Top 10 Food Companies To Invest In 2014

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) continues its slow recovery, having put on another 0.21% to reach 6,401 points by 8 a.m. EDT. The blue-chip index has been boosted by a 3% rise in the Marks & Spencer price after the retail chain reported its best-ever Easter Week for food. But on the downside, a number of our largest miners have begun to slip after a good couple of days.

But what of companies in the news? Here are three from the various indexes that are looking good today.

Mothercare (LSE: MTC  )
Mothercare shares have leapt 7.2% to 313 pence after the firm told us its U.K. store closure plan is ahead of schedule and sales have stabilized in its fourth quarter. While like-for-like sales are flat, the firm's Direct Internet business saw an 18.2% rise in sales, prompting chief executive Simon Calver to say, "We can look ahead to the new year with confidence."

With international sales rising by 15.5% during Q4 and the firm's focus firmly on cash gross margin, Mothercare was able to confirm that underlying pre-tax profit for the full year is in line with market expectations.

Best Value Stocks To Invest In Right Now: J&J Snack Foods Corp (JJSF)

J & J Snack Foods Corp. (J & J), incorporated in 1971, manufactures nutritional snack foods and distributes frozen beverages, which it markets nationally to the food service and retail supermarket industries. The Company�� principal snack food products are soft pretzels marketed under the brand name SUPERPRETZEL and frozen juice treats and desserts marketed under the LUIGI��, WHOLE FRUIT, ICEE and MINUTE MAID brand names. In June 2012, the Company acquired the assets of Kim & Scott�� Gourmet Pretzels, Inc., a manufacturer and seller of a brand soft pretzel. In October 2013, J & J Snack Foods Corp. acquired the assets of New York Pretzel.

J & J is a manufacturer of soft pretzels in the United States, Mexico and Canada. Other snack food products include churros (an Hispanic pastry), funnel cake, dough enrobed handheld products and bakery products. The Company�� principal frozen beverage products are the ICEE brand frozen carbonated beverage and the SLUSH PUPPIE brand frozen uncarbonated beverage. The Company�� Food Service and Frozen Beverages sales are made to food service customers, including snack bar and food stand locations in chain, department, discount, warehouse club and convenience stores; malls and shopping centers; fast food outlets; stadiums and sports arenas; leisure and theme parks; movie theatres; independent retailers, and schools, colleges and other institutions. The Company�� retail supermarket customers are supermarket chains. The Company operates in three business segments: Food Service, Retail Supermarkets and Frozen Beverages.

The products sold by the food service segment are soft pretzels, frozen juice treats and desserts, churros, dough enrobed handheld products and baked goods. Its customers in the food service segment include snack bars and food stands in chain, department and discount stores; malls and shopping centers; casual dining restaurants; fast food outlets; stadiums and sports arenas; leisure and theme parks; convenience stores; m! ovie theatres; warehouse club stores; schools, colleges, and other institutions. The products sold to the retail supermarket channel are soft pretzel products, including SUPERPRETZEL, frozen juice treats and desserts, including LUIGI�� Real Italian Ice, MINUTE MAID Juice Bars and Soft Frozen Lemonade, WHOLE FRUIT frozen fruit bars and sorbet, ICEE Squeeze-Up Tubes and dough enrobed handheld products, including PATIO burritos. The Company sells frozen beverages to the food service industry primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada. It also provides repair and maintenance service to customers for customers��owned equipment.

Soft Pretzels

The Company�� soft pretzels are sold under many brand names, which are SUPERPRETZEL, PRETZEL FILLERS, PRETZELFILS, GOURMET TWISTS, MR. TWISTER, SOFT PRETZEL BITES, SOFTSTIX, SOFT PRETZEL BUNS, TEXAS TWIST, CINNAPRETZEL and SERIOUSLY TWISTED!; and under private labels. Soft pretzels are sold in the Food Service and Retail Supermarket segments. During fiscal year ended September 29, 2012 (fiscal 2012), soft pretzel sales amounted to 18% of the Company�� revenue.

Soft pretzels, ranging in size from one to ten ounces in weight, are shaped and formed by the Company�� twister machines. These soft pretzel tying machines are for twisting dough into the traditional pretzel shape. In addition, it makes soft pretzels, which are extruded or shaped by hand. The Company�� marketing program in the Food Service segment includes supplying ovens, mobile merchandisers, display cases, warmers and similar merchandising equipment to the retailer to prepare and promote the sale of soft pretzels.

