Top 5 Food Delivery Stocks to Buy in 2021

1. Hello Fresh SE (XETRA: HFG.DE)

Hello Fresh SE (XETRA: HFG.DE) is a Berlin-based meal kit delivery company founded by Dominik Richter in December 2011. It is the largest meal kit provider in the US, beating competitor Blue Apron, and also operates in other countries like the United Kingdom, Germany, Belgium, France and Canada. It went public in November 2017. The business model of the firm revolves around delivering the ingredients for a meal to customers who can then get the food ready through a recipe provided by HelloFresh in under an hour. 

The company has a market cap of over $13 billion and posted a revenue of over $4.5 billion in December 2020. The company has a gross profit margin of 65% and a net income margin of 9.84%. It also has a 81% return on equity and a 25% return on assets. Despite the strong numbers, American investment firm JP Morgan late last year downgraded the firm from Underweight to Neutral as economies around the world reopened in the wake of the vaccine rollout. The shares of the firm have increased more than 180% compared to 2019. 

Bryan Garnier, a European growth investment bank, late last year said that the meal-kit company was expected to post strong growth going ahead. The firm said HelloFresh was one of the models of success in the meal-kit delivery business and expected the firm to continue to grow at double digit rates.

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