The vending machine industry is one of the oldest in the US. It’s been around since the 1800s and will likely be here for decades.
The global industry is predicted to grow to $5 billion, which is roughly double its current valuation. And with that in mind, let’s look at some of the best vending machine stocks to buy now.
Best Vending Machine Stocks To Track
Crane Holdings Co (NYSE: CR)
Formerly known as R.T. Crane & Bro, Crane Holdings is a machine industry company established in 1855.
Crane Holdings manufactures highly engineered industrial products with its headquarters in Chicago, Illinois.
Their products include vending machines, airplane braking devices, pumps, valves, and other industrial products.
Crane Holdings has announced its regular quarterly dividend of $0.47 per share for the first quarter of 2023 on the 23rd of January, payable on the 8th of March 2023.
The company’s annual revenue in 2022 reported a 6.13% increase from 2021, totaling $3.37 billion from $3.18 billion the previous year.
Cantaloupe Inc (NASDAQ: CTLP)
Cantaloupe Inc is a digital payment and software services company that provides end-to-end technology solutions for the self-service economy.
The company was previously known as USA Technologies Inc.
It changed its name to Cantaloupe Inc in 2021 with the hope of driving the industry forward, helping retailers utilize technology to scale up their businesses.
Cantaloupe’s main products are ePort cashless payment systems that facilitate electronic payment options to consumers and Seed vending management software.
The company has maintained partnerships with MasterCard Worldwide, Kodak, ZiLOG CineMachine, among others, and is part of the leading shippers of point-of-sale terminals.
In 2009, Cantaloupe ranked 6th in the US and 31st in the world and has beaten revenue estimates 75% of the time in the past year.
With a market cap of $357.87 million and $0.13 earnings per share in the last quarter of 2022, missing its estimate by $0.14, analysts still maintain a moderate buy option on this stock.
Intel Corporation (NASDAQ: INTC)
American multinational corporation Intel Corporation, also popularly known as Intel, is a global leader in designing and producing semiconductor computer circuits headquartered in California.
The company’s name was coined out of integrated electronics and was founded in July 1968 by American engineers Robert Noyce and Gordon Moore.
Intel started out with $2.5 million in funding and produced memory chips at its inception, including the world’s first metal oxide semiconductor, 1101.
In 1971, the company introduced the first mini processors, which combined the circuitry for information storage and information processing on a single silicon chip.
This led Intel to quickly become the leading producer of microprocessor chips, which are also used in vending machines.
And with a forecasted boom in the vending machine industry come 2023-2027, Intel stands to profit from the market.
INTC has a strong dividend yield of 5.17%, and holders stand to benefit from its annual dividend payout of $1.46.
The Eastern Company (NASDAQ: EML)
The Eastern company, founded in 1858, produces industrial hardware, security products, and metal castings.
It operates from different locations in the USA, Canada, Mexico, Taiwan, and China.
The company has three major divisions: industrial hardware group, security product group, and metal products group.
All three have target audiences of equipment manufacturers, distributors, and locksmiths.
Its products include packaged consumer goods, plastic packaging, latches, locks, key handles, and hinges.
All of these are utilized in vending machines across the United States.
EML guarantees its investors dividends with a forward dividend yield of 2.01% and an annual payout of $0.44.
Deswell Industries Inc (NASDAQ: DSWL)
Deswell is a UK-based company that manufactures injection-molded plastic parts, components, electronic products, and subassemblies.
The company also focuses on metallic products for original equipment manufacturers.
The corporation has a long history of paying dividends from $0.08 to $0.20 per year. This indicates that over that time, the company’s dividend increased annually at a pace of 9.6%.
The company’s fall in 2022 was only 15.5%, and it currently has a forward yield of 6.15%.
Deswell has no debts, which gives the management versatility and toughness in tumultuous times.
Analysts forecast Deswell to have a median target of $7.75.
The median estimate represents a +144.87% increase from the last price of $3.17, with a market cap of $51.07 million.
Nayax Ltd (NASDAQ: NYAX)
Nayax Ltd is a global FinTech company established in 2005.
It started as a cashless payment, IoT service, and management solution provider for vending machines.
With over 8,000 employees in about 62 countries, nine global locations, and partnerships with more than 80 financial institutions worldwide, the company has developed into an omnichannel retail solution provider.
The global commerce payment platform had preliminary revenue growth of 48% in the fourth quarter of 2022 over the prior year, along with transaction processing volume growth of 53% for the period.
NYAX generated $174 million in annual revenue, up 46% from the year before, with recurring revenue accounting for 60% of their overall sales at the end of the year.
