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%.
(Get Free Report)
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.
See Also Five stocks we like better than McCormick & Company, Incorporated Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For Receive News & Ratings for McCormick & Company Incorporated Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McCormick & Company Incorporated and related companies with MarketBeat.com's FREE daily email newsletter.
McCormick & Company earns a Buy rating, supported by margin expansion, operational efficiency, and a robust innovation pipeline for 2026. MKC's adjusted operating income rose 30.1% in Q2 and 24.8% in H1, with margins expanding despite higher special charges and debt. The planned combination with Unilever Foods by mid-2027 could create a $20 billion global business, enhancing long-term growth prospects.
Conagra and Campbell's already made their moves, but several other legacy food giants are sending quieter signals that income investors have learned to recognize too late. Three warning patterns separate a frozen payout from the next cut.
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.
Contact [email protected] for any questions or corrections.
, /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, is scheduled to conduct a conference call and webcast of its third quarter 2026 financial results on Thursday, October 1, 2026, at 8:00 a.m. Eastern Time. Brendan Foley, Chairman, President & CEO; Marcos Gabriel, Executive Vice President & CFO; and Faten Freiha, Vice President of Investor Relations will be hosting the call. A live audio webcast of the call along with the accompanying presentation materials will be available on the McCormick website ir.mccormick.com.
If you are unable to attend the live webcast, the presentation will be archived on the same website. To listen to an audio replay, call 877-660-6853 in the United States or 201-612-7415 internationally. When prompted, enter the conference ID number 13762475. The replay will be available until 12:00 midnight Eastern Time on October 22, 2026.
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.
Representative Rich McCormick is on Bloomberg This Weekend with David Gura and Christina Ruffini and says the US should continue expanding data centers to support its leadership in artificial intelligence, arguing they can be built responsibly while benefiting local economies. -------- More on Bloomberg Television and Markets Like this video?
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.
, /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, will present at the Barclays 19th Annual Global Consumer Conference at 10:30 a.m. ET on Wednesday, September 9, 2026. Representing McCormick will be Brendan Foley, Chairman, President and CEO, and Marcos Gabriel, Executive Vice President and CFO. A live audio webcast of the presentation will be available via the McCormick website, ir.mccormick.com. A replay will be available following the event through the same website.
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.
McCormick & Company is rated "Buy," trading at a 19% discount to fair value, with visible earnings durability and a 40-year dividend growth streak. Q2 2026 results beat expectations, driven by the McCormick de México acquisition, organic growth, and margin expansion from pricing and supply chain savings. The pending $44.8 billion Unilever Foods acquisition could add top brands, boost distribution, and drive mid- to high-teens EPS accretion by year 3 post-close.
McCormick & Company Incorporated remains a Buy, with valuation offering a solid margin of safety and re-rating potential post-Unilever deal. Q2 delivered 16.9% YoY revenue growth, driven by the McCormick de Mexico acquisition and organic pricing, reaffirming 2026 guidance for sales and margin expansion. Risks include higher leverage post-deal, potential selling pressure from Unilever shareholders, and persistent consumer trade-downs to private labels impacting legacy brands.
Unilever has agreed to protect employment terms of workers in its European and British food business for two years after the planned 2027 completion of its $65 billion merger of the unit with U.S. spice maker McCormick , according to a memo seen by Reuters.
Combined Company to be Organized into Four Commercial Divisions Grounded in Flavor Leadership: Americas Consumer, International Consumer, Global Food Service, and Global Flavor Combined Executive Team to Bring Together Top Global Talent from Both Businesses Combined Company to Reflect Global Presence with Secondary Listing on London Stock Exchange and International Headquarters in the Netherlands HUNT VALLEY, Md., July 23, 2026 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC) ("McCormick"), today announces the planned operating model, Executive Team, and secondary listing location for the company following the closing of its proposed combination with Unilever's Foods business ("Unilever Foods")1, which is expected by mid-2027.
Wall Street is so focused on technology stocks and artificial intelligence right now that it is ignoring great businesses with impressive dividends. And some of those businesses also have great dividend track records. If you are a dividend investor, these three beaten-down stocks could be just what you are looking for to power your income portfolio.
Stanley Black & Decker (SWK 1.25%) is a Dividend King that has rewarded investors with reliable passive income for over 50 years. McCormick (MKC 2.00%) is one of the world's leading spice producers, with a 38-year streak of annual dividend hikes. And Realty Income (O 0.06%) is a net-lease juggernaut with a dividend streak that's up to 31 years. Here's a closer look at each one.
Image source: Getty Images.
Stanley Black & Decker is turning things around Stanley Black & Decker's dividend yield is around 3.7%, which is more than three times the roughly 1.1% yield of the S&P 500 index (^GSPC 1.01%). As noted, the industrial company is a Dividend King. It primarily makes tools, which are essential for building anything. It also makes fasteners.
The company went through a period in which it made a series of rapid, large acquisitions. That left it bloated, heavily leveraged, and with a poorly focused portfolio. Management has been working to change the narrative, selling assets, slimming down, and recentering on its core tool operations. Notably, net debt to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) has fallen from 5.9x at the end of 2023 to 3.4x at the end of 2025. The goal is to reach 2.5x by the end of 2026. Leverage is no longer the issue it once was.
On the profitability front, the company's adjusted gross margin continues to improve, nearing the company's target range of 35% to 37%. Adjusted earnings per share guidance for 2026 of between $4.90 and $5.70 will more than cover the $3.32 in dividends per share the company will pay for the year. It looks like the company is back on track, but Wall Street remains downbeat, creating an opportunity for long-term dividend investors.
Today's Change
(
-1.25
%) $
-1.14
Current Price
$
90.17
McCormick is working on a transformational acquisition McCormick's dividend yield is also around 3.7%. That's historically high for this well-respected consumer staples company. The dividend has been increased annually for 38 years. The company is one of the largest spice producers in the world and has been expanding in the flavors space, as well.
Right now, investors are worried about the company's planned acquisition of Unilever's (UL 0.51%) food business, which consists of Hellmann's mayonnaise and Knorr. Both fit well with McCormick's business, but the deal will roughly double its size. There are material execution risks to consider. However, McCormick has some experience with acquisitions, and Unilever's food business is well run. Unilever is also taking a stake in McCormick, so it has a vested interest in ensuring the deal works out well.
Today's Change
(
-2.00
%) $
-1.06
Current Price
$
51.84
If you don't mind collecting an attractive yield while you wait for this deal to be consummate, McCormick could be a good dividend stock for your portfolio.
Realty Income is the net lease giant Realty Income's dividend yield is 5.1%, backed by a monthly pay dividend that has been increased annually for 31 years. The company is a slow-and-steady dividend tortoise that can provide a reliable, high-yield foundation for any dividend portfolio. Even the most conservative dividend investors will appreciate this real estate investment trust (REIT).
Realty Income owns a portfolio of over 15,500 properties. Most of its assets are single-tenant net-lease properties. This means its tenants have to pay for most property-level costs, materially reducing the REIT's costs and risk. The portfolio is focused on retail assets, but it also owns industrial properties and other, more unique assets, like casinos and data centers. About 80% of its rents come from North America, with the rest derived from Europe. Diversification and safety are key themes, noting that even during the Great Recession, occupancy didn't fall below 96%.
Today's Change
(
-0.06
%) $
-0.04
Current Price
$
65.71
Realty Income's stock still hasn't recovered from the COVID pandemic sell-off. You shouldn't expect massive growth from Realty Income, but it is a reliable dividend payer that still looks underappreciated by Wall Street.
Three solid options for your income portfolio Wall Street is focused on tech stocks and artificial intelligence today. It is overlooking boring old businesses like Stanley Black & Decker, McCormick, and Realty Income. That's a dividend opportunity for investors who think long term and don't mind venturing into areas other investors ignore.
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.
Today's Change
(
0.85
%) $
0.44
Current Price
$
52.22
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.
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.
Image Source: Zacks Investment Research
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.
Key Takeaways McCormick benefits from at-home cooking trends, flavor demand and better-for-you meal solutions.MKC is expanding in beverages, protein, snacking, zero-sugar and health-focused innovation.Cost savings lifted margins, while McCormick de Mexico and Unilever Foods could reshape growth. McCormick & Company, Incorporated (MKC - Free Report) is tied to trends that reach beyond one quarter. Flavor demand, healthier at-home meals and better-for-you product development shape its opportunity.
The company is also leaning on productivity and portfolio moves. Those trends support the long-term story, but MKC still needs better volume execution.
McCormick Tracks Shifts in Home CookingFlavor remains a durable category because it fits several needs. At-home cooking benefits from shoppers seeking healthier meal solutions, while spices and seasonings help lower-cost meals feel more varied.
Price-conscious consumers still want convenience and affordable exploration. Younger consumers also remain important to heat, recipe mixes and value-focused innovation.
The trend extends to foodservice customers. McCormick’s flavor capabilities connect with protein consumption, beverage experimentation and better-for-you eating habits.
Kraft Heinz Company (KHC - Free Report) offers a packaged-food comparison because sauces and condiments also compete for value-focused grocery demand. Mondelez International, Inc. (MDLZ - Free Report) gives investors a broader consumer-staples reference point as large food companies adapt around taste, convenience and occasions.
MKC Expands Through Health Focused InnovationMcCormick’s innovation agenda is increasingly tied to changing consumer preferences. In Flavor Solutions, activity spans beverage, protein, snacking, zero-sugar and better-for-you products, widening the company’s exposure beyond legacy pantry staples.
Customer reformulation also matters. A majority of second-quarter briefs were tied to health and wellness innovation or renovation, showing that customers are using McCormick’s flavor capabilities as they adjust products for nutrition, taste and label expectations.
This gives MKC a broader runway. Beverage, sports nutrition, protein-based products and zero-sugar drinks can create repeat opportunities with large customers, private-label players and emerging brands.
Execution remains important. Consumer segment volume was still negative in the second quarter, making new products, distribution and value messaging central to the trend story.
McCormick Uses CCI to Lift MarginsMcCormick’s Comprehensive Continuous Improvement program remains a key profit trend. The program supports cost discipline, productivity gains and operational efficiency across the business.
That matters because the company is still facing commodity cost pressure, cautious consumer spending and costs tied to the Middle East conflict. Productivity savings help offset those headwinds while funding brand marketing, technology and innovation.
The latest quarter showed the impact of that discipline. Adjusted gross margin expanded 270 basis points to 40.2%, while underlying gross margin expanded 130 basis points after excluding the tariff refund benefit.
