Consumer Staples Near 52-Week Lows Present Long-Term Investment Opportunities

Three consumer staples are trading near their 52-week lows due to higher prices squeezing consumers' spending power.

PepsiCo (PEP), Kroger (KR), and McDonald's (MCD) have produced relatively solid results despite the headwinds, with solid organic revenue growth and dividend yields that could make them rewarding long-term investments.

PepsiCo has a strong brand portfolio, including Cheetos, Doritos, and Gatorade, backed by global distribution. The stock trades at a reasonable forward P/E multiple of 17 and offers a strong dividend yield of 4%, supported by earnings.

Kroger benefits from customer loyalty and convenient shopping habits, with nearly 2,700 stores and $148 billion in trailing sales. The stock trades at just 11 times forward earnings and offers an above-average 2.3% dividend yield that's supported by earnings.

McDonald's continues to perform reasonably well, with global systemwide sales rising 6% year over year on a constant-currency basis. The company earns high margins, with adjusted operating margin at 46% last quarter. With nearly 95% of restaurants franchised, the company keeps costs low and cash flow steady.