The Zacks Food-Miscellaneous industry is operating in a challenging environment marked by cautious consumer spending and persistent cost pressures. While food demand remains relatively defensive, value-oriented purchasing behavior and uneven foodservice traffic have weighed on volume growth and pricing flexibility. At the same time, elevated input and operating costs continue to pressure margins. 

Despite these headwinds, health-focused innovation and portfolio modernization remain key bright spots, as consumers show sustained interest in functional, premium and better-for-you food offerings. Companies leveraging brand strength and innovation are better positioned to navigate near-term challenges and support longer-term growth. Sysco Corporation (SYY Quick QuoteSYY - Free Report) , Celsius Holdings, Inc. (CELH Quick QuoteCELH - Free Report) , J&J Snack Foods Corp. (JJSF Quick QuoteJJSF - Free Report) and Mama's Creations, Inc. (MAMA Quick QuoteMAMA - Free Report) appear well-placed. 

About the Industry

The Zacks Food-Miscellaneous industry consists of companies that manufacture and sell a wide range of food and packaged food items, such as cereals, flour, sauces, bakery items, spices and condiments, natural and organic food items and frozen products. Some companies also provide comfort food items, such as chocolates and ready-to-serve meals, soups and snacks. A few players are engaged in providing pet food products and supplements. Several food companies also offer organic and natural products. Companies operating in this space sell their products mainly through wholesalers, distributors, large retail organizations, grocery chains, mass merchandisers, drug stores and e-commerce service providers. Some also cater to foodservice channels, including restaurants, cafes and hotels. Others offer services to schools, hospitals and industry caterers.

Major Trends Shaping the Future of the Food Industry

Demand Headwinds From Value-Oriented Consumer Behavior: Consumer spending patterns remain restrained, with shoppers increasingly prioritizing value and affordability in everyday food purchases. Elevated living costs have driven a shift toward private-label and lower-priced alternatives, creating pressure on branded food manufacturers to sustain volumes. Foodservice demand has shown uneven momentum as consumers limit dining frequency and favor at-home consumption. These dynamics have led to heightened promotional activity and intensified competition across categories, weighing on organic volume growth and limiting pricing flexibility for several industry participants.

Persistent Cost Inflation Pressures Margins: Many industry players continue to face elevated cost structures across raw materials, labor, packaging and logistics. While earlier pricing actions have provided partial relief, margin recovery remains uneven as cost volatility persists. At the same time, companies are investing in supply-chain resilience, automation and manufacturing efficiency to support long-term competitiveness. These initiatives, though strategically important, have added near-term expense pressure. As a result, profitability remains sensitive to execution, productivity gains and disciplined cost management, keeping earnings visibility constrained in the near term.

Health-Focused Innovation and Portfolio Evolution: Demand for health-forward, functional and premium food products continues to support growth opportunities within the industry. Consumers remain willing to engage with brands offering differentiated nutritional benefits, cleaner labels and convenience-driven innovation. Companies are actively modernizing portfolios through new product development, reformulation and expansion into emerging consumption occasions. These initiatives are helping strengthen brand relevance, support pricing resilience and create a pathway for more sustainable long-term growth within the Food – Miscellaneous space.

Zacks Industry Rank Indicates Dull Prospects

The Zacks Food-Miscellaneous industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #187, which places it in the bottom 23% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since the beginning of December 2025, the industry’s consensus earnings estimate for the fiscal year ending December 2026 has decreased 5.2%.

Let’s take a look at the industry’s performance and current valuation.

Industry vs. Broader Market

The Zacks Food-Miscellaneous industry has underperformed the S&P 500 and the broader Zacks Consumer Staples sector over the past year.

The industry has declined 11.6% over this period compared to the S&P 500’s growth of 17.3%. Meanwhile, the broader sector has risen 7.3% in the said time frame.

One-Year Price Performance

Industry's Current Valuation

On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staples stocks, the industry is currently trading at 15.02X compared with the S&P 500’s 23.24X and the sector’s 17.27X.

Over the past five years, the industry has traded as high as 20.73X and as low as 14.34X, with the median being at 17X, as the chart below shows.

Price-to-Earnings Ratio (Past 5 Years)

4 Food Stocks to Keep a Close Eye On

Mama's Creations: This fresh, deli-prepared foods company continues to benefit from strong demand for convenient, premium meal solutions, supported by expanding retail distribution and improving production scale. MAMA is gaining traction through broader geographic reach, deeper customer relationships and consistent new product activity. Investments in manufacturing efficiency and supply-chain capabilities are supporting operating leverage and margin stability despite ongoing cost pressures. 

With a focus on quality, convenience and disciplined execution, Mama's Creations remains well-positioned to sustain growth within the fresh prepared food category over the longer term. The Zacks Consensus Estimate for MAMA’s current financial-year earnings per share (EPS) has risen 18.2% to 13 cents in the past 60 days. The consensus mark suggests 44.4% growth from the year-ago period reported figure. Shares of this Zacks Rank #1 (Strong Buy) company have rallied a whopping 99.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.   

Price and Consensus: MAMA

J&J Snack Foods: The Zacks Rank #2 (Buy) company is supported by a diversified portfolio across foodservice and retail channels, helping balance demand variability. J&J Snack Foods’ core categories continue to benefit from strong brand recognition, while pricing actions and productivity initiatives support margin improvement amid cost volatility. Ongoing efforts to optimize manufacturing, distribution and product mix are expected to enhance this branded snack food company’s operational efficiency.

Although demand trends remain uneven in certain channels, the breadth of the portfolio and execution-focused strategy provide a stable foundation for earnings normalization over time. The Zacks Consensus Estimate for JJSF’s current fiscal-year EPS has risen by a penny to $4.46 over the past 60 days. The consensus mark indicates 4.5% growth from the year-ago period’s reported figure. Shares of J&J Snack Foods have tumbled 23.3% over the past year.

Price and Consensus: JJSF

Sysco Corporation: This global foodservice distributor benefits from its scale-driven distribution network and broad customer base across food-away-from-home channels. Improving volume trends, localized assortment strategies and customer retention efforts support steady demand. Sysco’s focus on productivity initiatives, sourcing efficiencies and supply-chain optimization is helping offset inflationary pressures and stabilize margins. 

Continued investment in sales execution and infrastructure strengthens this Zacks Rank #3 (Hold) company’s competitive positioning despite industry-wide traffic variability. The Zacks Consensus Estimate for SYY’s current fiscal-year EPS has increased 0.7% to $4.59 in the past 30 days, calling for 2.9% year-over-year growth. Shares of Sysco have jumped 16.1% in the past year.

Price and Consensus: SYY

Celsius Holdings: This Zacks Rank #3 player is supported by a scaled, multi-brand portfolio spanning fitness, lifestyle and mainstream energy segments. CELH’s broad distribution reach and strong retail placement continue to support demand for better-for-you energy offerings. Portfolio expansion and innovation have enhanced Celsius Holdings’ category relevance and diversified consumption occasions. 

While near-term margin pressure persists from promotional activity and integration-related costs, operational scaling and international expansion initiatives support this functional energy beverage company’s long-term growth potential. The Zacks Consensus Estimate for CELH’s 2026 EPS has risen by a penny to $1.49 over the past 30 days. The consensus mark indicates 18.8% growth from the year-ago period’s reported figure. Shares of Celsius Holdings have soared 123.9% over the past year.

Price and Consensus: CELH