Frozen Juice Treats and Desserts

The Company�� frozen juice treats and desserts are marketed primarily under the LUIGI��, WHOLE FRUIT, ICEE and MINUTE MAID brand names. Frozen juice treats and desserts are sold in the Food Service and Retail Supermarke! ts segmen! ts. During fiscal 2012, frozen juice treats and dessert sales were 13% of the Company�� revenue.

The Company�� school food service MINUTE MAID and WHOLE FRUIT frozen juice bars and cups are manufactured from an apple or pineapple juice concentrate to which water, sweeteners, coloring (in some cases) and flavorings are added. The juice bars are produced in various flavors and are packaged in a sealed push-up paper container referred to as the Milliken M-pak. The balance of the Company�� frozen juice treats and desserts products are manufactured from water, sweeteners and fruit juice concentrates in various flavors and packaging, including cups, tubes, sticks, M-paks, pints and tubs.

Churros

The Company�� churros are sold under the TIO PEPE�� and CALIFORNIA CHURROS brand names. Churros are sold to the Food Service and Retail Supermarkets segments. During fiscal 2012, Churro sales were 6% of the Company�� sales. Churros are Hispanic pastries in stick form, which the Company produces in several sizes. The churros are deep fried, frozen and packaged. At food service point-of-sale they are reheated and topped with a cinnamon sugar mixture. The Company also sells fruit and creme-filled churros. The Company supplies churro merchandising equipment.

Handheld Products

The Company's dough enrobed handheld products are marketed under the PATIO, HAND FULLS, HOLLY RIDGE BAKERY, VILLA TALIANO, TOP PICKS brand names and under private labels. Handheld products are sold to the Food Service and Retail Supermarket segments. During fiscal 2012, handheld product sales amounted to 6% of the Company's sales.

Bakery Products

The Company�� bakery products are marketed under the MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B��, DADDY RAY�� and JANA�� brand names, and under private labels. Bakery products include biscuits, fig and fruit bars, cookies, breads, rolls, crumb, muffins and donuts. Bakery products are sold ! to the Fo! od Service segment. During fiscal 2012, bakery products sales amounted to 32% of the Company�� sales.

Frozen Beverages

The Company markets frozen beverages primarily under the names ICEE, SLUSH PUPPIE, PARROT ICE and ARCTIC BLAST in the United States, Mexico and Canada. During fiscal 2012, frozen beverages are sold in the Frozen Beverages segment. During fiscal 2012, frozen beverage sales amounted to 16% of revenue in fiscal 2012.

Under the Company�� principal marketing program for frozen carbonated beverages, it installs frozen beverage dispensers for its ICEE and ARCTIC BLAST brands at customer locations and thereafter services the machines, arranges to supply customers with ingredients required for production of the frozen beverages, and supports customer retail sales efforts with in-store promotions and point-of-sale materials. During fiscal 2012, the Company also provided repair and maintenance service to customers for customers��owned equipment and sells equipment in its Frozen Beverages segment, revenue from which amounted to 7% of sales. The Company sells frozen un-carbonated beverages under the SLUSH PUPPIE and PARROT ICE brands through a distributor network and through its own distribution network.

Each new frozen carbonated customer location requires a frozen beverage dispenser supplied by the Company or by the customer. Company-supplied frozen carbonated dispensers are purchased from outside vendors, built new or rebuilt by the Company. The Company provides managed service and/or products to approximately 87,000 Company-owned and customer-owned dispensers.

Other Products

Other products sold by the Company include soft drinks, funnel cakes sold under the FUNNEL CAKE FACTORY brand name and smaller amounts of various other food products. These products are sold in the Food Service and Frozen Beverages segments.

Advisors' Opinion:

• [By Geoff Gannon] out the performance numbers on those three stocks over the last 10-13 years (I bought them at different times). You��l notice that if I just never sold those stocks I wouldn�� need to do anything else. Those three stocks would��e made a fine portfolio for the next decade or so.

  Well, I did sell those stocks. And I did a lot else. And some of it worked very well and some of it worked very badly. But, almost without fail, the net result was never better than what would have happened if I�� kept those three stocks.

  That�� not an accident. It took me a very, very long time to buy stocks when I was a kid. I bought six stocks in my first five years as an investor. That�� not quite a 20 punches approach ��but it�� pretty close.

  Why did I only buy one stock a year?

  Because I didn�� know anything about stocks. And I didn�� think I knew anything about stocks.

  My investment style was formed from a combination of extreme ignorance and extreme confidence. I was totally ignorant about stocks. And I was totally confident that I could learn all I needed to know about the stocks I needed to know about.

