- GLP-1 Wars: Winners & Losers
May 12, 2026
America’s Obesity Epidemic
One of the most eye-opening exercises you can do is to look at an American beach photo from the 1960s or 1970s and compare it to a beach photo from today. In the early 1960s, less than 15% of Americans were obese. Today, the obesity rate in America is roughly 40%. What’s to blame for the soaring obesity rate? The widespread availability, addictiveness, and popularity of high-calorie, ultra-processed foods combined with an increase in sedentary lifestyle choices.
Obesity causes heart disease (the number one cause of death in the United States), type 2 diabetes, stroke, and high blood pressure. Despite these well-known risks, most Americans are unwilling to make lifestyle changes such as eating unprocessed foods and excercising. Meanwhile, until recently, weight loss drugs were mostly scams, or worse, had numerous adverse side effects.
GLP-1: The Largest Blockbuster Drug Ever
Every handful of decades, a groundbreaking drug transforms the pharmaceutical industry. GLP-1 receptor agonists (such as Ozempic, Wegovy, and Mounjaro) are the closest the pharmaceutical industry has come to a panacea. By manipulating brain receptors, these drugs can reduce appetite and spur weight loss of 20% or more, thereby significantly reducing heart attack and other health risks.
Should you Buy Novo Nordisk or Eli Lilly?
Pharma behemothsEli Lilly (LLY) andNovo Nordisk (NVO) are the two undisputed leaders in a GLP-1 industry that JP Morgan (JPM) expects to swell to $105 billion by the end of the decade. Although LLY and NVO dominate the market, their share prices are diverging significantly. Over the past year, LLY shares have gained 32.30% while NVO shares have plunged 28.40%.Zacks Investment Research
Image Source: Zacks Investment Research
The reason for the outperformance is that while NVO’s Ozempic/Wegovy drugs were first to market, Lilly’s tirzepatide (Mounjaro/Zepbound) has achieved more favorable results. The latest head-to-head trials show that Lilly’s dual agonist drug leads to ~20% weight loss, while NVO’s single agonist drug achieved ~13% weight loss. Meanwhile, LLY’s Retratrutide (which cleared FDA phase 2 trials) has shown that a mind-boggling 72% of prediabetics reached normal blood sugar levels after taking the drug. While it’s a stretch to call a company like NVO with $14 billion in quarterly revenue a loser, LLY’s drug is far superior to NVO’s and is likely to continue to be the leader in the group.
GLP-1 Losers: Snack Foods & Alcohol
Snack food companies like Coca-Cola (KO), PepsiCO (PEP), and Mondelez (MDLZ) are likely to struggle as more Americans adopt GLP-1s and junk food cravings decrease.
Story Continues
Bottom Line
With its best-in-breed GLP-1 drugs, Eli Lilly is beginning to cement itself as the dominant player in the massive GLP-1 market. In addition to LLY’s dominance, investors must recognize that the legacy snack industry is at risk of being disrupted.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
CocaCola Company (The) (KO) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
PepsiCo, Inc. (PEP) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- GLP-1 Wars: Winners & Losers
May 12, 2026 · zacks.com
With its best-in-breed GLP-1 drugs, Eli Lilly is beginning to cement itself as the dominant player in the massive GLP-1 market.
- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026
State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) provides broad, low-cost exposure to large-cap staples, while Invesco Food & Beverage ETF(NYSEMKT:PBJ) offers a concentrated, higher-fee strategy focused on specific food-industry metrics.
Snapshot (cost & size)
Metric XLP PBJ Issuer SPDR Invesco Expense ratio 0.08% 0.61% 1-yr return (as of May 6, 2026) 6.40% 6.60% Dividend yield 2.60% 1.50% Beta 0.49 0.50 AUM $14.6 billion $94.1 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a major differentiator, as XLP is significantly more affordable with an expense ratio 0.53 percentage points lower than its peer. Investors looking for income could find the State Street fund more attractive, as it provides a significantly higher distribution than the Invesco fund.
