The share market has a wide range of shares in a number of industries.
The food sector has several different opportunities such as fast food, primary producers and food retailers. Some of these food businesses have had a bad 2017 so far, but they could have a better FY18.
Here are three food shares that could be worth a nibble:
Retail Food Group Limited (ASX: RFG)
Retail Food Group is a master franchisor of several food chains including Gloria Jeans, Michel's Patisserie, Crust Pizza, Donut King, Brumby's and Cafe2U.
I may not be the biggest fan of the business and some of franchises may be struggling but it is still growing its net profit after tax and earnings per share. In FY17 it grew earnings per share over its restated FY16 accounts by 10.5% and grew the dividend by 8.2%.
Retail Food Group is currently trading at 12x FY18's estimated earnings with a grossed-up dividend yield of 9.84%.
Select Harvests Limited (ASX: SHV)
Select Harvests is one of Australia's largest growers of almonds.
A lower crop yield and a lower global price for almonds has seen Select Harvests' profit and share price smashed.
However, the long-term outlook for almonds is good and Select Harvests expects to increase the crop yield by at least 50% over the next several years. There could be a long-term turnaround by 2020.
Select Harvests is trading at 17x FY19's estimated earnings.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Domino's has fallen heavily since its result, but it was still a pretty good result.
The business may have slower growth ahead but more outlets and higher profit margins could still see Domino's be a market-beater from this price.
Domino's does a good job of refreshing its menu which should help it to grow its same store sales.
Domino's is trading at 28x FY18's estimated earnings with a partially franked dividend yield of 2.11%.
Foolish takeaway
The long-term growth potential of all three means I think all three will beat the market. At the current prices, I think Select Harvests will probably provide the best return, but Retail Food Group's big dividend could tip the scales.
