3 Food Stocks for Smart Investors to Eat Up Now

Economic Overview - The U.S. economy is projected to grow at a seasonally adjusted annualized rate of 2.9% above inflation in the current quarter [1] - The unemployment rate increased to 4.3% in July from 4.1% in June [1] - The savings rate fell to 3.4% of after-tax income in June 2024, down from 4.8% a year earlier [1] - Major companies like Disney, Macy's, and Amazon report reduced consumer spending [1] Food Industry Insights - Investing in food stocks is recommended as they are expected to be more resilient to reduced consumer spending [1] - El Pollo Loco hired TikTok influencer Yuri Lamasbella for marketing, which may attract Generation Z customers [2] - El Pollo Loco's comparable restaurant sales rose 4.5% last quarter, and operational income increased to $12.3 million from $10.9 million [3] Costco Performance - Costco could benefit from increased home dining as consumers eat more at home [5] - Costco and Amazon accounted for 23% of U.S. grocery sector growth from 2019 to 2023, gaining market share from competitors [5] - Costco's comparable store sales increased by 5.2% in July 2023 [5][6] Freshpet Growth - Freshpet provides high-quality food for pets and is expected to perform well despite slowing consumer spending [6] - Freshpet's sales surged 28% last quarter, with EBITDA rising to $35.1 million from $9 million [7] - Freshpet increased its full-year sales guidance to at least $965 million and adjusted EBITDA outlook to at least $140 million [7]