7 Food Stocks to Own for Under $20

WK Kellogg (NYSE: KLG) is a relatively new stock but an established leader in the food industry. The company is a pure-play cereal manufacturer after spinning off from its parent brand, Kellanova (NYSE: K), which houses the company’s portfolio of snack foods in international markets. 

The company’s broad portfolio includes brands that cover a range of age and lifestyles with particular focus on consumer health and wellbeing. Cereal can seem like a boring business model. However, the company continues to maintain and even increase its market share with many of its core brands. Plus, Kellogg is prioritizing steps to modernize its supply chain, which may be a key profit driver in the coming years.  

KLG stock competes with names such as Post and General Mills Inc. (NYSE: GIS) and trades at a similar price-to-earnings (P/E) ratio. That’s one reason, along with an attractive dividend that yields 3.42%, why the stock may be attractive to investors looking for deep value.  

Grocery Outlet Holding Corp. (NASDAQ: GO) is a high-growth, off-price retailer that sells a portfolio of name-brand fresh, refrigerated, and frozen foods through a network of over 500 stores across 16 states. Grocery Outlet stores offer the best of club stores and dollar stores without membership fees, bulk purchases and with a full assortment of grocery items.  

The company’s business model features a large, centralized purchasing team that undertakes opportunistic sourcing of quality, name-brand products. This model allows consumers to get savings between 40% to 70% below conventional retailers. As evidence of this, the company noted that during the recession of 2008-2009, it generated positive same-store sales growth of 27%, which was far higher than the nearest competitor.  

Since 2015, the company has been increasing its earnings at a compound annual growth rate (CAGR) of 10.6%. That growth is largely attributable to consistent margins, which continue to be around 30%.  

Flowers Foods Inc. (NYSE: FLO) is a producer and marketer of packaged bakery food products in the United States. It’s product offerings appear under brand names such as Wonder, Nature’s Own Canyon Bakehouse, and Tastykake. The company’s customer base runs a wide gamut, from restaurants and food service companies to retail in-store bakeries, dollar stores, and vending machine companies.  

The company offers investors predictable revenue and earnings, but it hasn’t done much in the way of growth. In the 10 years ending in February 2025, FLO stock has delivered a total return of just 21.38%. And much of that is due to the company’s appealing dividend which is 5.18% and has increased for 23 consecutive years.  

However, in 2025, the company will acquire Simple Mills in a $795 million transaction that will bring a high-growth company under the company’s umbrella. The transaction will also bring Simple Mills’ portfolio of foods with real, clean ingredients into the company’s offerings.  

If you have an appetite for really low-priced stocks, Herbalife Ltd (NYSE: HLF) is a name to consider. The company is known for its line of health and wellness products that includes protein shakes, meal replacement products and weight loss supplements. The company’s sales model features a team of sales representative, independent service providers and company-operated retail platforms.  

HLF stock surged in 2020 and 2021 as many consumers were searching for health nutrition options. However, it’s been rough going for investors since then. In the 12 months ending in February 2025, the stock is down more than 30%.  

That said, Herbalife’s product offerings make the company well-positioned to compete in a market where stocks of companies with weight loss drugs are posting market-beating returns. This trend is likely to be in place for years. Also in 2024, the company launched its HER campaign which celebrates its long-time commitment to supporting female athletes and teams. 

Nomad Foods Ltd. (NYSE: NOMD) is the first of three international stocks to close out this list. The U.K.-based company is a pure-play leader European frozen food leader. It manufactures, markets, and distributes its products in a variety of categories in over 16 European countries. In 2024, the company generated $3.98 billion in retail sales which was second only to Unilever PLC (NYSE: UL) which generated $4.30 billion.  

Like many food stocks, NOMD stock soared in 2020 and 2021 as people were doing more cooking at home. However, the stock has traded in a defined range since August 2022 with $20 acting as a ceiling. Although market timing can be difficult in the best of circumstances, Nomad provides clear points where investors can scale into a position. 

NOMD stock began publicly trading in U.S. markets in 2015 and has delivered a total return of 84.68% in that time. That includes an attractive dividend, which has a yield of 3.33% as of February 2025. 

If you’re a fan of the McDonald’s Corp. (NYSE: MCD) business model, Arcos Dorados Holdings Inc. (NYSE: ARCO) may hold some appeal. The company operates or franchises over 2,100 McDonald ’s-branded restaurants in Brazil, the Caribbean, and two divisions in Latin America: the North American Latin America division (NOLAD) and the South Latin America division (SLAD). 

ARCO stock struggled much more than MCD stock in 2024 which highlights the impact that currency fluctuations add to higher producer prices. However, that weakness is showing up in earnings, but comparable-store revenue continues to increase year-over-year (YOY) above inflation rates. 

A key reason for that growth is the company’s investment in delivery and drive-through sales. This is much like what’s been happening with McDonald’s in the United States, but Arcos Dorados isn’t seeing the same kind of growth. That could set the stage for a larger run in ARCO stock. And while investors wait, they can collect a dividend that offers a 2.84% yield.  

Mission Produce Inc. (NASDAQ: AVO) is a niche food company that is the leader in the global avocado business. Avocadoes are associated with heart, weight, and skin health at a time when consumers, particularly in the coveted millennial and Gen-Z markets, are seeking healthy food options. And while a significant amount of that growth has come from the United States and Mexico, the company is forecasting significant growth to come from Canada, Mexico and the Asia-Pacific region in coming years.

AVO stock has only been trading publicly since 2021 which was right around the time when businesses reopened. That was unfortunate for early investors. However, the stock is up 14% in the 12 months ending in February 2025 and could be setting up for significant growth.