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3 Food Industry Stocks to Feast on Before the New Year
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Key Takeaways
United Natural Foods is improving margins through automation, cost discipline and strong free cash flow.
Ingredion is expanding margins with specialty ingredients, pricing actions and clean-label demand.
Beyond Meat is advancing a turnaround with cost cuts, portfolio focus and nutrition-led innovation.
As 2025 wraps up, the food industry is showing steady resilience despite a cautious consumer backdrop. While food inflation has cooled from last year’s peak, prices remain high enough to keep shoppers value-focused. Many consumers continue to trade down to affordable brands and limit discretionary dining, which pressured volumes for some packaged food and restaurant companies. Still, pricing actions helped stabilize revenues and prevent sharper slowdowns.
That said, several bright spots emerged throughout the year. Companies with established brands, wide distribution networks and strong cost control were better able to manage ongoing input and labor pressures. Product innovation, particularly in protein, convenience foods and better-for-you options, continued to attract consumer interest. At the same time, supply-chain conditions improved, allowing companies to operate more efficiently. Foodservice demand also showed signs of stabilizing, setting a more constructive tone heading into 2026.
Growth expectations for the food industry remain modest. While volumes may not rebound sharply, margins are likely to improve as cost pressures ease and pricing comparisons become more favorable. Companies are shifting their focus toward efficiency, automation and smarter portfolio management while leaning on strong brands to maintain pricing discipline.
This setup makes food stocks attractive as the new year approaches. Everyday demand provides a defensive foundation, while improving operating leverage creates room for upside. Companies that are prioritizing operational discipline, brand strength and margin recovery appear best positioned to navigate a value-conscious consumer environment.
3 Tempting Picks
United Natural Foods, Inc. (UNFI - Free Report) , which has rallied 47.4% in the past six months, is gaining momentum as its multi-year transformation continues to deliver results. The Zacks Rank #1 (Strong Buy) company remains well-positioned in the natural, organic and specialty food categories, where management continues to see favorable long-term demand trends. Ongoing network optimization, automation and lean operating practices are helping streamline the cost structure while improving service levels, inventory productivity and supply-chain efficiency. You can see the complete list of today’s Zacks #1 Rank stocks here.
Disciplined portfolio management and investments in advanced demand planning and analytics are supporting margin improvement and operational visibility. Importantly, strong free cash flow generation has enabled meaningful debt reduction, improving financial flexibility and lowering leverage. With a more efficient operating model, improving margins and a clear focus on execution, United Natural Foods appears well-positioned heading into fiscal 2026.
The Zacks Consensus Estimate for UNFI’s current fiscal-year earnings per share (EPS) suggests growth of 187.3%. The Zacks Consensus Estimate for the bottom line has also seen upward revisions in the past 30 days.
Image Source: Zacks Investment Research
Ingredion Incorporated (INGR - Free Report) continues to execute well, supported by steady demand for its specialty ingredients and solutions-based offerings across a diversified global customer base. Strength in higher-value platforms, including Texture & Healthful Solutions, along with disciplined pricing actions and a favorable product mix, remains central to margin expansion.
The Zacks Rank #2 (Buy) company is focused on advancing ingredients aligned with clean-label, texture and health-driven food trends while driving productivity through ongoing cost optimization initiatives. These efforts are reinforcing Ingredion’s ability to perform consistently in a mixed macro environment. A strong balance sheet and disciplined capital allocation provide financial flexibility to support growth investments. With improving margins and consistent execution, Ingredion appears well-positioned to deliver stable performance and long-term shareholder value.
The Zacks Consensus Estimate for INGR’s current and next fiscal-year EPS suggests respective growth of 5.1% and 1.6%. The Zacks Consensus Estimate for earnings has also seen upward revisions in the past 60 days.
Image Source: Zacks Investment Research
Beyond Meat, Inc. (BYND - Free Report) is advancing a broad turnaround as management works to reset the business and improve long-term profitability. While demand in the plant-based meat category remains pressured, the Zacks Rank #2 company is taking concrete steps to resize its cost structure, simplify its portfolio and improve manufacturing efficiency through its transformation initiatives. Production and logistics cost improvements are beginning to gain traction, supporting management’s confidence in future margin recovery.
Beyond Meat is sharpening its focus on cleaner ingredients and nutrition-led innovation, supported by platforms such as Beyond Steak and Beyond Ground. Balance sheet actions have improved liquidity, providing additional flexibility to execute the turnaround. With disciplined cost actions, a more focused operating model and a continued emphasis on product quality, Beyond Meat appears positioned for gradual operational improvement as execution progresses.
The Zacks Consensus Estimate for BYND’s current and next fiscal-year EPS suggests respective growth of 51.5% and 69.6%. The Zacks Consensus Estimate for the bottom line has also seen upward revisions in the past 30 days.
