McCormick & Company, Incorporated (NYSE:MKC – Get Free Report) saw some unusual options trading activity on Tuesday. Stock investors bought 3,902 call options on the stock. This represents an increase of 94% compared to the typical daily volume of 2,016 call options.
Wall Street Analysts Forecast Growth A number of analysts have weighed in on the company. TD Cowen reduced their target price on McCormick & Company, Incorporated from $64.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, June 26th. JPMorgan Chase & Co. dropped their price objective on shares of McCormick & Company, Incorporated from $64.00 to $63.00 and set an “overweight” rating on the stock in a report on Friday, June 12th. Jefferies Financial Group dropped their price target on shares of McCormick & Company, Incorporated from $64.00 to $62.00 and set a “buy” rating on the stock in a research report on Thursday, June 4th. UBS Group upped their price objective on shares of McCormick & Company, Incorporated from $51.00 to $52.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Finally, Barclays lowered their target price on shares of McCormick & Company, Incorporated from $57.00 to $55.00 and set an “equal weight” rating on the stock in a research note on Friday, June 26th. Six equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $60.50.
Read Our Latest Research Report on McCormick & Company, Incorporated
Insider Activity In other McCormick & Company, Incorporated news, major shareholder Lawrence Kurzius sold 205,538 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $52.69, for a total transaction of $10,829,797.22. Following the completion of the transaction, the insider owned 296,992 shares in the company, valued at $15,648,508.48. The trade was a 40.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 10.60% of the stock is owned by company insiders. Institutional Inflows and Outflows A number of hedge funds and other institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System grew its holdings in shares of McCormick & Company, Incorporated by 4,040.2% during the second quarter. California State Teachers Retirement System now owns 22,290,279 shares of the company’s stock valued at $1,123,876,000 after purchasing an additional 21,751,887 shares during the last quarter. Aristotle Capital Management LLC grew its stake in McCormick & Company, Incorporated by 231.9% in the 1st quarter. Aristotle Capital Management LLC now owns 12,664,378 shares of the company’s stock valued at $638,795,000 after buying an additional 8,848,235 shares during the last quarter. XXEC Inc. bought a new position in McCormick & Company, Incorporated in the 2nd quarter worth approximately $154,566,000. Invesco Ltd. raised its stake in shares of McCormick & Company, Incorporated by 66.7% in the third quarter. Invesco Ltd. now owns 6,232,337 shares of the company’s stock valued at $417,006,000 after purchasing an additional 2,494,544 shares in the last quarter. Finally, Wellington Management Group LLP boosted its position in shares of McCormick & Company, Incorporated by 67.2% during the 3rd quarter. Wellington Management Group LLP now owns 2,797,533 shares of the company’s stock valued at $187,183,000 after acquiring an additional 1,124,003 shares in the last quarter. Institutional investors and hedge funds own 79.74% of the company’s stock.
McCormick & Company, Incorporated Stock Down 0.3% McCormick & Company, Incorporated stock opened at $51.94 on Wednesday. The stock’s fifty day moving average is $52.95 and its two-hundred day moving average is $52.82. The stock has a market cap of $13.96 billion, a PE ratio of 8.64, a P/E/G ratio of 2.05 and a beta of 0.64. McCormick & Company, Incorporated has a 1-year low of $44.82 and a 1-year high of $72.41. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.78 and a quick ratio of 0.39.
McCormick & Company, Incorporated (NYSE:MKC – Get Free Report) last issued its quarterly earnings data on Thursday, June 25th. The company reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.69 by $0.11. The company had revenue of $1.94 billion during the quarter, compared to analysts’ expectations of $1.91 billion. McCormick & Company, Incorporated had a return on equity of 12.78% and a net margin of 21.91%.The firm’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.69 earnings per share. McCormick & Company, Incorporated has set its FY 2026 guidance at 3.050-3.130 EPS. On average, sell-side analysts expect that McCormick & Company, Incorporated will post 3.08 EPS for the current fiscal year.
McCormick & Company, Incorporated Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Monday, July 20th. Investors of record on Monday, July 6th were given a $0.48 dividend. The ex-dividend date was Monday, July 6th. This represents a $1.92 annualized dividend and a dividend yield of 3.7%. McCormick & Company, Incorporated’s payout ratio is currently 31.95%.