  That combination led to focusing on a few very specific stocks. Stocks I was comfortable with.

  When I was 14, there were only two places my money went. Into my brokerage account. Or into video games. So it�� not a surprise I bought Activision. At the time the video game industry had a much clearer future than it does today. And there was no better CEO of a video game company than Bobby Kotick. The balance sheet was pristine. When you backed out cash, the stock was cheap relative to sales. I looked at everything I could about video game companies and I decided sales were pretty profitable and pretty cash generative in this industry. All you needed was sensible capital allocation. All you needed was management that was going to run the place like a business. And I thought you had that.

  I worked as a cashier at Vi

Top 10 Food Companies To Invest In 2014: Hillshire Brands Co (HSH)

The Hillshire Brands Company, incorporated on September 4, 1941, is a manufacturer and marketer of food products. The Company�� portfolio includes brands, such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. The Company operates in two segments: Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Foodservice/other sells a variety of meat and bakery products to foodservice customers in North America. On February 4, 2013, the Company completed the sale of its Australian bakery business.

Retail

Products in the retail segments include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The Company�� brands include Jimmy Dean, Ball Park, Hillshire Farm, State Fair and Sara Lee, as well as artisanal brands Aidells and Gallo Salame. The sales of the Retail business are generated in the United States Sales are made in the retail channel to supermarkets, warehouse clubs and national chains. Retail�� business accounted for 74% of the Company�� sales during the fiscal year ended June 29, 2013 (fiscal 2013).

Foodservice/Other

Products in the foodservice/other segment include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, deli and luncheon meats, ham, beef and turkey, as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. Sales are made in the foodservice channel to distributors, restaurants, hospitals and other large institutions. Foodservice/Other�� business accounted for 26% of the Company�� sales in fiscal 2013.

Advisors' Opinion:

• [By Jeremy Bowman]

  Elsewhere, Hillshire Brands� (NYSE: HSH  ) �jumped 5% as Tyson Foods� (NYSE: TSN  ) �appears to have won its bidding war with Pilgrim's Pride�for the parent of Jimmy Dean sausages, as Pilgrim's Pride withdrew its proposal following Tyson's latest offer. The nation's No. 1 poultry producer said it will pay $7.7 billion for Hillshire, or $63 a share. Hillshire has not formally accepted the bid, but the acquisition seems inevitable given that Tyson is the only remaining suitor. Notably, Tyson shares fell 6.5%, a sign that investors believe the poultry-maker is overpaying for the parent of Ball Park franks. Hillshire shares, meanwhile, have gained nearly 70% since offering to buy Pinnacle Foods, which sparked the bidding war between Pilgrim's and Tyson to acquire it.

Top 10 Food Companies To Invest In 2014: SAP AG(SAP)

SAP AG provides business software primarily in Europe, the Middle East, Africa, the Americas, and the Asia Pacific Japan region. The company?s products includes SAP Business Suite software, which supports large organizations in their core business operations, such as supplier relationship, production, warehouse management, sales, administration, and customer relationship; SAP Business All-in-One, a business management software that assists midsize companies in managing various business functions, including financials, human resources, procurement, inventory, manufacturing, logistics, product development, sales, and marketing; SAP Business One, a business management application for small businesses; and SAP Business ByDesign, an on-demand solution for integrated business management applications. Its products also comprises SAP BusinessObjects Edge business intelligence and enterprise performance management solutions; Xcelsius, a data visualization software; Crystal Reports, which helps users design interactive reports; Sybase IQ, an optimized analytics server designed to deliver results for business intelligence, analytics, data warehousing, and reporting solutions; SAP solutions for sustainability; and SAP NetWeaver technology platform, which integrates information and business processes across various technologies and organizational structures. In addition, the company offers industry and solution-focused, business transformation, information technology transformation, custom development, and support services; and program, project management, quality assurance, and education and certification services. It sells its products through its subsidiaries and resellers. SAP AG has a strategic relationship with Cap Gemini S.A. to develop and deploy enterprise mobility solutions. The company was formerly known as SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung. SAP AG was founded in 1972 and is headquartered in Walldorf , Germany.

Advisors' Opinion:

• [By Julianne Pepitone]

  According to the Friday report, potential buyers of all or part of BlackBerry include Google (GOOG, Fortune 500), Cisco (CSCO, Fortune 500), SAP (SAP), Intel (INTC, Fortune 500), LG, Samsung and private-equity firm Cerberus Capital.