Adjusted operating income rose 30.1% to $336.4 million, or 27.3% in constant currency. Margin progress across both segments suggests that cost savings are helping protect earnings power.
Image Source: Zacks Investment Research
MKC Deal Strategy Could Reshape GrowthPortfolio expansion is another important trend for McCormick. The acquisition of an additional 25% ownership interest in McCormick de Mexico gave the company a 75% controlling interest and added a broader platform in Mexico and Latin America.
That transaction was a major driver of reported second-quarter sales growth. McCormick de Mexico contributed 12.3 percentage points to total sales growth, showing how acquisitions can reshape results when organic growth remains modest.
The proposed Unilever Foods combination could be more transformative. The deal is expected to broaden McCormick’s global flavor portfolio, expand customer reach and strengthen innovation capabilities.
Management also expects about $600 million in annual run-rate cost synergies, net of growth reinvestments. Those synergies could strengthen the global platform if execution remains on track.
McCormick Trend Signals Await Zacks BackingThe bottom line is that McCormick has constructive operating trends, including resilient flavor demand, health-focused innovation, cost savings and portfolio expansion. The stock currently carries a Zacks Rank #4 (Sell). Those strengths support a measured long-term view, even as consumer volumes and organic growth still need improvement.
A Neutral stance fits that balance. MKC has credible operating levers, but soft Consumer volume, commodity pressure and cautious spending keep the trend story from becoming a clean upside case.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways MKC benefits from resilient flavor demand tied to home cooking, wellness, protein and meal exploration.MKC's Q2 organic sales rose 1.7%, driven mainly by pricing, while total volume and mix fell 0.5%.MKC expanded adjusted gross margin 270 basis points as pricing, productivity and tariff refunds helped. McCormick & Company, Incorporated (MKC - Free Report) gives investors a clear trade-off. The company continues to benefit from resilient flavor demand, disciplined pricing and better execution.
At the same time, organic growth remains modest. Consumer volumes are still soft in parts of the business, making the next phase of growth dependent on innovation, distribution gains and value-focused marketing.
MKC Leans on Resilient Flavor DemandFlavor remains a durable category for McCormick. Demand is supported by home cooking, health and wellness priorities, protein consumption and consumers’ interest in affordable meal exploration. Those trends give the company relevance across retail and foodservice.
Younger consumers also matter to the long-term case. McCormick is using flavor platforms, heat, recipe mixes and value-oriented innovation to expand household penetration. In Flavor Solutions, beverage, protein, better-for-you, snacking and zero-sugar projects broaden the same opportunity across customer channels.
The Kraft Heinz Company (KHC - Free Report) is a useful packaged-food comparison because investors are also watching how established brands defend relevance in value-conscious categories. General Mills, Inc. (GIS - Free Report) faces a similar focus on brand investment, innovation and consumer spending sensitivity.
McCormick Uses Pricing to Defend GrowthPricing remained a key support for recent sales growth. In the second quarter of fiscal 2026, organic sales increased 1.7%, driven primarily by a 2.2% pricing contribution. Total volume and mix declined 0.5%, showing that price realization carried much of the organic gain.
The Consumer segment shows the same tension. Organic sales rose 0.8%, helped by a 2.7% pricing benefit, while volume and mix declined 1.9%. Flavor Solutions delivered 2.9% organic sales growth, with pricing of 1.5% and volume growth of 1.4%.
That pricing discipline has helped protect revenues in an inflationary environment. Investors still need to watch whether pricing can continue offsetting uneven demand, especially as value-seeking consumers compare branded products with lower-priced alternatives.
MKC Margin Gains Reflect Better ExecutionProfitability improved meaningfully in the second quarter. Adjusted gross profit increased 25% to $778.2 million, while adjusted gross margin expanded 270 basis points to 40.2%. Excluding the tariff refund benefit, underlying gross margin still expanded 130 basis points.
Adjusted operating income rose 30.1% to $336.4 million, or 27.3% in constant currency. Consumer adjusted operating income increased 33%, while Flavor Solutions adjusted operating income rose 26%, showing margin progress across both segments.
The improvement reflected pricing, acquisition accretion, tariff refund benefits and productivity savings from McCormick’s Comprehensive Continuous Improvement program. Higher commodity costs remained an offset, but the quarter gave investors a clearer view of how management is protecting earnings power.
McCormick Builds on Innovation and BrandsMcCormick is leaning on brand investment and innovation to support the second half of fiscal 2026. Plans include expanded distribution, packaging renovation, targeted value-focused marketing, refined revenue growth management and product innovation.
Recent actions include seasoning blend renovation, price-pack architecture improvements, finishing sugars and salts, and new Cholula sauces. These efforts are aimed at improving value perception, broadening usage occasions and keeping McCormick’s brands relevant for consumers seeking affordable flavor upgrades.
In Flavor Solutions, innovation is tied to beverage, protein, snacking, better-for-you and zero-sugar categories. A majority of second-quarter briefs were linked to health and wellness innovation or renovation, giving the company another path to participate in consumer demand beyond the retail spice aisle.
MKC Signals Mixed Rating MetricsThe bottom line is that McCormick’s operating case remains credible, but not yet clean. The company has durable category exposure, pricing power, improving margins and innovation support. It also faces soft consumer volumes, modest organic growth and ongoing cost pressure.
This Zacks Rank #4 (Sell) stock’s valuation framework carries a Neutral view, with MKC trading at 16.18X forward 12-month earnings, above the Zacks sub-industry multiple of 14.09X but below the S&P 500’s 21.13X. That setup suggests the market is recognizing some stability while still waiting for stronger organic demand signals.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This is a fair market value price provided by Massive. Learn more.
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.
Get MKC alerts:
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.
Should You Invest $1,000 in McCormick & Company, Incorporated Right Now?Before you consider McCormick & Company, Incorporated, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and McCormick & Company, Incorporated wasn't on the list.
While McCormick & Company, Incorporated currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Weekly Market HighlightsThis week, 521 stocks gained more than 15%, while 1,436 stocks declined by more than 10%, reflecting significant market challenges.The
McCormick is rated a buy, with a 35% upside to a $65 PT, driven by the transformative Unilever Foods deal and a compelling 4% dividend yield. Despite underwhelming Q2 results and ongoing Consumer segment weakness in the Americas, MKC's valuation is at a ten-year low and reflects current headwinds. The Unilever deal is expected to deliver mid/high-single-digit EPS accretion in year one, rising to mid-high teens by year three, with significant scale and geographic diversification.
McCormick & Company Inc. (NYSE:MKC) on Thursday reported second-quarter results that exceeded Wall Street expectations.
The company reported second-quarter net sales of $1.937 billion, up 16.7% from a year earlier and above the consensus estimate of $1.912 billion. Adjusted earnings came in at 80 cents per share, topping analysts’ expectations of 69 cents.
McCormick affirmed its fiscal 2026 adjusted earnings guidance of $3.05 to $3.13 per share, compared with analysts’ estimate of $3.09. The company also maintained its sales outlook of $7.73 billion to $8.00 billion, versus the consensus estimate of $7.88 billion.
CEO Brendan M. Foley said, "Looking ahead to the rest of the year, we expect to sustain the momentum in Flavor Solutions and increase reinvestment to improve Consumer volume trends and organic sales."
McCormick shares rose 5.4% to trade at $50.96 on Friday.
These analysts made changes to their price targets on McCormick following earnings announcement.
Deutsche Bank analyst Stephen Powers maintained McCormick with a Buy and raised the price target from $59 to $60. Bernstein analyst Alexia Howard maintained the stock with an Outperform rating and lowered the price target from $77 to $68. Considering buying MKC stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
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.
Total Sales Growth: 14% in constant currency, with 12% from McCormick de Mexico acquisition and 2% organic growth.Consumer Segment Sales Growth: 20% in constan
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
For the quarter ended May 2026, McCormick (MKC - Free Report) reported revenue of $1.94 billion, up 16.7% over the same period last year. EPS came in at $0.80, compared to $0.69 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.9 billion, representing a surprise of +1.99%. The company delivered an EPS surprise of +15.29%, with the consensus EPS estimate being $0.69.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how McCormick performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Flavor Solutions: $794 million versus the two-analyst average estimate of $771.11 million. The reported number represents a year-over-year change of +8.9%.Net Sales- Consumer: $1.14 billion compared to the $1.13 billion average estimate based on two analysts. The reported number represents a change of +22.8% year over year.Operating income, excluding special charges- Flavor Solutions: $120 million compared to the $101.86 million average estimate based on two analysts.Operating income, excluding special charges- Consumer: $217 million versus the two-analyst average estimate of $194.66 million.View all Key Company Metrics for McCormick here>>>
Shares of McCormick have returned +0.1% over the past month versus the Zacks S&P 500 composite's -1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
McCormick & Company Inc (NYSE:MKC) shares climbed more than 5% after the spice and seasoning maker reported fiscal second quarter 2026 results that exceeded Wall Street expectations and reaffirmed its full-year guidance.
The company posted adjusted earnings of $0.80 per share for the quarter ended May 31, ahead of analyst estimates of $0.70 per share.
Revenue totaled $1.94 billion, surpassing consensus expectations of approximately $1.9 billion.
Net sales increased 16.7% year-over-year, benefiting from a 2.7% favorable currency impact and contributions from the McCormick de Mexico acquisition. Organic sales rose 1.7%.
Adjusted operating income climbed 30.1% to $336 million, while operating income increased to $276 million from $246 million a year earlier. Gross profit margin expanded by 270 basis points to 40.2%.
McCormick said it benefited from pricing actions, cost savings initiatives and contributions from McCormick de Mexico, though these gains were partly offset by higher commodity costs and expenses related to the conflict in the Middle East.
Consumer segment sales rose 22.8% to $1.14 billion, including a 20% contribution from McCormick de Mexico, while Flavor Solutions sales increased 8.9% to $794 million. Organic sales in the Flavor Solutions business advanced 2.9%, supported by gains in both pricing and volume.
The company also noted progress in planning for its proposed combination with Unilever Foods, which it said is expected to provide strategic and financial benefits, including earnings accretion.
McCormick reaffirmed its fiscal 2026 outlook, projecting reported net sales growth of 13% to 17% and adjusted earnings per share of $3.05 to $3.13.
The company expects organic sales growth of 1% to 3% and adjusted operating income growth of 16% to 20%.
McCormick CEO Brendan Foley said the company continued to see momentum in its Flavor Solutions business and plans to increase investments aimed at improving consumer volume trends during the remainder of the year. "Our fundamentals remain strong, supported by our advantaged categories and disciplined execution, giving us confidence in our ability to deliver on our 2026 outlook."