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McCormick & Company, Incorporated (NYSE: MKC) is a global leader in spices, seasonings and flavor solutions. Headquartered in Hunt Valley, Maryland, the company traces its origins to the late 19th century and has grown into a major manufacturer and marketer of branded and private‑label flavor products for consumer, industrial and foodservice markets.
McCormick’s product portfolio includes pure spices and herbs, blended seasonings, marinades, rubs, sauces, extracts and specialty flavorings, along with ingredient systems and custom flavor development for manufacturers and foodservice operators.
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Kimberly-Clark, Hormel, McCormick a Church & Dwight zvyšovaly dividendy i během krizí v letech 2008 a 2020. Kimberly-Clark má nyní 54 let růstu dividend v řadě.
Some dividend stocks fold the moment a recession hits, but four consumer staples names kept raising their payouts straight through a housing collapse and a global lockdown without missing a beat. The question now is whether their current yields and…
Consumer staples earn their keep in the ugly years, and four names built their reputations by writing bigger dividend checks straight through the two nastiest downturns of the modern era. Kimberly-Clark, Hormel, McCormick, and Church & Dwight all raised their annual payouts across both the 2008 financial crisis and the 2020 pandemic shock, and their dividend histories back that up on the tape. As a benchmark for the group, Kimberly-Clark’s quarterly dividend has climbed from $0.58 in 2008 to $1.28 in 2026, a slow-motion doubling that survived a housing collapse and a global lockdown without a single cut.
Kimberly-Clark: 54 Years of Raises and a 4.6% Yield Kimberly-Clark (NYSE:KMB | KMB Price Prediction) trades at $108.68 with a dividend yield of 4.62% and an annualized forward dividend of $5.12. The maker of Kleenex, Huggies, and Cottonelle just extended its dividend increase streak to 54 consecutive years, which qualifies it as a Dividend King and covers every recession this century.
Trailing twelve-month EPS of $5.04 against the $5.08 trailing dividend puts the payout ratio near the ceiling on an accounting basis, but cash generation is healthier: management reported Q1 FY26 operating cash flow of $745M and Q2 adjusted operating profit of $757M, up 6.2%. Cash on the balance sheet stands at $956M, up 50.79% year over year. Adjusted gross margin expanded 190 basis points to 38.8% in the latest quarter, and the low beta of 0.276 tells you what income investors already suspected: this stock does not move like the market.
The bull case is a reset year finishing with high-single-digit adjusted EPS growth from continuing operations on a constant-currency basis and a yield well above the S&P 500. However, there is a caveat. A China social media disinformation campaign is dragging diaper sales by roughly 50 basis points, and the pending Kenvue combination adds integration risk to a company already exiting US private-label diapers.
Hormel Foods: A 5.5% Yield From the SPAM Empire Hormel Foods (NYSE:HRL) has been repriced hard. The stock trades at $21.60 after a 16.4% one-month drop, and the sell-off has pushed the dividend yield to 5.49%, its highest in years. Dividend history verifies the theme: quarterly payments rose from $0.185 through 2008 to $0.2325 in 2020 and now sit at $0.2925, or $1.17 annualized.
The pressure shows up in reported EPS, while cash generation remains healthy. TTM diluted EPS of $0.63 reflects a battered Q3 GAAP EPS of $0.11 hit by a $56M Brazil divestiture loss, a $48.2M Indonesia impairment, and a $37.5M litigation settlement. Strip those out and adjusted EPS beat estimates. On cash, fiscal 2025 operating cash flow was $845.3M against $633.2M in dividends, and the most recent quarter produced $240.6M in operating cash flow versus $161M in dividend payouts. Balance sheet cash of $839.6M is up 40.1% year over year.
The bull case is a beaten-down income staple guiding to 6% to 10% adjusted EPS growth in FY26 with a forward P/E of 14. The risk is that the pressured consumer keeps squeezing retail volumes and the portfolio-reshaping charges keep depressing reported earnings.
McCormick: A Spice Aristocrat in a Rough Year McCormick (NYSE:MKC) trades at $54.10, down 17.27% year to date, which has pushed the dividend yield to 3.41%. Dividend history confirms the resilience story: the quarterly payout was raised from $0.22 to $0.24 at the end of 2008 and from $0.62 to $0.68 at the end of 2020. The current quarterly dividend of $0.48 annualizes to $1.92.
