We recently published a list of 10 High Growth Food Stocks to Buy. In this article, we are going to take a look at where Bellring Brands, Inc. (NYSE:BRBR) stands against other high growth food stocks to buy.
The global food industry has always stimulated economic growth, innovation, and a shift in consumer trends. It is projected to reach $2.2 trillion by 2032 from its market size of $1.64 trillion in 2022, at a compound annual growth rate (CAGR) of 2.99%, according to Market Research Future. Despite food being a necessity, the business dynamics within the food industry are very complex and companies must be adaptable as they navigate the complexities of rising production costs, changing consumer preferences, and global supply chain disruptions.
Within the industry, inflation remains a key topic. While it was soaring in 2022, food prices have since declined. However, they are on the rise again, causing financial strain on both consumers and businesses. As reported by the U.S. Department of Agriculture (USDA) in December 2024, grocery prices went up by 1.8% compared to the previous year, and food-away-from-home costs increased to 3.6%. Especially staple food items, including eggs and beef, had a sharp rise due to the avian flu wave and the supply limitations. These price fluctuations create a challenge for food companies, which must adjust their pricing strategies without sacrificing demand or alienating customers.
On the other hand, consumer behavior is also changing, putting forth factors like health, sustainability, and convenience. Thus, specialty stores have seen an increase in the demand for fresh and raw food. At the same time, budget-conscious shoppers are gravitating toward discount retailers, highlighting the growing importance of affordability. Thus, food companies must meet diverse consumer needs driven by the dual trend of seeking premium and value-oriented products.
Furthermore, technological breakthroughs are also contributing to the industry’s transformation. Supply chain optimization, waste reduction, and increased production efficiency are being greatly aided by automation and artificial intelligence (AI). Moreover, robotics is deployed in food processing to increase production and efficiency, while AI-driven demand forecasting helps avoid inventory problems. Consumers’ growing need for convenience is being met by the usage of digital ordering and delivery platforms, which opens new avenues for revenue growth. By adopting these technologies, companies are keen to improve operations and take advantage of growth opportunities in a market that is constantly evolving.
Even with economic instability, the future of the food industry is promising, driven by global population growth, urbanization, and the expanding middle class in emerging markets. In addition, new investment opportunities are being created by the popularity of plant-based meals and alternative proteins. Thus, big industry players are prioritizing the integration of technology, sustainability, and innovation in their business model to capitalize on future growth potential.
Many stocks stand out for their capacity to capitalize on this growth potential.
Methodology
To curate our list of the 10 High Growth Food Stocks to Buy, we used Finviz stock screener to gather stocks within the food sector with a strong market capitalization. We then narrowed the list based on each company’s five-year compound annual growth rate (CAGR) to identify those demonstrating consistent revenue expansion.
Furthermore, we also considered the number of hedge funds holding stakes in each stock, using data from Insider Monkey’s hedge fund database, which tracks the activity of 1,009 hedge funds.
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).
A wide shot of an aisle in a food store lined with different nutrition products.
Bellring Brands, Inc. (NYSE:BRBR)
Number of Hedge Funds Holders: 42
5-year Revenue CAGR: 18.05%
Bellring Brands, Inc. (NYSE:BRBR) is making significant progress in the nutrition industry, especially with its flagship brands, Premier Protein and Dymatize. As protein-based diets become more popular, BellRing has successfully positioned itself to capture a larger share of the market. With strong consumer demand and an effective expansion strategy, the company is recognized as one of the high growth food stocks to buy.
Bellring Brands, Inc. (NYSE:BRBR) is off to a strong start in fiscal year 2025. Premier Protein contributed significantly to the 25% increase in net sales and adjusted EBITDA. The brand saw a 23% increase in shake consumption, cementing its position as a leader in the ready-to-drink (RTD) protein market with a 26% market share. Furthermore, the introduction of a new indulgent line of shakes and powders has contributed to increased market penetration, enhancing Premier Protein’s appeal.
Furthermore, Bellring Brands, Inc. (NYSE:BRBR) has also benefited from the broader expansion of the Convenient Nutrition segment, which has grown to $19 billion, with RTD protein beverages leading the way with an 18% growth rate. The company’s efforts to expand distribution channels and launch targeted marketing campaigns have resulted in sustained demand for its products, putting it in a good position to capitalize on this shift in consumer preference.
However, investors should be aware of recent insider trading. Director Robert V. Vitale sold more than $6.1 million in shares, primarily to meet tax obligations. While insider sales are not uncommon, they should always be monitored in conjunction with broader market sentiments.
Regardless, investor confidence remains high. According to Insider Monkey’s database, 42 hedge funds have invested in Bellring Brands, Inc. (NYSE:BRBR), and the company’s stock has increased 37.2% in the last six months. This growth reflects a strong belief in the company’s future prospects. Thus, the company remains a compelling player in the nutrition space, with expanding product offerings, increasing consumer adoption, and a dominant presence in the fast-growing protein segment.
Overall, BRBR ranks 3rd on our list of high growth food stocks to buy. While we acknowledge the potential of BRBR as an investment, 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 BRBR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
