It’s no secret that the pandemic has shifted the way we conduct our daily lives. How we work and play has been completely upended. With more people staying home, one of the biggest changes has been in the food we consume. These days, we’re making more at-home-meals rather than going out to eat. For the purveyors of food and baking supplies, this has been a godsend.
That’s included our pick in the confectionary sector.
Our pick has been able to see rising revenues from home baking needs. As one of the largest producers of chocolate and baking products, our pick saw its earnings grow by 8% last year on the strength of its baking businesses. Strong snack food sales also helped spur higher profits for the pandemic. The best part is our pick continues to see rising success as the pandemic ends and many of the shifts created during COVID-19 persist.
Recent surveys have shown that despite the reopening of the economy, more than 60% of Americans plan to make more meals at home rather than dine out. With our pick continuing to lead in its various product categories, this provides an interesting runway for continued growth – as does its overall product mix. With a focus on new organic and natural products and candies, our pick has the goods to take advantage of new consumer trends in the marketplace.
Meanwhile, our pick has gone high-tech. New technology upgrades for manufacturing, analytics and even sales through eCommerce means have provided an extra avenue for growth. Our pick is now technology-focused, and it’s already paying benefits. The firm features one of the best gross margins in the packaged food industry, which has only driven profitability even more.
In the end, our pick continues to be supported by changes made during and after the pandemic – all of which are benefiting investors through higher cash flows and dividends.
To summarize, here are five reasons why you should own this stock:
- One of the largest manufacturers of chocolate, candy and other treats, with several leading brands under its umbrella.
- Huge moat and recession-resistant nature with a high-margined operating consumer niche.
- Earnings per share jumped by more than 15% year-over-year in the latest reported quarter.
- Continued winner in the stay/work-from-home future, with a large product portfolio for home chefs.
- Healthy payout ratio of 46% and growing yield of 1.94%.
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