In this article, we take a look at the 9 Best Pizza Stocks to Buy Now.
The pizza market is experiencing steady growth. IMARC Group reported in their market analysis of global Pizza market types (Vegan and Non. Vegan) that the worldwide pizza market size reached a whopping $148.6 billion in the year 2023. Looking forward, the analysts expect the market to reach a value of $222.5 billion by 2032 showcasing a compound annual growth rate of 4.45 % during the fiscal periods of 2024 to 2032.
Pizza originated in Italy and is now popular all around the world owing to its versatile taste and texture. Many factors are involved in the growth of the industry, mainly the Westernized style of living, consumers’ preference towards online food delivery, and lastly, the introduction of relatively healthy varieties like vegan, low-calorie, and gluten-free pizzas.
According to technavio’s 2024 – 2028 forecast, the frozen pizza market is projected to increase by $5.96 billion with a CAGR of 4.96% between 2023 and 2028, the high demand for frozen pizza is driven by factors such as seasonal fluctuations, consumer convenience of long-term storage time and the expansion of retail stores.
According to research, in 2019 there were more than 2,45000 pizza restaurants in the world and around 77000 in the U.S. alone. Consumer spending studies suggest that from 2004 to 2019, consumers in the U.S. spent 10 billion dollars annually on pizza delivery. However, the industry experienced vast growth after the pandemic hit in 2019 resulting in increased spending on snacks ordered by using the mobile applications of fast food chains, this trend continued in 2021 when the pizza delivery peaked at $19.8 billion. Pizza was the most ordered food across the United States and the most favored fast food among all age groups in the first quarter of 2023.
In 2022, the total number of pizza restaurants reached more than 80,000 units, an increase of 7000 units compared to the last 8 years. In 2022, the number of smaller independent restaurants was 44.6 thousand compared to 35.5 thousand chain restaurants.
Nevertheless, that same year analysts witnessed a considerable margin in the sales of pizza chain restaurants compared to sales of independent restaurants. Pizza chain sales exceeded independent units by more than $7 billion, dominating the U.S. market in 2022. Major players included Domino’s Pizza, Inc. (NYSE: DPZ), and Pizza Hut of Yum! Brands, Inc. (NYSE: YUM), and Little Caesar Enterprises Inc.
In 2022, Domino’s Pizza, Inc. (NYSE: DPZ) secured first rank based on most pizza chain distribution by number and highest annual sales figure of $8.5 billion. The Pizza Hut of Yum! Brands, Inc. (NYSE: YUM) was placed on the second spot, with a sales report of over $5.2 billion.
Pizza Industry Trends Report 2024, in this study Pizza Today, surveyed 748 pizzeria owners from across the states, the findings are that online ordering is on the rise and 24.91% of respondents are investing to improve their online ordering technology. In addition, the pizzeria owners are investing 78.21% of their advertising budget on social media apps to derive more orders.
Moreover, 65% of the business owners were optimistic that their annual sales would grow in the next 12 months, whereas 44% estimated a sales growth of 5% in 2024.
A close up shot of a pizza being freshly made in a restaurant kitchen.
Our Methodology:
Though we compiled this list primarily with a focus on choosing pizza companies that make and deliver pizza, we also included some firms from which the pizza industry procures its raw materials and ingredients, for instance, cheese, flour, and toppings. We selected the following stocks that are popular among hedge funds, the list is compiled based on hedge fund sentiment towards each stock.
To draft this list, we have assessed Insider Monkey’s database of hedge fund sentiment of 920 elite hedge funds tracked at the end of the first quarter of 2024. We arranged the stocks in ascending order of the number of hedge fund holders in each firm.
9 Best Pizza Stocks to Buy Now
9. The Chefs’ Warehouse, Inc. (NASDAQ: CHEF)
Number of Hedge Fund Holders: 16
The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) is a company based in the U.S. and is focused on serving the specific requirements of chefs who own and operate independent restaurants, fine dining, restaurant chains, hotels, and country clubs.
