The 1 Not-So-Hidden Weapon of Top Food Stocks

The following video is part of our "Motley Fool Conversations" series, in which consumer0goods editor and analyst Austin Smith discusses topics around the investing world.

In today's edition, Austin discusses one of the best ways food stocks are moving their bottom line: coffee. The liquid goodness that fuels many people's daily lives has continued to grow in global consumption and remains one of the easiest sells on many companies' menus. Not only that, but coffee can also provide a valuable margin expansion in a notoriously low-margin industry. McDonald's has seen big gains from its McCafe line, and Krispy Kreme is looking to take a page out of McDonald's playbook by upping its own coffee sales.

That's not the only tactic it's emulating, as Krispy Kreme is looking for a big international push as well. It has placed a bull's-eye on Moscow for now, but it's unlikely to stop there. It still has a long way to go before catching up to McDonald's international chops, which is just one reason we named the Golden Arches one of our "3 Companies Set to Dominate the World." You can read about the other two today, just by clicking here.

At the time this article was published Austin Smithowns shares of McDonald's. The Motley Fool owns shares of Starbucks.Motley Fool newsletter services recommendGreen Mountain Coffee Roasters, McDonald's, and Starbucks. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story