Key Takeaways McCormick's Q2 adjusted EPS rose 15.9% to 80 cents as net sales climbed 16.7% to $1.94 billion.MKC's gross margin expanded 270 basis points on de Mexico gains, tariff refund, pricing and CCI savings.McCormick still expects fiscal 2026 net sales growth of 13-17% and adjusted EPS of $3.05-$3.13. McCormick & Company, Incorporated (MKC - Free Report) reported second-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.
Adjusted earnings rose 15.9% to 80 cents per share from 69 cents in the year-ago quarter. The metric beats the Zacks Consensus Estimate of 69 cents per share. The increase was driven by elevated adjusted operating income and a reduced adjusted effective tax rate, partially offset by weaker unconsolidated income and increased interest expense.
The global flavor leader generated net sales of $1,936.6 million, up 16.7% year over year, including a 2.7% positive currency impact and a 12% contribution from McCormick de Mexico. The top line beats the consensus mark of $1,899 million. Organic sales edged up 1.7%.
MKC’s Quarterly Performance: Key Metrics & InsightsThe gross margin expanded 270 basis points, driven by contributions from the McCormick de Mexico acquisition, the IEEPA tariff refund, pricing actions and productivity savings generated through the company's Comprehensive Continuous Improvement (“CCI”) program. These benefits were partially offset by higher commodity costs and costs associated with the Middle East conflict.
Adjusted operating income increased to $336 million from $259 million, reflecting a 30% year-over-year rise, including a 3% favorable currency impact. On a constant currency basis, adjusted operating income grew 27%, supported by elevated gross profit and CCI-driven cost savings, including SG&A efficiencies. These gains were partially offset by higher SG&A expenses, primarily due to acquisition-related costs, elevated brand marketing investments and technology spending.
Decoding MKC’s Segmental PerformanceConsumer: The segment’s sales surged 23% year over year to $1,143 million, supported by a 20% contribution from McCormick de Mexico and a 2% positive currency impact. Organic sales rose 1%, as a 3% increase in pricing more than offset a 2% decline in volume and mix. Adjusted operating income rose 33% year over year to $217 million or 31% in constant currency, driven by elevated gross profit, partially offset by higher SG&A investments in marketing and technology.
Flavor Solutions: Sales grew 9% year over year to $794 million, including a 3% favorable currency impact and a 3% contribution from McCormick de Mexico. Organic sales in the segment edged up 3%, driven by pricing, volume and product mix. Adjusted operating income increased 26% to $120 million or 22% in constant currency, supported by elevated gross profit but partly offset by higher SG&A expenses, including continued investments in technology.
MKC’s Financial Health SnapshotMcCormick ended the quarter with cash and cash equivalents of $331.2 million, long-term debt of $3,597.4 million and total shareholders’ equity of $7,573.3 million.
In the six months ended May 31, 2026, net cash provided by operating activities was $430.7 million. The company continues to expect robust cash generation for fiscal 2026, supported by profit and working capital initiatives, and aims to return a significant portion to its shareholders via dividends.
What to Expect From MKC in Fiscal 2026?The company still expects net sales growth of 13-17% (while 12-16% in constant currency) in fiscal 2026, including an 11-13% contribution from the McCormick de Mexico acquisition in both reported and constant currency terms. Organic sales are projected to increase 1-3% on a constant currency basis.
Adjusted gross margin is expected to expand 100-120 basis points, with favorable impacts from organic sales growth, accretion from the McCormick de Mexico acquisition, and productivity gains from the company's CCI program. The benefit from the IEEPA tariff refund is expected to be largely offset by higher inflationary pressures, including costs related to the Middle East conflict, as well as ongoing investments to support growth initiatives.
Adjusted operating income is projected to rise 16-20% (up 15-19% at constant currency).
The company expects adjusted EPS between $3.05 and $3.13, indicating 2-5% year-over-year growth and a 1-4% rise at constant currency.
This Zacks Rank #4 (Sell) company has lost 9.8% in the past three months compared with the industry’s decline of 1.6%.
Image Source: Zacks Investment Research
Stocks to ConsiderThe 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 sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 8.3% and 24.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 28.9%, on average.
Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients. It currently flaunts a Zacks Rank #1. Darling Ingredients delivered a trailing four-quarter earnings surprise of 16.1%, on average.
The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year sales and earnings indicates growth of 12.3% and 588.2%, respectively, from the prior-year reported levels.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
McCormick (MKC - Free Report) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +15.29%. A quarter ago, it was expected that this spices and seasonings company would post earnings of $0.61 per share when it actually produced earnings of $0.66, delivering a surprise of +8.2%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
McCormick, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.94 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.99%. This compares to year-ago revenues of $1.66 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
McCormick shares have lost about 30.1% since the beginning of the year versus the S&P 500's gain of 7.5%.
What's Next for McCormick?While McCormick has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for McCormick was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.84 on $1.98 billion in revenues for the coming quarter and $3.09 on $7.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Lamb Weston (LW - Free Report) , has yet to report results for the quarter ended May 2026. The results are expected to be released on July 24.
This frozen foods supplier is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of -29.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lamb Weston's revenues are expected to be $1.69 billion, up 1% from the year-ago quarter.
, /PRNewswire/ -- McCormick & Company, Incorporated (NYSE:MKC), a global leader in flavor, today reported financial results for the second quarter ended May 31, 2026 and reaffirmed its outlook for fiscal 2026.
Net Sales increased 16.7% in the second quarter and included a 2.7% favorable impact from currency. Organic sales growth was 1.7%. Operating income was $276 million in the second quarter compared to $246 million in the year-ago period. Adjusted operating income was $336 million compared to $259 million in the year-ago period. Earnings per share was $0.56 in the second quarter as compared to $0.65 in the year-ago period. Adjusted earnings per share was $0.80 as compared to $0.69 in the year-ago period. For fiscal year 2026, McCormick reaffirmed its sales growth, adjusted operating income and adjusted earnings per share outlook. McCormick is making strong progress on integration planning for the proposed Unilever Foods combination and remains confident in delivering the expected strategic and financial benefits, including significant earnings per share accretion. Chairman, President, and CEO's Remarks
Brendan M. Foley, Chairman, President, and CEO, stated, "Second quarter results demonstrate the continued strength and resilience of our business in a dynamic operating environment. Total organic growth was driven by accelerated momentum in Flavor Solutions, with gains across Flavors and Branded Foodservice customers, highlighting the benefits of our diversified flavor focused portfolio. We also effectively managed elevated inflation and incremental costs related to the Middle East conflict through productivity initiatives and cost savings programs, resulting in underlying margin improvement for the quarter. In addition, our performance was supported by accretion from the McCormick de Mexico acquisition.
"We are also advancing integration planning for the proposed combination with Unilever Foods. This transformative combination accelerates our growth strategy and reinforces our continued focus on flavor. It creates a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them. Our teams are working with focus and discipline to ensure we are well positioned to realize the anticipated strategic and financial benefits after the close.
"Looking ahead to the rest of the year, we expect to sustain the momentum in Flavor Solutions and increase reinvestment to improve Consumer volume trends and organic sales. Our enhanced margin profile and operational rigor position us well to deliver a virtuous cycle of growth through continued investment in our brands, capabilities, and innovation that drive long-term value creation. Our fundamentals remain strong, supported by our advantaged categories and disciplined execution, giving us confidence in our ability to deliver on our 2026 outlook."
"Finally, I want to recognize the dedication of our employees. Their continued commitment to serving consumers, customers, and one another reflects the strength of our Power of People culture and supports our sustained performance. I appreciate our teams' focus and collaboration across the business as they advance our priorities, including the ongoing integration planning for the proposed combination with Unilever Foods. Our strong culture will remain our foundation, as we build a future-ready organization to drive our long-term growth."
Second Quarter 2026 Results
Sales Metrics
Second Quarter 2026
As Reported
Organic(1)
Acquisition
Constant
Currency
% Change
Volume/
Mix
Price
% Change
% Change
% Change
Total Net Sales
16.7 %
(0.5) %
2.2 %
1.7 %
12.3 %
14.0 %
Total Consumer
22.8 %
(1.9) %
2.7 %
0.8 %
19.6 %
20.4 %
Americas
28.0 %
(3.6) %
3.4 %
(0.2) %
27.9 %
27.7 %
EMEA
10.7 %
1.9 %
1.4 %
3.3 %
— %
3.3 %
APAC
10.0 %
2.4 %
0.5 %
2.9 %
— %
2.9 %
Total Flavor Solutions
8.9 %
1.4 %
1.5 %
2.9 %
3.0 %
5.9 %
Americas
10.0 %
2.1 %
1.8 %
3.9 %
4.2 %
8.1 %
EMEA
5.4 %
(1.2) %
1.6 %
0.4 %
— %
0.4 %
APAC
7.5 %
0.8 %
(0.6) %
0.2 %
— %
0.2 %
(1) Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency.
Profitability Metrics
Second Quarter 2026
(in millions except per share data)
As Reported
Adjusted
Q2 2026
vs. 2025
Q2 2026
vs. 2025
Gross profit
$ 778.2
25.0 %
$ 778.2
25.0 %
Gross profit margin
40.2 %
270 bps
40.2 %
270 bps
Operating income
$ 276.4
12.4 %
$ 336.4
30.1 %
Operating income margin
14.3 %
(50) bps
17.4 %
180 bps
Net income attributable to McCormick
$ 150.1
(14.2) %
$ 215.9
16.8 %
Earnings per share - diluted
$ 0.56
(13.8) %
$ 0.80
15.9 %
Second Quarter 2026 Results
Net sales increased 17% in the second quarter compared to the year-ago period and included a 3% favorable impact from currency. Sales from McCormick de Mexico contributed 12% to the sales increase. Organic sales increased 2%, driven by price.
Consumer segment net sales increased 23% from the second quarter of 2025 to $1,143 million including a 20% contribution from McCormick de Mexico and a 2% favorable impact from currency. Organic sales increased 1%, driven by a 3% increase from price partially offset by a 2% decline in volume and product mix. Flavor Solutions segment net sales increased 9% from the second quarter of 2025 to $794 million and included a 3% favorable impact from currency and 3% contribution from McCormick de Mexico. Organic sales increased 3%, driven nearly equally by both price and volume and product mix. Gross profit for the second quarter increased by $155 million from the comparable period in 2025. Gross profit margin expanded 270 basis points versus the second quarter of last year. The expansion was driven by contribution from the acquisition of McCormick de Mexico, the impact of the IEEPA tariff refund, pricing, and cost savings led by the Company's Comprehensive Continuous Improvement (CCI) program, partially offset by higher commodity costs and costs related to the Middle East conflict.
