Top Canadian Grocery Store Stocks with Lofty Returns
|Grocery Store Stocks||Current Price||Price Gain (2021-To Date)||Market Capitalization||Price Range (52-Weeks)|
|Loblaw Companies Limited (L)||CAD 93.97||49.61%||$31.77 Billion||CAD 60.86 to 95.49|
|George Weston Limited (WN)||CAD 136.73||43.81%||$20.59 Billion||CAD 91.95 to 140.01
|Metro Inc. (MRU)||CAD 64.12||12.89%||$15.65 Billion||CAD 52.63 to 66.25
|Alimentation Couche-Tard Inc. (ATD.B)||CAD 48.15||11.00%||$51.35 Billion||CAD 36.03 to 52.28|
|Empire Company Limited (EMP.A)||CAD 38.19||9.77%||$10.14 Billion||CAD 34.13 to 42.93|
Note: As you can see from the chart, Loblaw is the clear winner in terms of returns on investment. However, the stock price might be a bit high for average investors. So, you can also choose from budget-friendly stocks such as ATD.B or Empire Company Limited.
1-Loblaw Companies Limited (TSE:L):
A top-ranking candidate in the list of Canadian grocery stocks, Loblaw Companies Limited, has provided its investors with the highest capital gain. From financing services to high-end grocery stores, this company has the best products for its Canadian consumers.
Currently, Loblaw owns 2500+ stores with products offered at both discounted and premium rates. Loblaw has renowned chain stores under its umbrella that include names such as:
- No Frills
- Shoppers Drug Mart
- Real Canadian Superstore
- Presidents Choice
- No Name
In 2021, the company’s market cap peaked from $22.16 Billion to $31.77 Billion, with each share price soaring from $62.81 to $93.97.
2-George Weston Limited (WN):
With its headquarters in Ontario, Canada, George Weston Limited is the 2nd best grocery store stock you can invest in for 2021. The company engages in the distribution and processing of food in Canada as well as international markets.
To date, the company’s stock prices have skyrocketed from $95.08/share to a whopping $136.73/share. The current market capitalization of the grocery store also jumped from $14.61 Billion to a whopping $20.59 Billion. Given its diversified portfolio, this grocery store stock has managed to soar high even during unstable market conditions. The company also deals in consumer products/services, retail, consumer defensive, TSX composite, TSX 60, and many more.
Although Loblaw and George Weston are listed separately in the Toronto Stock Exchange, Loblaw is a subsidiary of George Weston. Apart from this, other subsidiaries under George Weston include:
- Weston Foods US, Inc.
- Tip Top Bakeries
- Weston Holdings Ltd.
- Weston Bakeries Limited
- Ready Bake Foods Inc.
- Interbake Foods LLC
- Weston Food Distribution Inc.
- Dunedin Holdings S.A.R.L.
- Weston Foods Canada
- Ace Bakery, LLC
3-Metro Inc. (MRU):
Another pocket-friendly grocery store stock to invest in for the year 2021 is Metro Inc. This company operates in Canada as a franchisor, retailer, manufacturer, and distributor in the pharmaceutical and food sectors. In 2021, its stock prices soared successfully by 12.89 percent, helping it bag the 3rd rank in top-performing Canadian stocks in the grocery sector.
The stocks saw a quick jump from $56.8/share to a whopping $64.12/share. Moreover, the company’s market cap also shifted north from $14.21 Billion to $15.65 Billion.
Metro Inc. has several subsidiaries under its banner that include:
- Food Basics
- Super C
- Jean Coutu Group
- Metro Richelieu Inc
- Premiere Moisson
- A&P Drug Mart Limited
- Produits Phoenicia Inc.
- A. Love Foods Inc.
- Epicerie Adonis, Inc.
- Groupe Premiere Moisson Inc.
4-Alimentation Couche –Tard Inc. (ATD.B):
With 15000 stores in countries such as Canada, Mexico, Norway, the United States, Sweden, and more, Couche Tard is another critical player in the retail industry. The company has its headquarters in Quebec, Canada, with several well-known subsidiaries that include:
- Mac’s Convenience Stores
- Circle K
- Holiday Stationstores
- Topaz Energy
- Statoil Fuel & Retail
- RDK Ventures LLC
Alimentation showed progress right from the start of the year and has managed to move the share price from $43.38 to $48.15. Moreover, its market cap also showed a positive trend as it jumped from $48.32 Billion to $51.35 Billion. So, if you are looking for a budget-friendly stock in the grocery store industry, this is something you can invest in for the long haul.
5-Empire Co. Ltd. (EMP.A):
With its headquarters in Nova Scotia, Canada, Empire Co. Ltd. is a popular conglomerate that engages in corporate and food retail investments. The company has 10000+ convenience stores spread across 10 Canadian provinces, the United States, & other European countries. Among its acquisitions are renowned names such as:
- Crombie REIT
- Needs Convenience
- Farm Boy
- Thrifty Foods
- Big 8 Beverages
With so many brands under its umbrella, the company has managed to outperform several of its grocery store competitors in the stock market. As a result, in 2021, the company has experienced a surge in its stock price, going from $34.79/share to $38.19/share. Overall, the company’s YTD percentage change is about 9.77, with a positive trend line. Moreover, Empire Co.’s MV also saw a quick boost from $9.36 Billion, peaking at $10.14 Billion.
