US food prices soar to a 43-year high: 5 US stocks to watch

Highlights:

• General Mills Inc. (NYSE: GIS) pays a quarterly dividend of US$ 0.54.
• Denny’s Corporation (NASDAQ: DENN) reported a net income of US$ 44.9 million in Q2 2022.
• Mondelez International Inc. (NASDAQ: MDLZ) achieved net revenues of US$ 7,274 million in Q2 2022. 

Although inflation may have receded, albeit on a minuscule level, bringing relief, the labor department report at the same time indicated that there is still no respite for consumers as the cost-of-living stays elevated.

US food prices in July 2022 soared to their highest level since 1979, the CPI data mentioned on Wednesday. Higher prices of basic commodities will keep the headwinds blowing in the economy.

Here, let us explore with Kalkine Media® the performances of five US food stocks, including GIS, DENN, MCD, MDLZ, and SFM, amid high food prices:

1. General Mills Inc. (NYSE: GIS)

General Mills rose to fame as a large flour miller and later became a reputed US manufacturer and marketer of consumer foods sold via retail stores. General Mills boasts a variety of well-known brands like Pillsbury, Häagen-Dazs, Cheerios, Green Giant, Progresso, and Yoplait, among others.

Headquartered in Minneapolis, Minnesota, General Mills has a market cap of US$ 46.32 billion.

The company pays a dividend of US$ 0.54 on a quarterly basis. General Mills has an earnings-per-share (EPS) of US$ 4.42 with a price-to-earnings (P/E) ratio of 17.1.

General Mills reported its fourth-quarter results for 2022 on June 29 this year. Its net sales for the reported quarter grew eight per cent to US$ 4.9 billion, while organic net sales surged 13 per cent.

GIS stock surged over 15 per cent so far this year, and on a year-over-year basis, it gained over 31 per cent.

2. Denny’s Corporation (NASDAQ: DENN)

Denny's is a US table service diner-style restaurant chain, operating over 1,700 restaurants in a host of other countries apart from the US. The US$ 582.19 million market company reported its 2022 second-quarter results on August 2, 2022, posting total operating revenue of US$ 115 million, an 8.3 per cent increase from its corresponding quarter in 2021 at US$ 106.2 million.

It reported a net income of US$ 44.9 million in Q2 2022 relative to US$ 22.35 million in the year-ago quarter.

DENN stock tumbled over 38 per cent over the past year. However, it gained close to 14 per cent in the past month. As per Refinitiv, DENN stocks held a Relative Strength Index (RSI) of ---- as of August 11, 2022.

3. McDonald’s Corporation (NYSE: MCD)

The American multinational fast-food chain was founded in 1940 and is headquartered in Chicago, Illinois. McDonald’s has a market cap of US$ 192.28 billion. It pays a dividend of US$ 1.38 on a quarterly basis, and the next payable date is September 16, 2022.

MCD stock fell by over two per cent year-to-date. In contrast, shares of McDonald’s gained over 10 per cent year-over-year.

On July 26, 2022, McDonald’s released its Q2 2022 results. It reported the company's global comparable sales soaring close to 10 per cent, with growth across all segments in the quarter.

Its revenue in Q2 2022 was US$ 5,718.4 million, compared to US$ 5,887.9 million in Q2 2021.

The global fast-food giant reported a net income of US$ 1,188 million in Q2 2022 against US$ 2,219.3 million in the year-ago quarter. MCD stocks’ Relative Strength Index on Refinitiv as of August 11 was -----. It indicates….

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4. Mondelez International Inc. (NASDAQ: MDLZ)

Mondelez is a US multinational confectionery, food, beverage, and snacks company headquartered in Chicago, Illinois. The company operates in over 169 countries.

The US$ 88.36 billion company, Mondelez, pays a quarterly dividend of US$ 0.385. The next dividend payable date is October 14, 2022. Mondelez has an earnings-per-share (EPS) of US$ 2.75.

MDLZ stock fell by over two per cent so far this year. However, in the past month, it gained over three per cent.

Mondelēz, early this month, said, it acquired Clif Bar & Company, a maker of nutritious energy bars.

It announced its Q2 2022 results on July 26, 2022, reporting net revenues of US$ 7,274 million. It also registered a diluted EPS of US$ 0.54 in the second quarter of 2022.

5. Sprouts Farmers Market Inc. (NYSE: SFM)

Based in Phoenix, Arizona, Sprouts Farmers Market is a popular supermarket chain that sells various natural and organic items, including fresh produce, vitamins, bulk foods, etc.

Sprouts Farmers Markets has a valuation of US$ 3.23 billion. Shares of Sprouts gained over 30 per cent on a year-over-year basis. SFM stock surged by over 13 per cent in the past month.

Sprouts reported its Q2 2022 results early this month, showing net sales of US$ 1.6 billion, a five per cent growth from the previous year’s corresponding quarter.

Sprouts Farmers reported US$ $289 million in cash and cash equivalents in Q2 2022.

Bottom line:

The global food industry is a huge sector that may weather economic storms as it caters to the basic necessities of the population. However, its stocks can still face rocky trends in a volatile market. Investors need to do their analysis carefully before picking their stocks.