Food and fuel costs are climbing, inflation is still in focus, yet consumers are still spending on everyday essentials. That mix can quietly reshape which consumer staples stocks handle higher ingredient and transport costs and which struggle to protect margins. This article looks at three large consumer staples stocks exposed to these inflation drivers and explains how each one could either benefit or be pressured as these trends play out.

The stocks covered below are only a sample, and the full screen surfaced 27 more consumer staples companies with equally compelling stories that are not covered here. To identify and analyze the highest conviction ideas in this theme, go straight to the Consumer Staples Sector screener.

Lamb Weston Holdings (LW)

Overview: Lamb Weston Holdings is a global producer of frozen potato products, supplying fries, appetizers and potato ingredients to quick service and full service restaurants, retailers and foodservice distributors under brands such as Lamb Weston, Grown in Idaho and Alexia, as well as private labels.

Operations: Lamb Weston generates about US$4.4b in North America revenue and about US$2.2b from international operations, reflecting a strong core in its home market alongside a meaningful global footprint.

Market Cap: US$7.3b

Rising food inflation and higher fuel costs put many restaurant and packaged food stocks under pressure. Lamb Weston Holdings operates in a niche where frozen potato products are everyday staples and quick service restaurants still account for most fry servings. Recent results showed higher volumes in North America and ongoing cost savings efforts, even as international operations are being reshaped and a Netherlands plant closure is under review. At the same time, the stock trades at a relatively high P/E multiple, carries meaningful debt and has thinner margins after a recent one off loss, so execution on cost cuts and international restructuring is important. For investors, the mix of essential products, a steady dividend and a major efficiency program may warrant closer consideration of Lamb Weston.

Higher North America volumes, a steady dividend and a major efficiency program suggest Lamb Weston’s story may be more than a simple inflation squeeze. Get the full context in the 3 key rewards and 2 important warning signs

Build your own consumer staples shortlist

Lamb Weston Holdings and the other two stocks in this article all came from a single Simply Wall St screener, but the real value is in setting filters that match your own approach. Use our flexible Screener to mix valuation, growth, balance sheet and dividend metrics, or start with any of our curated Investing Ideas.

Walmart (WMT)

Overview: Walmart is a global retailer that runs supermarkets, supercenters, Sam’s Club warehouse clubs and ecommerce platforms, offering everything from groceries and household staples to apparel, electronics and health services across the U.S. and key international markets.

Operations: Walmart generates most of its revenue from Walmart U.S. at about US$490.9b, with additional contributions from Walmart International at about US$137.4b, Sam’s Club at about US$96.9b and a small amount from Corporate and Support.

Market Cap: US$887.7b

Walmart sits at the center of rising food and fuel costs because it sells essential groceries at scale while also running a large logistics network. That combination gives it pricing power and operational data that smaller retailers struggle to match, supported by areas such as advertising, memberships and ecommerce that analysts monitor closely when assessing margins. At the same time, leverage, intense grocery competition and ongoing cost pressures from fuel, wages and legal settlements mean the story is not without risk. With inflation in focus and consumer confidence changing, Walmart offers a mix of defensive staples exposure and developing profit streams that many investors may want to understand in more depth before deciding how it fits in their portfolio.

Walmart’s scale in groceries, logistics and new profit streams like advertising gives the company more levers than many retailers. See how those pieces fit together in the analysis report for Walmart

Utz Brands (UTZ)

Overview: Utz Brands is a U.S. snack company that produces and sells a wide range of salty snacks, including potato and tortilla chips, pretzels, cheese snacks, pork skins, pub mixes and ready to eat popcorn, under brands such as Utz, On The Border, Zapp’s and Boulder Canyon through retail, foodservice and direct to consumer channels.

Market Cap: US$2.0b

Utz Brands gives you direct exposure to everyday snacking, which tends to hold up when households are watching budgets but still want affordable treats at home. The company is working on supply chain productivity and brand mix, while analysts highlight forecast earnings growth and a path to profitability in the next few years, even though Utz is currently loss making and carries financing risk with all liabilities funded by external borrowing. The recent US$2.9b all cash acquisition agreement at US$14.25 per share, a large premium to the pre deal price, shows how buyers value its brands and distribution, yet recent quarterly losses and softer organic revenue growth keep execution risk front and center.

Utz Brands sits at the crossroads of a premium buyout valuation and recent losses that still worry some investors. See how that trade off really looks in the 2 key rewards and 2 important warning signs (1 is major!)

Seeking Fresh Alternatives Beyond These Staples

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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.