Zacks Industry Outlook Highlights Mondelez International, Sysco, McCormick and Celsius

For Immediate ReleaseChicago, IL – July 3, 2025 – Today, Zacks Equity Research discusses Mondelez International, Inc. MDLZ, Sysco Corp. SYY, McCormick & Co. MKC and Celsius Holdings, Inc. CELH.Industry: Food - MiscellaneousLink: https://www.zacks.com/commentary/2559187/4-miscellaneous-food-stocks-to-keep-an-eye-on-amid-market-challengesThe Zacks Food-Miscellaneous industry continues to face a tough macroeconomic backdrop, with persistent inflation weighing on consumer spending and accelerating the shift toward private-label alternatives. At the same time, rising input costs and increased operational expenses are squeezing profit margins across the sector.To navigate these pressures, food companies are embracing strategic initiatives centered on cost efficiency, product innovation and portfolio diversification. Industry leaders such as Mondelez International, Inc., Sysco Corp., McCormick & Co. and Celsius Holdings, Inc. are leveraging these efforts to drive growth in an evolving marketplace.About the IndustryThe Zacks Food-Miscellaneous industry consists of companies that manufacture and sell a wide range of food and packaged food items, such as cereals, flour, sauces, bakery items, spices and condiments, natural and organic food items and frozen products. Some companies also provide comfort food items, such as chocolates and ready-to-serve meals, soups and snacks.A few players are engaged in providing pet food products and supplements. Several food companies also offer organic and natural products. Companies operating in this space sell their products mainly through wholesalers, distributors, large retail organizations, grocery chains, mass merchandisers, drug stores and e-commerce service providers. Some also cater to foodservice channels, including restaurants, cafes and hotels. Others offer services to schools, hospitals and industry caterers.Major Trends Shaping the Future of the Food IndustryChallenging Market Landscape: The food industry is facing a tough macroeconomic landscape, with persistent inflation and shrinking consumer spending power reshaping buying habits. Shoppers are increasingly opting for lower-cost alternatives, with private-label products gaining ground over traditional national brands. At the same time, reduced foot traffic in quick-service restaurants is contributing to weaker foodservice performance, putting pressure on sales in key markets.As a result, many leading food brands are reporting softer sales volumes. To combat these challenges, food companies are shifting strategies — emphasizing value-focused marketing, launching targeted promotional campaigns and expanding their portfolios with affordable, budget-friendly product lines to better meet evolving consumer demand.Cost Pressure: Food companies are under growing pressure as rising costs weigh heavily on margins. Elevated key input prices — such as raw ingredients, labor, packaging and transportation — are tightening profitability. On top of that, businesses are absorbing additional operational expenses tied to essential long-term investments in efficiency, performance upgrades, and capacity expansion. While necessary for future growth, these initiatives are creating short-term financial strain.Compounding the issue, global trade tensions and tariffs have further escalated input costs, especially for imported materials. In response, companies across the food sector are aggressively pursuing cost-control strategies — streamlining supply chains, optimizing sourcing, and implementing operational efficiencies — to protect margins and navigate this inflationary environment.Strengthening Brands and Revamping Portfolio: Established brands continue to provide a competitive edge, fueling strong customer loyalty and supporting business growth. This advantage, combined with a commitment to innovation, has helped companies maintain their market position. As demand for healthier and more nutritious products rises, companies are introducing innovative organic options and expanding their wellness-focused offerings.Beyond product development, efforts to modernize production capabilities and diversify product portfolios have delivered meaningful results. These initiatives have reinforced market positioning while paving the way for future expansion by ensuring adaptability to shifting consumer preferences and industry trends. The ability to stay aligned with evolving customer demands has become a crucial driver of success.Zacks Industry Rank Indicates Dull ProspectsThe Zacks Food-Miscellaneous industry is housed within the broader Zacks Consumer Staples sector. The industry currently carries a Zacks Industry Rank #187, which places it in the bottom 24% of more than 250 Zacks industries.The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence about this group's earnings growth potential. Since the beginning of April 2025, the industry's consensus earnings estimate for the current financial year has declined 3.1%.Let's take a look at the industry's performance and current valuation.Industry vs. Broader MarketThe Zacks Food-Miscellaneous