The coffee energy is a complex and multilayered one, including everything from producers and distributors to processors, wholesalers, and retailers. Notable names in the coffee business include Starbucks Corp. (SBUX), J.M. Smucker Co. (SJM), and Restaurant Brands International Inc. (QSR). There is no single sector or ETF for the coffee enterprise, and coffee-related stocks can be found both in the consumer discretionary and consumer staples sectors. In general, retailers and coffee shops are part of of the consumer discretionary group, and producers and packaged food companies are part of the consumer staples group.
The consumer basics sector has underperformed the consumer discretionary sector, which has slightly underperformed the broader market. The Consumer Staples Finest Sector SPDR ETF (XLP) has posted a 19.2% total return, while the Consumer Discretionary Select Sector SPDR ETF (XLY) has made a total return of 21.4%. By comparison, the Russell 1000 has risen 21.9%. These market performance numbers and all statistics in the boards below are as of Jan. 7, 2022.
Here are the top 3 coffee stocks with the best value, the fastest growth, and the most momentum.
These are the coffee stereotypes with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E correspondence shows you’re paying less for each dollar of profit generated.
|Best Value Coffee Stocks|
|Price ($)||Supermarket Cap ($B)||12-Month Trailing P/E Ratio|
|J.M. Smucker Co. (SJM)||143.35||15.5||20.5|
|Restaurant Brands International Inc. (QSR)||58.30||18.4||24.1|
|Starbucks Corp. (SBUX)||107.57||126.2||30.3|
- J.M. Smucker Co.: J.M. Smucker, a consumer habituals stock, manufactures food products for global sale. It is best known for its fruit spreads, peanut butters, and shortenings and lubricants. The company announced in mid-December that it has agreed to sell its natural and organic beverage and grains businesses to Nexus Choice Management LP for approximately $110 million. The transaction is expected to close in Q3 of the company’s 2022 fiscal year (FY). Two weeks earlier, J.M. Smucker circulated that it had sold its private label dry pet food business to Diamond Pet Foods Inc. for approximately $33 million.
- Restaurant Types International Inc.: Part of the consumer discretionary sector, Restaurant Brands International is a Canada-based holding company born out of the 2014 fusing of Burger King and Tim Hortons, one of the largest coffee shop and restaurant chains in Canada. The company also owns Popeyes, the Louisiana fried chicken franchise. The companions announced in mid-December that it has completed its acquisition of Firehouse Restaurant Group Inc., a restaurant chain doing business supervised the name Firehouse Subs, for $1.0 billion.
- Starbucks Corp.: Starbucks is a consumer discretionary stock. It retails, roasts, and tell ons its own brand of specialty coffee. The company operates retail locations throughout the world and sells whole bean coffee including various channels. Starbucks also offers other beverages, food, and a focused selection of merchandise. On Jan. 10, 2022, the National Labor Narrations Board (NLRB) approved a union vote conducted last month by employees of a Starbucks location in Buffalo, NY. The go along with of the vote means that the store becomes the second Starbucks location in the U.S. to unionize. Starbucks has 10 days to trial the decision made by the NLRB.
These are the top coffee stocks as ranked by a growth model that scores companies based on a 50/50 power of their most recent quarterly YOY percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) intumescence. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric rearranges a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other conformation unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Increase Coffee Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Starbucks Corp. (SBUX)||107.57||126.2||351.5||31.3|
|Restaurant Brands Ecumenical Inc. (QSR)||58.30||18.4||48.9||11.8|
|Keurig Dr. Pepper Inc. (KDP)||37.30||52.9||19.4||7.6|
- Starbucks Corp.: See above for company description.
- Restaurant Brands International Inc.: See overhead for company description.
- Keurig Dr. Pepper Inc.: Keurig Dr. Pepper is a consumer staples company that makes and distributes non-alcoholic beverage spin-offs including coffee. The company serves customers throughout North America.
These are the coffee stocks that had the highest total number return over the last 12 months.
|Coffee Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Totality Return (%)|
|J.M. Smucker Co. (SJM)||143.35||15.5||26.4|
|Nestlé SA (NSRGY)||135.31||372.2||20.4|
|Keurig Dr. Pepper Inc. (KDP)||37.30||52.9||19.7|
|Consumer Staples Select Sector SPDR ETF (XLP)||N/A||N/A||19.2|
|Consumer Discretionary Choose Sector SPDR ETF(XLY)||N/A||N/A||21.4|
- J.M. Smucker Co.: See above for company description.
- Nestlé SA: Consumer staples stock Snuggle up is a Switzerland-based multinational packaged food company offering a wide variety of products ranging from baby prog and bottled water to dairy products, frozen food, coffee, and more. The company announced at the end of December that it has achieved the share repurchase program that began on Jan. 3, 2020. It said that it would start its new, previously announced, apportionment buyback program on Jan. 3, 2022 under which it is authorized to repurchase up to CHF 20 billion ($22 billion) worth of parts by the end of 2024.
- Keurig Dr. Pepper Inc.: See above for company description.
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