What do cereal, pizza, and soda have in common? While some might say "breakfast after a wild night out on the town," analysts say they're the products of three attractive investment opportunities. Here, we compare three food and beverage stocks—Papa John's International (PZZA), Coca-Cola (KO), and Post Holdings (POST)—all of which have "Strong Buy" ratings from analysts.

These three food and beverage companies are navigating challenges like inflation and changing consumer behaviors with varying degrees of success, reflected in their stock performance and analyst outlooks.

Papa John's (NASDAQ: PZZA)

Papa John's has struggled recently, losing over 66% of its value in the past 2.5 years. However, CEO Rob Lynch has introduced a turnaround plan called "Back to Better 2.0," aiming to drive 2-4% comparable sales growth. The company is focusing on menu innovation and revamping its marketing strategy. Investors remain skeptical, but analysts are more bullish, seeing growth potential if the company can execute its initiatives. PZZA stock is trading at its lowest P/E ratio in the past year.

Coca-Cola (NYSE: KO)

Coca-Cola will report earnings on July 23, so anticipation is high. The company has demonstrated strong pricing power amid inflation, with revenues beating expectations for five consecutive quarters. Chris Carey, an analyst at Wells Fargo, believes structural changes could provide significant gross margin upside. KO stock is trading slightly below its five-year average P/E ratio and is close to its all-time high. As one of Warren Buffett’s top stocks, Coca-Cola has continued to show robust sales through an inflationary period.

Post (NYSE: POST)

Post Holdings, a cereal and pet food company, recently broke out of its slump to reach new highs. The company plans significant capital expenditures for FY2024 to scale up facilities and enhance operating efficiencies. Post is known for its strong operating track record and strategic M&A activities. Analysts expect that these investments will lead to improved margins. At 20.7 times trailing price-to-earnings, POST stock is trading slightly above the packaged foods industry average P/E ratio.

Among the three stocks, analysts see the most upside potential in PZZA (55.2%), followed by POST (8.2%) and KO (6.6%). These consumer staple stocks have potential catalysts for solid performance as market strength broadens beyond tech stocks.

Julie Stoller does not have positions in this company. Stocks.News has positions in KO.