Performance & risk comparison
Metric XLP PBJ Max drawdown (5 yr) (16.30%) (15.80%) Growth of $1,000 over 5 years (total return) $1,360 $1,272
What's inside
Invesco Food & Beverage ETF holds 31 stocks and focuses on the consumer defensive sector, which accounts for 81% of the portfolio. This fund, which was launched in 2005, tracks a dynamic index that selects companies based on merits like price momentum and earnings quality. Its largest positions include Archer-Daniels-Midland(NYSE:ADM) at 5.87%, Corteva(NYSE:CTVA) at 5.43%, and Mondelez International(NASDAQ:MDLZ) at 5.06%. The Invesco fund has a trailing-12-month dividend of $0.75 per share.
State Street Consumer Staples Select Sector SPDR ETF is more concentrated by sector, with 99% of its 36 holdings in consumer defensives. Launched in 1998, it tracks the Consumer Staples Select Sector Index, providing exposure to large-cap industry leaders in the S&P 500. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter & Gamble(NYSE:PG) at 7.25%. This fund has paid $2.18 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples surged back into favor in early 2026 as investors sought shelter from tech volatility and tariff uncertainty. Both XLP and PBJ sit within that defensive universe, but they are built very differently and serve quite different purposes.
XLP is the sector standard-bearer. It’s a straightforward, low-cost fund holding some of the largest U.S. consumer staples companies drawn from the S&P 500. Walmart, Costco, and Procter & Gamble anchor the portfolio. PBJ narrows its focus to food and beverage specifically, using a proprietary quantitative screen to select stocks based on fundamental factors rather than simply tracking an index.
Story Continues
The cost difference is difficult to overcome. PBJ charges nearly eight times what XLP does — a gap that demands consistent outperformance to justify, which the fund has not reliably delivered. PBJ also manages a fraction of XLP's assets, meaning liquidity and institutional backing are far thinner.
For most investors, XLP's simplicity, scale, and cost efficiency make it the more compelling choice. PBJ suits those making a deliberate, concentrated bet on food and beverage who believe the quantitative methodology can earn its premium.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF right now?
Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
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*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist was originally published by The Motley Fool
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- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026
Key Points
State Street Consumer Staples Select Sector SPDR ETF offers a significantly lower expense ratio and higher dividend yield than Invesco Food & Beverage ETF. Invesco Food & Beverage ETF focuses on a narrow selection of holdings using a dynamic index strategy while the State Street fund provides broad coverage of the S&P 500 staples sector. While both funds show similar volatility profiles with betas around 0.50, the State Street fund manages $14.6 billion in assets under management (AUM) compared to $94.1 million for the Invesco fund. 10 stocks we like better than Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF ›
State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) provides broad, low-cost exposure to large-cap staples, while Invesco Food & Beverage ETF(NYSEMKT:PBJ) offers a concentrated, higher-fee strategy focused on specific food-industry metrics.
Snapshot (cost & size) MetricXLPPBJIssuerSPDRInvescoExpense ratio0.08%0.61%1-yr return (as of May 6, 2026)6.40%6.60%Dividend yield2.60%1.50%Beta0.490.50AUM$14.6 billion$94.1 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost is a major differentiator, as XLP is significantly more affordable with an expense ratio 0.53 percentage points lower than its peer. Investors looking for income could find the State Street fund more attractive, as it provides a significantly higher distribution than the Invesco fund.
Performance & risk comparison MetricXLPPBJMax drawdown (5 yr)(16.30%)(15.80%)Growth of $1,000 over 5 years (total return)$1,360$1,272
What's inside
Invesco Food & Beverage ETF holds 31 stocks and focuses on the consumer defensive sector, which accounts for 81% of the portfolio. This fund, which was launched in 2005, tracks a dynamic index that selects companies based on merits like price momentum and earnings quality. Its largest positions include Archer-Daniels-Midland(NYSE:ADM) at 5.87%, Corteva(NYSE:CTVA) at 5.43%, and Mondelez International(NASDAQ:MDLZ) at 5.06%. The Invesco fund has a trailing-12-month dividend of $0.75 per share.
