2 TSX Stocks That Look Strong Even if Consumers Pull Back

When consumers pull back, investors usually want companies tied to needs more than wants. Food, housing, basic services, and dependable cash flow can hold up better than trendy retail or expensive discretionary spending. The key isn’t finding stocks that can avoid every slowdown. It’s finding businesses with steady demand, pricing power, and balance sheets that can keep moving even when households become more careful. So let’s look at a few on the TSX today.

MFI

Maple Leaf Foods (TSX:MFI) fits that idea as people still need to eat, even when budgets tighten. MFI stock owns familiar brands such as Maple Leaf, Schneiders, Mina, and Greenfield Natural Meat. It focuses on prepared meats, poultry, and protein products sold through grocery stores and food-service channels. That gives it a defensive base, though shoppers can still trade down when grocery bills rise.

The last year brought a major reset. MFI stock completed the spin-off of its pork operations into Canada Packers in October 2025, turning itself into a more focused packaged-protein company. Packaged foods can often carry steadier margins than commodity pork, so that’s a bonus for today’s investor. MFI stock also moved past a heavy investment period, including large plant and supply-chain upgrades, and now wants to turn those projects into better returns.

The latest numbers showed that progress. In the fourth quarter of 2025, MFI stock reported sales of $991 million, up 8.1% from the prior year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 8.3% to $117.3 million, while adjusted earnings per share (EPS) climbed to $0.32 from $0.18. For the full year, sales reached $3.9 billion, up 7.7%, and adjusted EBITDA climbed 21% to $476 million. MFI stock recently traded around 82 times trailing earnings and offered a modest dividend yield near 3%. That’s not dirt cheap, but it looks reasonable if margins keep improving.

The outlook depends on execution. MFI stock needs to keep costs under control, protect shelf space, and prove the spin-off made the business cleaner. A consumer pullback could pressure premium products, but protein remains a staple. If the company keeps expanding margins, MFI stock could hold up better than many consumer names.

FCD

Firm Capital Property Trust (TSX:FCD.UN) is a different kind of defensive pick. It owns a diversified real estate portfolio across multi-residential, industrial, retail, and manufactured-home communities. That mix helps. Apartments and manufactured homes can stay resilient when consumers cut extras, while industrial and necessity-based retail can provide steady rent.

The last year showed why the trust deserves another look. In 2025, Firm Capital kept occupancy strong, with commercial occupancy around 93.3%, multi-residential occupancy around 93.2%, and manufactured-home occupancy near 99.6% at year-end. It also announced a major 2026 move, buying 50% interests in 11 manufactured-home communities for $227 million. That shifts the portfolio further toward affordable housing, which could prove useful if household budgets stay tight.

The latest earnings looked steady. In the fourth quarter of 2025, net income rose to $12.5 million from $5.8 million a year earlier. Income before fair-value adjustments came in at $5 million, roughly in line with the prior year, while net operating income (NOI) sat near $10 million. Debt-to-gross book value was 50%, so leverage needs watching. Still, the trust paid a monthly distribution of $0.0433 per unit, creating an annual payout of about $0.52 yielding 8% at writing.

That high yield signals both opportunity and risk. Real estate trusts still face higher financing costs, and small real estate investment trusts (REIT) can move sharply when rates or sentiment change. But Firm Capital’s focus on practical property types, monthly income, and manufactured housing growth gives it a strong reason to hold up if consumers pull back.

Bottom line

MFI stock and Firm Capital Property Trust won’t avoid every bump. MFI stock still needs margin discipline, while Firm Capital needs careful debt management. Yet both own assets tied to everyday needs and can generate immense income even with $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTFCD.UN$6.501076$0.52$559.52Monthly$6,994.00MFI$27.79251$0.88$220.88Quarterly$6,975.29

For investors worried about weaker consumer spending, these two TSX stocks still look built for a tougher stretch.

The post 2 TSX Stocks That Look Strong Even if Consumers Pull Back appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Canada Packers. The Motley Fool has a disclosure policy.