The stock of McCormick & Co. (MKC) closed 8% lower on Jan. 22 after the spice maker reported disappointing financial results and offered mixed guidance for 2026.
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McCormick announced earnings per share (EPS) of $0.86 for what was its fiscal fourth quarter. That was below analysts’ consensus estimates of $0.88. Revenue totaled $1.85 billion, up 3% from a year earlier but only slightly beating the $1.84 billion forecast on Wall Street.
MKC stock closed at its lowest level since Oct. 24, 2023. It was the second-worst performer in the S&P 500 index on the day. As for guidance, management said that they expect revenue growth to accelerate to between 13% and 17% this year. However, it forecast earnings growth of just 2% to 5%, which was below analysts’ expectations.
Tough Times for the Spice Business
Management at McCormick, which specializes in food spices, blamed the poor print and weak outlook on consumers who are pulling back their discretionary spending and looking for alternatives when it comes to groceries and lowering their food bills.
“While global trade dynamics continue to create headwinds and we are facing elevated costs for the year, we are leveraging our competitive advantages, productivity initiatives, and cost management discipline to help mitigate these pressures, sustain volume growth, and fund investments that drive long-term value creation,” said CEO Brendan Foley in the company’s earnings release.
Is MKC Stock a Buy?
McCormick stock has a consensus Strong Buy rating among five Wall Street analysts. That rating is based on four Buy and one Hold recommendations issued in the last three months. The average MKC price target of $80.40 implies 31.37% upside from current levels. These ratings could change after the company’s financial results.