Fiscal 2025 operating cash flow was $962.2M against $483M in dividend payouts. In the latest quarter alone, operating cash flow was $379.8M and dividends paid were $129M. Balance sheet cash of $331.2M is up 166.88% year over year, and Q2 adjusted gross margin expanded 270 basis points to 40.2%. The reported trailing P/E of 9 looks eye-catchingly cheap, though it is inflated by a large one-time gain from the McCormick de Mexico consolidation, so the forward P/E of 16 is the cleaner read.
The bull case is a global flavor leader raising FY26 guidance to adjusted EPS of $3.05 to $3.13 while pursuing a proposed Unilever Foods combination with roughly $600M in annual run-rate cost synergies. The risk is the execution: the Consumer segment posted organic volume/mix of negative 1.9%, and higher interest expense from acquisitions and a FY26 tax rate near 24% will pressure reported earnings.
Church & Dwight: Low Yield, Fortress Coverage Church & Dwight (NYSE:CHD) is the growth entry in this bundle. The stock trades at $100.20, up 21.89% year to date, and the dividend yield is 1.18%. The Arm & Hammer parent raised the quarterly payout from $0.08 to $0.09 during 2008, held $0.24 through 2020 after stepping up from $0.2275 in 2019, and now pays $0.3075 per quarter, or $1.23 annualized.
The low yield masks unusually strong safety for this stock. Fiscal 2025 operating cash flow was $1.215B against just $287.2M in dividends, and management guides FY26 operating cash flow to approximately $1.175B. Organic sales grew 5.8% in Q2 FY26, gross margin expanded 240 basis points to 45.4%, and global e-commerce jumped 22.7% to 25.5% of consumer sales. Management raised the FY26 outlook to adjusted EPS of $3.74 to $3.81, representing 6% to 8% growth.
The bull case is a portfolio of power brands (THERABREATH, HERO, ZICAM, BATISTE) throwing off enough cash to fund tuck-in deals and steady raises. However, valuation could raise some concerns with a trailing P/E of 33 and a forward P/E of 27, buyers are paying a premium for the growth, and the recent TOUCHLAND acquisition has taken cash on hand down 72.4% year over year.
How These Four Fit Together These four consumer staples cover the full income spectrum: Hormel at 5.49% for pure yield, Kimberly-Clark at 4.62% for a Dividend King with visible margin expansion, McCormick at 3.41% for a beaten-down aristocrat with an acquisition catalyst, and Church & Dwight at 1.18% for the growth compounder with cash flow to spare. Each one raised its dividend through the 2008 crisis and again through 2020, and each one is doing it again in 2026 (we ranked ten Dividend Kings like these by valuation right now in a free report you can grab here). That is the shared hook: household products people buy in every economic climate, funding raises that keep showing up on schedule.
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McCormick uvedl, že tržby divize Flavor Solutions v konstantní měně vzrostly o 6 % a organicky o 3 % ve fiskálním 2. čtvrtletí. Firma čeká, že tento objemový impuls potáhne růst celé společnosti i ve fiskálním roce 2026.
Key Takeaways McCormick's Flavor Solutions sales rose 6% in constant currency, with 3% organic growth in fiscal Q2.Americas Flavor Solutions organic sales rose 4%, with Flavors and Branded Foodservice driving volume gains.MKC expects Flavor Solutions volume momentum to continue and drive company volume growth in fiscal 2026. McCormick & Company, Inc.’s (MKC - Free Report) Flavor Solutions business emerged as a key volume driver in the second quarter of fiscal 2026, with volume growth exceeding expectations. Segment sales rose 6% in constant currency, reflecting a 3% acquisition contribution and 3% organic growth. Organic growth was driven equally by volume and pricing, showing that the segment’s top-line improvement was not dependent on price alone.
The Americas was the main source of strength. Flavor Solutions' organic sales in the region increased 4%, with a 2% contribution from price and a 2% increase in volume. The volume gain reflected strong performance across the Flavors portfolio, including large CPG customers and high-growth innovators, along with robust growth in Branded Foodservice. Growth across the Flavors customer base also included private-label customers. In Branded Foodservice, distributor volume recovery, sustained demand in non-commercial channels and strong e-commerce performance supported the quarter. Branded Foodservice growth was balanced across channels during the quarter.