Sanden Corporation (OTC US: SAEOF)
Tokyo-based company Sanden Corporation is a major automotive and electrical equipment manufacturer, including air conditioning compressors and car air-conditioning.
The company has four segments; automotive systems, vending systems, retail store systems, and living & environment systems.
The automotive systems produce air conditioning systems, HVAC units, compressors, and heat exchangers for air conditioners.
The vending systems supply vending machines for various different products.
Refrigerators, freezers, and multi-temperature horizontal refrigerated display cabinets are supplied by the retail store system.
In contrast, the living & environment systems supply IH cooking systems, heat pump systems, and far-infrared radiant heating units.
In 2021, it issued new stock shares through a third-party allocation, and a major appliance manufacturer in China, Home Appliances Group Co, Ltd., became the majority shareholder.
Sanden Corporation has 544 employees and annual revenue of $130 million.
The company had a 53.2% earnings growth and a 22.4% increase in revenue in the past year.
Glory Ltd (OTC US: GLYYY)
Glory Ltd is a Japanese company that mainly engages in manufacturing, distributing, and maintaining cash-handling machines and systems.
The company provides instant, highly accurate identity verification, authentication solutions, and safe, effective payment methods, enabling trust in business and customer interactions.
The private company has an estimated 10,667 employees.
It holds a significant market share in copier and optical machinery production in the US, contributing an estimated 1.3% of the sector’s overall revenue.
The company outperforms competitors in terms of market share, profit, and revenue growth, earning it the title of “All-Star.”
The company’s total revenue for the last quarter is 59.16B JPY, 11.67% higher than the previous quarter, and has a market cap of $977.60 million.
Fastenal (NASDAQ: FAST)
Fastenal Company is a global leader in the wholesale distribution of industrial and construction materials.
They provide supply chain solutions for C-class and indirect parts in the manufacturing sector.
The company started in 1967 and was the smallest of an estimated 10,000 fastener distributors in the United States.
By the mid-1990s, it had become the largest, almost entirely through organic growth.
The global company currently operates in 25 countries with over 20,000 employees spread across 3,000 locations.
The Wall Street Journal classified Fastenal as having the highest return on investment of the 500 IPOs in 1987 at the year’s conclusion.
The IPO’s capital round provided the foundation for impressive expansion.
By the end of the 1990s, Fastenal had expanded from 52 locations to over 800, and sales had risen dramatically from $20 million in 1987 to $400 million.
The company now has revenue of close to $6 billion and more than 3,000 in-market servicing sites spread across 25 countries, with a rapidly expanding presence in Europe.
In the fourth quarter of 2022, the company’s net sales increased by $163.8, or 10.7%, compared to the same quarter in the previous year.
Fastenal’s annual revenue for 2022 was $6.98, a 16.13% increase year-over-year.
The Coca-Cola Company (NYSE: KO)
One of the most famous household companies in the world, the Coca-Cola company provides plastic and canned beverages for sale in vending machines worldwide.
The largest beverage company in the world, Coca-Cola’s most famous beverages include Coca-Cola, Diet Coke, Fanta, and Sprite.
The company also has a stake in the famous energy drink Monster.
Coca-Cola continues to expand and has set its eye on acquiring a $715,000 piece of property in Moore County.
This underdeveloped and wooded area is set to be the base for the Coca-Cola bottling warehouse.
KO reports 60 years of consecutive growth in its dividends, and holders stand to benefit from its strong dividend yield of 2.87% with an annual payout of $1.76.
The stock has a massive market cap of $265.18 billion and is roughly trading at $61.
Tootsie Roll Industries (NYSE: TR)
The sugar and confectionery company Tootsie Roll Industries is a different approach to benefit from the growth of the vending machine market.
Tootsie Roll Industries, through its subsidiaries, provides a number of confectionaries, including its lead product Tootsie Roll, Tootsie Pops, and others.
It markets and sells products to warehouses, retail chains, dollar stores, the US military, and various vending machine operators.
Looking at its financials, TR has reported an all-time in its stock prices, with its share price taking a sharp upward turn in the fourth quarter of 2022.
As of January, TR is roughly trading at $45 with a $3.22 billion dollar market cap.
While investors hold to benefit from projected growth in the vending machine market, TR offers dividends.
This dividend stock offers an annual payout rate of $0.36 with a dividend yield of 0.80%.
What Are The Types of Vending Machines?
Believe it or not, there are many different types of vending machines that cater to a broad audience. As advancements happen in the industry, we’re seeing more options appear than ever before.
An ever-growing vending machine portfolio has a profound impact on the sector as a whole and, therefore, your investments in the space. Here are the most popular vending machine types currently out there:
Snack Vending Machines
Snack vending machines are among the original types that date back decades. They tend to contain our favorite munchies, such as chips, candy, chocolate bars, donuts, pastries, and many other delectable treats.
