<div id="readability-page-1">For those that prefer the all-natural route, the concept of plant-based food stocks might seem alien. However, it’s important to keep in mind that social mores and preferences change over time. Right now, the we have the intersection of young millennials and older members of Generation Z sparking a new paradigm in the broader culinary world. Let’s just get down to the hard numbers. According to information cited by The Food Institute, a vast majority of college students – specifically 81% – will choose a plant-based food offering when it’s the default option. Further, extensive research indicates that Gen Z members (colloquially known as Zoomers) are more interested in plant-based foods than older demographics. With young millennials generally carrying the same sentiments as Gen Z across a range of social wellness issues, investors need to pay close attention to this core need. With that in mind, below are compelling plant-based food stocks to consider. <h2>Kellanova (K)</h2> <div id="1943969"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: JHVEPhoto / Shutterstock.com</div>Multinational food manufacturing giant Kellanova (NYSE:K) – formerly known as Kellogg’s – isn’t exactly what you would call the most exciting idea. Since the start of the year, K stock slipped a bit under 1%. It’s done a lot of movement but the net gain has largely been lateral to use a football analogy. Still, market participants should keep Kellanova on their list of plant-based food stocks. Mainly, that’s because the company features a sustainability-friendly brand called MorningStar Farms. Featuring a robust portfolio of veggie and vegan plant-based food products, MorningStar could take a bite out of the competition. Of course, that would be positive for K stock. Another catalyst to consider is the enormous scale. In the trailing 12 months (TTM), Kellanova posted net income of $812 million or earnings of $2.36 per share. Revenue during this period reached $12.98 billion. For fiscal 2024, experts see an increase of 12% in earnings per share to $3.62. To be fair, the top line might dip 3.1% to $12.72 billion. That’s not necessarily set in stone. Plus, Kellanova offers a forward dividend yield of 3.86%. <h2>Kroger (KR)</h2> <div id="2293930"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Eric Glenn / Shutterstock.com</div>Falling under the grocery store segment, Kroger (NYSE:KR) isn’t a pure-play candidate for plant-based food stocks. Instead, the company operates a combination of food and drug stores, along with multidepartment and marketplace stores. However, under its mainline business, Kroger offers a vegan brand called Simple Truth. Not that I’m an arbiter or anything but I’ve tried it several times and it’s a wonderful product. Fundamentally, Kroger should benefit from a scale advantage: it simply has the resources to beat out smaller rivals in the space. Also, the plant-based avenue is more of a side gig for the grocer. If it doesn’t pan out for whatever reason, it can always depend on its core business. And this business has been consistently strong. In the past four quarters, the company’s average EPS came out to $1.17. It’s worth noting that Kroger beat all four of the bottom-line estimates. The average earnings surprise came out to 8.6%. During the TTM period, the company posted net income of $2.13 billion on sales of $150.14 billion. For this year, analysts anticipate a flat performance. However, in the following year, EPS and revenue may rise modestly to $4.55 and $152.06 billion, respectively. <h2>Oatly (OTLY)</h2> <div id="1991634"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Vladislav Noseek / Shutterstock.com</div>Admittedly, the top two ideas for plant-based food stocks represented more conservative ideas: not much growth potential but they should keep the ship steady. With Oatly (NASDAQ:OTLY), we’re dialing up the risk-reward factor. As of this writing, OTLY is a literal penny stock, having lost almost 24% of equity value year-to-date. That’s your warning if you want to step away now. If you need another warning, the financials are all over the map. In the past four quarters, Oatly’s average “earnings” landed at 16.5 cents per share below breakeven. It generated positive EPS only in the third quarter last year. Moreover, the average “earnings” surprise came out to nearly 20% below the zero line. In the TTM period, Oatly incurred a net loss of $387.1 million or 65 cents per share. However, revenue hit $786.86 million. With the company specializing in providing diary-replacement products for those who are lactose intolerant (a large global population group), Oatly enjoys a massive total addressable market. Will the market recognize this? It’s hard to say. So far, analysts see relatively modest growth of 5.8% to sales of $828.58 million. However, a paradigm-shifting event could send OTLY stock soaring. On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.Consumer Staples, FoodGrowth Stocks </div>

Plant-based food stocks are gaining popularity among Gen Z and young millennials, with 81% of college students choosing plant-based options. Kellanova (K) is a multinational food manufacturing company with a sustainability-friendly brand called MorningStar Farms. Kroger (KR) offers a vegan brand called Simple Truth and has a strong core business. Oatly (OTLY) is a riskier option with fluctuating financials.

3 Plant-Based Food Stocks to Buy as Gen Z Gobbles Up Vegan Alternatives