The recent droughts throughout the Midwest have brought much angst to farmers, and Americans are becoming increasingly concerned that a decrease in the supply will bring on imminent increases in food prices.
In the most recent report regarding the price of food, it states that prices went up during the month of June after a falloff in May. Many analysts expected prices to continue to fall, but since the drought began it appears that downward trend has been halted.
The increase in overall food price of 0.1 percent seemed to have been driven mostly by an increase of over three percent for the price of meat. June’s increase in food prices was the largest increase since November 2011.
Business Section: Investment Ideas
Will food prices continue to increase, or is the most recent report just a blip on the radar screen? With the drought throughout much of the country significantly stunting the growth of corn during this most important season, it is certainly possibly that shortages will develop over the next couple months. What food producers choose to do with this price increase, either internalize it or pass it along to the consumers, remains to be seen.
Listed below are five major food wholesale companies in the United States worth keeping an eye on as prices fluctuate.
Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:
1. Chefs’ Warehouse Holdings LLC (CHEF, Earnings, Analysts, Financials): Engages in the distribution of specialty food products in the United States. Market cap at $375.1M, most recent closing price at $17.93.
3. Spartan Stores Inc. (SPTN, Earnings, Analysts, Financials): Operates as a grocery distributor and grocery retailer principally in Michigan and Indiana. Market cap at $399.96M, most recent closing price at $18.33.
5. United Natural Foods, Inc. (UNFI, Earnings, Analysts, Financials): Distributes natural, organic, and specialty foods, as well as non-food products in the United States. Market cap at $2.68B, most recent closing price at $54.78.
4. Sysco Corp. (SYY, Earnings, Analysts, Financials): Distributes food and related products primarily to the foodservice or food-away-from-home industry in North America and Europe. Market cap at $16.81B, most recent closing price at $28.69.
Written by Dan Connelly
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- Chefs’ Warehouse Holdings LLC (CHEF, Chart, Download SEC Filings)
- Nash Finch Co. (NAFC, Chart, Download SEC Filings)
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- United Natural Foods, Inc. (UNFI, Chart, Download SEC Filings)
- Sysco Corp. (SYY, Chart, Download SEC Filings)
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