranks first on our list of the 7 Best Future Food Stocks to Buy According to Analysts. While we acknowledge the potential of DAR, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DAR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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