The company is one of the top-tier distributors of the following specialty food varieties: cheese, unique oils, cooking oil, butter, chocolate, milk, flour, cut beef, and hormone-free poultry among many other food items.
The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) reported a quarterly revenue of $874.49 million in the Q1 of 2024. Moreover, the company had year-on-year revenue growth of 21.52% and reported FQ1 EPS of $0.05.
In their Q1 2024 Earnings Call Transcript May 1, 2024, Christopher Pappas discussed the following growth highlights:
‘‘A few highlights from the first quarter include 8.8% organic growth in net sales; especially — specialty sales were up 7% organically over the prior year, which was driven by unique customer growth of approximately 10.1%; placement growth of 12%; and specialty case growth of 4.6%. Organic pounds in center-of-the-plate were approximately 6.2% higher than the prior year’s first quarter. Gross profit margins increased approximately 37 basis points.”
According to Insider Monkey’s first quarter database 2024, 16 hedge funds held stakes in the company. Joe Milano’s GreenHouse Funds was the largest stakeholder with total shares valued at $93.47 million.
8. B&G Foods, Inc. (NYSE: BGS)
Number of Hedge Fund Holders: 21
B&G Foods, Inc. (NYSE: BGS) is an American food holdings company based in New Jersey. The company’s product portfolio is divided into three main segments: Shelf-stable canned food products, frozen foods, and household commodities.
The company’s product list includes pizza crusts, spices, seasonings, Mexican-style sauces, frozen and canned vegetables, peppers, and tomato-based products among other specialties.
In Q1 of 2024, the company reported net sales of $475.2 million, though had a downfall of 7.15% year-on-year, the decrease was primarily due to the selling of its Green Giant U.S. shelf-stable product line, a decline in net pricing, the impact of product mix and decrease in unit volume. EPS was $0.18 compared to $0.3 in the Q4 2023.
Gross profit was $108.9 million for the first quarter of 2024, or 22.9% of net sales in comparison to $114.2 million for the first quarter of 2023, or 22.3% of net sales. The improvements in gross profit as a percentage of net sales and adjusted gross profit as a percentage of net sales were driven by the moderation of input cost inflation, lower transportation and warehousing costs, and lower depreciation expense.
Moreover, net interest expense dropped by $1.6 million, or 4.1% from $39.4 million in the first quarter of 2023 to $37.8 million in the first quarter of 2024. The decline was mainly attributed to lower average outstanding long-term debt and accelerated amortization of deferred debt financing costs from long-term debt prepayments in the first quarter of 2023.
The average analyst rating for B&G foods stock from 4 stock analysts is “hold”. On May 16, 2024, Micheal Lavery, an analyst from Piper Sandler firm changed the rating on the stock from ‘Sell’ to ‘Hold’, while maintaining a price target of $9. He noted that after a slide in the share price, the stock reflects better the firm’s downside risks.
Piper Sandler raised the firm’s price target on B&G Foods to $9 from $8 and kept an Underweight rating on the shares. The firm notes the company reported slightly better-than-expected Q4 results, beating Piper’s estimates on revenues and adjusted EBITDA.
According to Insider Monkey’s Q1 2024 database, 21 hedge funds were invested in the company, and Balyasny Asset Management fund had the highest share value of $11.9 million invested in B&G Foods, Inc. (NYSE: BGS).
7. Papa John’s Pizza, Inc. (NASDAQ: PZZA)
Number of Hedge Fund Holders: 22
Papa John’s Pizza, Inc. (NASDAQ: PZZA) is the fourth largest pizza delivery company in terms of the number of restaurant chains and popularity. The company operates delivery and dine-in restaurants under the trademark of Papa John’s.
The pizza giant, in its income statement of Q1 2024, reported a revenue of $513.92 million, down 2% year over year. It was largely driven by lower revenues in North America’s commissary segment due to commodity price declines.
Despite these challenges, the company managed to launch 8 new units, on track to achieve North America’s net unit growth of more than 20% relative to 2023 net unit openings. A net increase in revenues of about $10 million somewhat offset these declines, which could be attributed to the stores that made up the UK franchisee acquisitions.