The IEEPA tariff refund reduced costs of goods sold by $28 million, reversing IEEPA tariff costs the business absorbed in prior periods. For the second quarter of 2026, the refund contributed approximately 140 basis points to gross profit margin expansion for the second quarter. Underlying gross profit margin expansion was 130 basis points for the quarter.
Operating income was $276 million in the second quarter of 2026 compared to $246 million in the second quarter of 2025. Excluding special charges, adjusted operating income was $336 million compared to $259 million in the year-ago period. Adjusted operating income increased 30% from the year-ago period, including a 3% favorable impact from currency. In constant currency, adjusted operating income increased 27% driven by higher gross profit, cost savings led by the CCI program, including selling, general and administrative (SG&A) streamlining initiatives, partially offset by higher SG&A expenses primarily due to acquisition related increase, as well as increased brand marketing investments and technology investments.
Consumer segment operating income, excluding special charges, increased 33% in the second quarter of 2026 compared to the year-ago period to $217 million, or 31% in constant currency. The increase was driven by higher gross profit, partially offset by increased SG&A expenses including investments in brand marketing and technology. Flavor Solutions segment operating income, excluding special charges, increased 26% in the second quarter of 2026 compared to the year-ago period to $120 million, or 22% in constant currency. The increase was driven by higher gross profit, partially offset by increased SG&A expenses including investments in technology. Earnings per share was $0.56 in the second quarter of 2026 compared to $0.65 in the second quarter of 2025. Special charges, including transaction and integration costs, lowered diluted earnings per share by $0.24. Excluding special charges adjusted earnings per share was $0.80 in the second quarter of 2026 compared to $0.69 in the second quarter of 2025. The increase was primarily attributable to higher adjusted operating income and a lower adjusted effective tax rate, partially offset by lower unconsolidated income and higher interest expense.
Fiscal Year 2026 Financial Outlook
McCormick's fiscal 2026 outlook continues to reflect the Company's prioritized investments in key categories to sustain its volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies and the conflict in the Middle East. The Company's CCI program is continuing to fuel growth investments while also driving operating margin expansion. Lastly, the outlook reflects meaningful contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2, 2026.
Current Guide(1)
June 2026
Reported
Constant
Currency
Net sales growth
13% to 17%
12% to 16%
Contribution from acquisition of McCormick de Mexico
11% to 13%
11%to 13%
Organic sales growth(2)
---
1% to 3%
Adjusted operating income
16% to 20%
15% to 19%
Adjusted Earnings per share (EPS)
$3.05 to $3.13
2% to 5%
1% to 4%
(1)
Amounts are rounded with percentages calculated from the underlying amounts
(2)
Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency.
Current Guide - Expectations
Net Sales:
Sustained total volume growth and increased pricing benefits relative to the prior year. Adjusted Operating Income:
Adjusted gross margin is now expected to expand by 100 to 120 basis points from 2025. Favorable impacts from organic sales growth, McCormick de Mexico accretion, and the Company's CCI program. The benefit of the IEEPA tariff refund will be offset with increased inflationary costs, including costs related to the Middle East conflict, as well as continued investments in business growth. SG&A expenses impacted by cost headwinds including digital transformation and build back of incentive compensation, as well as growth investments. In addition, SG&A is expected to benefit from the Company's CCI program, inclusive of streamlining initiatives. Adjusted Earnings per Share:
Adjusted operating income growth partially offset by: Tax rate of approximately 24.0% vs. 21.5% in 2025. Higher net interest expense, primarily associated with the McCormick de Mexico transaction. Income from unconsolidated operations no longer reflects ownership interest in McCormick de Mexico subsequent to the January 2026 acquisition. The acquisition of the additional ownership interest resulted in the consolidation of McCormick de Mexico's financial results in the Company's financial statements from the date of acquisition. Income attributable to noncontrolling interest reflects elimination of the 25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez. The Company expects foreign currency rates to favorably impact net sales by 1%, adjusted operating income by 1%, and adjusted earnings per share by 1%.
For fiscal 2026, the Company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion of cash flow to shareholders through dividends.
The Company's outlook for 2026 adjusted operating income and adjusted earnings per share are non-GAAP financial measures that exclude or otherwise adjust for items impacting comparability of financial results. The Company does not provide guidance on a GAAP basis as it cannot predict certain items included in GAAP results such as special charges, including transaction and integration expenses.
McCormick Combination with Unilever Foods
In March 2026, the Company announced the agreement to combine McCormick with Unilever's Foods business, excluding India and other excluded businesses1 to create a preeminent global flavor-focused company operating in attractive, high-growth categories, with approximately $20 billion in fiscal year 2025 revenue2 and a 21% operating margin and strong cash flow generation. The transaction is expected to be accretive to McCormick's net sales growth rate, operating margin, and adjusted EPS with mid- to high-single-digit adjusted EPS accretion anticipated within the first twelve months post-close and mid-to high-teens accretion expected in Year 3.
The combined company is expected to realize approximately $600 million of annual run rate cost synergies net of growth reinvestments, and incremental cost and revenue synergies of $100 million that will be reinvested to further drive growth. Integration planning, led by experienced McCormick and Unilever Foods personnel, is currently underway to deliver these synergies.
The Company expects to reach several key transaction milestones in the coming months. It expects to announce the location of a secondary listing on a European exchange by the end of July 2026. By the end of September 2026, the Company expects to share further detail on the operating model, cost and growth synergies, and the scope of the Transition Services Agreement (TSA). Lastly, the Company will provide an update on the two parallel workstreams to support separation of financial reports and regulatory filings.
1 Transaction excludes Unilever's food business in India, Nepal and Portugal; its Lifestyle & Nutrition business; its Buavita business; and its Lipton Ready-to-Drink business (together, the "Excluded Businesses").
2 Combined sales figure represents McCormick's net sales for the fiscal year ended November 30, 2025, and Unilever Foods' net sales for the fiscal year ended December 31, 2025. Unilever Foods' financials based on 2025 reported financials, prepared under IFRS adjusted for the separated Foods business and translated from EUR to USD at the Unilever 2025 average rate of 1.124.
Non-GAAP Financial Measures
The following tables include financial measures of organic net sales, adjusted gross profit, adjusted gross profit margin, adjusted operating income, adjusted operating income margin, adjusted income tax expense, adjusted income tax rate, adjusted net income, and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared as a complement to our financial results prepared in accordance with United States generally accepted accounting principles. These financial measures exclude the impact, as applicable, of the following:
Special charges - Special charges consist of expenses and income associated with certain actions undertaken by us to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee. Expenses associated with the approved actions are classified as special charges upon recognition and monitored on an ongoing basis through completion. Included in special charges are transaction and integration costs incurred in conjunction with acquisitions. Gain on remeasurement of previously held equity interest - On January 2, 2026, we completed the acquisition of an additional 25% ownership interest in McCormick de Mexico which increased our ownership to a 75% controlling interest. Prior to the acquisition of the additional ownership interest, we accounted for our 50% ownership interest as an equity method investment. The acquisition of the additional ownership interest resulted in the consolidation of McCormick de Mexico's financial results. As a result of the consolidation, the carrying value of our previously held 50% ownership interest was remeasured to fair value resulting in a gain. We believe that these non-GAAP financial measures are important. The exclusion of the items noted above provides additional information that enables enhanced comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.
These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP; however, they should not be viewed as a substitute for, or superior to, GAAP results. Furthermore, these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, as they may calculate them differently than we do. We intend to continue providing these non-GAAP financial measures as part of our future earnings discussions, ensuring consistency in our financial reporting.
A reconciliation of these non-GAAP financial measures to the related GAAP financial measures follows:
(in millions except per share data)
Three Months Ended
Six Months Ended
5/31/2026
5/31/2025
5/31/2026
5/31/2025
Gross profit
$ 778.2
$ 622.8
$ 1,487.1
$ 1,226.8
Impact of Special charges included in
cost of goods sold
—
—
15.0
—
Adjusted gross profit
$ 778.2
$ 622.8
$ 1,502.1
$ 1,226.8
Gross profit margin(1)
40.2 %
37.5 %
39.0 %
37.6 %
Impact of Special charges(1)
— %
— %
0.4 %
— %
Adjusted gross profit margin(1)
40.2 %
37.5 %
39.4 %
37.6 %
Operating income
$ 276.4
$ 245.8
$ 503.9
$ 471.0
Impact of Special charges
60.0
12.8
100.1
12.8
Adjusted operating income
336.4
258.6
604.0
483.8
Operating income margin(2)
14.3 %
14.8 %
13.2 %
14.4 %
Impact of Special charges(2)
3.1 %
0.8 %
2.7 %
0.4 %
Adjusted operating income margin(2)
17.4 %
15.6 %
15.9 %
14.8 %
Income tax expense
$ 63.5
$ 49.3
$ 112.2
$ 90.9
Impact of Special charges
1.0
3.0
10.9
3.0
Adjusted income tax expense
$ 64.5
$ 52.3
$ 123.1
$ 93.9
Income tax rate(3)
28.8 %
24.1 %
27.7 %
23.2 %
Impact of Special charges
(6.3) %
— %
(3.7) %
— %
Adjusted income tax rate(3)
22.5 %
24.1 %
24.0 %
23.2 %
Net income attributable to McCormick
& Company
$ 150.1
$ 175.0
$ 1,166.3
$ 337.3
Impact of Special charges, net of non-
controlling interest(4)(5)
65.8
9.8
93.3
9.8
Gain on remeasurement of previously
held equity interest
—
—
(866.8)
—
Adjusted net income
$ 215.9
$ 184.8
$ 392.8
$ 347.1
Earnings per share – diluted
$ 0.56
$ 0.65
$ 4.33
$ 1.25
Impact of Special charges
0.24
0.04
0.35
0.04
Gain on remeasurement of previously
held equity interest
—
—
(3.22)
—
Adjusted earnings per share – diluted
$ 0.80
$ 0.69
$ 1.46
$ 1.29
(1)
Gross profit margin, impact of special charges, and adjusted gross profit margin are calculated as gross profit, impact of special charges, and adjusted gross profit as a percentage of net sales for each period presented. The impact of special charges included in cost of goods sold represents the step-up of acquired inventory recognized in cost of goods sold as the related inventory was sold.
(2)
Operating income margin, impact of special charges, and adjusted operating income margin are calculated as operating income, impact of special charges, and adjusted operating income as a percentage of net sales for each period presented.