The growth drivers extend beyond current customer demand. Innovation plans have started to commercialize across large CPGs, private label and high-growth innovators, with activity especially strong in cereals, soft drinks, sports nutrition and snacking. McCormick is also participating in beverage innovation, protein and better-for-you products. A majority of second-quarter customer briefs were tied to health and wellness innovation and renovation, while reformulation projects with large CPG customers are increasing and beginning to reach the market.
The regional picture was not uniformly strong. EMEA organic sales were flat as softer QSR traffic, particularly in the United Kingdom, and pressured volume. Asia-Pacific organic sales were also flat, with 1% volume growth offset by price. Still, McCormick expects Flavor Solutions volume momentum to continue and the segment to drive total company volume growth for fiscal 2026.
MKC’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have gained 17.6% over the past three months, outperforming the industry, the broader Consumer Staples sector and the S&P 500, which advanced 12.2%, 2.4% and 2.5%, respectively, during the same period.
MKC Stock's Past 3 Months’ Performance
Image Source: Zacks Investment Research
Is MKC a Value Play Stock?McCormick currently trades at a forward 12-month P/E ratio of 17.06 compared with the industry average of 15.36. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
MKC P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 12.8% and 926.5%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the year-ago reported numbers.
McCormick oznámil dohodu o fúzi s potravinářskou divizí Unileveru v transakci za 45 miliard USD. Po spojení má podíl koření na tržbách klesnout z více než 30 % na méně než 15 %.
The spice aisle will no longer determine McCormick's (MKC +0.85%) fate. In March, the 137-year-old company announced an agreement to merge with Unilever's (UL +1.88%) food division, a business 1.5 times its size, in a $45 billion transaction.
The deal adds established brands like Hellmann's mayonnaise and Knorr bouillon to McCormick's portfolio, alongside household favorites like French's mustard and Frank's RedHot sauce.
The addition of Unilever Foods is an attempt to address the structural weakness that has weighed on the stock over the past few years. The complex nature of the transaction has done little to win over investors.
Image source: Getty Images.
A strategic shift away from seasonings The stock has been under pressure from the growth of private-label brands. In its core spice and seasoning category, store brands now command nearly 40% of unit volume, one of the highest penetrations in any grocery aisle.
This has eroded the company's pricing power and contributed to its recent underperformance. The merger is designed to dilute the effect of this challenged category.
Post-merger, the spice business will shrink from over 30% of total sales to less than 15%. In its place, McCormick adds categories like mayonnaise and bouillon, which face less private-label competition due to strong brand loyalty and taste differentiation.
The combined company will be larger, more diversified, and more profitable, with operating margins projected to expand from 17% to 21% post-integration. Yet, some investors see a complex transaction that dilutes current shareholders, adds significant debt, and creates a year-long overhang.
Integration will take time The transaction is structured as a Reverse Morris Trust, which complicates matters for shareholders of both companies. Existing McCormick shareholders will be heavily diluted, while debt on the balance sheet will increase to 4 times net debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA).
Meanwhile, Unilever shareholders may create selling pressure on the stock after receiving their MKC shares.
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The strategic rationale for reducing spice exposure is sound, but the execution risks create uncertainty. The merger is not expected to close until mid-2027 at the earliest, creating an extended overhang.
Currently, with inflation driving shoppers to cheaper alternatives, there's no reason to rush into the stock. As the dust settles on the deal and we get a better sense of the company's integration plans and cost structure, the stock could be worth a closer look.
MKC po propadu zlevnily, ale zůstávají smíšeným případem: upravený zisk vzrostl o 15,9 % a hrubá marže se zlepšila, zatímco organické tržby přidaly jen 1,7 %.
Key Takeaways MKC trades far below its five-year median after a sharp year-to-date and trailing 12-month decline.Adjusted earnings rose 15.9%, while gross margin expanded on pricing, CCI savings and tariff refund benefits.Organic sales grew 1.7%, as pricing offset softer volumes, keeping demand concerns in focus. McCormick & Company, Incorporated (MKC - Free Report) gives valuation-focused investors a mixed case. The stock has pulled back sharply, and its multiple now sits far below its five-year median.
That lower valuation is not the whole story. Profitability is improving, but organic growth remains modest and Consumer volumes are still soft.
MKC Valuation Looks Lower Than HistoryMKC shares are down 22.3% year to date and 30.9% over the trailing 12-month period. That underperformance has pushed valuation closer to the low end of the stock’s recent historical range.