State Street Consumer Staples Select Sector SPDR ETF is more concentrated by sector, with 99% of its 36 holdings in consumer defensives. Launched in 1998, it tracks the Consumer Staples Select Sector Index, providing exposure to large-cap industry leaders in the S&P 500. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter & Gamble(NYSE:PG) at 7.25%. This fund has paid $2.18 per share over the trailing 12 months.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Consumer staples surged back into favor in early 2026 as investors sought shelter from tech volatility and tariff uncertainty. Both XLP and PBJ sit within that defensive universe, but they are built very differently and serve quite different purposes.
XLP is the sector standard-bearer. It’s a straightforward, low-cost fund holding some of the largest U.S. consumer staples companies drawn from the S&P 500. Walmart, Costco, and Procter & Gamble anchor the portfolio. PBJ narrows its focus to food and beverage specifically, using a proprietary quantitative screen to select stocks based on fundamental factors rather than simply tracking an index.
The cost difference is difficult to overcome. PBJ charges nearly eight times what XLP does — a gap that demands consistent outperformance to justify, which the fund has not reliably delivered. PBJ also manages a fraction of XLP's assets, meaning liquidity and institutional backing are far thinner.
For most investors, XLP's simplicity, scale, and cost efficiency make it the more compelling choice. PBJ suits those making a deliberate, concentrated bet on food and beverage who believe the quantitative methodology can earn its premium.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF right now?
Before you buy stock in Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Invesco Exchange-Traded Fund Trust - Invesco Food & Beverage ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 10, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- XLP vs. PBJ: A Low-Cost Staples Giant Against a Concentrated Food-and-Beverage Specialist
May 10, 2026 · fool.com
Expense ratio, dividend yield, and portfolio breadth set these consumer staples ETFs apart-see how their strategies and holdings compare.
- Is It Time To Reconsider Mondelez (MDLZ) After Mixed Returns And Rich Valuation Metrics
May 10, 2026
Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE.
Wondering whether Mondelez International is attractively priced today, or if the stock is already baking in its strengths? This article focuses on what the current price really implies. The stock last closed at US$61.55, with returns of 0.3% over 7 days and 4.3% over 30 days. The year to date gain of 14.7% contrasts with a 4.2% decline over the past year and a 14.1% decline over three years. Recent headlines have continued to track Mondelez International as a global snacks group, covering topics such as brand positioning, product mix and corporate actions across its portfolio. These updates provide useful context for thinking about how the market is weighing long term demand for its products against broader sector sentiment. On Simply Wall St's 6 point valuation checklist, Mondelez International currently scores 2 out of 6. This sets the stage to compare different valuation approaches and, toward the end of the article, consider an even richer way to think about what this stock might be worth.
Mondelez International scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Mondelez International Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow (DCF) model estimates what a stock could be worth by projecting future cash flows and discounting them back to today’s dollars. It focuses on what the company may generate for shareholders over time rather than only looking at current earnings or book value.
For Mondelez International, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow stands at about $2.53b. Analyst and extrapolated projections point to free cash flow of $4.60b in 2028, with a series of estimated cash flows running out to 2035, all expressed in dollars and then discounted back to today under this framework.
Putting these cash flows together, the DCF model points to an estimated intrinsic value of about $108.56 per share, compared with the recent share price of $61.55. That implies the stock is trading at roughly a 43.3% discount to this intrinsic value, suggesting the market price is meaningfully below what this particular model indicates.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Mondelez International is undervalued by 43.3%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks.MDLZ Discounted Cash Flow as at May 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Mondelez International.
Story Continues
Approach 2: Mondelez International Price vs Earnings
For profitable companies, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings. It links directly to how quickly those earnings might grow and how predictable they are, which is often what investors focus on when deciding what feels reasonable to pay for a stock.
In general, stronger growth expectations and lower perceived risk tend to support a higher P/E, while slower growth and higher uncertainty usually align with a lower P/E. Mondelez International currently trades on a P/E of 30.3x. That sits above the Food industry average of 16.2x and the peer group average of 26.1x, so the stock is priced at a higher multiple than many of its sector peers.
