SYY: 3 Innovative Food Companies Reinventing Nutrition

Innovative food companies are reshaping the nutrition landscape by addressing modern consumer demands for healthier, sustainable, and convenient options. From plant-based alternatives to lab-grown meats, these advancements aim to reduce environmental impact while catering to health-conscious consumers.

Amid this backdrop, it might be wise to consider investing in three innovative food companies that cater to health-conscious consumers: Tyson Foods, Inc. (TSN), Sysco Corporation (SYY), and Ingredion Incorporated (INGR) for potential gains.

The modern consumer is increasingly prioritizing health, sustainability, and transparency. Innovative food companies are responding by offering clean-label products, reducing sugar and sodium content, and using eco-friendly packaging.

Consumers are becoming mindful of their dietary choices, leading to an increase in demand that has resulted in job creation and economic growth, benefiting both the local and global economy. This alignment with consumer values is a major driver of growth in the sector.

Moreover, technology is a critical enabler in this transformation as well. Advanced food processing techniques, artificial intelligence, and biotechnology are helping companies create products that are not only nutritious but also enhancing sustainability and reducing environmental impact. Through improved yield, reduced waste, enhanced quality control, and greater resource efficiency, technology is helping producers embrace a more sustainable and efficient future.

According to Statista, revenue in the food market for the United States is projected to reach $864 billion in 2025 and grow at a CAGR of 4.1% until 2029. The future of nutrition lies in personalized and functional foods that cater to individual health goals.

Given this favorable backdrop, let’s take a closer look at the fundamentals of the three featured Food Makers stocks, beginning with the third choice.

Stock #3: Tyson Foods, Inc. (TSN)

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TSN is a global food company and has a portfolio of iconic products and brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and ibp. The company operates through four segments: Beef; Pork; Chicken; and Prepared Foods.

On November 8, buoyed by strong financial performance, the company declared its quarterly dividend of $0.50 per share to its shareholders, payable on March 14, 2025, to shareholders of record on February 28, 2025.

TSN pays an annual dividend of $2, which translates to a yield of 3.52% at the current share price. Its four-year average dividend yield is 2.88%. Moreover, the company’s dividend payouts have increased at an impressive CAGR of 4.9% over the past five years.

In the fiscal fourth quarter that ended on September 28, 2024, TSN’s sales increased marginally year-over-year to $13.57 billion. Its operating income came in at $364 million compared to the year-ago net loss of $443 million. TSN’s non-GAAP net income stood at $329 billion, up 147.4% year-over-year, while its non-GAAP EPS grew 148.6% from the year-ago value to $0.92.

Street expects TSN’s revenue for the fiscal first quarter (ended December 2024) to increase marginally year-over-year to $13.50 billion. Its EPS for the same period is expected to register a 25.4% growth from the prior year, settling at $0.87. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters, which is promising.

The stock has gained 3.2% over the past year to close the last trading session at $56.66.

TSN’s POWR Ratings reflect this robust outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

TSN has an A grade for Growth and a B for Value. It is ranked #16 out of the 74 stocks in the B-rated Food Makers industry. Click here to see the additional ratings for TSN (Momentum, Stability, Sentiment, and Quality).

Stock #2: Sysco Corporation (SYY)

SYY sells, markets, and distributes food products to restaurants, healthcare and educational facilities, lodging establishments, and other customers who prepare meals away from home globally. It operates through four segments: U.S. Foodservice Operations; International Foodservice Operations; SYGMA; and Other.

On December 18, SYY announced a new partnership with Square to help restaurants of all sizes succeed and work smarter through powerful technology. This partnership allows customers to receive a compelling processing fee rebate and hardware credits when enrolling through SYY, which will save the business time with its easy-to-use technology.

On November 15, demonstrating its commitment to returning value to shareholders, the company announced a quarterly dividend of $0.51 per share, payable to its shareholders on January 24, 2025. SYY pays an annual dividend of $2.04 per share, which translates to a yield of 2.73% on the prevailing share price. The company’s dividend payouts have increased at an impressive CAGR of 4.6 % over the past five years. Also, its four-year average dividend yield is 2.50%.

For the fiscal 2025 first quarter that ended on September 28, 2024, SYY’s sales increased 4.4% year-over-year to $20.48 billion. The company’s non-GAAP operating income rose 2.2% from the prior year’s quarter to $873 million. SYY’s non-GAAP net earnings came in at $540 million, and its non-GAAP EPS grew marginally from the year-ago value to $1.39.

Analysts expect SYY’s revenue for the second quarter (ended December 2024) to increase 4.3% year-over-year to $20.11 billion, while its EPS for the same quarter is expected to grow 3.7% from the prior year to $0.92. Moreover, the company has surpassed the consensus EPS estimates in three of the trailing four quarters.

SYY shares have surged 8% over the past six months to close the last trading session at $75.34.

SYY’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It also has a B grade for Value and Stability. Within the same B-rated industry, it is ranked #12 out of 74 stocks. Click here to see SYY’s ratings for Growth, Momentum, Sentiment, and Quality.

Stock #1: Ingredion Incorporated (INGR)

INGR is a leading provider of ingredient solutions for food, beverage, and industrial applications that manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from wet milling and processing corn and other starch-based materials to a range of industries internationally.

On December 13, the company announced a quarterly dividend of $0.80 per share, payable to its shareholders on January 21, 2025. TSN pays an annual dividend of $3.20 per share, which translates to a yield of 2.39% on the prevailing share price. The company’s dividend payouts have increased at an impressive CAGR of 6.9% over the past three years. Also, its four-year average dividend yield is 2.75%.

On November 14, INGR announced a new long-term collaboration with Lantmännen, an agricultural cooperative and Northern Europe’s leading player in agriculture, bioenergy, food, and ingredients, to accelerate the development of high-quality plant-based proteins in the European market. This strategic partnership will help INGR to expand its global footprint in the European market.

During the third quarter that ended on September 30, INGR’s net sales amounted to $1.87 billion. It posted a gross profit of $479 million, indicating a 13.8% increase from the prior-year quarter.

The company’s non-GAAP operating income rose 28.8% from the year-ago value to $282 million. In addition, INGR’s attributable non-GAAP net income stood at $203 million, up 30.1% year-over-year, while its non-GAAP earnings per share grew 30.9% from the year-ago value to $3.05.

The consensus revenue estimate of $1.96 billion for the fiscal first quarter (ending March 2025) represents a 4.2% increase year-over-year. The consensus EPS estimate of $2.66 for the same quarter indicates a 27.9% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.

Over the past year, the stock has surged 26.5%, closing the last trading session at $134.62.

INGR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

INGR has a B grade for Value, Sentiment, and Quality. It is ranked #2 in the Food Makers industry. Click here to see the additional ratings for INGR (Growth, Momentum, and Stability).

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SYY shares were trading at $74.50 per share on Tuesday afternoon, down $0.24 (-0.32%). Year-to-date, SYY has declined -1.90%, versus a 0.29% rise in the benchmark S&P 500 index during the same period.