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 Performance Food Group Company (NYSE:PFGC) 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 friendly grocery store team stocking shelves with foodservice products.
Performance Food Group Company (NYSE:PFGC)
Number of Hedge Funds Holders: 42
5-year Revenue CAGR: 23.94%
Performance Food Group Company (NYSE:PFGC) is one of the leading food distributors in North America, providing fresh and frozen foods, snacks, and beverages to restaurants, retailers, and institutional customers. The company’s three key segments—Foodservice, Vistar, and Convenience—have allowed it to establish a strong presence in the industry by expanding its distribution network and improving its service offerings.
Performance Food Group Company (NYSE:PFGC) performed well in Q2 2025 ended December 28, 2024, with the food service sector showing significant growth. Independent restaurant case volume rose by 5%, following a 4.3% increase in the previous quarter. This expansion was fueled by the company’s ongoing efforts to broaden its sales force, ensuring continued market penetration. Meanwhile, the Vistar sector, which provides vending and office coffee services, showed signs of recovery, with significant growth across multiple channels. The Convenience segment also benefited from its expanding food service offerings, which helped it improve its market position in the face of larger industry challenges.
Performance Food Group Company (NYSE:PFGC)’s recent success can be attributed in large part to strategic acquisitions. The acquisition of Chaney Brothers and Jose Santiago has set the company up for long-term growth. While Chaney Brothers’ operations have faced some weather-related challenges in the Southeast, the segment continues to grow rapidly. At the same time, Jose Santiago’s long-standing presence in Puerto Rico has provided PFG a crucial gateway to a promising market.
Furthermore, PFG’s share price has increased by 18.13% in the past six months, reflecting the positive momentum, with institutional investors showing increased interest in the company’s strong performance, who raised the company’s full-year revenue forecast. According to Insider Monkey’s hedge fund database, 42 hedge funds have a stake in the company, boosting investor confidence. Thus, the company’s ability to drive growth through acquisitions and organic expansion has allowed it to be among the 10 High Growth Food Stocks to Buy.
Overall, PFGC ranks 1st on our list of high growth food stocks to buy. While we acknowledge the potential of PFGC 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 PFGC 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.
