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These Food and Drink Stocks Could See Double-Digit Growth, Says Wells Fargo

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Wells Fargo kicked off coverage of two quick-service food and drink chains, Dutch Bros and Wingstop, with "buy" ratings.
Wells Fargo has identified several food and beverage companies with potential for significant growth, projecting double-digit earnings increases for the next year. Analyst Zachary Warring highlighted that companies like Mondelez International, Kraft Heinz, and PepsiCo are expected to benefit from easing inflation, which could lead to improved margins and sales growth. Mondelez, in particular, is seen as having a strong growth runway due to its focus on snacking categories. Kraft Heinz is expected to see margin expansion, while PepsiCo's diversified portfolio and pricing power are anticipated to drive its earnings. Warring also noted that these companies are well-positioned to navigate the current economic environment, with expectations of volume growth returning as inflation pressures subside.

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