(3)
Income tax rate is calculated as income tax expense as a percentage of income from consolidated operations before income taxes. Adjusted income tax rate is calculated as adjusted income tax expense as a percentage of income from consolidated operations before income taxes excluding special charges of $287.0 million and $217.4 million for the three months ended May 31, 2026 and 2025, respectively, and $512.1 million and $403.9 million for the six months ended May 31, 2026 and 2025, respectively.
(4)
The impact of special charges, net of noncontrolling interests, for six months ended May 31, 2026 includes a $2.6 million non-controlling interest effect associated with the step-up of acquired inventory recognized in cost of goods sold as the related inventory was sold.
(5)
The impact of special charges, net of noncontrolling interests, for three and six months ended May 31, 2026 includes a net income impact of $5.2 million related to transaction expenses included in interest expense.
Because we are a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. Those changes can be volatile. The exclusion of the effects of foreign currency exchange, or what we refer to as amounts expressed "on a constant currency basis," is a non-GAAP measure. We believe that this non-GAAP measure provides additional information that enables enhanced comparison to prior periods excluding the translation effects of changes in rates of foreign currency exchange and provides additional insight into the underlying performance of our operations located outside of the U.S. It should be noted that our presentation herein of amounts and percentage changes on a constant currency basis does not exclude the impact of foreign currency transaction gains and losses (that is, the impact of transactions denominated in other than the local currency of any of our subsidiaries in their local currency reported results).
We provide organic net sales growth rates for our consolidated net sales and segment net sales. We believe that organic net sales growth rates provide useful information to investors because they provide transparency to underlying performance in our net sales by excluding the effect that foreign currency exchange rate fluctuations, acquisitions, and divestitures, as applicable, have on year-to-year comparability. A reconciliation of these measures from reported net sales growth rates, the relevant GAAP measures, are included in the tables set forth below.
Percentage changes in sales and adjusted operating income expressed on a constant currency basis are presented excluding the impact of foreign currency exchange. To present this information for historical periods, current period results for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the corresponding period of the comparative year, rather than at the actual average exchange rates in effect during the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current fiscal period and the corresponding period of the comparative year.
Rates of constant currency and organic growth (decline) follow:
Three Months Ended May 31, 2026
Percentage
change as
reported
Impact of
foreign
currency
exchange
Percentage
change on
constant
currency
basis
Impact of
acquisition
Percentage
change on an
organic basis
Total Net Sales
16.7 %
2.7 %
14.0 %
12.3 %
1.7 %
Total Consumer
22.8 %
2.4 %
20.4 %
19.6 %
0.8 %
Americas
28.0 %
0.3 %
27.7 %
27.9 %
(0.2) %
EMEA
10.7 %
7.4 %
3.3 %
— %
3.3 %
APAC
10.0 %
7.1 %
2.9 %
— %
2.9 %
Total Flavor Solutions
8.9 %
3.0 %
5.9 %
3.0 %
2.9 %
Americas
10.0 %
1.9 %
8.1 %
4.2 %
3.9 %
EMEA
5.4 %
5.0 %
0.4 %
— %
0.4 %
APAC
7.5 %
7.3 %
0.2 %
— %
0.2 %
Six Months Ended May 31, 2026
Percentage
change as
reported
Impact of
foreign
currency
exchange
Percentage
change on
constant
currency
basis
Impact of
acquisition
Percentage
change on an
organic basis
Total Net Sales
16.7 %
2.9 %
13.8 %
12.4 %
1.4 %
Total Consumer
23.7 %
2.7 %
21.0 %
19.7 %
1.3 %
Americas
29.1 %
0.3 %
28.8 %
28.4 %
0.4 %
EMEA
13.1 %
9.6 %
3.5 %
— %
3.5 %
APAC
8.0 %
5.5 %
2.5 %
— %
2.5 %
Total Flavor Solutions
7.6 %
3.2 %
4.4 %
2.7 %
1.7 %
Americas
8.1 %
1.9 %
6.2 %
3.8 %
2.4 %
EMEA
6.3 %
6.4 %
(0.1) %
— %
(0.1) %
APAC
6.3 %
6.0 %
0.3 %
— %
0.3 %
Three Months Ended May 31, 2026
Percentage change
as reported
Impact of foreign
currency exchange
Percentage change on
constant currency
basis
Adjusted operating income:
Consumer segment
32.6 %
1.9 %
30.7 %
Flavor Solutions segment
25.8 %
4.4 %
21.4 %
Total adjusted operating income
30.1 %
2.8 %
27.3 %
Six Months Ended May 31, 2026
Percentage change
as reported
Impact of foreign
currency exchange
Percentage change on
constant currency
basis
Adjusted operating income:
Consumer segment
27.8 %
1.9 %
25.9 %
Flavor Solutions segment
19.6 %
4.5 %
15.1 %
Total adjusted operating income
24.8 %
2.8 %
22.0 %
To present the percentage change in projected 2026 net sales, adjusted operating income, and adjusted earnings per share (diluted) on a constant currency basis, the projected local currency net sales, adjusted operating income, and adjusted net income for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at forecasted exchange rates. These figures are then compared to the 2025 local currency projected results, which are translated into U.S. dollars at the average actual exchange rates in effect during the corresponding months of fiscal year 2025. This comparison determines what the 2025 consolidated U.S. dollar net sales, adjusted operating income, and adjusted earnings per share (diluted) would have been if the relevant currency exchange rates had not changed from those of the comparable 2025 periods.
Projections for the Year Ending
November 30, 2026
Percentage change in net sales
13% to 17%
Impact of favorable foreign currency exchange
1 %
Percentage change in net sales in constant currency
12% to 16%
Impact of acquisition
11% to 13%
Percentage change in organic net sales
1% to 3%
Percentage change in adjusted operating income
16% to 20%
Impact of favorable foreign currency exchange
1 %
Percentage change in adjusted operating income in constant
currency
15% to 19%
Percentage change in adjusted earnings per share - diluted
2% to 5%
Impact of favorable foreign currency exchange
1 %
Percentage change in adjusted earnings per share in constant
currency - diluted
1% to 4%
Live Webcast
As previously announced, McCormick will hold a conference call with analysts today at 8:00 a.m. ET. A live audio webcast of the call along with the accompanying presentation materials will be available on the McCormick website, ir.mccormick.com.
Forward-Looking Information
Certain information contained in this release, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges, including transaction and integration expenses, mergers, acquisitions, brand marketing support, volume and product mix, income tax expense, tariff-related matters, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe," "plan," and similar expressions. These statements may relate to: the anticipated benefits and timing of, and our plans, strategies and objectives relating to, the pending transaction with Unilever Foods, including: due to the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the pending transaction, including changes in relevant tax and other applicable laws; the failure to obtain necessary regulatory approvals, approval of our shareholders, anticipated tax treatment or any required financing, or to satisfy any of the other conditions to the pending transaction; the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies could impact the value or expected benefit of, timing or pursuit of the pending transaction; the risks and costs of the pursuit and/or implementation of the anticipated separation of Unilever Foods business prior to closing, including the anticipated timing required to complete the separation, any adjustment to the terms of the separation and any changes to the configuration of the businesses included in the separation if implemented; the financing of the pending transaction, including with respect to the Bridge Facility, the Term Loan Facility, and any other subsequent financing; the effectiveness of a registration statement on Form S-4 and our receipt of shareholder approval for the pending transaction and certain related matters; the anticipated ownership percentages of McCormick shareholders, Unilever shareholders and Unilever following the closing of the pending transaction; the effect of the announcement or pendency of the pending transaction on Unilever Foods' or McCormick's business relationships, competition, business, financial condition and operating results; the ability of McCormick to successfully integrate Unilever Foods' operations and implement its plans, forecasts and other expectations with respect to Unilever Foods' business or the combined business after the closing of the pending transaction; the ability of McCormick to manage additional debt and successfully de-lever following the transaction; general economic and industry conditions, including consumer spending rates, recessions, interest rates, and availability of capital; expectations regarding sales growth potential in various geographies and markets, including the impact of brand marketing support, product innovation, and customer, channel, category, heat platform, and e-commerce expansion; the expected results of operations of businesses acquired, including the additional 25% ownership interest in McCormick de Mexico; expected trends in net sales, earnings performance, and other financial measures; the expected impact of pricing actions on the Company's results of operations, including our sales volume and mix as well as gross margins; the expected impact of the inflationary cost environment on our business; the anticipated effects of factors affecting our supply chain, including the availability and prices of commodities and other supply chain resources such as raw materials, packaging, labor, and transportation; the potential impact of trade policies, including tariffs; the potential impact of legal challenges to U.S. tariffs, tariff refunds, and the timing and anticipated benefits thereof; the expected impact of productivity improvements, including those associated with our CCI program and the Global Business Services operating model initiative; the ability to identify, attract, hire, retain, and develop qualified personnel and the next generation of leaders; the impact of ongoing or future geopolitical conflicts, including those between Russia and Ukraine and the war/conflict in the Middle East, including the potential for broader economic disruption, in particular related to fuel and freight prices; expected working capital improvements; the anticipated timing and costs of implementing our business transformation initiative, which includes the implementation of a global enterprise resource planning (ERP) system; the expected impact of accounting pronouncements; expectations regarding pension and postretirement plan contributions and anticipated charges associated with those plans; the holding period and market risks associated with financial instruments; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing; the anticipated sufficiency of future cash flows to enable payments of interest, repayment of short- and long-term debt, working capital needs, planned capital expenditures, quarterly dividends, and our ability to obtain additional short- and long-term financing or issue additional debt securities; and expectations regarding purchasing shares of McCormick's common stock under the existing repurchase authorization.
