3 Small Cap Food Stocks with Big Name Brand Appeal

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There is no underestimating the long term appeal of stocks with established brands. In a famous quote, legendary investor Warren Buffett has stated that the brand leadership of Coca-Cola
KO
could not be taken away for $100 billion. There are many small caps stocks with big name appeal that investors should consider, including Tootsie Roll
TR
, Rocky Mountain Chocolate Factory
RMCF
, and The Original Soupman
SOUP
. Of the three, Tootsie Roll has the biggest name brand. The legendary candy maker is down for the last week, month, quarter, six months, and year of market action. Much of that is blamed on the chief executive office, who is one of the oldest still in office. When he leaves, the stock price should do much better. Tootsie Roll has a 11.20 percent profit margin. There is little debt and a 1.11 percent dividend yield. Earnings and sales are both growing. With marijuana legal in Colorado, Rocky Mountain Chocolate Factory should do well based on just the local market! But sales are earnings are growing from the more than 300 products that are sold around the world. There is no debt. The Wall Street analyst community is very bullish on Rocky Mountain Chocolate Factory with a $16.00 target price, well above the current level of around $11.70. There is also a 3.76 percent dividend yield, well above the Standard & Poor's 500
SPY
average of just under 2 percent. The brand name of The Original Soupman comes from one of the most famous episodes from the highest rated comedy series of all time. The Original Soupman is the company that evolved from the legendary "Soup Nazi" episode" of the classic comic series "Seinfeld." According to Yahoo! Finance, quarterly revenue growth for The Original SoupMan is 24.60 percent. The company just won an important lawsuit, which is very bullish for its outlook. Food stocks are great defensive holdings. A well-recognized brand name augments that appeal. For investors, Tootsie Roll, The Original SoupMan, and Rocky Mountain Chocolate Factory could be very appetizing stocks based on the allure of the tempting brands!
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