The stock trades at 16.18X forward 12-month earnings, compared with a five-year high of 33.66X, a low of 14.01X and a five-year median of 25.67X. MKC also trades below the S&P 500’s 21.1X multiple and the broader Zacks Consumer Staples sector’s 16.8X, though it remains above the Zacks sub-industry’s 14.09X.
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General Mills (GIS - Free Report) is a packaged-food comparison because it also depends on everyday household demand. Mondelez International (MDLZ - Free Report) offers a snack and branded-food benchmark for pricing and volume trends.
McCormick Earnings Recovery Warrants AttentionThe latest quarter showed earnings recovery. Adjusted earnings increased 15.9% to 80 cents per share from 69 cents a year earlier, while net sales rose 16.7% to $1.94 billion.
Profitability also moved in the right direction. Adjusted gross profit increased 25% to $778.2 million, and adjusted gross margin expanded 270 basis points to 40.2%. Excluding the tariff refund benefit, underlying gross margin expanded 130 basis points.
Adjusted operating income rose 30.1% to $336.4 million, or 27.3% in constant currency. Pricing, acquisition accretion, the IEEPA tariff refund and CCI savings all contributed to margin recovery.
That mix supports the bull case because the improvement was not tied to one lever.
MKC Growth Still Relies on PricingThe caution case remains visible. Organic sales grew only 1.7% in the second quarter, while the McCormick de Mexico acquisition contributed 12.3 percentage points to reported growth.
Pricing carried much of the organic improvement. Total pricing added 2.2 percentage points, offsetting a 0.5% decline in volume and mix. In Consumer, organic sales rose 0.8%, as a 2.7% pricing benefit more than offset a 1.9% volume and mix decline.
Flavor Solutions looked better, with 2.9% organic sales growth supported by 1.5% pricing and 1.4% volume growth. Still, soft consumer volumes, wider price gaps and value-focused spending can limit how far pricing can carry growth.
That is why the stock may look inexpensive without yet offering an all-clear signal. Investors should watch whether volume improvement materializes in the second half.
McCormick Outlook Supports a Balanced ViewManagement reaffirmed its fiscal 2026 outlook. The company still expects net sales growth of 13-17%, including an 11-13% contribution from McCormick de Mexico and about 1% favorable currency impact.
Organic sales are projected to rise 1-3% on a constant-currency basis. Adjusted operating income is expected to increase 16-20%, while adjusted earnings are projected between $3.05 and $3.13 per share.
The margin outlook also remains constructive. McCormick expects adjusted gross margin to expand 100-120 basis points, supported by organic sales growth, McCormick de Mexico accretion and CCI productivity gains.
That outlook supports steady improvement, but it does not remove risk. Commodity costs, cautious consumer spending, global trade policy uncertainty and Middle East conflict-related costs remain important offsets. The stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
MKC Ranking Signals Need More ClarityThe bottom line is that MKC looks more interesting after the pullback, but the investment case is not clean enough to ignore volume and demand concerns. Lower valuation and improving margins support the value argument, while modest organic growth keeps the setup balanced.
The stock carries a Neutral recommendation, which fits the current risk-reward profile. It recognizes operating strengths without overlooking the reliance on pricing, the soft Consumer volume trend and cost uncertainty.
McCormick oznámil silné 2. čtvrtletí: tržby vzrostly o 16,7 % a upravený EPS stoupl na 80 centů. Firma zároveň potvrdila plánovanou akvizici potravinářské divize Unileveru.
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52-Week Range$44.82▼
$78.03Dividend Yield3.72%
P/E Ratio8.54
Price Target$60.50
McCormick & Company’s NYSE: MKC share price is a steal as of mid-2026, down 50% from record highs ahead of a potentially game-changing deal.
The proposed combination with Unilever’s food business could triple the business, generate shareholder value, and provide sufficient cash flow to enable balance sheet quality and capital returns.
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Balance sheet safety is one of the reasons the share price is down so much. The transaction includes a $15.7 billion cash payment to Unilever, with McCormick relying on cash on hand and new debt to fund that portion of the deal. That added debt is a key reason investors are focused on the company’s post-close leverage.
The bad news is that McCormick’s leverage ratio will rise to a higher-than-wanted 4.0x EBITDA, but there is good news to offset the bad.
