3 Food and Beverage Stocks Likely to Grow in 2021
Among consumer discretionary stocks, some food and beverage stocks were hit hard by the COVID-19 pandemic in 2020 as restaurants closed for months and foodservice orders consequently plummeted. However, regardless of disease outbreaks, political upheavals, and the like, people still need to eat and drink, so these companies also have a built-in advantage for recovery. Looking ahead to the rest of 2021, three names in the sector stand out as ones Fools interested in these companies might want to consider: McDonald's (NYSE: MCD), Monster Beverage (NASDAQ: MNST), and The Coca-Cola Company (NYSE: KO).
The Golden Arches' fourth-quarter (Q4) results show strong signs McDonald's business is returning to normal after 2020's coronavirus sucker punch, led by the U.S., Australia, and Japan. Q4 2020 comps (comparable store sales) rose 5.5% above Q4 2019's figures, "ending the year with six consecutive months of positive comps," as reported by CFO Kevin Ozan. The company also launched close to 500 new restaurants during 2020 and invested heavily in its digital business. According to its earnings conference call, its executives expect the rebound and its savvy investments to push operating margins above 40% during 2021.
Simultaneously, McDonald's is taking aim at some potentially big opportunities. The McPlant burger, featuring a Beyond Meat (NASDAQ: BYND) plant-based patty, has returned for several months of testing in Sweden and Denmark. McDonald's says it will launch the McPlant in other countries assuming positive Scandinavian feedback.
Source Fool.com