These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the Company's ability to drive revenue growth; the Company's ability to increase pricing to offset, or partially offset, inflationary pressures on the cost of our products; damage to the Company's reputation or brand name; loss of brand relevance; increased private label use; the Company's ability to offset cost pressures or business impacts related to trade policies such as tariffs, including relating to tariff refunds; the Company's ability to drive productivity improvements, including those related to our CCI program and other streamlining actions; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crises; issues affecting the Company's supply chain and procurement of raw materials, including fluctuations in the cost and availability of raw and packaging materials; labor shortage, turnover and labor cost increases; the impact of changing political and geopolitical conditions, including the ongoing conflicts between Russia and Ukraine and the war/conflict in the Middle East, including the potential for broader economic disruption; government regulation, and changes in legal and regulatory requirements and enforcement practices; the lack of successful acquisition and integration of new businesses; global economic and financial conditions generally, availability of financing, interest and inflation rates, and the imposition of tariffs, quotas, trade barriers and other similar restrictions; foreign currency fluctuations; the effects of our amount of outstanding indebtedness and related level of debt service as well as the effects that such debt service may have on the Company's ability to borrow or the cost of any such additional borrowing, our credit rating, and our ability to react to certain economic and industry conditions; impairments of indefinite-lived intangible assets; assumptions we have made regarding the investment return on retirement plan assets, and the costs associated with pension obligations; the stability of credit and capital markets; risks associated with the Company's information technology systems, including the threat of data breaches and cyber-attacks; the Company's inability to successfully implement our business transformation initiative; fundamental changes in tax laws; including interpretations and assumptions we have made, and guidance that may be issued, and volatility in our effective tax rate; climate change; Environmental, Social and Governance (ESG) matters; infringement of intellectual property rights, and those of customers; litigation, legal and administrative proceedings; the Company's inability to achieve expected and/or needed cost savings or margin improvements; negative employee relations; risks related to the pending transaction with Unilever Foods, including: direct transaction costs and substantial transition and integration-related costs associated with the pending transaction; the parties' ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction, and the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction agreement; the failure to obtain necessary regulatory approvals, anticipated tax treatment or any required financing, or to satisfy any of the other conditions to the transaction; the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies could adversely impact the value or expected benefit of, timing or pursuit of the transaction; the risks and costs of the pursuit and/or implementation of the anticipated separation of Unilever Foods' business prior to closing; uncertainties as to access to available financing to consummate the transaction upon acceptable terms and on a timely basis or at all; the failure to obtain the effectiveness of a registration statement on Form S-4 or our receipt of shareholder approval for the transaction; the effect of the announcement or pendency of the transaction on Unilever Foods' or McCormick's business relationships, competition, business, financial condition and operating results, including risks that the transaction disrupts current plans and operations of Unilever Foods or McCormick; the ability of Unilever Foods or McCormick to retain and hire key personnel, risks related to diverting either management team's attention from ongoing business operations, and risks associated with third-party contracts containing consent and/or other provisions that may be triggered by the transaction; the ability of McCormick to successfully integrate Unilever Foods' operations and implement its plans, forecasts and other expectations with respect to Unilever Foods' business or the combined business after the closing of the transaction; the ability of McCormick to manage additional debt and successfully de-lever following the transaction; the outcome of any legal proceedings that may be instituted against Unilever Foods or McCormick related to the transaction; and other risks as described herein under Part II, Item 1A "Risk Factors—Risks Relating to the Proposed Transaction"; and other risks described in the Company's filings with the Securities and Exchange Commission.
Actual results could differ materially from those projected in the forward-looking statements. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
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:
Investor Relations:
Faten Freiha - [email protected]
Global Communications:
Jill Marvin – [email protected]
(Financial tables follow)
Second Quarter Report
McCormick & Company, Incorporated
Consolidated Income Statement (Unaudited)
(in millions except per share data)
Three months ended
Six months ended
May 31, 2026
May 31, 2025
May 31, 2026
May 31, 2025
Net sales
$ 1,936.6
$ 1,659.5
$ 3,810.5
$ 3,265.0
Cost of goods sold
1,158.4
1,036.7
2,323.4
2,038.2
Gross profit
778.2
622.8
1,487.1
1,226.8
Selling, general and administrative expense
441.8
364.2
898.1
743.0
Special charges
60.0
12.8
85.1
12.8
Operating income
276.4
245.8
503.9
471.0
Interest expense
62.7
51.0
110.0
99.5
Other income, net
6.5
9.8
11.3
19.6
Income from consolidated operations before income taxes
220.2
204.6
405.2
391.1
Income tax expense
63.5
49.3
112.2
90.9
Net income from consolidated operations
156.7
155.3
293.0
300.2
Income from unconsolidated operations
3.5
20.7
889.5
39.2
Net income
160.2
176.0
1,182.5
339.4
Net income attributable to noncontrolling interests
10.1
1.0
16.2
2.1
Net income attributable to McCormick & Company
$ 150.1
$ 175.0
$ 1,166.3
$ 337.3
Earnings per share – basic
$ 0.56
$ 0.65
$ 4.34
$ 1.26
Earnings per share – diluted
$ 0.56
$ 0.65
$ 4.33
$ 1.25
Average shares outstanding – basic
269.2
268.6
269.0
268.5
Average shares outstanding – diluted
269.2
269.4
269.3
269.5
Cash dividends paid per share – voting and non-voting
$ 0.48
$ 0.45
$ 0.96
$ 0.90
Second Quarter Report
McCormick & Company, Incorporated
Consolidated Balance Sheet (Unaudited)
(in millions)
May 31, 2026
November 30,
2025
ASSETS
Cash and cash equivalents
$ 331.2
$ 95.9
Trade accounts receivable, net of allowances
709.4
628.9
Inventories, net
1,408.6
1,272.0
Prepaid expenses and other current assets
339.6
141.3
Total current assets
2,788.8
2,138.1
Property, plant and equipment, net
1,504.2
1,448.8
Goodwill
6,291.9
5,301.3
Intangible assets, net
4,937.5
3,293.1
Other long-term assets
954.7
1,019.1
Total assets
$ 16,477.1
$ 13,200.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings and current portion of long-term debt
$ 1,336.1
$ 890.5
Trade accounts payable
1,515.1
1,259.4
Other accrued liabilities
720.6
912.3
Total current liabilities
3,571.8
3,062.2
Long-term debt
3,597.4
3,105.8
Deferred taxes
1,327.0
835.8
Other long-term liabilities
407.6
428.5
Total liabilities
8,903.8
7,432.3
Shareholders' equity
Common stock
585.1
582.4
Common stock non-voting
1,729.0
1,700.8
Retained earnings
4,842.9
3,816.4
Accumulated other comprehensive loss
(161.4)
(363.1)
Total McCormick & Company shareholders' equity
6,995.6
5,736.5
Non-controlling interests
577.7
31.6
Total shareholders' equity
7,573.3
5,768.1
Total liabilities and shareholders' equity
$ 16,477.1
$ 13,200.4
Second Quarter Report
McCormick & Company, Incorporated
Consolidated Cash Flow Statement (Unaudited)
(in millions)
Six months ended
May 31, 2026
May 31, 2025
Operating activities
Net income
$ 1,182.5
$ 339.4
Adjustments to reconcile net income to net cash flow provided
by operating activities:
Depreciation and amortization
136.5
110.9
Stock-based compensation
29.3
29.6
Amortization of inventory fair value adjustments associated
with acquisition
15.0
—
Deferred income tax benefit
(11.3)
(12.1)
Income from unconsolidated operations
(22.7)
(39.2)
Gain on remeasurement of previously held equity interest
(866.8)
—
Changes in operating assets and liabilities (net of effect of
businesses acquired)
Trade accounts receivable
129.4
23.2
Inventories
(6.3)
(19.1)
Trade accounts payable
30.2
(74.5)
Other assets and liabilities
(199.6)
(219.4)
Dividends from unconsolidated affiliates
14.5
22.6
Net cash flow provided by operating activities
430.7
161.4
Investing activities
Acquisition of business, net of cash acquired
(729.9)
(19.8)
Capital expenditures (including software)
(75.2)
(85.4)
Other investing activities
—
—
Net cash flow used in investing activities
(805.1)
(105.2)
Financing activities
Short-term borrowings, net
945.2
116.0
Long-term debt borrowings (net of debt issuance costs of $1.1)
497.7
0.9
Debt financing fees paid
(51.0)
—
Long-term debt repayments
(504.4)
(13.6)
Proceeds from exercised stock options
13.6
13.3
Taxes withheld and paid on employee stock awards
(11.9)
(12.6)
Common stock acquired by purchase
(10.9)
(26.5)
Dividends paid
(257.9)
(241.5)
Dividends paid to joint venture partner
(8.4)
—
Other financing activities
(9.3)
21.1
Net cash flow provided by (used in) financing activities
602.7
602.7
Effect of exchange rate changes on cash and cash equivalents
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.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
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
On June 23, 2026, McCormick & Co Inc MKC shares rose 3.6% to $47.38, reflecting a slight rebound in a challenging market. The stock has experienced significant volatility over the past year, with a 52-week range of $44.82 to $78.16.
GF Value™ verdict: Current price of $47.38 is 41.4% below its GF Value™ of $80.89, indicating significant undervaluation.GF Score™ of 75/100, suggesting above-average potential for long-term returns.Notable insider activity: Insiders bought $0.1M worth of shares in the last 3 months, with no selling activity reported. Is MKC Overvalued or Undervalued? According to GF Value™, McCormick & Co Inc MKC is currently significantly undervalued with a fair value estimate of $80.89 against the current price of $47.38. This indicates a margin of safety of approximately 41.4%, suggesting that investors may have a considerable opportunity to benefit from potential price appreciation. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Given the current valuation, MKC presents a compelling case for long-term value investors. However, it is essential to consider market conditions and company-specific factors that could affect future performance. This undervaluation could represent a significant opportunity, but potential investors should remain cautious about market volatility and competitive pressures in the consumer packaged goods industry.
How Does MKC's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)7.8x28.2x Forward P/E15.3x- The current P/E (TTM) of 7.8x is significantly below its 5-year median P/E of 28.2x, indicating that MKC is trading at a much lower valuation compared to its historical averages. This analysis agrees with the GF Value™ verdict, reinforcing the conclusion that MKC is undervalued relative to both its historical performance and future earnings expectations.
What Does MKC's GF Score™ Tell Us? MetricRating GF Score™75 Financial Strength5/10 Profitability8/10 Growth8/10 Valuation4/10 Momentum2/10 The GF Score™ of 75/100 indicates that McCormick & Co Inc has above-average potential for long-term returns. The strongest areas are profitability and growth, with scores of 8/10, suggesting that the company has been efficient in generating profits and is positioned for growth. However, the lower scores in financial strength (5/10) and momentum (2/10) highlight potential vulnerabilities, particularly in terms of stability and recent performance trends.
What Are Insiders Doing with MKC Stock? In recent months, insider activity has shown a positive trend, with insiders purchasing $0.1 million in shares without any noted selling. This buying activity can be interpreted as a sign of confidence in the company’s future prospects. Insiders often have valuable insights into the company's performance and strategy, and their willingness to invest suggests they believe the stock is undervalued.
What This Means for Investors Based on the analysis, McCormick & Co Inc MKC appears to be undervalued according to GF Value™, with a substantial margin of safety. While the company has strong profitability and growth prospects, potential investors should remain aware of the risks associated with its financial strength and recent market performance.