Simply Wall St’s “Fair Ratio” provides another lens. It estimates what a suitable P/E could be for Mondelez International given factors such as its earnings growth profile, industry, profit margins, market cap and risk characteristics. Because it blends these company specific inputs, it can give a more tailored view than a simple comparison with peers or broad industry averages. The current Fair Ratio for Mondelez International is 25.7x, which is below the actual P/E of 30.3x, indicating the shares look overvalued on this metric.
Result: OVERVALUEDNasdaqGS:MDLZ P/E Ratio as at May 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 18 top founder-led companies.
Upgrade Your Decision Making: Choose your Mondelez International Narrative
Earlier it was mentioned that there is an even better way to think about valuation. Consider Narratives, which let you set out your own story about Mondelez International, link that story to assumptions for future revenue, earnings and margins, and then turn those into a Fair Value that you can easily compare with the current share price on Simply Wall St’s Community page. This is where millions of investors share views, and where Narratives are updated automatically as new data like news or earnings arrives. One investor might build a Narrative closer to the higher analyst fair value of about US$75.00 if they think cocoa cost pressures and demand risks are manageable. Another might lean toward the lower end near US$55.00 if they place more weight on margin pressures and softer volumes. This gives you a clear way to see which story you agree with and whether the current price looks attractive or stretched against your own Fair Value range.
Do you think there's more to the story for Mondelez International? Head over to our Community to see what others are saying!NasdaqGS:MDLZ 1-Year Stock Price Chart
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.
Companies discussed in this article include MDLZ.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Zacks Industry Outlook Highlights Mondelez, McCormick, Post Holdings and The Chefs' Warehouse
May 8, 2026
For Immediate Release
Chicago, IL – May 8, 2026 – Today, Zacks Equity Research discusses Mondelez International, Inc. MDLZ, McCormick & Co. MKC, Post Holdings, Inc. POST and The Chefs' Warehouse, Inc. CHEF.
Industry: Food
Link: https://www.zacks.com/commentary/2917066/4-miscellaneous-food-stocks-worth-watching-amid-industry-challenges
The Zacks Food-Miscellaneous industry is facing a challenging environment as persistent inflation and elevated living costs continue to pressure consumer spending. Increasing demand for value-oriented products and private-label alternatives, along with softer foodservice trends, are weighing on sales volumes and pricing flexibility across the sector.
Despite these headwinds, food companies are focusing on operational efficiencies, product innovation and portfolio optimization to drive long-term growth. Industry leaders such as Mondelez International, Inc., McCormick & Co., Post Holdings, Inc. and The Chefs' Warehouse, Inc. are leveraging strong brands, strategic investments and evolving product offerings to strengthen their market positions.
About the Industry
The Zacks Food-Miscellaneous industry consists of companies that manufacture and sell a wide range of food and packaged food items, such as cereals, flour, sauces, bakery items, spices and condiments, natural and organic food items and frozen products. Some companies also provide comfort food items, such as chocolates and ready-to-serve meals, soups and snacks. A few players are engaged in providing pet food products and supplements.
Several food companies also offer organic and natural products. Companies operating in this space sell their products mainly through wholesalers, distributors, large retail organizations, grocery chains, mass merchandisers, drug stores and e-commerce service providers. Some also cater to foodservice channels, including restaurants, cafes and hotels. Others offer services to schools, hospitals and industry caterers.
Major Trends Shaping the Future of the Food Industry
Value-Conscious Consumer Behavior Pressures Demand: Consumer spending patterns remain pressured, with shoppers increasingly prioritizing value and affordability in everyday food purchases. Elevated living costs have accelerated the shift toward private-label and lower-priced alternatives, creating volume pressure for branded food manufacturers. Foodservice demand has also remained uneven as consumers moderate dining frequency and favor at-home consumption trends. These dynamics have intensified promotional activity and competition across categories, weighing on organic volume growth and limiting pricing flexibility for several industry participants.
