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McCormick & Company
(NYSE:MKC)
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Rating:71Outperform
Price Target:
$53.00
▼(-2.45% Downside)
Action:Upgraded
Date:06/26/26
MKC scores well primarily on solid financial performance (steady growth, resilient margins, improved leverage trends) and especially attractive valuation (low P/E and strong dividend yield). The earnings call supports confidence via reiterated guidance, margin expansion plans, and integration targets for the Unilever Foods combination, though one-time tariff benefits and near-term Consumer volume/share pressures add risk. Technicals are the main drag, with the stock still in a longer-term downtrend despite neutral near-term momentum.
Positive Factors
Diversified channels & Flavor Solutions momentum
McCormick's accelerated Flavor Solutions growth and broad customer wins strengthen a diversified B2B franchise that cushions retail cyclicality. Recurring contracts, customer-specific formulations and a visible pipeline support durable volume, margin leverage and predictable revenue from food manufacturers and foodservice.
Negative Factors
Elevated absolute debt and leverage
Despite improving ratios, absolute indebtedness remains sizable and quarter-end leverage near ~2.9x increases exposure to interest, covenant and refinancing risk. Continued high gross debt means McCormick must consistently convert earnings into free cash flow to preserve flexibility and avoid constraint during industry slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified channels & Flavor Solutions momentum
McCormick's accelerated Flavor Solutions growth and broad customer wins strengthen a diversified B2B franchise that cushions retail cyclicality. Recurring contracts, customer-specific formulations and a visible pipeline support durable volume, margin leverage and predictable revenue from food manufacturers and foodservice.
Read all positive factors
McCormick & Company Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Reveals revenue distribution across various regions, indicating where the company is thriving and where it might face challenges or opportunities due to regional market dynamics.
Reveals revenue distribution across various regions, indicating where the company is thriving and where it might face challenges or opportunities due to regional market dynamics.
Data provided by:
The Fly
The FlyMcCormick & Company (MKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.37B
Dividend Yield2.61%
Average Volume (3M)4.18M
Price to Earnings (P/E)8.9
Beta (1Y)0.22
Revenue Growth9.54%
EPS Growth108.44%
CountryUS
Employees14,100
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)6.02
Shares Outstanding254,055,150
10 Day Avg. Volume4,859,168
30 Day Avg. Volume4,183,399
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.11
Price to Sales (P/S)2.61
P/FCF Ratio24.09
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.33
Enterprise Value/Gross Profit6.04
Enterprise Value/Ebitda12.55
Forecast
1Y Price Target
$60.00Price Target Upside10.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.09
Revenue Forecast (FY)$7.89B
McCormick & Company Business Overview & Revenue Model
Company Description
McCormick & Company, Incorporated is a global leader in the manufacture, marketing, and distribution of a wide array of flavorful products, including spices, seasoning mixes, and condiments, to the food industry. Its operations are divided into tw...
How the Company Makes Money
McCormick makes money by selling flavor products through two main revenue streams that align with its operating segments. (1) Consumer segment revenue is generated from the sale of branded spices, seasoning mixes, herbs, extracts, sauces, condimen...
McCormick & Company Earnings Call Summary
Earnings Call Date:Jun 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive financial and strategic picture: strong total sales (14% CC), meaningful margin expansion (270 bps reported; 130 bps underlying), robust Flavor Solutions momentum, improved cash flow ($431M H1) and clear integration planning and synergy targets for the Unilever Foods acquisition. Offsetting these positives were near-term Consumer volume pressures in the Americas, U.S. spices and seasonings share challenges, QSR foot traffic softness in some regions, higher SG&A phasing, and inflation/tax-related headwinds that compress near-term EPS cadence. Management provided targeted remediation plans and expects volumes to recover later in the year, which, together with acquisition accretion and margin actions, underpin confidence in the 2026 outlook.Positive Updates
Total Net Sales Growth
Total net sales grew 14% in constant currency in Q2 FY2026, driven primarily by the McCormick de Mexico acquisition (management cited a ~12% acquisition contribution) and approximately 2% organic sales growth.
Negative Updates
Consumer Volume Pressure in the Americas
Consumer organic sales in the Americas were essentially flat in the quarter, with pricing contributing ~3% but volumes declining due to shifting demand patterns and increased price sensitivity; management expects sequential volume improvement in Q3 and volume growth in Q4 but acknowledged near-term pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Net Sales Growth
Total net sales grew 14% in constant currency in Q2 FY2026, driven primarily by the McCormick de Mexico acquisition (management cited a ~12% acquisition contribution) and approximately 2% organic sales growth.