For the complete analysis, visit the McCormick & Co Inc MKC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is MKC's GF Score™?
MKC has a GF Score™ of 75/100, indicating above-average potential for long-term returns based on various performance metrics.
Is MKC overvalued or undervalued?
MKC is considered undervalued, with a current price that is 41.4% below its GF Value™ estimate of $80.89.
What is MKC's P/E ratio?
MKC's P/E ratio is 7.8x, which is significantly below its 5-year median of 28.2x, indicating the stock is trading at a much lower valuation than its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways McCormick is expected to post Q2 revenues of $1.9B, up 14.4% from the prior-year quarter.Core spices, seasonings and condiments may gain from pricing, innovation and brand investments.CCI savings may help offset inflation, while marketing and tech spending could pressure profitability. McCormick & Company, Incorporated (MKC - Free Report) is likely to witness growth in top line when it reports second-quarter 2026 earnings on June 25, 2026. The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, indicating a 14.4% increase from the prior-year quarter’s figure.
The consensus mark for earnings has decreased a penny in the past 30 days to 69 cents per share, indicating flat year-over-year growth. MKC has a trailing four-quarter earnings surprise of 4.5%, on average.
Factors Likely to Influence MKC’s Upcoming ResultsMcCormick’s second-quarter 2026 results are likely to reflect continued strength in its flavor portfolio and resilient consumer demand across core categories. The company has been witnessing steady momentum in spices, seasonings and condiments, supported by pricing actions, innovation and brand investments. The Consumer segment is likely to have benefited from improved category trends, distribution gains and sustained demand for at-home meal preparation.
The company is also likely to have benefited from contributions related to the consolidation of McCormick de Mexico, which had provided a notable boost to sales and profitability in the preceding quarter. The acquired business, along with favorable pricing and product mix, is likely to have supported top-line growth across both the Consumer and Flavor Solutions segments. Management has highlighted disciplined commercial execution and targeted investments in key categories, factors that might have strengthened customer demand and supported market share trends during the quarter to be reported.
McCormick’s ongoing Comprehensive Continuous Improvement (“CCI”) program is likely to have remained an important margin lever in the second quarter. Productivity initiatives, procurement savings and supply-chain efficiencies are likely to have partially offset inflationary pressures and supported profitability.
However, elevated commodity costs and continued investments in brand marketing, digital capabilities and technology transformation initiatives might have weighed on profitability during the quarter.
Earnings Whispers for MKC StockOur proven model does not conclusively predict an earnings beat for McCormick this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
McCormick currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +5.15% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s upcoming quarter’s EPS is pegged at $1.46, which implies a 20.7% increase year over year. The consensus estimate for Hershey’s quarterly revenues is pinned at $2.66 billion, which calls for 1.8% growth from the figure reported in the prior-year quarter. HSY delivered a trailing four-quarter earnings surprise of nearly 19%, on average.
Tyson Foods, Inc. (TSN - Free Report) currently has an Earnings ESP of +2.17% and a Zacks Rank of 3. The consensus estimate for Tyson Foods’ quarterly revenues is pinned at $14.29 billion, which calls for 2.9% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at $1.04, which implies a 14.3% increase year over year. TSN delivered a trailing four-quarter earnings surprise of nearly 18.1%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +0.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.23 billion. The figure implies a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $1.99, indicating a 3.7% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
The market expects McCormick (MKC - Free Report) to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended May 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on June 25, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis spices and seasonings company is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents no change from the year-ago quarter.
Revenues are expected to be $1.9 billion, up 14.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for McCormick?For McCormick, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.60%.
On the other hand, the stock currently carries a Zacks Rank of #4.
So, this combination makes it difficult to conclusively predict that McCormick will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that McCormick would post earnings of $0.61 per share when it actually produced earnings of $0.66, delivering a surprise of +8.20%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
McCormick doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street analysts forecast that McCormick (MKC - Free Report) will report quarterly earnings of $0.69 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $1.9 billion, exhibiting an increase of 14.4% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
With that in mind, let's delve into the average projections of some McCormick metrics that are commonly tracked and projected by analysts on Wall Street.
The average prediction of analysts places 'Net Sales- Flavor Solutions' at $771.11 million. The estimate indicates a year-over-year change of +5.8%.
Analysts' assessment points toward 'Net Sales- Consumer' reaching $1.13 billion. The estimate suggests a change of +21.3% year over year.
The combined assessment of analysts suggests that 'Operating income, excluding special charges- Flavor Solutions' will likely reach $101.86 million. The estimate is in contrast to the year-ago figure of $95.00 million.
Based on the collective assessment of analysts, 'Operating income, excluding special charges- Consumer' should arrive at $194.66 million. Compared to the current estimate, the company reported $164.00 million in the same quarter of the previous year.
View all Key Company Metrics for McCormick here>>>
Shares of McCormick have demonstrated returns of -0.7% over the past month compared to the Zacks S&P 500 composite's +1.4% change. With a Zacks Rank #4 (Sell), MKC is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
McCormick & Company, Incorporated (NYSE:MKC) will release its second quarter earnings report before the opening bell on Thursday, June 25.
Analysts expect the Hunt Valley, Maryland-based company to report quarterly earnings of 70 cents per share, up from 69 cents per share in the year-ago period. The consensus estimate for McCormick’s quarterly revenue is $1.91 billion. It reported $1.66 billion last year, according to Benzinga Pro.
On April 8, McCormick declared a quarterly dividend of 48 cents per share.
McCormick shares rose 0.3% to close at $46.64 on Thursday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying MKC stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Stocks are having a quiet morning Monday as investors come off a long holiday weekend with a close eye on peace talks between the U.S. and Iran; a second day of negotiations in Switzerland has reportedly concluded after renewed threats against Iran from President Trump and continued attacks in Lebanon by Israel made for an eventful first day of talks; earnings from FedEx and Micron are on tap this week, along with the release of the Fed's preferred measure of inflation; SpaceX shares are poised to start this week with a third straight day of declines; and shares of Apogee Therapeutics are soaring on news it is being acquired by AbbVie for $11 billion. Here's what you need to know today.
Republican Senator Dave McCormick of Pennsylvania joins "Bloomberg Surveillance" to discuss the current state of negotiations with Iran, the death of Alan Greenspan and how the Federal Reserve will operate under its new Chairman Kevin Warsh. -------- More on Bloomberg Television and Markets Like this video?
, /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]
The bear case on McCormick (NYSE:MKC | MKC Price Prediction) had been a familiar story of input-cost pressure and a sluggish retail backdrop. That story changed when management announced the $44.8 billion merger with Unilever‘s (NYSE:UL) food business, layered on top of the January 75% controlling stake in McCormick de Mexico. For income investors, the question is whether a deal this large threatens the dividend. I think it strengthens it.
Dividend Snapshot Metric Value Annual Dividend $1.92 per share Dividend Yield (at $47.87) ~4.0% Consecutive Annual Increases 40 years Most Recent Increase 7% (November 2025) Aristocrat / King Status Aristocrat (not yet King) Payout Ratios Leave Real Breathing Room McCormick paid $483 million in dividends against FY2025 free cash flow of roughly $740.4 million ($962.2M operating cash flow less $221.8M capex). On EPS of $3.00, the $1.92 dividend takes 64% of profits.
Metric TTM Value Assessment Earnings Payout 64% Healthy FCF Payout 65% Healthy OCF / Dividend Coverage 1.99x Adequate Debt Climbed, but the Balance Sheet Still Stands The McCormick de Mexico close pushed total liabilities to $8.79 billion against $7.56 billion of equity, a debt-to-equity ratio of roughly 1.16. The Unilever Foods transaction will lift net leverage to at or below 4x at close, with management targeting roughly 3x within two years. Elevated for now, but with a clear path down. Flavor demand is inelastic, which is exactly why food represented 7.11% of total PCE in April 2026, almost unchanged across 16 months of data.
40 Years of Increases, and Resilience Through Two Crises The quarterly dividend stepped from $0.42 (2024) to $0.45 (2025) to $0.48 (late 2025). The payout held and grew through both the 2008 crisis and the 2020 pandemic, with no cuts on record.
Management Effectively Pre-Committed to the Payout On the merger call, CFO Marcos Gabriel said the combined company will support “McCormick’s long-standing practice of returning capital to shareholders through dividends” at a payout ratio of “approximately 60%”. CEO Brendan Foley added that “our commitment to returning cash to shareholders through dividends remains unchanged.” The deal targets $600 million in synergies and is accretive in year one across all P&L lines.
Verdict: Safe, With Leverage Worth Watching Dividend Safety Rating: Safe. A 64% earnings payout, 65% FCF payout, 1.99x cash coverage, and a 40-year streak give the $1.92 dividend a real margin of safety, even as the stock sits 33.42% below last year. The income thesis holds together if the company executes its 3x net leverage target on schedule and synergies arrive as guided. The thesis weakens if FCF stays compressed beyond 2027 or if integration costs push the FCF payout above 90%. For now, this Aristocrat keeps its income credentials intact.
Rep. Rich McCormick, R-Ga., discusses skepticism over a potential Iran deal, arguing the Tehran regime cannot be trusted given its history of aggression, on ‘The Evening Edit.
SummaryCompaniesDeforestation a concern for investorsEU rules on sustainability are more robust than in the U.S.Unilever's 10% stake, board seats could drive ESG agendaMcCormick says cannot comment on future targets, but sustainability programme analysis is underwayLONDON, May 8 (Reuters) - Some Unilever (ULVR.L), opens new tab investors are pressing for the giant food entity created by a $65 billion deal with U.S. peer McCormick (MKC.N), opens new tab to adopt the standards on forestry and sustainabilty more broadly that the UK consumer products company has promoted.
The second largest food transaction to date that was announced in March will combine the Unilever division with McCormick's into one company that includes brands such as Hellmann's mayonnaise and Cholula hot sauce.
Stay up to date on the key companies, data, and decisions in the ESG world with the Reuters Sustainable Finance newsletter. Sign up here.
McCormick will take on oversight of a business nearly twice its current size and with a more complex global supply chain that will bring challenges linked to agriculture, commodities and small-scale farming.
Given Unilever's historically leading position on sustainability, some investors are keen for reassurance its standards will be maintained.
"We will be seeking assurances about the intention of the combined company to uphold and build upon best practice with regard to deforestation-free sourcing of commodities," said Vemund Olsen, senior analyst at Norwegian asset manager Storebrand, a top-100 investor in Unilever and a McCormick shareholder according to LSEG data.