Story Continues
Persistent Cost Inflation Pressures Margins: Food companies continue to face elevated costs across raw materials, labor, packaging and transportation. Although prior pricing actions have provided partial relief, margin recovery remains uneven amid ongoing cost volatility. At the same time, companies are investing in supply-chain resilience, automation, manufacturing upgrades and operational efficiencies to strengthen long-term competitiveness. While strategically important, these initiatives have added near-term cost pressure, making profitability increasingly dependent on productivity gains, execution and disciplined expense management.
Health and Wellness Trends Drive Portfolio Innovation: Growing demand for health-focused, functional and premium food products continues to create long-term growth opportunities across the industry. Consumers remain increasingly drawn toward brands offering cleaner labels, nutritional benefits and convenience-oriented innovation.
In response, companies are modernizing portfolios through product innovation, reformulation initiatives and expansion into emerging consumption categories. These efforts are helping strengthen brand relevance, support pricing resilience and position companies for more sustainable long-term growth within the Food-Miscellaneous industry.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Food-Miscellaneous industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #201, which places it in the bottom 18% of more than 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence about this group’s earnings growth potential. Since the beginning of February 2026, the industry’s consensus earnings estimate for the current financial year has declined 4.9%.
Let’s take a look at the industry’s performance and current valuation.
Industry vs. Broader Market
The Zacks Food-Miscellaneous industry has underperformed the S&P 500 and the broader Zacks Consumer Staples sector over the past year.
The industry has declined 23.5% over this period against the S&P 500’s growth of 34.2%. Meanwhile, the broader sector has declined 1.8% in the said time frame.
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staples stocks, the industry is currently trading at 13.84X compared with the S&P 500’s 21.83X and the sector’s 16.74X.
Over the past five years, the industry has traded as high as 20.77X and as low as 13.84X, with the median being at 16.77X.
4 Food Stocks to Keep a Close Eye On
Chefs' Warehouse: This Zacks Rank #1 (Strong Buy) company is a leading specialty food distributor serving chefs, fine-dining restaurants, hotels and catering businesses across North America and select international markets. The company continues to benefit from strong demand for premium specialty ingredients, center-of-the-plate products and value-added foodservice offerings.
Chefs’ Warehouse is leveraging investments in infrastructure, technology and salesforce expansion to drive market-share gains and customer penetration. Its diversified product portfolio, strategic pricing initiatives and focus on operational efficiencies continue to support profitability growth. The company also remains focused on disciplined expansion and selective acquisition opportunities to strengthen its long-term growth platform. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year earnings per share (EPS) has risen 8.7% to $2.37 in the past seven days. Shares of Chefs' Warehouse have rallied 28.4% over the past year.
Post Holdings: This Zacks Rank #2 (Buy) company has made notable strides through strategic acquisitions, including Perfection Pet Foods and Deeside Cereals, strengthening its presence in the pet food and cereal categories. Backed by an expanding distribution footprint and a favorable product mix, the Foodservice segment continues to serve as an important growth driver for Post Holdings. The company also benefits from pricing initiatives and operational efficiencies aimed at mitigating input-cost inflation.
The Zacks Consensus Estimate for POST’s current fiscal-year EPS has remained unchanged at $7.24 over the past seven days. Shares of Post Holdings have declined 6.4% over the past year.
Mondelez: This Zacks Rank #3 (Hold) company is a global snacking powerhouse with a strong portfolio of iconic brands, including Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop, along with premium chocolate brands such as Cadbury Dairy Milk, Milka and Toblerone. Mondelez continues to drive growth through its core categories, including chocolate, biscuits and baked snacks.
Strategic portfolio optimization, product innovation and strong brand activations remain key contributors to the company’s long-term growth strategy. Mondelez is also focused on enhancing brand relevance, improving operational efficiency and maintaining disciplined cost management to support profitability. In addition, the company continues to expand its presence in better-for-you and wellness-oriented snacking categories to address evolving consumer preferences.
The Zacks Consensus Estimate for Mondelez’s current financial-year EPS has risen 0.7% to $3.06 in the past seven days. Shares of MDLZ have fallen 8% in the past year.
McCormick: The company is a global leader in flavor, engaged in the manufacturing, marketing and distribution of herbs, spices, seasonings, condiments and flavor solutions. It currently carries a Zacks Rank #3 (Hold). McCormick continues to strengthen its market position through innovation, brand investments and expanded distribution capabilities across key global markets.
