Track market-moving stories before they get noisy

The maker of spices and seasonings said the London listing would come in addition to its current listing on the New York Stock Exchange.

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

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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 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.

McCormick & Company, Incorporated Today

MKC

McCormick & Company, Incorporated

$51.56 +0.51 (+0.99%)

As of 12:29 PM Eastern

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.

McCormick & Company, Incorporated Stock Forecast Today12-Month Stock Price Forecast:
$60.50
16.94% Upside

Hold
Based on 13 Analyst Ratings

Current Price$51.74High Forecast$75.00Average Forecast$60.50Low Forecast$52.00McCormick & Company, Incorporated Stock Forecast Details

Analyst trends play into MKC’s price decline as well as the long-term outlook.

While price targets have declined, the low end aligns with the late-June price action, suggesting a floor is in place.

Within that, the consensus Hold rating comes with a 46% Buy-side bias, which, given the 13 analysts covering the stock, provides some conviction in the outlook.

In this scenario, MKC could rebound at any time with the right catalyst and will likely move sideways until one emerges. Upcoming catalysts include milestones tied to the Unilever merger, such as the expected announcement of a European secondary listing location and regulatory approvals in the United States and United Kingdom.

Institutional trends highlight the value and underpin market support as June nears its end. The group owns nearly 80% of the stock and has accumulated shares at a semi-aggressive pace over the trailing 12 months, despite distributing in Q1 2026. The critical detail is that accumulation resumed in Q2 at an aggressive $10-to-$1 pace and will likely remain supportive of price action, given the company’s core strengths and a value-building merger opportunity.

McCormick Outperformance: Organic and Acquisitions Shine ThroughMcCormick & Company had a solid Q2 with growth underpinned by organic strength and the acquisition of McCormick de Mexico. Revenue grew by 16.7%, with 1.7% organic sales growth, driven by a 2.2% increase in average prices. Both segments reported strength, led by a 2.9% organic increase in flavor solutions, with both segments amped by acquisition-related growth.

Margin news is also good. The acquisition is driving significant back-end consolidations and cost savings, leading to improved gross and operating margins. Adjusted gross margin improved by 270 bps, adjusted operating by 180 bps, leaving adjusted earnings per share (EPS) at 80 cents, up 11 cents year-over-year (YOY) and 11 cents or 1600 bps better than expected.

Catalysts and a Risk-Reducing, High-Yielding Dividend McCormick & Company, Incorporated Dividend PaymentsDividend Yield3.72%

Annual Dividend$1.92

Dividend Increase Track Record38 Years

Annualized 5-Year Dividend Growth7.74%

Dividend Payout Ratio31.95%

Upcoming Ex-Dividend DateJul. 6

MKC Dividend History

Guidance is a catalyst for share prices because the company merely reaffirmed it, despite the FQ2 strengths. The market assumes the guidance is cautious and expects the Q2 strength to be sustained in the upcoming release.

McCormick’s dividend is a risk-reducing factor for investors. The ultra-low share price results in an ultra-high yield, approximately 4% with shares around $50, and it is a reliable payment.

The company is a Dividend Achiever with nearly 40 years of consecutive annual distribution increases, and is on track to hit the 50-year mark and be crowned a Dividend King.

McCormick’s position as a consumer staples company gives it some defensive qualities, but the stock still faces risks tied to pricing, volume, consumer trade-down behavior, and merger execution. Consumer headwinds have shoppers trading down on center-of-plate costs in favor of flavors. Cheap cuts and starches work well with bold, zesty, and spicy flavors, and McCormick is a leading source. Execution risk is the bigger headwind, as delays could be reflected in the stock's price. The worst-case scenario is that the merger is completed, but synergies fail to yield the desired results.

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McCormick 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.

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.

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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."

Image: Bigstock

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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.

Published in consumer-staples earnings

, /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

7.0

24.7

Increase (decrease) in cash and cash equivalents

235.3

(62.0)

Cash and cash equivalents at beginning of period

95.9

186.1

Cash and cash equivalents at end of period

$                   331.2

$                   124.1

SOURCE McCormick & Company, Incorporated

The maker of spices and seasonings reported higher sales in its fiscal second quarter, as it continues work to combine with Unilever's food business.

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.

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:

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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?

© Michail Petrov / Shutterstock.com

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.

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.

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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.

Rep. Rich McCormick, R-Ga., says the UAE's alleged secret attack on Iran is a positive sign for alliances in the region on ‘The Evening Edit.

,  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]

SOURCE McCormick & Company, Incorporated

McCormick & Company is upgraded to Buy as valuation now offers a solid margin of safety and long-term re-rating potential. Q1 results showed a double-beat, with 16.7% YoY revenue growth driven by the McCormick de Mexico acquisition and positive organic performance. The Unilever food unit deal solidifies MKC's industry leadership, $600M in synergies by year 3, and improved global presence despite near-term leverage.

McCormick brand spices at a grocery store in Medford, Massachusetts, U.S., March 31, 2026. REUTERS/Brian Snyder Purchase Licensing Rights, opens new tab

SummaryCompaniesStake was built after Unilever deal was announcedSize of Toms Capital stake not clearDeal has raised concerns about long closing timeNEW YORK, May 29 (Reuters) - Toms Capital Investment Management, an activist U.S. hedge fund, has built a significant stake in ‌McCormick & Co (MKC.N), opens new tab, according to sources familiar with the matter, at a time the U.S. food company is working on a prominent takeover deal.