So, here you go! Start investing in these amazing grocery store stocks and reap the benefits in the long run. But, before you invest, do study the market and invest as per your risk appetite. Patience is the key when investing in a stock of your choice. With accurate data and a proper understanding of the key metrics, you can upscale your investment manifold with a better return than banks.
Canadian Grocery Store Stocks
Couche-Tard Inc. is one of the largest Canadian companies and owns several Canadian convenience stores. It is also the only stock with international exposure, making it my number one dividend-only growth stock as it excels at integrating and acquiring companies.
Goodfood Market (FoodTo) – Founded in 2014, Goodfood Market is a Canadian online food, meal and home food company. The company has been exhibiting strong growth rates for several years, which are currently accelerating significantly. It’s not a dividend payer, but it’s one of the top growth stocks.
The $57.8 million online grocery company reported revenue of $41.9 million for the quarter ended February 28, up 7.1 percent from the second quarter of the fiscal year 2020. Three major players dominate the Canadian food industry, but there are several new and emerging competitors.
Sobeys is a private company and does not buy shares on stock exchanges. As a result, the food and beverage sector on the stock exchange is often seen as a defensive sector. As a result, Canada’s large food stocks have performed well despite a weak and strong economy and companies adopting low-margin, high-volume strategies.
Every stock of food and drink brings something different to the table (pun intended). This article looks at three Canadian stocks that investors need to watch out for in 2021. The three largest food stocks have the best value, the fastest growth and the most outstanding dynamism.
A convenience store or convenience store is a small retail business that carries a range of everyday items such as groceries, snacks, groceries, confectionery, soft drinks, tobacco, over-the-counter medicines, toiletries, newspapers and magazines. For example, solo Market is located in Pinawa, Manitoba and offers a large variety of food and general merchandise to Pinawa. QuickStop convenience stores are located in Northern Canada and Alaska and offer ready meals, petroleum products and related services.
We offer a wide range of financial services that are simple and convenient for you, such as Visa prepaid cards, customer credit, check cashing and tax services, wire transfer services, convenient ATMs and gift cards.
Loblaw operates in two operational segments, of which 98% are retail, including food and drug stores, shops and pharmacies, clothing and general merchandise, financial services, credit card services, insurance, brokerage and deposit insurance. Parkland Corporation (PKITO) Parkland is a Canadian convenience store operator and independent fuel retailer. Its primary subsidiaries include a chain of service stations and commercial fuel distributors.
Northern is the first shopping opportunity in its market, thanks to the superior local selection, helpful and friendly service and unwavering community support. Under the North West Company banner, Northern’s original core business consists of 118 grocery and general merchandise stores that serve remote northern Canadian communities. In addition, giant Tiger owns and operates over 40 Giant Tiger stores in western Canada.
NOMD is the third-largest frozen food brand globally after ConAgra (CAG) and Nestlé (NSRGY). It holds a strong market position in Europe, with peas at 5.6% and fish fingers at 6.4%.
The Green Cuisine brand has developed a strong following in the vegetable food movement. In the UK, it has an 8% market share in plant-based frozen foods.
The investigation of the companies discovered that 55% to 70% of customers buy additional items in online shops that were not on their original shopping list, which offers a lot of growth opportunities for consumers’ staples. It also found that one in four online purchases occurs immediately after a visit to a physical store selling Hershey’s products. So when people eat online, the grocery store is not the best place to hide from a stock market storm.
It belongs to Maslow’s hierarchy of needs and is, in fact, one of the most fundamental needs we all have to meet. We all have what we need, but it is not always fulfilled. For example, going out to eat all the time can be prohibitive, so grocery stores are our primary food source.
This is why grocery stores are at the center of the current COVID-19 pandemic. Grocery stores are among the few retail outlets allowed to remain open during this period of social isolation.
Metro has had the seventh-longest dividend growth streak in the country for 25 years. The average dividend growth rate was in the low single digits, while dividends increased in the mid-single digits. The low start-up return of companies is a function of the outperformance of companies.
Although the pandemic affected the company, its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose in the first quarter of 2021 (6.4% to $314 million), which ended 31 March compared to the first quarter of 2020.
Metro, mainly active in the Quebec and Ottawa regions, was acquired by A & P Canada from its US parent company on 15 August 2005. The parent company retained a minority stake in the company at the time.
On August 7, 2008, Metro announced that it would invest $200 million to consolidate its conventional grocery operations under the Metro banner. Over 15 months, the stores were converted to the new Metro banner, starting with the Dominion stores in Toronto. However, Dominion’s distribution centers in Toronto and Mississauga retained the old Dominion banner until 2009.
On July 8, the convenience store operator announced the appointment of Greg Trojan, CEO of BJS Restaurants (BJS.A), to its board. During his career, he ran the California pizza kitchen before PepsiCo owned it.
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