The company benefits from multiple growth drivers, including product and packaging innovation, category management initiatives and advanced R&D capabilities. MKC’s ability to generate growth through higher volumes, alongside strategic brand support, reflects the strong consumer appeal of its diversified portfolio. McCormick’s Comprehensive Continuous Improvement program also remains a key driver of productivity gains, operational efficiencies and margin expansion.
The Zacks Consensus Estimate for MKC’s current financial-year EPS has remained unchanged at $3.09 over the past seven days. Shares of McCormick have dropped 36.4% in the past year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report
Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- 4 Miscellaneous Food Stocks Worth Watching Amid Industry Challenges
May 7, 2026
The Zacks Food-Miscellaneous industry is facing a challenging environment as persistent inflation and elevated living costs continue to pressure consumer spending. Increasing demand for value-oriented products and private-label alternatives, along with softer foodservice trends, are weighing on sales volumes and pricing flexibility across the sector.
Despite these headwinds, food companies are focusing on operational efficiencies, product innovation and portfolio optimization to drive long-term growth. Industry leaders such as Mondelez International, Inc. MDLZ, McCormick & Company MKC, Post Holdings, Inc. POST and The Chefs' Warehouse, Inc. CHEF are leveraging strong brands, strategic investments and evolving product offerings to strengthen their market positions.
About the Industry
The Zacks Food-Miscellaneous industry consists of companies that manufacture and sell a wide range of food and packaged food items, such as cereals, flour, sauces, bakery items, spices and condiments, natural and organic food items and frozen products. Some companies also provide comfort food items, such as chocolates and ready-to-serve meals, soups and snacks. A few players are engaged in providing pet food products and supplements. Several food companies also offer organic and natural products. Companies operating in this space sell their products mainly through wholesalers, distributors, large retail organizations, grocery chains, mass merchandisers, drug stores and e-commerce service providers. Some also cater to foodservice channels, including restaurants, cafes and hotels. Others offer services to schools, hospitals and industry caterers.
Major Trends Shaping the Future of the Food Industry
Value-Conscious Consumer Behavior Pressures Demand: Consumer spending patterns remain pressured, with shoppers increasingly prioritizing value and affordability in everyday food purchases. Elevated living costs have accelerated the shift toward private-label and lower-priced alternatives, creating volume pressure for branded food manufacturers. Foodservice demand has also remained uneven as consumers moderate dining frequency and favor at-home consumption trends. These dynamics have intensified promotional activity and competition across categories, weighing on organic volume growth and limiting pricing flexibility for several industry participants.
Persistent Cost Inflation Pressures Margins: Food companies continue to face elevated costs across raw materials, labor, packaging and transportation. Although prior pricing actions have provided partial relief, margin recovery remains uneven amid ongoing cost volatility. At the same time, companies are investing in supply-chain resilience, automation, manufacturing upgrades and operational efficiencies to strengthen long-term competitiveness. While strategically important, these initiatives have added near-term cost pressure, making profitability increasingly dependent on productivity gains, execution and disciplined expense management.
Story Continues
Health and Wellness Trends Drive Portfolio Innovation: Growing demand for health-focused, functional and premium food products continues to create long-term growth opportunities across the industry. Consumers remain increasingly drawn toward brands offering cleaner labels, nutritional benefits and convenience-oriented innovation. In response, companies are modernizing portfolios through product innovation, reformulation initiatives and expansion into emerging consumption categories. These efforts are helping strengthen brand relevance, support pricing resilience and position companies for more sustainable long-term growth within the Food-Miscellaneous industry.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Food-Miscellaneous industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #201, which places it in the bottom 18% of more than 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence about this group’s earnings growth potential. Since the beginning of February 2026, the industry’s consensus earnings estimate for the current financial year has declined 4.9%.
Let’s take a look at the industry’s performance and current valuation.
Industry vs. Broader Market
The Zacks Food-Miscellaneous industry has underperformed the S&P 500 and the broader Zacks Consumer Staples sector over the past year.