Already carrying investment-grade debt ratings from all major ratings agencies, McCormick’s executives have expressed a commitment to reducing the debt quickly. Plans are in place to drive it below the targeted 3x level within two years, which would provide a tailwind for shareholder value.
High-Quality McCormick & Company Presents Deep Value in 2026As it stands, McCormick is in a healthy financial position and growing its business. In this environment, the roughly 8x current year earnings are a deep discount to historical norms.
Typically trading in the mid-20x range, valuation metrics suggest a robust valuation expansion is possible over time, compounding the impact of growth. The company is expected to sustain organic growth without the merger, potentially accelerating it in the wake. Estimates as of late-June suggest much lower valuations relative to long-term forecasts, setting the stage for several hundred basis points of stock price gains over the next three to five years.
Analyst trends play into MKC’s price decline as well as the long-term outlook.
While price targets have declined, the low end aligns with the late-June price action, suggesting a floor is in place.
Within that, the consensus Hold rating comes with a 46% Buy-side bias, which, given the 13 analysts covering the stock, provides some conviction in the outlook.
In this scenario, MKC could rebound at any time with the right catalyst and will likely move sideways until one emerges. Upcoming catalysts include milestones tied to the Unilever merger, such as the expected announcement of a European secondary listing location and regulatory approvals in the United States and United Kingdom.
Institutional trends highlight the value and underpin market support as June nears its end. The group owns nearly 80% of the stock and has accumulated shares at a semi-aggressive pace over the trailing 12 months, despite distributing in Q1 2026. The critical detail is that accumulation resumed in Q2 at an aggressive $10-to-$1 pace and will likely remain supportive of price action, given the company’s core strengths and a value-building merger opportunity.
McCormick Outperformance: Organic and Acquisitions Shine ThroughMcCormick & Company had a solid Q2 with growth underpinned by organic strength and the acquisition of McCormick de Mexico. Revenue grew by 16.7%, with 1.7% organic sales growth, driven by a 2.2% increase in average prices. Both segments reported strength, led by a 2.9% organic increase in flavor solutions, with both segments amped by acquisition-related growth.
Margin news is also good. The acquisition is driving significant back-end consolidations and cost savings, leading to improved gross and operating margins. Adjusted gross margin improved by 270 bps, adjusted operating by 180 bps, leaving adjusted earnings per share (EPS) at 80 cents, up 11 cents year-over-year (YOY) and 11 cents or 1600 bps better than expected.
Catalysts and a Risk-Reducing, High-Yielding Dividend McCormick & Company, Incorporated Dividend PaymentsDividend Yield3.72%
Annual Dividend$1.92
Dividend Increase Track Record38 Years
Annualized 5-Year Dividend Growth7.74%
Dividend Payout Ratio31.95%
Upcoming Ex-Dividend DateJul. 6
MKC Dividend History
Guidance is a catalyst for share prices because the company merely reaffirmed it, despite the FQ2 strengths. The market assumes the guidance is cautious and expects the Q2 strength to be sustained in the upcoming release.
McCormick’s dividend is a risk-reducing factor for investors. The ultra-low share price results in an ultra-high yield, approximately 4% with shares around $50, and it is a reliable payment.
The company is a Dividend Achiever with nearly 40 years of consecutive annual distribution increases, and is on track to hit the 50-year mark and be crowned a Dividend King.
McCormick’s position as a consumer staples company gives it some defensive qualities, but the stock still faces risks tied to pricing, volume, consumer trade-down behavior, and merger execution. Consumer headwinds have shoppers trading down on center-of-plate costs in favor of flavors. Cheap cuts and starches work well with bold, zesty, and spicy flavors, and McCormick is a leading source. Execution risk is the bigger headwind, as delays could be reflected in the stock's price. The worst-case scenario is that the merger is completed, but synergies fail to yield the desired results.
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McCormick & Company ve 2. čtvrtletí překonal odhady zisku i tržeb, když upravený EPS činil 0,80 USD a tržby 1,94 miliardy USD. Tahounem byl růst divize Flavor Solutions, který kompenzoval slabší americký spotřebitelský byznys.
Key Takeaways MKC says Flavor Solutions growth offset softer U.S. consumer trends, led by foodservice and CPG demand.MKC is refining pricing, packs, distribution and marketing to improve consumer trends by the third quarter.MKC topped earnings and revenue estimates, with gross margin up 270 basis points and operating income up 30%. McCormick & Company, Incorporated (MKC - Free Report) used its second-quarter call to make a clear case that Flavor Solutions is carrying the business, while management works to restore better volume trends in U.S. consumer spices.