CAREFUL SOURCING AND COMPLAINT SYSTEMThose practices include not sourcing from deforested or converted land along the supply chain, having a public system for complaints, and ensuring full traceability of commodities to plantations, he added.
A spokesperson for Frankfurt-based Union Investment, a top-40 investor in both companies, according to LSEG data, said it would seek transparency "about how it integrates sustainable practices moving forward".
Unilever share priceUnder U.S. rules, Hunt Valley, Maryland-based McCormick is not required to disclose the same detailed sustainability information that UK-based Unilever faces in Europe.
Companies with significant European operations are expected to comply with EU‑level sustainability reporting rules. But that compliance may take years, leaving a transition period where disclosure standards depend largely on company commitments.
"If Unilever-McCormick decide to turn their backs (on sustainability), this could create significant risk for shareholders and the new entity," said Cailin Dendas, environmental health program senior coordinator at shareholder group As You Sow.
"We saw this happen when Kellanova separated from Kellogg in 2023 and dropped its pesticide commitments, among other sustainability goals."
Mars, which acquired Kellanova last year, said environmental impact is assessed alongside business performance when making acquisitions.
"As integration progresses, Kellanova will be incorporated into Mars broader sustainability commitments, including our Net Zero Roadmap and sustainability governance frameworks,” a Mars spokesperson said.
Unilever will be the biggest investor in the new company with a near 10% stake and four board directors. But smaller shareholders will have limited ability to directly influence the board.
Asked whether Unilever would leverage its shareholding in McCormick to push the spice maker into living up to Unilever's standards, a company spokesperson told Reuters: "We are working closely with McCormick ahead of the completion of the transaction to support the transition of our Foods‑related sustainability programmes and commitments."
McCormick share priceMCCORMICK CLASSIFIED AS 'MEDIUM RISK'Hannah Schalk, an analyst at ESG ratings firm Sustainalytics, classifies McCormick as "medium-risk" in terms of sustainability. The company's sustainability report does not include an explicit company-wide no-deforestation commitment, and provides less detail on traceability, auditing and certification, she said.
She also noted that McCormick faces the challenge of scaling its sustainability capabilities as its supply chain expands.
McCormick has acknowledged in reporting that meeting its indirect emissions and sourcing targets depends in part on improving data and engagement across its supplier base.
"While we cannot comment on future targets at this time, we are already well underway on a comprehensive strategic update process for our sustainability programme, and we'll share more details on our approach as the process unfolds," McCormick said in written comments.
Reporting by Simon Jessop, Alexander Marrow and Richa Naidu; editing by David Gaffen and Barbara Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Simon leads a team tracking how the financial system and companies more broadly are responding to the challenges posed by climate change, nature loss and other environmental, social and governance (ESG) issues including diversity and inclusion.
Alexander covers European consumer goods from London, focusing on the corporate strategies of companies including Nestle, Unilever, Danone and Reckitt, as well as on how their products impact consumers’ daily lives. Alexander previously covered Russia’s economy and companies from Moscow, reporting on the fallout from Russia’s 2022 invasion of Ukraine and the Western corporate exodus that followed.
Richa is a London-based reporter covering consumer goods companies, including their supply chains, advertising strategies, corporate governance structures, sustainability goals, and the political issues that impact them. She previously wrote about U.S. based retailers and consumer firms, major financial institutions and the Tokyo 2020 Olympic Games.
INDIANA COUNTY, Pa.--(BUSINESS WIRE)--Homer City Generation, L.P. today announced that its leadership team met with U.S. Senator Dave McCormick in Pittsburgh on May 7, 2026, to provide an update on the current site redevelopment progress and to discuss the importance of driving federal permitting reform through the Senator’s Unlock American Energy and Jobs Act.
During the meeting, Corey Hessen, Chief Executive Officer of Homer City Generation, L.P., provided an overview of the progress made over the past year in transforming the former Homer City Generating Station in Indiana County into the largest natural gas-powered energy facility currently under construction in the United States.
Hessen discussed the role that a smooth, efficient and transparent permitting process played in enabling Homer City Generation to reach key milestones, including:
Nearly 1,300 skilled workers on site today, including electricians, carpenters and boilermakers Completion of demolition anticipated in Q2 2026 Extensive underground foundation work underway Approximately 3 million cubic yards of earth moved as part of site readiness Vertical construction started with the Gas Insulated Switchgear (GIS) building 14 of 18 material DEP permits issued 6 of 8 building permits issued First of seven turbines from GE Vernova expected to be delivered this year Zero-OSHA-recordable-incident record maintained Corey Hessen, CEO of Homer City Generation, L.P., commented:
“Homer City is proof that permitting can work efficiently – and when it does, our communities win. In just over a year, we’ve moved from site preparation to demolition to construction because state, local and federal permitting agencies created a process built on transparency, clear timelines and real partnership. That efficiency means more workers on site sooner, more local businesses engaged and a more immediate economic impact across the region. We thank Senator McCormick for his leadership on permitting reform, and we hope that Homer City, Pennsylvania, can serve as a national model for how critical energy infrastructure can be built when permitting works the way it should.”
U.S. Senator Dave McCormick commented:
“What is happening in Indiana County is something special. The Homer City Generation project is now the largest natural gas-powered energy facility under construction in the United States. When it is finished, it will be one of the largest energy and infrastructure campuses in North America. This project is creating thousands of great-paying jobs for Pennsylvanians and will add gigawatts of power to the grid, beyond what the campus itself needs, to help lower prices for consumers. Through projects like Homer City, Pennsylvania is making America more competitive and energy dominant.”
Byron Stauffer, Executive Director, Indiana County Development Corporation, commented:
“The Homer City Energy Campus is already a game changer for our community – and we’re only one year in. From the massive workforce already engaged on the site to the ripple effect of indirect jobs and new economic activity across the region, the impact of this project is undeniable. For Indiana County, this is about much more than a single power plant, it is about bringing back family-sustaining jobs, investing in the future of our community and reinforcing Pennsylvania’s role in building America’s most critical energy infrastructure.”
Mike Keith, Indiana County Commissioner, commented:
“Homer City Generation is creating real momentum for our community – not just through the scale of investment, but through the opportunities it is creating for local workers, businesses and families. We’re seeing skilled union labor and tradespeople from across the region return to work on a project that reflects the strength of our workforce and our proud energy heritage. Just as important, it is creating pathways for the next generation of our workforce to build lasting, career-defining skills right here at home.”
About Homer City Generation
Homer City Generation is focused on transforming legacy energy infrastructure into state-of-the-art digital and energy assets. Located in Indiana County, PA, the Homer City Energy Campus will be the largest of its kind in North America upon completion.
For more information, visit: www.homercityredevelopment.com or email [email protected].
Two $40,000 Charles Perry McCormick Scholarships Awarded to Tempris Harrison from Frederick Douglass High School and Avery Ray from Franklin High School
, /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, announced Tempris Harrison from Frederick Douglass High School and Avery Ray from Franklin High School as the 95th and 96th recipients of its Charles Perry McCormick scholarships, worth $40,000 each over four years.
Brendan Foley, Liz McCormick, Avery Ray, Tempris Harrison, Justin Forsett and Jason McCormick The in-person event held Monday, May 11 at the M&T Bank Exchange, located in downtown Baltimore's France-Merrick Performing Arts Center recognized Ms. Harrison and Mr. Ray from more than 100 student-athletes honored as Unsung Heroes for their commitment to unselfish team play. The full list of this year's McCormick Unsung Heroes nominees can be found HERE. McCormick is proud to recognize each of these student-athletes.
Four other students were recognized with additional scholarships at this year's Unsung Heroes event. Kate Cabrera from Loch Raven High School and Tavon Brown from Reginald F. Lewis High School were awarded $7,500 scholarships, while Bianca Crainiceanu from Baltimore Polytechnic Institute and Donte Harrison from Benjamin Franklin High School both received $5,000 scholarships. McCormick congratulates all of the 2026 Unsung Heroes.
During the ceremony, keynote speaker Justin Forsett, Former Baltimore Ravens Running Back; 9-Year NFL Pro Bowl Veteran; CEO & Co-Founder of Hustle Clean, shared his powerful "unsung hero" story. He spoke candidly about pushing through adversity and learning to navigate change with resilience, even in the face of repeated setbacks.
"Greatness grows best in the shadows," he said to the students as he reminded them to trust the process and remember that "there is greatness inside you."
Justin's remarks were followed by a Q&A session moderated by emcee Scott Garceau, sports radio personality and broadcaster.
Tempris Harrison is a senior middle-distance runner and Team Captain who found in track more than medals — she found confidence, resilience, and a second family. After navigating family challenges and changing schools, running became her anchor and a source of strength. Competing in the 400m, 800m, and relays, she consistently puts team success first, stepping into relays on short notice and mentoring younger athletes. Her quiet leadership, discipline, and selfless commitment embody the spirit of the McCormick Unsung Hero Award and the Charles Perry McCormick Scholarship.
Avery Ray exemplifies resilience, leadership, and service. Despite personal challenges preventing contact sports, he thrived in the Allied program, competing in soccer, bocce, and softball. A four-year leader and 2023 State Champion in bocce, he also volunteers as a football and basketball manager. Balancing a 4.2 GPA, part-time work, tutoring, and hosting a podcast, he consistently elevates his school community through dedication and selflessness.
The Unsung Heroes program recognizes unselfish student-athletes and honors those who substantially contribute to the success of their school without receiving acclaim. Originally established in 1940 by former McCormick & Company Chairman Charles P. McCormick Sr., the program is reflective of McCormick & Company's core belief in the Power of People.
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]
, McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, will be participating in Deutsche Bank's annual dbAccess Global Consumer Conference at 4:30 PM CEST/10:30 AM ET, on Tuesday, June 2, 2026. Representing McCormick will be Brendan Foley, Chairman, President & CEO, and Marcos Gabriel, Executive Vice President & CFO. A live audio webcast of the session will be available via the McCormick website ir.mccormick.com. A replay will be available following the event through the same website.
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:
Investor Relations:
Faten Freiha - [email protected]
Global Communications:
Jill Marvin – [email protected]
McCormick & Company is rated 'Buy' due to resilient brands, margin expansion, and a compelling 4% dividend yield at depressed valuations. MKC's planned $45B merger with Unilever's food business is expected to drive 3–5% revenue growth and $600M in run-rate synergies. Despite near-term volume pressures, MKC's pricing power and alignment with health trends support durable growth and expanding operating margins.