The industry has declined 23.5% over this period against the S&P 500’s growth of 34.2%. Meanwhile, the broader sector has declined 1.8% in the said time frame.
One-Year Price Performance
Industry's Current Valuation
On the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staples stocks, the industry is currently trading at 13.84X compared with the S&P 500’s 21.83X and the sector’s 16.74X.
Over the past five years, the industry has traded as high as 20.77X and as low as 13.84X, with the median being at 16.77X, as the chart below shows.
Price-to-Earnings Ratio (Past 5 Years)
4 Food Stocks to Keep a Close Eye On
Chefs' Warehouse: This Zacks Rank #1 (Strong Buy) company is a leading specialty food distributor serving chefs, fine-dining restaurants, hotels and catering businesses across North America and select international markets. The company continues to benefit from strong demand for premium specialty ingredients, center-of-the-plate products and value-added foodservice offerings. Chefs’ Warehouse is leveraging investments in infrastructure, technology and salesforce expansion to drive market-share gains and customer penetration. Its diversified product portfolio, strategic pricing initiatives and focus on operational efficiencies continue to support profitability growth. The company also remains focused on disciplined expansion and selective acquisition opportunities to strengthen its long-term growth platform. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year earnings per share (EPS) has risen 8.7% to $2.37 in the past seven days. Shares of Chefs' Warehouse have rallied 28.4% over the past year.
Price and Consensus: CHEF
Post Holdings: This Zacks Rank #2 (Buy) company has made notable strides through strategic acquisitions, including Perfection Pet Foods and Deeside Cereals, strengthening its presence in the pet food and cereal categories. Backed by an expanding distribution footprint and a favorable product mix, the Foodservice segment continues to serve as an important growth driver for Post Holdings. The company also benefits from pricing initiatives and operational efficiencies aimed at mitigating input-cost inflation.
The Zacks Consensus Estimate for POST’s current fiscal-year EPS has remained unchanged at $7.24 over the past seven days. Shares of Post Holdings have declined 6.4% over the past year.
Price and Consensus: POST
Mondelez: This Zacks Rank #3 (Hold) company is a global snacking powerhouse with a strong portfolio of iconic brands, including Oreo, Ritz, LU, Clif Bar and Tate’s Bake Shop, along with premium chocolate brands such as Cadbury Dairy Milk, Milka and Toblerone. Mondelez continues to drive growth through its core categories, including chocolate, biscuits and baked snacks. Strategic portfolio optimization, product innovation and strong brand activations remain key contributors to the company’s long-term growth strategy. Mondelez is also focused on enhancing brand relevance, improving operational efficiency and maintaining disciplined cost management to support profitability. In addition, the company continues to expand its presence in better-for-you and wellness-oriented snacking categories to address evolving consumer preferences.
The Zacks Consensus Estimate for Mondelez’s current financial-year EPS has risen 0.7% to $3.06 in the past seven days. Shares of MDLZ have fallen 8% in the past year.
Price and Consensus: MDLZ
McCormick: The company is a global leader in flavor, engaged in the manufacturing, marketing and distribution of herbs, spices, seasonings, condiments and flavor solutions. It currently carries a Zacks Rank #3 (Hold). McCormick continues to strengthen its market position through innovation, brand investments and expanded distribution capabilities across key global markets. The company benefits from multiple growth drivers, including product and packaging innovation, category management initiatives and advanced R&D capabilities. MKC’s ability to generate growth through higher volumes, alongside strategic brand support, reflects the strong consumer appeal of its diversified portfolio. McCormick’s Comprehensive Continuous Improvement program also remains a key driver of productivity gains, operational efficiencies and margin expansion.
The Zacks Consensus Estimate for MKC’s current financial-year EPS has remained unchanged at $3.09 over the past seven days. Shares of McCormick have dropped 36.4% in the past year.
Price and Consensus: MKC
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Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report
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Post Holdings, Inc. (POST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- 4 Miscellaneous Food Stocks Worth Watching Amid Industry Challenges
May 7, 2026 · zacks.com
MDLZ, MKC, POST and CHEF navigate industry headwinds through innovation, cost controls and portfolio strategies amid cautious consumer spending.
