The reduction in consumer spending and increase in prices has shaken most of the consumer brands in the U.S. These trends have left most average Americans spending more on necessities such as groceries. Most non-necessary consumer brands have been forced to bear the brunt of the slowing economy. 

However, these three recession-proof consumer brands are proving resilient in the face of the biting economy. Crushing market estimates, they strongly indicate improved earnings. Whether through strategic business decisions or favorable market conditions, these consumer brands are beating all experts’ earning estimates. 

Let’s get a glimpse of the reasons these recession-proof consumer brands are crushing earning estimates. And how do analysts expect them to perform amid a slowing economy? 

FedEx Corporation (FDX)

Memphis-based FedEx Corporation (NYSE:FDX) is a household name in the U.S. Known for its transportation and e-commerce business outfits, it was among the first delivery companies to initiate overnight delivery. 

FDX has performed extremely well in the recent past amid market conditions. Favorable industry trends such as an increase in the e-commerce industry and the growing consumer preference for door delivery have boosted growth and expansion. 

The company’s Q4 EPS HIT $5.41, crushing earning estimates of $5.34. Also, it marks a year-over-year (YOY) increase of 9.5%. While FDX’S revenue of $22.109 billion fell short of earring estimates of $22.115 billion, it still represented a 0.8% increase from last year’s fourth-quarter earnings. 

As one of the recession-proof consumer brands driving revenue growth in all its segments, analysts expect 2025 to be even better for the company. FedEx Corporation’s revenue is expected to grow by a low-to-mid single-digit percentage YOY, while EPS is expected to hit a record $18.25 to 20.25. 

General Motors (GM)

General Motors (NYSE:GM) needs no introduction. The Detroit-based multinational automotive manufacturing company is the largest automaker in the U.S. by sales. The company is known for its four major brands of Chevrolet, Cadillac, GMC and Buick. 

Even as the economy and consumer spending slow, GM has proven resilient. The company reports an EPS of $2.62 in the quarter ending March 2024 against an estimate of $2.08. And, it is expected to reach $9.54 by the last quarter of 2025. GM stock also recently hit a 52-week high of $49.35

GM’s record-breaking performance has been attributed to several strategic decisions that have so far paid off. The company announced a $6 billion stock repurchase authorization, a strategic move to efficiently deploy capital and improve shareholders’ profits.

Also, the company is scaling back on its electric vehicle (EV) department, aligning its production output with the projected decrease in EV demand. The U.S. EV demand is expected to account for only 8% of the total automotive sales in the U.S. in 2024, down from the projected 10%. 

Likewise, GM expects to produce 250,000 EV units, down from the anticipated 300,000. Also, the company is streamlining operations in its autopilot percussion line, Cruise, which has yet to break even. 

Chipotle Mexican Grill (CMG)

Chipotle Mexican Grill (NYSE:CMG) is a fast food chain restaurant known for its fast casual dining establishments. With over 3,200 establishments, CMG is one of the leading players in the fast-food industry in the U.S.

In February, Chipotle Mexican Grill reported its quarterly earnings, noting an EPS of $10.63 adjusted compared to Wall Street estimates of $9.75. And, it reported a revenue of $2.52 billion against an expected $2.49 billion. Fourth-quarter net revenue hit $282.1 million, up from $223.7 million the previous year. 

According to Forbes findings, American households spend about 14% of their income on food. Further, the percentage of this amount spent on fast food has declined by 5% to 40% due to a reduction of consumer purchasing power. So, many people are opting for grocery shopping instead. So why is the company still crushing earning estimates? 

Chipotle Mexican Grill has undertaken some major strategic investments in its product offerings by returning the popular carne asada to its menu. Additionally, it is increasing employee training and hiring within its restaurants. These moves have seen an increase in foot traffic by over 7.4% in the quarter. 

With such numbers, Chipotle will not slow down any time soon. It is one of the recession-proof consumer brands that is expected to grow and expand in 2025.

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.