McCormick & Company, Incorporated
- Open
- 50.50
- Day high
- 51.26
- Day low
- 50.50
- Prev close
- 50.61
- Volume
- 4K
- Mkt cap
- $13.7B
- P/E (TTM)
- 8.4
- EPS (TTM)
- $6.03
- P/B
- 2.0
- P/S
- 1.9
- Yield
- 3.71%
- Per share
- $1.89
McCormick & Company, Incorporated (MKC-V) is a Consumer Defensive company listed on NYSE. The stock is down 30% over the past year. Drillr has 1 published research article covering MKC-V.
McCormick & Company, Incorporated (MKC-V) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MKC-V earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 25, 2026 | $0.69 | $0.80 | +15.6% | $1.9B | +1.2% |
| Mar 31, 2026 | $0.60 | $0.66 | +10.7% | $1.9B | +4.9% |
| Oct 7, 2025 | $0.83 | $0.84 | +1.0% | $1.7B | +0.6% |
| Jun 26, 2025 | $0.65 | $0.65 | +0.0% | $1.7B | -3.1% |
| Mar 25, 2025 | $0.64 | $0.60 | -6.1% | $1.6B | -4.0% |
| Oct 1, 2024 | $0.67 | $0.83 | +23.1% | $1.7B | +0.8% |
| Feb 20, 2024 | $0.79 | $0.81 | +2.5% | $1.8B | -2.2% |
| Oct 3, 2023 | $0.65 | $0.63 | -3.4% | $1.7B | -0.7% |
| Jan 26, 2023 | $0.86 | $0.73 | -15.5% | $6.4B | +259.4% |
| Oct 6, 2022 | — | $0.82 | — | $1.6B | — |
| Jan 27, 2022 | — | $0.74 | — | $1.7B | — |
| Sep 30, 2021 | — | $0.79 | — | $1.5B | — |
MKC-V insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jan 4, 2024 | Foley Brendan Mofficer: President & CEO | Grant | 33 | — |
| Jan 3, 2024 | Tapiero Jacquesdirector | Option | 451 | $69.54 |
| Dec 21, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 34 | — |
| Dec 8, 2023 | Smith Michael Rofficer: Executive VP & CFO | Grant | 66,007 | $65.99 |
| Dec 8, 2023 | Kurzius Lawrence Erikdirector | Grant | 313,532 | $65.99 |
| Dec 6, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 35 | — |
| Dec 5, 2023 | Kurzius Lawrence Erikdirector, officer: Chairman & CEO | Grant | 313,532 | $65.99 |
| Dec 5, 2023 | Smith Michael Rofficer: Executive VP & CFO | Grant | 66,007 | $65.99 |
| Nov 27, 2023 | Tapiero Jacquesdirector | Grant | 238 | — |
| Nov 27, 2023 | PRESTON MARGARET M Vdirector | Grant | 340 | — |
| Nov 22, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 36 | — |
| Nov 9, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 36 | — |
| Oct 27, 2023 | Schwartz Jeffery Dofficer: Vice President, Gen Counsel | Sell | 2,000 | $64.37 |
| Oct 25, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 38 | — |
| Oct 11, 2023 | Foley Brendan Mofficer: President & CEO | Grant | 37 | — |
Source: MKC-V SEC Form 4 filings, latest Jan 4, 2024. For informational purposes only — not investment advice.
See the full MKC-V insider & 13F page →McCormick & Company, Incorporated company profile
Overview
McCormick & Company, Incorporated (NYSE:MKC) is a global leader in the spice and flavor industry, founded in 1889 in Baltimore, Maryland. What began as a small spice company has evolved into one of the world's largest manufacturers and distributors of spices, seasonings, and flavor products. The company is headquartered in Hunt Valley, Maryland, and has built a portfolio of well-known brands including McCormick, French's, Frank's RedHot, Lawry's, and OLD BAY. With operations spanning across the Americas, Europe, Middle East, Africa, and Asia-Pacific, McCormick serves both consumer retail markets and commercial food industry customers through its two primary business segments.
Business
McCormick operates in the packaged foods industry, specifically focusing on spices, seasonings, condiments, and flavor enhancement products. The company's products are essential ingredients that add taste, aroma, and visual appeal to food, ranging from basic spices like black pepper and paprika to complex seasoning blends and hot sauces. The company operates through two main business segments: 1. **Consumer Segment** - This division focuses on retail products sold directly to consumers through grocery stores, mass merchandise retailers, warehouse clubs, and e-commerce platforms. Products include individual spices and herbs, seasoning mixes, condiments like mustard and hot sauce, and dessert mixes. Key brands include McCormick (the flagship brand), French's mustard, Frank's RedHot sauce, Lawry's seasonings, Cholula Hot Sauce, and regional favorites like OLD BAY seafood seasoning and Zatarain's New Orleans-style products. This segment typically represents approximately 60% of total company revenue. 2. **Flavor Solutions Segment** - This business-to-business division serves food manufacturers, restaurant chains, and foodservice operators with industrial-scale flavoring products. These include custom seasoning blends, coating systems for processed foods, compound flavors for snack foods, and specialized ingredients for large-scale food production. This segment accounts for roughly 40% of total revenue and serves clients ranging from major food processors to restaurant chains requiring consistent flavor profiles across thousands of locations. The spice and seasoning industry is essential to food preparation globally, as these products transform basic ingredients into flavorful meals. McCormick's products are considered staple items with relatively stable demand, as consumers continue to cook and eat regardless of economic conditions, though premium products may see some fluctuation during economic downturns.