Management reaffirmed its 2026 outlook, but much of the investor focus shifted to how quickly the company can fix pressure in the Americas consumer business and sustain the stronger industrial and foodservice backdrop.
MKC Finds Its Main Engine in Flavor SolutionsChairman, president and CEO Brendan Foley said the quarter’s most important feature was the acceleration in Flavor Solutions, where growth broadened across Flavors and Branded Foodservice customers. That strength more than offset softer consumer trends in the Americas.
Flavor Solutions' organic sales rose 3% in the quarter, with gains split nearly evenly between price and volume. In the Americas, the segment posted 4% organic growth, helped by large CPG customers, private label, high-growth innovators and stronger branded foodservice demand.
Foley also pointed to reformulation activity, beverage innovation and health-and-wellness projects as key demand drivers. In Q&A, he said those projects are commercializing faster than initially expected, which adds support to the second-half outlook for the segment.
McCormick Targets a Consumer Volume ResetThe softer spot remained Global Consumer, especially U.S. spices and seasonings. Foley said shifting demand patterns, wider price gaps and heavier competitive promotion hurt consumption in certain segments, even as the broader category still grew.
Management’s response is familiar but more targeted this time. Foley said McCormick is refining revenue growth management, adjusting price-pack architecture, expanding distribution and increasing value-focused marketing to improve trends by the third quarter and return to volume growth in the fourth.
That issue surfaced repeatedly in analyst questions. Barclays, BofA and TD Cowen all pressed management on whether the company can restore sustainable volume momentum. Foley’s answer was consistent: the playbook is similar to the one used two years ago, but execution is faster, more digital and aimed at narrower pockets of weakness.
MKC Uses Margin Gains to Fund ReinvestmentThe second quarter still showed strong financial leverage. Adjusted EPS came in at $0.80, which beat the Zacks Consensus Estimate of $0.69 by 15.9%. Revenues of $1.94 billion topped the Zacks Consensus Estimate of $1.90 billion by 2%. Gross margin expanded 270 basis points, and adjusted operating income rose 30%.
CFO Marcos Gabriel said the largest moving pieces behind margin expansion were accretion from McCormick de Mexico, productivity savings, surgical pricing and a tariff refund. The refund lowered the cost of goods sold by $28 million in the quarter and added about $0.07 to adjusted EPS.
Just as important, Gabriel said most of that tariff benefit is being used to absorb higher inflation tied to the Middle East conflict and other cost pressures. That framing mattered because management presented the quarter’s margin upside as a source of funding for reinvestment, not as a clean earnings windfall.
McCormick Pushes Ahead on Unilever FoodsFoley also spent time reinforcing confidence in the pending Unilever Foods combination. He said integration planning is advancing with a dedicated management office, 20 functional teams and more than 200 people working across both organizations.
Management reiterated the deal’s financial targets, including a 21% operating margin at close, mid- to high-single-digit adjusted EPS accretion within the first 12 months after closing and mid- to high-teens accretion by year three.
Analysts also tested the durability of that future margin profile. Foley and Gabriel argued the model does not assume unusually lean SG&A, and Gabriel said the path to 23% to 25% operating margins comes from layering synergies on top of the 21% starting point.
MKC Flags a Softer Third-Quarter Profit CadenceThe other area of scrutiny was the third quarter. Gabriel said adjusted operating income should grow in the high-single-digit to low-double-digit range, with continued gross margin expansion offset by heavier ERP spending, higher incentive compensation and a significant increase in brand marketing.
JPMorgan and BNP Paribas pushed on whether this reflected a change in expectations. Gabriel said it was more about SG&A phasing than a change in the company’s internal view, though he also acknowledged inflation is tracking toward the high end of the company’s mid-single-digit cost outlook.
Cash flow was one cleaner positive. First-half operating cash flow rose to $431 million from $161 million a year earlier, helped by profitability and working capital improvement, particularly in inventory days and payables. Leverage ended the quarter at about 2.9 times.
McCormick Leaves the Call on OffenseThe overall tone coming out of the call was constructive but not complacent. Management repeatedly pointed to the resilience of flavor categories, the breadth of the portfolio and the ability to redirect margin gains into brand support, innovation and distribution.