Net income in Q1 2024 was $14.64 million down 43.8% QoQ, attributed to the commodity price decline discussed above. Moreover, Papa John’s reported an EPS of $0.67 in Q1 2024, beating the estimated $0.57.
According to Insider Monkey’s database of the first quarter of 2024, 22 hedge funds were bullish on Papa John’s Pizza, Inc. (NASDAQ: PZZA) and Citadel Investment Group managed by Ken Griffin had the highest stake valued at $154.39 million, highlighting a quarter over quarter growth of 87%.
6. Bunge Global SA, Inc. (NYSE: BG)
Number of Hedge Fund Holders: 30
Bunge Global SA, Inc. (NYSE: BG) is an agribusiness and food company that operates through four main segments; Milling, Agribusiness, refined and specialty oils, sugar, and bioenergy. The firm provides raw materials such as flour to process pizza, it also sells bulk oils and fats to restaurant chains.
The company showed a net income of $244 million in Q1, 2024 compared to Q4, 2023 net income of $616 million and an adjusted net income per share of $3.07 compared to $3.26 in the previous quarter. The net income was reduced due to the weaker sales performance of two core segments; the Agribusiness and refined and specialty oils segment.
The 9 analysts with 12-month price forecasts for Bunge stock have an average price target of $121, an upside of 12.44%.
Bunge’s strategic divestment and value metrics are among the criteria that have led Adam Samuelson, a Goldman Sachs stock analyst, to give a “Buy” rating. The successful monetization of non-core assets by Bunge is demonstrated by the sale of its remaining 50% share to BP for a large amount in the joint venture BP Bunge Bioenergia.
Samuelson views this action as a strategic win, citing Bunge’s ability to concentrate on its primary business successfully and the possibility of a more efficient operation following the transaction.
According to Insider Monkey’s first quarter database of 2024, 30 hedge funds were invested in Bunge Global SA, Inc. (NYSE: BG).
5. YUM! Brands, Inc. (NYSE: YUM)
Number of Hedge Fund Holders: 35
Yum! Brands, Inc. (NYSE: YUM), is a popular American multinational corporation that together with its subsidiaries, develops and operates quick-service restaurant chains across different countries.
The company operates different restaurant brands flourishing in the fast food industry, such as Pizza Hut, KFC, The Habit Burger Grill, and Taco Bell.
The company’s income statement for Q1, 2024 reported an EPS of $1.15, and a revenue of $1.59 billion down by 2.86% on a year-on-year basis, attributed to the 2% and 8% respective decline in system sales and same-store sales on The Habit Burger Grill division. Although the other divisions underperformed, the Taco Bell division’s year-on-year revenue grew by 4.5% from $572 million to $598 million in Q1, 2024.
According to Insider Monkey’s first quarter database 2024, 35 hedge funds were bullish on Yum! Brands, Inc. (NYSE: YUM) and William Von Mueffling’s Cantillon Capital Management fund is the largest stakeholder of the firm, with 1.45 million shares held in Q1 worth $200.67 million.
4. Performance Food Group, Inc (NYSE: PFGC)
Number of Hedge Fund Holders: 38
Performance Food Group, Inc (NYSE: PFGC) is a company founded in 1885, based in Virginia, is a food distribution company that operates in three key segments: Foodservice, Vistar, and Convenience.
Performance Food Group, Inc (NYSE: PFGC) provides pizza vendors with quality ingredients and also offers product selection services for food-related businesses. The catalog of products includes frozen items, pizza toppings, frozen pizza, crusts, snacks, beverages, beef, pork, poultry, and seafood, etc.
Performance Food Group, Inc (NYSE: PFGC), in its first fiscal quarter 2024 press release, reported an increase of 1.5% in net sales that reached $14.9 billion compared to the previous quarter. Net income of $120.7 million increased 26.1%, and diluted EPS of $0.77 increased 24.2% in the first quarter.