Image Source: Zacks Investment Research
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3 Food Industry Stocks to Feast on Before the New Year
Key Takeaways
As 2025 wraps up, the food industry is showing steady resilience despite a cautious consumer backdrop. While food inflation has cooled from last year’s peak, prices remain high enough to keep shoppers value-focused. Many consumers continue to trade down to affordable brands and limit discretionary dining, which pressured volumes for some packaged food and restaurant companies. Still, pricing actions helped stabilize revenues and prevent sharper slowdowns.
That said, several bright spots emerged throughout the year. Companies with established brands, wide distribution networks and strong cost control were better able to manage ongoing input and labor pressures. Product innovation, particularly in protein, convenience foods and better-for-you options, continued to attract consumer interest. At the same time, supply-chain conditions improved, allowing companies to operate more efficiently. Foodservice demand also showed signs of stabilizing, setting a more constructive tone heading into 2026.
Growth expectations for the food industry remain modest. While volumes may not rebound sharply, margins are likely to improve as cost pressures ease and pricing comparisons become more favorable. Companies are shifting their focus toward efficiency, automation and smarter portfolio management while leaning on strong brands to maintain pricing discipline.
This setup makes food stocks attractive as the new year approaches. Everyday demand provides a defensive foundation, while improving operating leverage creates room for upside. Companies that are prioritizing operational discipline, brand strength and margin recovery appear best positioned to navigate a value-conscious consumer environment.
3 Tempting Picks
United Natural Foods, Inc. (UNFI - Free Report) , which has rallied 47.4% in the past six months, is gaining momentum as its multi-year transformation continues to deliver results. The Zacks Rank #1 (Strong Buy) company remains well-positioned in the natural, organic and specialty food categories, where management continues to see favorable long-term demand trends. Ongoing network optimization, automation and lean operating practices are helping streamline the cost structure while improving service levels, inventory productivity and supply-chain efficiency. You can see the complete list of today’s Zacks #1 Rank stocks here.
Disciplined portfolio management and investments in advanced demand planning and analytics are supporting margin improvement and operational visibility. Importantly, strong free cash flow generation has enabled meaningful debt reduction, improving financial flexibility and lowering leverage. With a more efficient operating model, improving margins and a clear focus on execution, United Natural Foods appears well-positioned heading into fiscal 2026.
The Zacks Consensus Estimate for UNFI’s current fiscal-year earnings per share (EPS) suggests growth of 187.3%. The Zacks Consensus Estimate for the bottom line has also seen upward revisions in the past 30 days.
Image Source: Zacks Investment Research
Ingredion Incorporated (INGR - Free Report) continues to execute well, supported by steady demand for its specialty ingredients and solutions-based offerings across a diversified global customer base. Strength in higher-value platforms, including Texture & Healthful Solutions, along with disciplined pricing actions and a favorable product mix, remains central to margin expansion.
The Zacks Rank #2 (Buy) company is focused on advancing ingredients aligned with clean-label, texture and health-driven food trends while driving productivity through ongoing cost optimization initiatives. These efforts are reinforcing Ingredion’s ability to perform consistently in a mixed macro environment. A strong balance sheet and disciplined capital allocation provide financial flexibility to support growth investments. With improving margins and consistent execution, Ingredion appears well-positioned to deliver stable performance and long-term shareholder value.
The Zacks Consensus Estimate for INGR’s current and next fiscal-year EPS suggests respective growth of 5.1% and 1.6%. The Zacks Consensus Estimate for earnings has also seen upward revisions in the past 60 days.
Image Source: Zacks Investment Research
Beyond Meat, Inc. (BYND - Free Report) is advancing a broad turnaround as management works to reset the business and improve long-term profitability. While demand in the plant-based meat category remains pressured, the Zacks Rank #2 company is taking concrete steps to resize its cost structure, simplify its portfolio and improve manufacturing efficiency through its transformation initiatives. Production and logistics cost improvements are beginning to gain traction, supporting management’s confidence in future margin recovery.
Beyond Meat is sharpening its focus on cleaner ingredients and nutrition-led innovation, supported by platforms such as Beyond Steak and Beyond Ground. Balance sheet actions have improved liquidity, providing additional flexibility to execute the turnaround. With disciplined cost actions, a more focused operating model and a continued emphasis on product quality, Beyond Meat appears positioned for gradual operational improvement as execution progresses.
The Zacks Consensus Estimate for BYND’s current and next fiscal-year EPS suggests respective growth of 51.5% and 69.6%. The Zacks Consensus Estimate for the bottom line has also seen upward revisions in the past 30 days.
Image Source: Zacks Investment Research