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Highlights
- The food companies are a part of the consumer staples segment.
- Albertsons Companies, Inc. (NYSE:ACI)operated 2,278 food and drug stores as of December 4, 2021.
- Kroger Company (NYSE:KR)had around 2,742 supermarkets across the US in 2020.
Food companies are a part of the consumer staples segment. These enterprises could be food chains, food distributors, and grocery stores, among other businesses.
Here we explore two food stocks that gave more than 40% return in one year.
Albertsons Companies, Inc. (NYSE:ACI)
The Boise, Idaho-based Albertsons is one of the largest grocers in the US. It operated 2,278 retail food and drug stores, including 1,722 pharmacies, 22 dedicated distribution centers, 399 associated fuel centers, and 20 manufacturing facilities as of December 4, 2021.
Its digital sales increased by 9% YoY in Q3 of 2021.
The company expanded its Drive Up & Go curbside pickup service to 1,930 locations in the quarter and expanded delivery services to more than 2,000 stores.
For the 40 weeks ended December 4, 2021, the company reported net sales of US$54.5 billion compared to US$53.9 billion in the same period in 2020.
Its net income was US$1.16 billion or US$1.95 per share diluted compared to US$0.994 billion or US$1.71 per share diluted in the 40 weeks ended December 5, 2020.
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Albertsons has a market capitalization of US$13.7 billion and a P/E ratio of 17.04. The forward P/E for one year is 9.99. The stock moved in the range of US$37.85 to US$15.97 in the last 52 weeks. It closed at US$28.46 on January 24, 2022.
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Kroger Company (NYSE:KR)
This Cincinnati, Ohio-based company had around 2,742 supermarkets across the US at the end of 2020. The company also operates around 150 jewelry stores and 35 food production plants nationwide.
For the three quarters ended November 6, 2021, the company booked sales of US$104.8 billion compared to US$101.7 billion in the corresponding months of the previous year.
Its net income attributable to the company was US$1.09 billion or US$1.43 per diluted share versus US$2.66 billion or US$3.35 per diluted share in the same period of 2020.
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The company has a market capitalization of US$35 billion and a P/E ratio of 35.88. Its forward P/E ratio for one year is 13.67, the dividend yield is 1.79%, and the annualized dividend is US$0.84.
The stock moved in the range of US$50.15 to US$32.00 in the last 52 weeks and closed at US$47.72 on January 24, 2022.
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Bottomline
The S&P Food & Beverage Select Industry Index, representing the food and beverage sector, returned 5.25% gains in one year, compared to the S&P 500 Index one year return of 14.39%. However, the consumer staple segment is not the fastest-growing sector but is relatively steady. However, investors should carefully analyze the market before investing in stocks.
