Eat Up These 4 Food Stocks to Stomach Market Volatility

Consumer stocks that deal with food products are in focus right now. Euro zone
debt fears, high unemployment and a volatile stock market means investors are
taking shelter in staples stocks that deal in the most basic of needs for
Americans: Food. Of course, not all food stocks are equal . You need a strong
brand and a great niche for your products. Whether it's higher quality or
lower prices, food stocks need an edge to get ahead. Here are four top food
stocks to eat up amid market volatility: Coca-Cola (NYSE: KO ) not only performs
well in weak economies, but accelerates profit growth when the global economy is
humming along. Coca-Cola is booming in emerging markets because those countries
predominantly younger populations enjoy the affordable luxury of Coca-Colas
products (two to three times more expensive than local brands). In the latest
quarter, strength came from emerging markets, including a 19% volume increase in
India and a 7% increase in Latin America. The company increased its share
repurchase program to $3 billion by the end of 2011, up from its prior goal of
$2.5 billion. Chipotle Mexican Grill (NYSE: CMG ) is one of the fastest-growing
fast-food restaurants in the U.S. And this year, CMG has been the
best-performing restaurant stock in the S&P 500 Index to date! The company has
been able to increase same-store sales consistently despite higher food costs.
Chipotle can absorb short-term food price hikes unlike any other restaurant
stock, and that makes it the perfect play for us in the year ahead. Whole Foods
Market (NASDAQ: WFM ) is dominating the high-end supermarket business. Whole
Foods offers an unparalleled selection of groceries, body care products and
other household products. For 2012, analysts expect Whole Foods' earnings
growth to outpace the rest of the grocery stores industry, accelerating 15%. And
WFM will keep its dominant position as it is doing an outstanding job in
containing its costs, managing its inventory and ramping up performance. Costco
(NASDAQ: COST ) is basically a cult for thrifty shoppers not just in regards to
electronics but to big cuts of meat and packaged foods. With retail sales
picking up, I expect Costco will sell more high-end products that will pad its
operating margins. For example, at my last visit to Costco, there were many
filet mignon roasts available at approximately $90 apiece for holiday meals, as
well as lobster tails and other expensive food items. And, COST will get a new
CEO with Craig Jelinek taking the reins from Jim Sinegal. I don't see any
potential problems with the transition or the future prospects of COST shares.