Dalhousie University released the 2023 Canada Food Price Report in late 2022. This report was also produced with the assistance of the University of British Columbia, the University of Guelph, and the University of Saskatchewan. The report projects that the average Canadian family will spend $1,065 more on food this year. Overall, food prices are expected to increase 5-7% over the course of the year.
Consumers are set to feel major pressure in this environment. Investors can look to alleviate pressure on themselves by targeting stocks that are positioned to perform well due to these factors. That is why I’m targeting Maple Leaf Foods (TSX:MFI) stock today. After all, meat will represent one of the largest segment price increases.
This Mississauga-based company produces food products in North America and around the world. Its shares have dropped 12% year-over-year as of close on January 24. The stock is up 1% so far in the New Year.
The company is set to unveil its final batch of fiscal 2022 results in late February. In Q3 2022, Maple Leaf posted total company sales growth of 3.6% to $1.23 billion. Meanwhile, the Meat Protein Sales Group posted sales growth of 3.8% year-over-year to $1.19 billion.
Shares of Maple Leaf are trading in very favourable value territory compared to its industry competitors. It offers a quarterly dividend of $0.20 per share, representing a 3.1% yield. Maple Leaf still holds solid growth potential going forward. I’m looking to snatch up this stock on the dip before February.
