The coffee industry is a complex and multilayered one, including everything from producers and distributors to processors, wholesalers, and retailers. Notable names include Starbucks Corp. (SBUX), J.M. Smucker Co. (SJM), and Restaurant Brands International Inc. (QSR). There is no single sector or ETF for the ubiquitous bean, and coffee-related stocks can be found both in the consumer discretionary and consumer staples sectors. In general, retailers and coffee shops are part of the consumer discretionary group, and producers and packaged food companies are part of the consumer staples group. These sectors have performed differently in the past 12 months. The Consumer Staples Select Sector SPDR ETF (XLP) has underperformed the broader market, posting a 1.1% total return compared to the S&P 500's 5.8%. By contrast, the Consumer Discretionary Select Sector SPDR ETF (XLY) has outperformed, with a total return of 7.0% during the same period. These market performance numbers and the statistics in the tables below are as of June 12.

Here are the top 3 coffee stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Coffee Stocks

These are the coffee stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Coffee Stocks

 

Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
JM Smucker Co. (SJM) 106.29 12.1 15.6
Dunkin' Brands Group Inc. (DNKN) 64.33 5.3 22.3
Restaurant Brands International Inc. (QSR)   55.22 16.6 23.8

Source: YCharts

  • J.M. Smucker Co.: Consumer staples stock J.M. Smucker manufactures food products for global sale. Although perhaps best known for its fruit spreads, peanut butters, shortenings and oils, the company also makes coffee products. In Smucker's fiscal Q4 2020 ended in April 30, the company's net sales increased by 10% year-over-year (YOY), which it attributed to rising consumption amid stay-at-home orders during the COVID-19 pandemic.
  • Dunkin' Brands Group Inc.: Consumer discretionary stock Dunkin' Brands Group franchises quick service restaurants that serve hot and cold coffee, baked goods, and ice cream. The company franchises restaurants under its Dunkin' (formerly "Dunkin' Donuts") and Baskin-Robbins brands.
  • Restaurant Brands International Inc.: Part of the consumer discretionary sector, Restaurant Brands International is a Canada-based holding company born out of the 2014 merger of Burger King and Tim Hortons. The company also owns Popeyes, the Louisiana fried chicken franchise. Tim Hortons remains one of the largest coffee shop and restaurant chains in Canada. While Restaurant Brands International reported system-wide sales declines of 2.0% YOY in Q1 2020, Popeyes' sales climbed by 32% YOY thanks to its new, popular chicken sandwich.

Fastest Growing Coffee Stocks

These are the coffee stocks with the highest YOY EPS growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders. Only two companies in our screen saw profits grow or remain flat; the third company on this list experienced the smallest contraction over this period.

Fastest Growing Coffee Stocks

 

Price ($) Market Cap ($B) EPS Growth (%)
J.M. Smucker Co. (SJM) 106.29 12.1 214.3
Dunkin' Brands Group Inc. (DNKN) 64.33 5.3 0.0
Restaurant Brands International Inc. (QSR) 55.22 16.6 -9.4

Source: YCharts

  • J.M. Smucker Co.: See above for company description.
  • Dunkin' Brands Group Inc.: See above for company description.
  • Restaurant Brands International Inc.: See above for company description.

Coffee Stocks with the Most Momentum

These are the coffee stocks that had the highest total return over the last 12 months. Although one of the stocks listed below had a negative total return over the past year, it has still outperformed all other coffee stocks with negative total returns.

Coffee Stocks with the Most Momentum

 

Price ($) Market Cap ($B)

12-Month Trailing Total Return (%)

Nestlé S.A. (NSRGY) 108.71 313.1 9.5
Keurig Dr Pepper Inc. (KDP) 28.34 39.9 2.3
Starbucks Corp. (SBUX)         72.57 84.8 -10.2
S&P 500 (SPY) N/A N/A 5.8
Consumer Discretionary Select Sector SPDR ETF (XLY) N/A N/A 7.0
Consumer Staples Select Sector SPDR ETF (XLP) N/A N/A 1.1

Source: YCharts

  • Nestlé S.A.: Consumer staples stock Nestlé is a Switzerland-based multinational packaged food company offering a wide variety of products ranging from baby food and bottled water to dairy products, frozen food, coffee, and more. In June 2020, Nestlé announced that its nutritional science wing, Nestlé Health Science, would acquire a majority stake in Vital Proteins, a supplement, beverage, and food company.
  • Keurig Dr Pepper Inc.: Keurig Dr Pepper is a consumer staples stock that makes and distributes non-alcoholic beverage products including coffee. The company serves customers throughout North America.
  • Starbucks Corp.: Starbucks is a consumer discretionary stock that roasts and retails its own brand of specialty coffee through coffee-themed shops globally while selling whole bean coffee through various channels. Starbucks also offers other beverages, complementary food, and a selection of merchandise. In June 2020, the company announced that it would close up to 400 of its retail stores within the next 18 months. The company said it will do this in conjunction with the opening over time of a greater number of "repositioned" stores in different locations with new formats as it adjusts to the new consumer market amid the COVID-19 pandemic.