According to Insider Monkey’s first quarter database of 2024, 38 hedge funds were invested in Performance Food Group, Inc. (NYSE: PFGC).
3. General Mills, Inc. (NYSE: GIS)
Number of Hedge Fund Holders: 39
General Mills, Inc. (NYSE: GIS) is a U.S.-based Multinational firm developed in 1928 by the merger of 4 mills with a flour mill, the firm manufactures and markets processed consumer foods across six continents. The firm offers processed ready-to-eat cereals, frozen pizza, shelf-stable vegetables, grains, refrigerated and frozen dough products, and pet food among other processed consumables.
In Q1, 2024, General Mills, Inc. (NYSE: GIS) reported net sales of $4.9 billion which grew 4% year-on-year basis, whereas, the adjusted gross margin was up 50 basis points to 35.4% of net sales. Moreover, it reported an EPS of $1.17 which was 11.5% higher than expected.
According to Insider Monkey’s database of Q1 2024, 39 hedge funds were bullish on General Mills, Inc. (NYSE: GIS) in Q1 2024. Moreover, Two Sigma Advisor held the highest number of shares (2.63 million) valued at $184.13 million.
2. Domino’s Pizza, Inc. (NYSE: DPZ)
Number of Hedge Fund Holders: 40
Domino’s Pizza, Inc. (NYSE: DPZ) is one of the leading Pizza manufacturing companies around the globe, it’s an American multinational company that evolved from a one-store operation to owning multiple franchises worldwide.
According to the American customer satisfaction index based on the leading quick service restaurant in the US in 2023, Domino’s Pizza, Inc. (NYSE: DPZ) surpassed Little Ceaser’s and tied with Pizza Hut of Yum! Inc. (NYSE: YUM) as both restaurant chains scored 78 on the scale.
Domino’s Pizza, Inc. (NYSE: DPZ) reported a global sales growth of 7.3% in its performance results of Q1, 2024. Revenues increased $60.2 million, or 5.9% year over year. Net income increased $21.1 million, or 20.1%, in the first quarter of 2024. Moreover, an actual EPS of $3.58 outperformed the estimated $3.39.
According to Insider Monkey’s first quarter database, 40 hedge funds held stake in Domino’s relative to the 34 in the Q1 of the previous year. Coatue Management fund is the biggest stakeholder with 635,602 shares valued at $315.81 million.
BofA analyst Sara Senatore raised the price target on Domino’s Pizza to $626 from $550 and keeps a ”Buy” rating on the shares. The company is raising its FY24 EPS forecast to $16.46 from $16, incorporating the Q1 beat and higher same-store sales growth expectations, the analyst tells investors in a post-earnings note.
1. The Kraft Heinz Company, Inc. (NASDAQ: KHC)
Number of Hedge Fund Holders: 43
The Kraft Heinz Company, Inc. (NASDAQ: KHC) is one of the largest food and beverage producers and marketers in North America.
The Kraft Heinz Company, Inc. (NASDAQ: KHC) has the following products in its portfolio; cheese, pizza dough, sauces, condiments, refreshment beverages, meat, coffee, pickles, and other preserved canned products.
The company’s first quarter 2024 performance highlights are as follows:
Net sales decreased by 1.2%, at $6.41 billion compared to $6.86 billion in Q4 2023. However, the company reported a gross profit of $2.24 billion in Q1 2024 compared to $2.11 billion in Q1, 2023. Moreover, Adjusted earnings per share of $0.69 improved by 1.5% year over year benefiting from expansion of adjusted gross margin 34.5% compared to 32.8% in the prior-year quarter. Efforts to raise pricing helped balance out the lower sales volume while supporting profitability.
According to Insider Monkey’s database of the first quarter of 2024, 43 hedge funds were bullish on The Kraft Heinz Company, Inc. (NASDAQ: KHC). Berkshire Hathaway led by Warren Buffet was the largest stakeholder with 325.63 million shares valued at over $12 billion.
While we acknowledge the potential of Kraft Heinz, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Kraft Heinz but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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