Circling Back on Chicken

This article originally appeared on RealMoney.com on Sept. 2, 2014 at 1:00 p.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.

Given the rise in beef and pork prices at the start of 2014, I was all bulled up on the shares of Pilgrim's Pride  (PPC) . Given the tone of the consumer at the time, prospects for the switch to more affordable chicken over other protein sources seemed high. It didn't hurt that more fast food and casual dining restaurants were also making the switch with their menu items, another positive for Pilgrim's Pride shares as well as those for Sanderson Farms  (SAFM) . During the mini bidding war for Hillshire Brands, I cashed out of my Pilgrim's Pride shares with a hefty profit, but there's a reason for revisiting Pilgrim's Pride shares as well as Sanderson Farms shares.

First off, as Lenore Hawkins and I noted in last week's Corner of Wall & Main, food prices continue to be a major pain point for people. According to survey data by Consumer Edge Research, last month 36% of high-income households, (defined as those earning more than $100,000 a year) said that food prices are negatively impacting their overall spending habits, up from 20% in January. With beef prices up just over 50% since June 2013, odds are consumers and restaurants will continue to shift over to poultry where and when possible.

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