The days of $5 footlongs are long over, thanks to inflation — but one customer claims their roast beef combo now costs them close to an eyebrow-raising $22 in Seattle, Washington.
“’This is barely even real food,” says TikToker Jessi B in the caption of her viral video, brandishing her partially-eaten sandwich at the screen.
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Moneywise confirmed the price of the combo (which included taxes) by contacting a Subway location in Seattle. A roast beef footlong on its own will send you back over $13 — more than double what it was during the promotional period, which was introduced during the 2008 recession.
Times have certainly changed since. With consumer prices still climbing by close to 5%, customers can’t even turn to their old fast food haunts for relief.
Here are three food stocks to help you fight the cost-of-living crisis instead.
1. Mondelez International
Although the bills may be bigger these days, don’t expect Americans to cut back on their candies and crackers.
In fact, according to Monedelez’s 2023 State of Snacking report, 71% of global consumers snack at least twice a day, with over half of households reporting they make an entire meal comprised of snacks each week.
And despite rolling out plenty of price hikes last year, the food giant didn’t see pullback from customers.
Mondelez (MDLZ) — known for beloved brands such as Oreo and Sour Patch Kids — reported its net revenue was up 18.1%, in the first quarter this year, with earnings surpassing estimates at $0.89 per share.
“We delivered a strong start to the year, with double-digit net revenue and profit dollar growth in our first quarter, as we continued to execute against our long-term strategy,” said CEO Dirk van de Put. “We saw broad-based demand across both developed and emerging markets, as consumers around the world continue to prioritize our chocolate, biscuits and baked snacks categories and brands.”
Mondelez also updated its 2023 fiscal outlook to 10%-plus organic net revenue growth, compared to the 5% to 7% that was initially anticipated.
Read more: ‘Hold onto your money’: Jeff Bezos says you might want to rethink buying a ‘new automobile, refrigerator, or whatever’ — here are 3 better recession-proof buys
2. General Mills
Americans are continuing to eat more at home in order to combat inflation (with those Subway prices, who’s surprised?) and companies like General Mills are profiting off the spoils.
The Minneapolis-based maker of your beloved Betty Crocker cake mix and Häagen-Dazs ice cream says it has seen customers take price increases in stride, according to The Wall Street Journal.
The company reported its net sales increased by 13% to $5.1 billion, with adjusted diluted earnings per share (EPS) rising by 17% to $0.97 in the third quarter of its 2023 fiscal year.
“We continue to deliver strong performance in a highly volatile operating environment,” said CEO Jeff Harmening.
“Given the strength of our first-quarter results and confidence in our ability to adapt to continued volatility ahead, we are increasing our full-year outlook for net sales, operating profit, and EPS growth.”
General Mills upped its fiscal 2023 outlook to 10% to 11% organic net sales growth.
3. PepsiCo
PepsiCo sells a lot more than just soda. It produces your favorite munchies, like Lays and Doritos, as well as breakfast brands, Quaker Oats and Pearl Milling Company.
Finance chief, Hugh Johnston, said in an interview with The Wall Street Journal that customers may not be splurging on big-ticket items like cars and tech but still seek “affordable treats in their lives.”
PepsiCo’s latest earnings report posted revenue growth of 10.2% in the first quarter of the 2023 fiscal year, and earnings at $1.40 per share.
It also boosted its outlook for organic revenue to climb 8% rather than its previous estimate of 6% for the year.
“Our results demonstrate that the investments we have made to become an even faster, even stronger, and even better organization by Winning with pep+ are laying the foundation for durable and sustainable growth,” said CEO Ramon Laguarta.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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