The highest inflation in decades is hitting consumers and rippling through the food industry, from farm equipment to packaged food, grocers, and restaurants.
At-home food costs climbed 8.6% and out-of-home costs rose 6.8% in February from a year ago. Wholesale prices are up even more, signaling continued inflation at supermarkets and restaurants. The producer price index for food was up 13.4% in the year ended in February, with grains and the beef and veal category rising 20% or more.
In reacting to the surge in food costs, Wall Street has stuck with its usual playbook. Businesses like restaurants and packaged-food companies that are absorbing price increases have been hit, while farm-equipment makers, supermarkets, and food processors are seen as beneficiaries.
So, which stocks look best now?
Investors may want to consider depressed restaurant stocks like
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