• [By James Miller Phd]

  Bullish analysts think Salesforce is leader in the on-demand delivery of CRM software, and providing its services in the public cloud will attract more customers as the cheaper cost and more mature product poses strong competition to Oracle�� and SAP AG (SAP)�� products. However, many customers are reluctant to put all of their information in the public cloud due to security and compliance concerns, making more attractive the hybrid cloud solutions. Keep watching how business develops in the technological field as well as the new Asia-Pacific expansion driven by the increased business Japanese segment.

• [By Cornelius Rahn]

  SAP AG (SAP), the largest maker of business-management software, slumped to an eight-month low after competitor Oracle Corp. (ORCL) reported quarterly sales that missed estimates, fueling concerns about weaker license demand.

Top 10 Food Companies To Invest In 2014: MicroFinancial Incorporated(MFI)

Microfinancial Incorporated, through its subsidiaries, operates as a specialized commercial finance company that provides microticket equipment leasing and rental, and other financing services in the United States. The company provides financing alternatives, and leases and rents commercial equipment to start-up and established businesses for use in their daily operations. It leases water filtration systems, food service equipment, security equipment, point-of-sale cash registers, salon equipment, health care and fitness equipment, and automotive equipment. The company primarily sources its originations through a network of independent equipment vendors, sales organizations, and other dealer-based origination networks. Microfinancial Incorporated was founded in 1987 and is headquartered in Woburn, Massachusetts.

Advisors' Opinion:

• [By Magic Diligence]

  One stock that has been in the official Magic Formula (MFI) screen for the past month or so has piqued my interest: Kraft (KRFT).

  The MFI screens, particularly the $50 million screen, are usually reserved for deep value stocks. Usually you find stocks in here suffering serious adverse business developments (LQDT, NSR, etc.), operate in out-of-favor industries (APOL, STRA, etc.), have volatile and difficult-to-predict future prospects (PDLI comes to mind), or are just simply cheap quantitatively (CSCO, COH, et.al.).

• [By Gerrit De Vynck]

  Maple Leaf Foods Inc. (MFI), the Canadian producer of foods from hamburgers to frozen pasta, has drawn bids for its bread unit from Grupo Bimbo SAB, Flowers Foods Inc. (FLO) and several private-equity firms, three people with knowledge of the matter said.

• [By Eric Lam]

  Alacer Gold Corp. and Iamgold Corp. rallied at least 5.9 percent as the metal traded at its highest in 11 weeks. Maple Leaf Foods Inc. (MFI) jumped 7.8 percent as it agreed to sell a unit for C$645 million ($614 million). Penn West Petroleum (PWT) Ltd. added 1.7 percent after cutting 25 percent of its workforce to reduce costs.

Top 10 Food Companies To Invest In 2014: Carrefour SA (CRERF)

Carrefour SA is a France-based company that is primarily engaged in retail distribution sector. The Company operates a network of hypermarkets, supermarkets, hard discount stores, convenience stores and cash-and-carry outlets and offers e-commerce services. The Company's hypermarkets named Carrefour offer a range of food and non-food products. Carrefour SA�� hypermarkets, supermarkets and convenience stores are operating under the Carrefour city, Carrefour contact, Carrefour express, 8aHuit, Shopi, Marche Plus, Proxi banners and cash & carry stores are operating under the Promocash banner, which primarily offer food, clothing and household goods, among others. The Company operates in mainland France and French overseas territories, as well as in Europe, Asia, Latin America, North Africa and the Middle East through a network of consolidated and franchised stores, and stores that Carrefour SA runs with partner companies. In January 2014, it acquired 129 convenience stores. Advisors' Opinion:

• [By Sophia Yan]

  Carrefour (CRERF) has also shuttered many stores, and is reported to be exploring a sale of its China and Taiwan businesses.

  Hypermarkets -- big box stores that combine supermarkets and department stores -- first opened up in China's largest cities over a decade ago. And it's no wonder companies such as Wal-Mart have been keen to get a slice of the market.

