The Best 3 Food Delivery Stocks for long-term Investment

The future belongs to the digital tech—with the food delivery stocks being a major stakeholder in it.

The pandemic has accelerated the online industry in almost every sector. The demand for food delivery services has increased significantly during the last year. The food delivery firm’s growth has been phenomenal during the pandemic period—with the increase in stay-at-home trade.

The future world of digital technology has climbed miles—with COVID becoming a major catalyst to its growth. With people spending most of their time inside their homes, the food craving has driven the demand for food delivery companies.

But there is an argument that the food delivery trend already on a hike even before the pandemic. This was due to the widespread digitalization and increased urban population. However, the COVID-19 epidemic has played a significant role to continue this hike in the rising food delivery trend.

Though food delivery stocks can be risky—having massive potential in the long-term. Here are the three best food delivery stocks to invest in for the long-term.

Beyond Meat (BYND)

Beyond Meat (BYND) is a Los Angeles-based producer of plant-based meat substitutes. The company has seen notable growth with the increasing demand for meat substitutes. The company sells its product in the U.S. and internationally, through mass merchandisers, grocery, natural retailer channels, club and convenience stores, restaurants, schools, direct to consumer, and food service outlets.

In Benzinga’s recent survey, a question was asked from investors — would BYND stock reach $250 per share by the end of 2022? — 68% of the respondents said the BYND would reach $250.

Furthermore, to push things to a greater level, the company just collaborated with Pepsi to develop plant-based snacks and beverages. Both the enterprises with joint venture to form The PLANeT Partnership, LLC. The joint venture will work on the development, production, and marketing of innovative snack and beverage products made from plant-based proteins.

So, Beyond Meat (BYND) is shaping up to be the future firm that will rule this segment in the digital world. The potential is there and in the long-term, BYND stock will increase its market value and shares price.

Blue Apron (APRN)

Blue Apron (APRN) is a holding firm that works through its subsidiaries that have a formidable market place in meal-kit delivery services. The company has seen a massive boost in new business rocketed by the pandemic. 

In the second quarter of 2020, the company added more than 20,000 customers and its net revenue increased by approximately 10%. The company continues to speed up its growth in the next quarter. In Q3 2020, the net revenues increased 13% year-over-year to $112.3 million. Whereas, the order per customer soared 20% to 5.4 and the Average Order Value grew 2% to approximately $59.

Many big firms would be eyeing Blue Apron (APRN) and if it gets acquired, it would make more sense to invest in the unmoving industry stock. So, APRN stock is one for the future—a long-term gun.

Grubhub (GRUB)

Grubhub (GRUB) is an American online and mobile prepared food delivery service that connects diners with local restaurants. A major turnaround for Grubhub is set to happen later this year.

Back on June 10, 2020, Grubhub entered into a merger agreement with Just Eat The Holland-based will acquire Grubhub in an all-share combination later this year. This acquisition of Grubhub will certainly expand the ecosystem of the company and support its growth in the market.

According to Zacks, Grubhub is one of those firms that will largely benefit from the reopening of economies and lifting of the travel bans.

Recently, the company collaborated with Lear Corporation’sXevo software business. This partnership will deliver safer, contactless food ordering capabilities in FCA vehicles through an app on the Uconnect Market. This deal will also driveGrubhub to a larger user base via Uconnect Market.

So, moving forward, Grubhub (GRUB) is one of the potential food delivery stocks to watch for the long-term investment. If the acquisition of an online delivery platform turns out to be perfect, things will get bigger in the next few years.

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