With increasing demand amid a growing worldwide population and rising prevalence of online food ordering, mobile apps, and user-friendly interfaces, the food maker sector is well-poised for considerable growth in the foreseeable years. Moreover, the growing adoption of digital technologies in the food industry is advancing the sector and providing new possibilities.

Given the industry’s promising outlook, it could be wise to consider quality food innovations stocks Tyson Foods, Inc. (TSN), Ingredion Incorporated (INGR), and Oatly Group AB (OTLY), which are revolutionizing the food industry future with disruptive tech.

The U.S. food maker industry is massive and is continuously expanding owing to the rapidly growing population and increasing trends of dining out and online deliveries. Along with this, technology is making a significant contribution to the revolution of the food market with innovations like AI. According to Statista, value added in the food market is projected to reach around $219 billion in 2025.

Also, a food choices shift has recently been observed in the market, with consumers preferring healthier options over indulgences or traditional products. This is driving the demand for organic, plant-based, and functional foods with clean labels, low sugar, and added nutrients. Companies are also rapidly attempting to adapt to the evolving trends and cater to the demand.

Besides, as the food industry is leaning towards innovations like agricultural biotech, personalized nutrition, molecular farming, and fermentation to achieve sustainability, convenience, and efficiency, organizations are increasingly engaging the latest technologies to achieve the same.

This has boosted the prospects of the global food technology market. The market is projected to grow at a CAGR of 8.2%, resulting in a market value of $460.40 billion by 2034, driven by key trends like food automation, AI-powered solutions, and smart packaging solutions.

Given the industry’s bright prospects, fundamentally strong food innovation stocks TSN, INGR, and OTLY could be ideal additions for potential gains.

Let’s discuss the fundamentals of these stocks in detail:

Tyson Foods, Inc. (TSN)

TSN operates as a food company globally. The company operates through four segments: Beef; Pork; Chicken; and Prepared Foods. It processes live-fed cattle and hogs and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, case-ready beef and pork, and fully cooked meats.

On November 8, 2024, TSN 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 3.44% at the current share price. Its four-year average dividend yield is 2.89%. Also, the company’s dividend payouts have increased at a CAGR of 5% over the past five years. TSN has raised its dividends for 13 consecutive years.

During the fourth quarter that ended September 28, 2024, TSN’s sales increased marginally year-over-year to $13.57 billion. Its adjusted operating income stood at $512 million, up 116.9% from the prior-year period. Also, non-GAAP net income attributable to Tyson and EPS came in at $329 million and $0.92, indicating growth of 147.4% and 148.6% year-over-year, respectively.

Street expects TSN’s revenue for the first quarter (ended December 2024) to increase 1.1% year-over-year to $13.46 billion. Likewise, the company’s EPS is expected to grow 27.2% year-over-year to $0.88. Further, the company surpassed the consensus EPS estimate in each of the trailing four quarters, which is impressive.

Shares of TSN have gained 6.2% over the past year to close the last trading session at $58.06.

TSN’s solid 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. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has an A grade for Growth and a B for Value and Sentiment. TSN is ranked #17 out of 75 stocks in the B-rated Food Makers industry.

Click here to access additional TSN ratings for Quality, Stability, and Momentum.

Ingredion Incorporated (INGR)

INGR manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions derived from wet milling and processing corn, as well as other starch-based materials, to a range of industries internationally.

On December 13, 2024, INGR’s board of directors declared a quarterly dividend of $0.80 per share on its common stock. The dividend was paid on January 21, 2025, to stockholders of record at the close of business on January 2, 2025.

INGR’s annual dividend of $3.20 translates to a yield of 2.34% at the current share price. Its four-year average dividend yield is 2.74%. Moreover, the company’s dividend payouts have increased at a CAGR of 7% over the past three years.

On November 14, 2024, INGR announced a new long-term collaboration with Lantmännen, an agricultural cooperative and Northern Europe’s leading player in agriculture, bioenergy, food, and ingredients. The collaboration aims to accelerate the development of high-quality plant-based proteins in the European market.

The strategic partnership will expand INGR’s footprint in the European market and solidify its position as a global leader in the plant-based protein industry.

For the third quarter that ended September 30, 2024, INGR reported net sales of $1.87 billion, while its gross profit was $479 million, up 13.8% from the prior year’s quarter. The company’s non-GAAP operating income rose 28.8% from the year-ago value to $282 million.

Furthermore, non-GAAP adjusted net income attributable to Ingredion and EPS came in at $203 million and $3.05, up 30.1% and 30.9% from the prior-year quarter, respectively.

As per the updated full-year 2024 outlook, INGR expects its adjusted operating income to be up high single digits. The company also projects adjusted EPS in the range of $10.35 to $10.65.

Analysts expect INGR’s revenue and EPS for the first quarter (ending March 2025) to increase 1.4% and 24.1% year-over-year to $1.91 billion and $2.58, respectively. Also, the company has topped the consensus EPS estimates in all of the trailing four quarters.

INGR’s stock gained 12.6% over the past six months and 26.3% over the past year to close the last trading session at $136.58.

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

The stock has a B grade for Value, Sentiment, and Quality. INGR has topped the list of 75 stocks in the B-rated Food Makers industry.

To access additional ratings of INGR for Stability, Growth, and Momentum, click here.

Oatly Group AB (OTLY)

Headquartered in Malmö, Sweden, OTLY is an international oat milk company that provides a range of plant-based dairy products made from oats. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts, cooking products, and ready-to-go drinks.

On December 18, 2024, OTLY announced the closure of its Singapore facility in the Europe & International segment. The action is in sync with its asset-light supply chain strategy and is projected to improve OTLY’s future cost structure and reduce future capital expenditure needs.

OTLY’s revenue increased 10.9% year-over-year to $208 million during the third quarter that ended September 30, 2024, of which its revenue from North America rose 18.1% from the year-ago value to $69.07 million. The company’s gross profit grew 90.5% year-over-year to $62.02 million.

In addition, the company’s cash and cash equivalents and total assets amounted to $119.33 million and $920.79 million as of September 30, 2024.

Analysts expect OTLY’s revenue for the fourth quarter (ended December 2024) to increase 7.4% year-over-year to $219.12 million. For the fiscal year 2024, the company’s revenue is anticipated to grow 5.8% from the prior year to $828.79 million. Moreover, the company surpassed the consensus revenue estimates in all four trailing quarters.

The stock has gained 8.2% over the past month to close the last trading session at $0.69.

OTLY’s POWR Ratings reflect its robust outlook. The stock has an A grade for Growth. OTLY is ranked #22 among the 30 stocks within the Beverages industry.

Click here to access additional POWR Ratings of OTLY for Sentiment, Quality, Value Stability, and Momentum.

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TSN shares were trading at $56.32 per share on Tuesday afternoon, down $1.74 (-3.00%). Year-to-date, TSN has declined -1.95%, versus a 3.13% rise in the benchmark S&P 500 index during the same period.

About the Author: Rjkumari Saxena

Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions. More...

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