3 Consumer Staples Stocks With Pricing Power As Food Inflation Stays High
Tyson Foods, Inc. Class A TSN | 0.00 |
Consumer staples stocks are often seen as a potential anchor when inflation and living costs are under pressure, and Turkey’s latest data is a reminder of how quickly household budgets can be squeezed. With annual inflation at 32.11% and food inflation at 35.45%, as well as support measures like pension hikes on the table, investors may want to think carefully about which companies could see steadier demand, better pricing power, or relief from input and transport costs. This article walks through 3 stocks from our Consumer Staples Stocks screener that appear positively exposed to these trends.
Tyson Foods (TSN)
Overview: Tyson Foods is a global food company that produces beef, pork, chicken, and a wide range of branded prepared foods, supplying supermarkets, restaurants, and food service customers under labels such as Tyson, Jimmy Dean, and Hillshire Farm.
Operations: Tyson Foods generates most of its revenue from Chicken at US$17.1b, followed by Beef at US$22.1b, Prepared Foods at US$10.2b, Pork at US$6.1b, International/Other at US$2.3b, with an intersegment adjustment of US$2.1b.
Market Cap: US$20.7b
Tyson Foods operates at the center of global protein demand, with large beef, pork, chicken, and prepared foods businesses that can be relevant when households prioritize staples and direct more spending toward food, as Turkey’s high but easing inflation illustrates. Analysts currently forecast earnings growth supported by cost savings, a larger contribution from branded prepared foods, and ongoing product launches such as Tyson Chicken Cups. At the same time, the company is managing weak beef margins, a recent large loss, and antitrust settlements that affect sentiment, while its P/E is elevated relative to some peers. That combination of earnings recovery potential, strong brands, and clear risks highlights why Tyson Foods may warrant closer attention.
Tyson Foods’ earnings recovery story, its growing focus on branded prepared foods and its elevated P/E all point to a bigger question; see how those pieces fit together in the 2 key rewards and 4 important warning signs
Simply Good Foods (SMPL)
Overview: Simply Good Foods is a packaged food and beverage company that sells protein bars, shakes, salty snacks, confectionery and other meal replacement products under the Quest, Atkins and OWYN brands across retail stores and e commerce channels in North America and select international markets.
Operations: Simply Good Foods generates about US$1.4b in revenue from branded nutritional foods and snacking products, with roughly US$1.39b from North America and US$29.3m from international markets.
Market Cap: US$1.2b
Simply Good Foods offers investors a focused way to access steady demand for packaged snacks and meal replacements, especially as households continue buying convenient protein products even when budgets are tight. The growth story today rests on shifting shelf space and investment toward higher margin Quest and OWYN products, while working through declining Atkins sales and a recent period of weaker revenue and a sizeable loss. Analysts point to potential for stronger margins, supported by productivity efforts and anticipated OWYN synergies. However, leadership changes, integration risks and recent analyst downgrades highlight that execution remains important. For investors who can look past short term setbacks, the balance between margin potential, buybacks and brand challenges represents both opportunity and caution.
Simply Good Foods’ margin story may be just getting started as Quest and OWYN gain ground, yet Atkins and recent losses complicate the picture, so it is worth reading the analyst forecasts for Simply Good Foods to see what might be hiding in plain sight.
Kraft Heinz (KHC)
Overview: Kraft Heinz is a global packaged food and beverage company whose brands such as Heinz, Kraft, Oscar Mayer, Philadelphia and Capri Sun sit in everyday categories like condiments, cheese, snacks, ready meals, drinks and cold cuts across supermarkets, foodservice and e commerce channels worldwide.
Operations: Kraft Heinz generates most of its revenue in North America at US$18.6b, with additional sales of US$3.6b from International Developed Markets and US$2.9b from Emerging Markets.
Market Cap: US$29.7b
Kraft Heinz gives you exposure to everyday pantry spending through a wide portfolio of global brands, which can be especially relevant when food inflation is high and consumers keep reaching for familiar staples. Management is pushing hard on efficiency, with a US$2.5b gross supply chain savings target and a US$600m brand and commercial investment plan, while also maintaining a sizable dividend and focusing on debt reduction and cash flow. At the same time, the company is still working through losses, high leverage and questions about how much growth those investments can deliver, especially as competition and private labels bite. That tension between resilient brands, cost discipline and real balance sheet risk makes Kraft Heinz worth a closer look for patient investors.
Kraft Heinz’s cost savings and brand investments could be masking a sharper turning point than the headline dividend and debt story suggests, so read the full picture in the analysis report for Kraft Heinz
The three stocks here are only a small sample. The full Consumer Staples Stocks screener has uncovered 23 more consumer staples companies across the US, UK, Canada, Australia and New Zealand with equally compelling stories around food retail, packaged foods and household products. Use Simply Wall St to identify and analyze the exact catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this space.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