At the same time, executives did not underplay the strain on the U.S. consumer. The company’s message was that Flavor Solutions is performing ahead of plan, while consumer remediation is now the central execution task for the back half of fiscal 2026.
MKC’s Zacks Signals Still Lean CautiousMKC currently carries a Zacks Rank #4 (Sell), along with a Value Score of C, Growth Score of F, Momentum Score of C and VGM Score of D. Under the Zacks framework, weaker ranks reflect less favorable earnings estimate revision trends, while Style Scores help gauge value, growth and momentum characteristics.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That combination points to a more cautious near-term setup than the quarter’s headline beat alone would imply. The Zacks system places the greatest weight on estimate revisions, and the current rank can change as analysts update forecasts after the just-reported results.
McCormick překonal odhady za druhé čtvrtletí díky silné poptávce po koření a dochucovadlech. Tržby dosáhly 1,94 miliardy USD a upravený zisk činil 80 centů na akcii.
McCormick brand spices at a grocery store in Medford, Massachusetts, U.S., March 31, 2026. REUTERS/Brian Snyder/File Photo Purchase Licensing Rights, opens new tab
June 25 (Reuters) - Cholula hot sauce maker McCormick (MKC.N), opens new tab beat Wall Street estimates for second-quarter sales and profit on Thursday, driven by strong demand for its spices and seasonings as consumers cook more at home amid economic uncertainty.
Shares of the Hunt Valley, Maryland-based company were up about 3% in premarket trading.
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Persistent inflation and the economic fallout from U.S. President Donald Trump's import tariffs and the Iran war have forced consumers to curb discretionary spending, including dining out, driving demand for companies like McCormick.
McCormick is also pushing ahead with its planned merger with Unilever's (ULVR.L), opens new tab food business in a roughly $45 billion deal that would significantly expand its presence beyond spices into condiments and meal solutions.
The Stubb's barbecue sauce maker reported a quarterly revenue of $1.94 billion, compared with estimates of $1.91 billion, according to data compiled by LSEG.
The company reported an adjusted profit of 80 cents per share for the quarter, beating analysts' average estimate of 69 cents per share.
McCormick had faced pressure from steep tariffs as it sources its most significant raw materials, including pepper and various spices and herbs, from outside the U.S.
The company said tariff refunds reduced the costs of goods sold by $28 million in the quarter. However, it expects those gains to be offset by increased costs, including those related to the Middle East conflict, and continued investments into its business.
The company reaffirmed its annual sales growth target of between 13% and 17% and annual adjusted profit per share in the range of $3.05 to $3.13.
McCormick said its forecast reflects an uncertain demand environment, the Middle East conflict and benefits from increasing its stake in its Mexico joint venture.
Packaged foods peer Campbell's (CPB.O), opens new tab had also reaffirmed its annual forecasts earlier this month.
Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
, /PRNewswire/ -- The Board of Directors of McCormick & Company, Incorporated (NYSE: MKC) declared a quarterly dividend of $0.48 per share on its common stocks, payable July 20, 2026, to shareholders of record July 6, 2026.
This is the 102nd year of consecutive dividend payments by the Company.
About McCormick
McCormick & Company, Incorporated is a global leader in flavor. With approximately $7 billion in annual sales across 150 countries and territories, we manufacture, market, and distribute herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry including retailers, food manufacturers and foodservice businesses. Our most popular brands with trademark registrations include McCormick, French's, Frank's RedHot, Stubb's, OLD BAY, Lawry's, Zatarain's, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane, Gourmet Garden, FONA and Giotti. The breadth and reach of our portfolio uniquely position us to capitalize on the consumer demand for flavor in every sip and bite, through our products and our customers' products. We operate in two segments, Consumer and Flavor Solutions, which complement each other and reinforce our differentiation. The scale, insights, and technology that we leverage from both segments are meaningful in driving sustainable growth.
Founded in 1889 and headquartered in Hunt Valley, Maryland USA, McCormick is committed to its Purpose – To Make Life More Flavorful – and driven by its Vision - To be the World's Most Trusted Source of Flavor.
To learn more, visit: www.mccormickcorporation.com or follow McCormick & Company on Instagram and LinkedIn.
For information contact:
Global Communications:
Jill Marvin – [email protected]