Run by Benjamin Pass, Toms Capital invested in McCormick during the second quarter after the spice company announced its planned acquisition of Unilever's (ULVR.L), opens new tab ​food business, said the sources who were not permitted to discuss the matter publicly.

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The size of its ​stake and what Toms Capital intends to push for at McCormick could not immediately be ⁠determined.

Unlike some activist investors, Toms Capital prefers to stay in the background and push for changes out of ​the limelight, rather than launching public and noisy campaigns.

A successful takeover of Unilever's food business would create a $65 billion sauce-and-spice ​giant, home to brands including Hellmann's mayonnaise and French's yellow mustard. It would help Hunt Valley, Maryland-based McCormick tap London-headquartered Unilever's global scale and expertise, company executives told investors after the plans were announced in late March.

A representative for Toms Capital declined to comment, ​while a representative for McCormick could not be reached for comment.

On Friday, McCormick's share price traded mostly unchanged ​early in the session at $46.58 a share.

Both companies' share prices have been under pressure since the deal was announced. McCormick has underperformed ‌the ⁠State Street Consumer Staples Index (XLP.P), opens new tab by 15% and Unilever has underperformed the MSCI Europe Consumer Staples Index by 8%.

In the past five years, however, McCormick has traded at a premium to the index because consumers continue to buy spices and flavors at a time other companies are scrambling to readjust their offerings to fit customers' healthier eating habits. ​This year, though, the deal ​has weighed on McCormick's ⁠stock price as investors expressed some concern about the time it will take to close.

The deal is expected to close by mid-2027, subject to regulatory and McCormick shareholder approval. ​Unilever shareholder approval is not required, the companies said.

McCormick has been engaging with institutional ​investors who ⁠have told the company they see the merits of the deal but are pushing for it to close more quickly, a separate source familiar with the discussions said.

In the past, Toms Capital has owned a stake in Kenvue and pushed ⁠for a ​merger. The Band-Aid and Tylenol maker sold itself to Kimberly-Clark for nearly $48.7 ​billion last year.

More recently, the hedge fund has pressed Voya Financial, which oversees some $1.1 trillion in assets under management, to sell the entire ​company or sell its health insurer unit.

Reporting by Svea Herbst-Bayliss and Abigail Summerville. Editing by Edwina Gibbs and Mark Potter

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Abigail is on the M&A team and writes about consumer and retail deals. She joined Reuters in 2022 from Debtwire where she covered leveraged finance and the primary debt market for three years. Previously, her work has appeared in the Wall Street Journal, CNBC and the Boston Business Journal. She majored in business journalism at Washington and Lee University.

McCormick & Company, Incorporated (MKC) Presents at 23rd annual dbAccess Global Consumer Conference Transcript

, /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today released its 2025 Purpose-led Performance (PLP) Report, demonstrating how sustainability investments are strengthening supply continuity, operational efficiency, and long-term growth. The report marks the completion of its 2025 commitments and highlights measurable progress across responsible sourcing, climate action, operational resilience, and employee wellbeing.

As McCormick completes its 2025 PLP goals, the Company continues to demonstrate leadership in the global flavor industry. Achieving 100% sustainably sourced volumes for its top five branded iconic ingredients enhances supply reliability and quality consistency, while investments in farming communities build resilience and secure long-term access to ingredients. At the same time, reducing environmental impact across its operations and value chain drive efficiency.

"In a year marked by continued change and global complexity, I am proud of the meaningful progress we have made in advancing our Purpose-led Performance commitments," said Brendan M. Foley, Chairman, President & Chief Executive Officer of McCormick & Company. "Our teams have remained focused and resilient, strengthening how we operate while delivering lasting value for our people, communities, and the planet."

Since 1889, McCormick has grown from a small Baltimore spice company into the global leader in flavor, guided by its purpose to make life more flavorful and its vision to be the world's most trusted source of flavor. Sustainability is increasingly embedded into its strategy and operations, reinforcing accountability, protecting brand trust, and supporting long-term growth.

"As I've stepped into the role of Chief Sustainability Officer, I am proud to build on the strong foundation we have established," said Kathy Rostkowski, Chief Sustainability Officer. "We are closing out our 2025 PLP commitments with encouraging progress and a clear view of where to go next. We are demonstrating that trust is earned when sustainability is practiced, not promised."

Key highlights from McCormick's 2025 PLP Report include:

Achieved 100% sustainably sourced volumes for its top five branded iconic ingredients: black pepper, cinnamon, oregano, red pepper, and vanilla.Positively impacted more than 57,000 farmers across 11 countries since 2017, strengthening livelihoods and resilience in key sourcing regions.Reduced Scope 1 and 2 greenhouse gas emissions by 40% and lowered Scope 3 emissions by 9%, reinforcing climate readiness and operational resilience.Diverted 80% of facility waste from landfill across global operations.Advanced its Power of People commitment, with 96% of employees completing Individual Development Plans and 100% of employees having access to high-quality wellness programs globally.Through the progress highlighted in the report, McCormick continues to align sustainability with its business strategy to help secure the future of flavor. Looking ahead, the Company will focus on areas where it can make the greatest impact: advancing climate readiness, strengthening farmer resilience, and delivering healthy and sustainable choices that drive long-term value creation.

To learn more, read McCormick's 2025 Purpose-led Performance Report or visit the Responsibility section of the Company's corporate 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:

Global Communications:
Jill Marvin – [email protected]

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SOURCE McCormick & Company, Incorporated

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