In recent years, there’s been a clear move toward healthier options in machines such as these. These include granola bars, crackers, and items like fruits, veggies, and yogurt if refrigeration is involved.
These machines can succeed just about anywhere people are, from offices to theme parks and everything in between.
Beverage Vending Machines
Beverage vending machines have evolved a lot over the years from a handful of soda options to juices, iced teas, and water. Even the design of these pieces of equipment has seen significant improvements to allow a more user-friendly experience.
Some machines, especially those in restaurants, can dispense hundreds of brands and flavor combinations from a single tap.
There’s been an uptick in hot beverage vending machines of late, serving coffees, hot chocolates, teas, and more.
Along with snacks, beverages do incredibly well just about anywhere. This often leads to high profit margins and a low risk of failure.
Meal Vending Machines
Meal vending machines provide hot, pre-cooked food for individuals. Common items range from pizza to hot dogs, sandwiches, burgers, and even salads.
The biggest draw here is convenience, as it takes mere moments and a few button presses to have a full meal. Food from these vending machines is usually cheaper than alternatives elsewhere.
They require more attention than other machines but can prove very successful in offices, hospitals, college campuses, and the like.
Smoking Vending Machines
You won’t find smoking vending machines everywhere, but they are becoming more popular. Clearly targeted toward adults, these machines often sell cigarettes and vape supplies.
Restrictions and higher security on these machines make for higher costs to operate, but it’s possible to transfer those fees to the customer. Consumers enjoy the discretion and convenience of shopping this way.
Bulk Vending Machines
Bulk vending machines are typically low-tech dispensers of gumballs, candies, and cheap toys that have changed very little in decades. They cost little to buy but can turn a tidy profit thanks to their draw.
Kids still love putting in the coin and turning the crank to see what pops out. For this reason, it’s easy to find them at restaurants, parks, and anywhere children go.
Ice Vending Machines
Ice has a nearly limitless shelf life and doesn’t cost much to produce. Even at low costs, these machines can turn a tidy profit as a result.
They’re making more of an appearance of late in grocery stores and gas stations where ice isn’t always carefully monitored. These machines greatly reduce instances of theft and better control the output of product. With an attached water supply, they rarely need attention or maintenance.
Specialty Retail Vending Machines
The sky’s the limit of what you can find in a specialty vending machine. Clothing, electronics, over-the-counter medicines, and jewelry all can make the list.
Because store owners can use these machines for just about anything, they’re seeing a real surge in popularity of late. Higher-end goods can lead to incredible profit margins without even needing an employee to safeguard the product.
Are Vending Machine Stocks a Good Investment?
The vending machine business has been around since 1888, and it doesn’t look like it’s going away any time soon.
That’s primarily because it’s a convenient and cost-effective way for businesses to provide customers with snacks, beverages, and other items.
In other words, the vending machine industry is ever-green, and as such, it represents a solid investment opportunity for people who are keen on gaining exposure to the space.
Vending machines are often part of larger vending machine companies, which offer various services such as installation, maintenance, and repair.
Investing in these companies can give investors exposure to a diversified range of services, allowing them to benefit from the steady demand for vending machines.
Additionally, vending machine stocks offer investors the opportunity to benefit from the increasing demand for customization in vending machines.
Many vending machine companies offer unique services such as customized vending machines, intelligent vending machines, and more.
This is creating a lucrative market for growth as businesses are increasingly looking for ways to make their vending machines stand out from the competition.
All in all, vending machine stocks allow investors to take advantage of the demand for vending machines.
As such, these stocks could be a good investment for those looking for growth potential in the vending machine industry.
FAQs
Where Are Vending Machines Most Profitable?
The best way for a business owner to seek maximum profits from a few vending machines is to place it in an office space or commercial spaces with lots of foot traffic, as it will likely attract many customers by default. Big offices, manufacturing plants, train stations and schools are also great places to placing vending machines.
How Much Does 1 Vending Machine Make?
A single vending machine could probably make a few hundred dollars a month at a low-traffic location. However, it could make roughly $250,000 yearly at a high-traffic location.
What Vending Machine Products Sell The Most?
Soda and water appear to be the highest-selling vending machine products. Other items include healthy snacks, fruits, and salads.
What Are The Types of Vending Machines?
Snack, soft drink, and coffee/hot beverage vending machines are the most popular varieties of vending machine options. Other options include coin-operated car washes, bulk vending machines (or bulk machines), gumball machines, toy vending machines, video games, water vending machines, crane game machines, family fun center gaming machines, DVD vending machines, and laundry co-op vending machines.
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