Domino’s Pizza (DPZ): A Top Food Stock Pick for Hedge Funds

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We recently published a list of 10 Best Food Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Domino’s Pizza, Inc. (NYSE:DPZ) stands against other best food stocks to buy according to hedge funds.

The food industry covers a wide range of businesses, including grocery stores, manufacturers, and non-alcoholic beverage companies. Many food-related stocks are classified as consumer staples, making them relatively resilient to economic downturns.

The food sector is among the world’s steadily growing industries. A report by Fortune Business Insights revealed that the global foodservice market was valued at $3.24 trillion in 2023 and is projected to nearly double to $6.35 trillion by 2032. This growth reflects a compound annual growth rate (CAGR) of over 7.5%.

The United States is a major player in this market, with its food service sector projected to reach $1.77 trillion by 2030. This significant growth can be attributed to the increasing popularity of fast food chains and a growing consumer appetite for convenient, on-the-go meals.

Emerging Trends in the Food Sector

Automation and digitalization are shaping the food industry in 2024, particularly in the restaurant and retail sectors. Due to labor shortages, a strategic approach to scalability in this industry involves a combination of human workforce and automation. With ongoing challenges like workforce gaps and inflation, these sectors are relying more on solutions such as self-checkout systems and AI-driven recommendations.

Upskilling initiatives, data-driven insights, and automation are helping businesses in the food industry improve efficiency and drive growth. The food industry automation market is expected to grow significantly, with projections estimating its value to reach $113.9 billion by 2031, reflecting a compound annual growth rate of 11%.

Companies in the food industry are also adjusting to changing consumer preferences by offering more healthy options and expanding into new markets. They’ve responded to the rise in demand for plant-based and organic products by introducing innovative new items to meet these evolving tastes.

READ ALSO: 7 Best Organic Food and Farming Stocks to Buy and 15 Largest Food Companies in the World by Market Cap.

Food Sector’s Resilience: Why It Remains a Strong Investment Choice?

Despite the potential challenge posed by the rise of weight-loss drugs, analysts remain confident in the long-term prospects of food companies. The food sector is considered a stable and dependable investment due to its consistent demand and resilience during economic downturns.

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