Read all positive updates
Company Guidance
The company reiterated its 2026 outlook and provided metric-driven guidance: full-year gross margin expansion of 100–120 basis points vs. 2025 (Q2 gross margin +270 bps, of which ~140 bps from a $28M tariff refund and underlying margin +130 bps), Q3 adjusted operating income growth in the high single-digits to low double-digits year-over-year, and continued expectation that pricing will contribute more to organic sales growth while Consumer volumes should improve in H2 and Flavor Solutions will drive total volume growth for the year; inflation is tracking toward the high end of mid-single digits (~6%), an additional $3M tariff refund is expected in H2 (bringing the FY tariff benefit to ~$31M and a Q2 contribution of ~$0.07 to adjusted EPS), Q2 adjusted EPS was $0.80 (+16% YoY) and adjusted tax rate in Q2 was 22.5%, SG&A was ~90 bps unfavorable in Q2, H1 cash flow from operations was $431M (vs. $161M prior year) with $75M capex and $258M returned as dividends, leverage was ~2.9x at quarter end, and on the Unilever Foods combination they expect ~21% operating margin at close with mid-to-high single-digit adjusted EPS accretion in year one and mid-to-high teens accretion by year three, plus $1.5–$2.0B available to pay down debt within the first two years and a longer-term target leverage of 2–3x.McCormick & Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.39B | 6.84B | 6.72B | 6.66B | 6.35B | 6.32B |
| Gross Profit | 2.85B | 2.59B | 2.59B | 2.50B | 2.27B | 2.49B |
| EBITDA | 1.37B | 1.34B | 1.32B | 1.21B | 1.16B | 1.22B |
| Net Income | 1.63B | 789.40M | 788.50M | 680.60M | 682.00M | 755.30M |
Balance Sheet | ||||||
| Total Assets | 16.48B | 13.20B | 13.07B | 12.86B | 13.12B | 12.91B |
| Cash, Cash Equivalents and Short-Term Investments | 331.20M | 95.90M | 186.10M | 166.60M | 334.00M | 351.70M |
| Total Debt | 4.93B | 4.00B | 4.51B | 4.59B | 5.33B | 5.39B |
| Total Liabilities | 8.90B | 7.43B | 7.75B | 7.78B | 8.43B | 8.48B |
| Stockholders Equity | 7.00B | 5.74B | 5.29B | 5.06B | 4.68B | 4.41B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 740.40M | 647.00M | 973.40M | 389.50M | 550.30M |
| Operating Cash Flow | 1.23B | 962.20M | 921.90M | 1.24B | 651.50M | 828.30M |
| Investing Cash Flow | -955.10M | -255.20M | -269.00M | -260.50M | -146.40M | -908.60M |
| Financing Cash Flow | -95.30M | -840.90M | -583.10M | -1.18B | -487.20M | 22.00M |
McCormick & Company Technical Analysis
Positive
54.33
Price Trends
48.39
Positive
53.79
Negative
59.41
Negative
Market Momentum
1.03
Negative
67.13
Neutral
88.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKC, the sentiment is Positive. The current price of 54.33 is above the 20-day moving average (MA) of 48.76, above the 50-day MA of 48.39, and below the 200-day MA of 59.41, indicating a neutral trend. The MACD of 1.03 indicates Negative momentum. The RSI at 67.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MKC.
McCormick & Company Risk Analysis
McCormick & Company disclosed 41 risk factors in its most recent earnings report. McCormick & Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
McCormick & Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $14.37B | 8.88 | 27.31% | 2.61% | 9.54% | 108.44% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.31B | 10.37 | 15.30% | 5.64% | -2.90% | 33.92% | |
62 Neutral | $13.30B | 28.49 | 5.86% | 4.82% | 2.47% | -37.67% | |
62 Neutral | $11.82B | ― | -2.44% | 4.45% | 3.72% | 88.76% | |
61 Neutral | $17.84B | 8.17 | 23.70% | 5.19% | -5.45% | -104.44% | |
56 Neutral | $6.32B | ― | -0.51% | 7.87% | -4.73% | -112.96% |
* Consumer Defensive Sector Average
MKC
McCormick & Company
53.45
-18.29
-25.49%
CPB
Campbell Soup
23.32
-5.65
-19.50%
CAG
Conagra Brands
14.34
-4.44
-23.66%
GIS
General Mills
37.57
-11.49
-23.41%
HRL
Hormel Foods
25.00
-4.06
-13.97%
SJM
JM Smucker
116.28
16.90
17.01%
McCormick & Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
McCormick Appoints Cindy Hoots to Board of Directors
Positive
May 26, 2026
On May 19, 2026, McCormick’s board appointed Cindy Hoots, former Chief Digital Officer and CIO of AstraZeneca and current Zoom Communications director, to its Board of Directors, effective June 1, 2026. The company announced the move publicl...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
McCormick Secures $2 Billion Term Loan for Unilever Merger
Positive
May 1, 2026
On April 28, 2026, McCormick Company entered into a $2.0 billion term loan agreement with a syndicate of lenders led by Citibank, N.A., as administrative agent, to help finance its pending merger with Unilever PLC’s foods business under a M...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
McCormick Names Chief Integration Officer for Unilever Deal
Positive
Apr 17, 2026
On April 15, 2026, McCormick Company appointed Andrew Foust, currently President Americas, as Chief Integration Officer to lead the integration of its recently announced combination with Unilever PLC’s foods business, while he remains an ex...
Executive/Board ChangesShareholder Meetings
McCormick Shareholders Back Board, Auditor and Executive Pay
Positive
Apr 3, 2026
On April 1, 2026, McCormick Company held its Annual Meeting of Stockholders, during which shareholders elected eleven directors to the board to serve until the next annual meeting or until their successors are duly elected and qualified. Stockhol...
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
McCormick to Acquire Unilever Foods in Major Deal
Positive
Apr 1, 2026
On March 31, 2026, McCormick Company signed a series of definitive agreements with Unilever to acquire Unilever’s foods business via a complex Reverse Morris Trust structure. Unilever will first separate its foods arm into SpinCo, transfer ...
Private Placements and FinancingRegulatory Filings and Compliance
McCormick Updates Investor Services Plan for Stock Offering
Positive
Mar 26, 2026
McCormick Company, Incorporated has filed a legal opinion and consent from Wilmer Cutler Pickering Hale and Dorr LLP concerning the validity of its common stock and non-voting common stock shares to be offered under its amended Investor Services ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.