- 3 Monster Dividend Stocks to Hold for the Next 20 Years
May 5, 2026
While calling their performance a "renaissance" might be a modest dose of hyperbole, in broad terms, dividend stocks are off to strong starts in 2026. The emphasis is on "broad" because performances aren't uniform in this corner of the equity market, even for blue chip dividend stocks.
What's noteworthy about this year's dividend-equity resurgence is that it has largely been driven by higher-yield groups, such as consumer staples, utilities, and oil dividend stocks. High-dividend leadership doesn't imply that payout growth is out of style. Actually, dependable dividend growth is always fashionable, because it's how patient income investors garner long-term rewards.
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If you're an income investor seeking stocks that offer a combination of dependability, familiarity, and value, you may find much to like in the consumer discretionary and consumer staples sectors. Here are three names to consider that could serve as bedrocks of a dividend portfolio over the next 20 years.
Treat yourself to a steadily rising dividend with Domino's
In news that was the opposite of biting into a fresh, warm piece of baked dough, Domino's Pizza(NASDAQ: DPZ) reported disappointing first-quarter results last week, sending the stock tumbling and contributing to its year-to-date decline of 19%. A year-long slide in the stock, one of Warren Buffett's final additions to the Berkshire Hathaway equity portfolio, has the pizza chain's shares sporting a forward price-to-earnings (P/E) ratio of about 17 -- its lowest in three years. That may be a signal that Domino's is now a value stock.
What's not up for debate is Domino's perch among a small number of stocks with moatlike traits and its ability to raise its dividend by double-digit percentages. It did just that again in February, boosting its payout by 15% and extending its dividend-hiking streak to 14 consecutive years.
Mondelez is marvelous in the dividend department
Up 14% year to date, Mondelez International(NASDAQ: MDLZ), maker of Ritz crackers, is one of this year's juggernauts among large-cap consumer staples stocks. Speaking of the number 14, that's also the length in years of Mondelez's dividend-boosting streak. At current share prices, the stock now yields around 3.3%, triple the average for the S&P 500 index.
Story Continues
Mondelez's dividend growth is a positive sign for long-term investors, but there are near-term considerations. In the first quarter, the company did gain market share in some segments. But management also acknowledged that U.S. consumer confidence is low, due in part to the Iran war and its impacts on the economy. That may be a sign that this consumer staples stock, though already flying high this year, could benefit from an end to the conflict.
Looking further out, some experts see Mondelez generating free cash flow (FCF) equivalent to 13% of sales over the long term, which could support dividend growth in the high single-digit percentages over the next decade.
Campbell's is one for the risk-takers
Typically, income investors head to the consumer staples sector when they're looking to avoid risk, but that strategy doesn't apply to every stock in it. Campbell's(NASDAQ: CPB) stock is down more than 25% so far this year.
That might make investors squeamish, and rightfully so. But if you can handle the risk, Campbell's may be a compelling value play; some market observers view its shares as deeply discounted, and its dividend at the current share price yields 7.5%.
Moreover, the company has dramatically altered its product lineup to reduce its dependence on the slow-growth soup segment. It's even leveraging technology, including artificial intelligence, to keep up with shifting consumer tastes, showing that even 150-year-old companies can try to evolve with the times. But you may need to wait a while for those efforts to be reflected in the share price.
Regarding the dividend, Campbell's payout-increase streak is just two years long, and its payout ratio of 85.3% is high.That doesn't necessarily mean a cut or suspension is in the offing. Still, if a negative event like that does materialize, it would be all the incentive that many investors would need to convince them to take their dividend-hunting business elsewhere.
On the bright side, Campbell's has paid a dividend for 51 straight years. It's possible that management recognizes the payout as an important selling point for would-be shareholders, at least until product-portfolio changes and tech commitments bear more fruit.
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Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Domino's Pizza. The Motley Fool recommends Campbell's. The Motley Fool has a disclosure policy.
3 Monster Dividend Stocks to Hold for the Next 20 Years was originally published by The Motley Fool
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