Top 10 Food Companies To Invest In 2014: Safeway Inc.(SWY)

Safeway Inc., together with its subsidiaries, operates as a food and drug retailer in North America. The company operates stores that provide an array of grocery items, food, and general merchandise, as well as features specialty departments, such as bakery, delicatessen, floral, and pharmacy, as well as coffee shops and fuel centers. It also offers SELECT line of products that include baked goods, sparkling ciders and lemonades, salsas, whole bean coffees, frozen pizzas and entrees, and fresh and dry pastas and sauces, as well as an array of ice creams, hors d'oeuvres, and desserts; O ORGANICS line, which comprises milk, chicken, salads, juices, and entrees; Lucerne line of dairy products; Eating Right line of better-for-you products; Bright Green line of home care products; Total Pet Care line of pet foods and pet care products; and Value Red line of value-priced paper goods. As of December 31, 2009, Safeway operated approximately 1,725 stores in California, Oregon, Wash ington, Alaska, Colorado, Arizona, Texas, the Chicago metropolitan area, and the Mid-Atlantic region, as well as British Columbia, Alberta and Manitoba/Saskatchewan. In addition, the company owns and operates GroceryWorks.com Operating Company, LLC, an online grocery channel, doing business under the names Safeway.com, Vons.com, and Genuardis.com; and Blackhawk Network Holdings, Inc., which provides third-party gift cards, prepaid cards, telecom cards, and sports and entertainment cards to North American retailers for sale to retail customers. Additionally, it engages in gift card businesses in the United Kingdom, France, Mexico, and Australia. Further, the company, through a 49% ownership interest in Casa Ley, S.A. de C.V. operates 156 food and general merchandise stores in Western Mexico. The company was formerly known as Safeway Stores, Incorporated and changed its name to Safeway Inc. in February 1990. Safeway was founded in 1915 and is based in Pleasanton, California. Advisors' Opinion:

• [By Rich Smith]

  Safeway (NYSE: SWY  ) is leaving the Canadian market.

  On Wednesday, the American supermarket chain announced that it has signed a definitive agreement to sell its Canadian operations to�wholly owned Empire Company Limited subsidiary Sobeys, a Canadian food retailer, for $5.7 billion. Sobeys will also take on "certain liabilities" as part of its purchase.

• [By Rich Duprey]

  Supermarket chain SUPERVALU (NYSE: SVU  ) lost 40% annually between 2007 and 2012 while Safeway (NYSE: SWY  ) lost 10% annually. Kroger (NYSE: KR  ) , which recognized the value of private-label branding early on, achieved 4% growth.

• [By Charles Sizemore]

  Supermarket giants Albertsons and Safeway (SWY) made news last week by agreeing to merge, creating a combined company that will fall just shy of Kroger (KR) in terms of store count. Cerberus Capital, the private equity firm that owns Albertsons, has offered to pay $40 per share for Safeway.

• [By Aubrey Pringle]

  Safeway (SWY) surged 11 percent to $30.99 for the biggest rise in the S&P 500. The grocery store chain adopted a shareholder rights plan to thwart any unfriendly takeovers, saying an undisclosed purchaser has accumulated a ��ignificant amount��of stock.

Top 10 Food Companies To Invest In 2014: Hormel Foods Corporation (HRL)

Hormel Foods Corporation processes, markets, and sells consumer-branded meat and food products. The company operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The Grocery Products segment offers shelf-stable food products, including canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, and tortilla chips in the retail market. The Refrigerated Foods segment provides branded and unbranded pork and beef products for retail, foodservice, and fresh product customers. The Jennie-O Turkey Store segment offers branded and unbranded turkey products for retail, foodservice, and fresh product customers. The Specialty Foods segment is involved in the packaging and sale of various sugar and sugar substitute products, salt and pepper products, liquid portion products, dessert mixes, ready-to-drink products, sports nutrition products, g elatin products, and private label canned meats to retail and foodservice customers. This segment also processes, markets, and sells nutritional food products and supplements to hospitals, nursing homes, and other marketers of nutritional products. The International and Other segment manufactures, markets, and sells its products internationally. Hormel Foods Corporation sells its products through sales personnel, as well as through independent brokers and distributors primarily in the United States, Australia, Canada, China, England, Japan, Mexico, Micronesia, the Philippines, and South Korea. The company was formerly known as George A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is based in Austin, Minnesota.

Advisors' Opinion:

• [By Alex Planes]

  Lovely Spam, wonderful Spam
  Hormel (NYSE: HRL  ) first registered the trademark for Spam (a spiced ham in a can, if you've been living under a rock these past few decades) on May 11, 1937. The product has been a big hit for Hormel, particularly on the Pacific Rim -- Hawaiians eat 7 million cans per year, Southeast Asians give Spam gift packs as wedding presents, and a restaurant called the Spam Jam (serving nothing but spam, of course) emerged in the Philippines to capitalize on the national taste. I wonder if the menu at the Spam Jam reads like the dialogue to that Monty Python sketch that launched the term into the cultural zeitgeist. "I'll have Spam, Spam, Spam, Spam, Spam, baked beans, Spam, Spam, and Spam."