industry has underperformed the S&P 500 and the broader Zacks Consumer Staples sector over the past year.The industry has declined 6.9% over this period against the S&P 500's growth of 12.5%. Meanwhile, the broader sector has gained 3.9% in the said time frame.Industry's Current ValuationOn the basis of forward 12-month price-to-earnings (P/E), which is commonly used for valuing consumer staples stocks, the industry is currently trading at 15.85X compared with the S&P 500's 22.43X and the sector's 17.39X.Over the past five years, the industry has traded as high as 20.75X and as low as 14.47X, with the median being at 17.53X.4 Food Stocks to Keep a Close Eye OnMondelez: This Zacks Rank #3 (Hold) company is a global powerhouse in the confectionery, food, beverage, and snack food industry. With a strong portfolio of iconic brands such as Oreo, Ritz, LU, Clif Bar, and Tate's Bake Shop — as well as premium chocolates like Cadbury Dairy Milk, Milka, and Toblerone — Mondelez continues to shape the future of snacking.The company is delivering consistent growth by focusing on its core categories, including chocolate, biscuits, and baked snacks. Strategic portfolio reshaping, ongoing investment in product innovation, and impactful brand activations are key drivers of Mondelez's long-term success. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.By enhancing brand relevance, optimizing operational efficiency, and maintaining disciplined cost management, Mondelez is well-positioned to sustain financial performance. Additionally, the company is investing in healthier snacking options to meet rising consumer demand for well-being and active lifestyle choices. The Zacks Consensus Estimate for Mondelez's current financial-year earnings per share (EPS) has remained unchanged at $3.02 in the last 30 days. Shares of MDLZ have gained 2.2% in the past year.Sysco: This Zacks Rank #3 company continues to capitalize on growth opportunities within the expanding food-away-from-home market, supported by its diversified operations and strategic initiatives. The company's "Recipe for Growth" framework is central to its long-term success, enhancing capabilities across sales, supply chain, and customer engagement.Sysco's five strategic pillars include elevating the customer experience through advanced digital tools, optimizing supply chain operations for greater efficiency and consistency, and delivering customer-focused merchandising and marketing solutions to drive sales. In addition, the company is strengthening its performance through team-based selling strategies and expanding into new channels, segments, and capabilities. Cost-efficiency remains a key focus, with Sysco making targeted investments backed by savings initiatives.The Zacks Consensus Estimate for SYY's current fiscal-year EPS has remained unchanged at $4.38 in the past 30 days. Shares of Sysco have gained 7.3% in a year.McCormick: This Zacks Rank #3 company is a global leader in flavor, known for manufacturing, marketing, and distributing herbs, spices, seasonings, condiments, and flavor solutions. The company's continued focus on innovation and expansion of its distribution footprint has reinforced its leadership across core product categories and key global markets.McCormick is leveraging several growth drivers — including robust brand marketing, cutting-edge product and packaging innovation, effective category management, and proprietary technology. The company's ability to drive revenues through increased volume, rather than relying solely on pricing strategies, underscores the strength and broad consumer appeal of its diverse brand portfolio.McCormick's Comprehensive Continuous Improvement (CCI) program plays a vital role in fueling strategic investments and enhancing operating margins. The Zacks Consensus Estimate for MKC's current financial-year EPS has moved down by a couple of cents to $3.02 in the past 30 days. Shares of McCormick have gained 8% in the past year.Celsius Holdings: This Zacks Rank #3 company has rapidly become one of the fastest-growing names in the beverage industry by positioning itself as a clean, health-conscious alternative to traditional energy drinks. Celsius Holdings' zero-sugar, clean-label offerings have gained strong traction among Gen Z and millennial consumers who value wellness, performance, and transparency.Product innovation continues to be a core growth engine for Celsius Holdings, enabling the brand to stay ahead of evolving consumer preferences. The company further strengthened its market position with the strategic acquisition of Alani Nu, completed on April 1, 2025.CELH has also made significant strides in expanding its retail distribution footprint, securing increased shelf space across major national and regional retailers. The Zacks Consensus Estimate for Celsius Holdings' current financial-year EPS has moved down by almost 9% to 81 cents in the last 30 days. Shares of CELH have declined 18.9% in the past year.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report Sysco Corporation (SYY): Free Stock Analysis Report Mondelez International, Inc. (MDLZ): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks