7 Most Profitable Food Stocks To Invest In

5. Archer-Daniels-Midland Company (NYSE:ADM)

TTM Net Income: $1.79 Billion

5-Year Net Income CAGR: 8.60%

Number of Hedge Fund Holders: 34

Archer-Daniels-Midland Company (NYSE:ADM) is a major American company that specializes in food processing and trading agricultural commodities. It manufactures and distributes a wide range of ingredients used in foods, beverages, supplements, and animal feed. Archer-Daniels-Midland Company (NYSE:ADM) plays a crucial role in the global food and agricultural supply chain by connecting farmers and crops with consumers and markets around the world.

The company is currently facing challenges in its grain business. In the third quarter of 2024, which ended on September 30, Archer-Daniels-Midland Company (NYSE:ADM) reported earnings before income taxes of $108 million, reflecting a significant decline of 90% compared to the same quarter in the previous year. This drop was largely due to falling prices for key crops like corn and soybeans, which have reached near four-year lows. Additionally, the company recorded a non-cash impairment charge of $461 million related to its investment in Wilmar.

Despite this less-than-ideal performance in Q3 2024, the company remains a strong contender in the market. Archer-Daniels-Midland Company’s (NYSE:ADM) Board of Directors declared a cash dividend of 50 cents per share on November 8, 2024, marking the company’s 372nd consecutive quarterly payment. This impressive record of over 93 years of uninterrupted dividends demonstrates ADM’s commitment to returning value to its shareholders.

To navigate current market conditions, Archer-Daniels-Midland Company (NYSE:ADM) is focusing on enhancing productivity and operational efficiency. In Q2 2024, the company advanced numerous projects aimed at achieving $500 million in cost reductions over the next two years. These strategic efforts are expected to yield significant savings by the end of 2024.

According to Insider Monkey’s database, 34 hedge funds held stakes in ADM in the third quarter of 2024. This brings Archer-Daniels-Midland Company (NYSE:ADM) to the 5th spot on our list of the most profitable food stocks to invest in.