Revenue model
McCormick generates revenue primarily through direct product sales to retailers and commercial customers. The company employs different pricing strategies across its segments: premium pricing for branded consumer products and competitive pricing for bulk commercial sales. In the Consumer segment, McCormick sells branded products to grocery retailers, who then sell to end consumers. The company benefits from brand recognition and consumer loyalty, allowing for higher margins on popular items like French's mustard or Frank's RedHot. Revenue is generated through wholesale sales to retailers, with pricing power derived from brand strength and product differentiation. The Flavor Solutions segment operates on a business-to-business model, selling directly to food manufacturers and foodservice companies. This segment often involves longer-term contracts and custom product development, providing more predictable revenue streams but typically at lower margins due to the commercial nature and volume requirements. Several factors influence McCormick's profitability margins. **Positive margin drivers** include successful product innovation and premium brand positioning, which allow for higher pricing; operational efficiency improvements in manufacturing and distribution; favorable commodity costs for raw materials like peppers and spices; and successful market share expansion in emerging markets. **Negative margin pressures** come from volatile commodity prices for agricultural inputs, which can significantly impact costs; intense competition from private label products, particularly in basic spice categories; currency fluctuations affecting international operations; and inflationary pressures on labor, transportation, and packaging costs. Additionally, retailer consolidation can pressure wholesale pricing, while consumer shifts toward private label during economic stress can impact premium brand sales.
Competitive moat
McCormick possesses a moderate to strong competitive moat built primarily on brand recognition, distribution networks, and economies of scale. The company's brands like French's, Frank's RedHot, and McCormick have achieved household name status, particularly in North America, creating consumer loyalty that provides pricing power and shelf space advantages. The company's extensive global distribution network represents a significant barrier to entry, as building relationships with major retailers and establishing presence across multiple international markets requires substantial time and investment. McCormick's scale advantages in procurement allow for better sourcing terms on agricultural commodities, while its manufacturing footprint provides cost efficiencies that smaller competitors cannot easily replicate. However, the moat faces several challenges. **Private label competition** is intensifying as retailers develop their own spice and seasoning products, often at significantly lower prices. Basic spices and seasonings are relatively commoditized products where differentiation can be limited. **Emerging competitors** in hot sauce and specialty seasonings, often targeting younger demographics through social media marketing, are gaining market share in faster-growing categories. The **Flavor Solutions segment** faces different competitive dynamics, with custom formulation capabilities and technical expertise providing some differentiation, but large food manufacturers often have multiple supplier relationships and may develop in-house capabilities over time. Additionally, **changing consumer preferences** toward fresh ingredients, ethnic cuisines, and artisanal products create opportunities for smaller, specialized competitors to capture market share in premium segments. Overall, McCormick's moat is strongest in established brand categories and traditional distribution channels, but faces pressure from private label competition and evolving consumer preferences that favor authenticity and innovation over traditional branded products.
Risks & safety
McCormick demonstrates **moderate financial stability** with some concerns around debt levels and working capital management. **Cash and Liquidity Position:** - Cash and short-term investments of $103 million as of Q1 2025, relatively low for a company of this size - Current ratio of 0.65, indicating potential working capital constraints with current liabilities exceeding current assets - Free cash flow of $647 million for fiscal 2024, showing strong cash generation capability despite working capital issues **Debt and Solvency:** - Debt-to-equity ratio of 0.66, representing moderate leverage levels - Total liabilities of $7.5 billion against total assets of $12.9 billion, indicating reasonable solvency - Interest coverage appears adequate based on EBITDA of $1.3 billion annually **Valuation Metrics:** - Price-to-earnings ratio of 34.1x, indicating expensive valuation relative to earnings - EV/EBITDA of 21.9x, suggesting premium valuation that limits downside protection - Price-to-book ratio of 4.1x, reflecting significant premium to tangible book value **Other Considerations:** - Stable, recession-resistant business model in essential food products provides some downside protection - Strong brand portfolio and market positions offer defensive characteristics - However, high valuation multiples suggest limited margin of safety for investors at current prices
Recent development
Based on the financial data trends, McCormick has focused on several key strategic initiatives over recent years. The company has maintained **steady revenue growth**, with annual sales increasing from $6.35 billion in fiscal 2022 to $6.72 billion in fiscal 2024, representing consistent but modest expansion in a mature market. **Operational efficiency improvements** appear to be a major focus, as evidenced by EBITDA margin expansion from 18.3% in fiscal 2022 to 19.3% in fiscal 2024, suggesting successful cost management and productivity initiatives. The company has also demonstrated strong **cash flow generation**, with free cash flow improving significantly from $390 million in fiscal 2022 to $647 million in fiscal 2024, indicating better working capital management and operational execution. **International expansion** continues to be a strategic priority, with the company maintaining its diverse brand portfolio across different geographic markets. The presence of regional brands like Ducros in Europe, DaQiao in China, and various ethnic brands suggests ongoing efforts to capture local market preferences while leveraging global scale advantages. The company appears to be investing in **digital and e-commerce capabilities**, as reflected in its emphasis on serving e-commerce retailers alongside traditional retail channels. This represents an important adaptation to changing consumer shopping behaviors, particularly accelerated by the pandemic. **Product innovation and portfolio optimization** remain key themes, with the company balancing its traditional spice and seasoning offerings with growth categories like hot sauces and specialty condiments, while also developing custom solutions for commercial customers through its Flavor Solutions segment.
MKC-V company profile · for informational purposes only — not investment advice.
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