Home News Best Coffee Stocks for Q4 2022

Best Coffee Stocks for Q4 2022

by SuperiorInvest

The coffee industry is complex and multi-layered, encompassing everything from producers and distributors to processors, wholesalers and retailers. Notable names in coffee industry includes Starbucks Corp., The JM Smucker Co. and Restaurant Brands International Inc.

There is no single sector or an index for the coffee industry and coffee-related stocks can be found in both Consumer sector and consumer goods sectors. In general, retailers and coffee shops are part of the consumer discretionary group, and manufacturers and packaged food companies are part of the consumer goods group. Note that both of these sectors are much larger than the coffee industry, so the benchmarks below may differ from coffee stocks as a category.

The consumer staples sector outperformed the broader market, while the consumer staples sector lagged slightly. The S&P 500 Consumer Staples Sector Index posted a total return of 3.6% over the past year, while the S&P 500 Consumer Discretionary Sector Index delivered a total return of -14.1%. By comparison, the Russell 1000 returned -12.5%.

Here are the top three coffee stocks with the best value, fastest growth and best performance. The above market performance numbers and all statistics in the tables below are as of September 19, 2022.

These are the coffee stocks with the lowest 12-month lags price-earnings (P/E) ratio.. Because profits can be returned to shareholders in the form of dividends and buybacksa low P/E ratio indicates that you are paying less for every dollar of profit generated.

Best value coffee stock
Price ($) Market capitalization (market capitalization) ($B) 12-month trailing P/E ratio
Nestlé SA (NSRGY) 111.92 307.8 18.0
Restaurant Brands International Inc. (QSR) 59.47 18.2 22.7
Keurig Dr Pepper Inc. (KDP) 37.77 53.5 24.9

Source: YCharts

  • Nestlé SA: Consumer staples Nestlé is a Swiss multinational food packaging company that offers a wide range of products including baby food, bottled water, dairy products, frozen foods, coffee and more.
  • Restaurant Brands International Inc.: Restaurant Brands International is part of the consumer sector, a holding company based in Canada that was created in 2014 through the merger of Burger King and Tim Hortons, one of the largest coffee and restaurant chains in Canada. The company also owns Popeyes, a fried chicken franchise in Louisiana. On August 4, the company reported Q2 2022 earnings. Net profit was down slightly, while sales rose 14% year-over-year (YOY), boosted by system-wide sales gains at Burger King, Popeyes and Tim Hortons. Net income was negatively impacted by factors such as income tax expense, adverse currency movements and higher employee stock compensation.
  • Keurig Dr Pepper Inc.: Keurig Dr Pepper is a consumer company that manufactures and distributes non-alcoholic beverages, including coffee. The company serves customers throughout North America. On September 14, Keurig Dr Pepper announced a 3Q cash dividend of $0.20, a 6.7% increase over the company’s annual dividend rate. The dividend is payable on October 14 to shareholders as of September 30, 2022.

These are the best coffee stocks as rated by a grow a model that ranks companies based on 50/50 weightings of their most recent quarter year-on-year (YOY) percent revenues growth and last quarterly year-on-year earnings per share (EPS) grow. Both sales and profit are decisive factors for the company’s success. Therefore, ranking companies by only one growth metric makes the ranking susceptible to a given quarter’s accounting anomalies (such as changes in tax laws or restructuring costs) that can make one or the other number unrepresentative of the business in general. Companies with quarterly earnings per share or revenue growth of more than 2,500% were excluded as outliers.

Fastest growing coffee stocks
Price ($) Market Cap ($B) EPS growth (%) Income growth (%)
Restaurant Brands International Inc. (QSR) 59.47 18.2 -9.5 14.0
Starbucks Corp. (SBUX) 92.14 105.7 – 18.6 8.7
Nestlé SA (NSRGY) 111.92 307.8 -5.7 2.7

Source: YCharts

  • Restaurant Brands International Inc.: See above for company description.
  • Starbucks Corp: Starbucks is an over-the-counter consumer stock. It markets, roasts and sells its own brand of specialty coffee. The company operates retail locations around the world and sells whole bean coffee through various channels. Starbucks also offers other beverages, food and specialty merchandise. On September 1, the company announced that Laxman Narasimhan would be the next Chief Executive Officer (CEO) from October 1. He was most recently CEO of Reckitt, a consumer health, hygiene and nutrition company.
  • Nestlé SA: See above for company description.

These are the coffee stocks that have had the best returns or smallest declines in total return over the past 12 months among the companies we’ve tracked.

Best performing coffee stocks
Price ($) Market Cap ($B) 12 month total return (%)
JM Smucker Co. (SJM) 139.96 14.9 17.2
Keurig Dr Pepper Inc. (KDP) 37.77 53.5 10.5
Restaurant Brands International Inc. (QSR) 59.47 18.2 -1.8
Russell 1000 ON ON -12.5
S&P 500 Consumer Goods Sector Index ON ON 3.6
S&P 500 Consumer Discretionary Index ON ON -14.1

Source: YCharts

  • JM Smucker Co.: JM Smucker, a consumer goods warehouse, manufactures food products. It is best known for its fruit spreads, peanut butters, fats and oils. The company’s fiscal 2023 Q1 ended on July 31, 2022, and it reported financial results for the quarter on August 23. Net profit fell year-over-year due to marginal net sales gains. Performance was affected by the recall of Jif brand peanut butter products.
  • Keurig Dr Pepper Inc.: See above for company description.
  • Restaurant Brands International Inc.: See above for company description.

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