Research · Sep 3, 2026
[MKC] McCormick Thesis 2026: Spice and Flavor Pricing Power Tests Volume Recovery Through Cycle
McCormick & Company FY2025 revenue ~$6.7-6.9B (+1-3%) with adj. EPS ~$3.05-3.20 reflecting continued post-2022-2024 volume normalization (selected 2023-2024 +0-2% pricing-led; selected 2025 modest volume recovery beginning) + selected operational excellence + selected GOPS (Global Operating Effectiveness Program) cost savings under continued CEO Brendan Foley. Leading global spice + seasoning + flavor + condiments firm operating Consumer (~62% revenue — McCormick + Lawry's + French's + Frank's RedHot + Cholula + Old Bay + selected) + Flavor Solutions (~38% — selected B2B custom flavor + selected industrial customers) segments; founded 1889 by Willoughby M. McCormick in Baltimore Maryland originally as McCormick & Company manufacturing fruit syrups + flavor extracts (later expanded to spices + seasonings; IPO 1929; 1947 acquired Schilling spice company on West Coast; 2017 RB Foods $4.2B acquisition transformational consumer expansion); headquartered in Hunt Valley Maryland; ~14,000+ employees across selected ~150+ countries; fiscal year ends ~November. ~$6.7-6.9B revenue. 2 segments: Consumer ~$4.2B (~62% — McCormick + Schilling + Lawry's branded retail spices/seasonings + French's + Frank's RedHot + Cholula post-2020 acquisition $800M + Old Bay + Stubb's BBQ + Cattlemen's; ~21% segment operating margin) + Flavor Solutions ~$2.6B (~38% — selected B2B custom flavor + seasoning solutions + selected QSR customers + selected food/beverage industrial customers Coca-Cola + PepsiCo + selected packaged food; ~13% segment operating margin). Geographic mix: Americas ~64% + EMEA ~21% + Asia-Pacific ~15%. CEO Brendan Foley since September 1, 2023 (succeeded Lawrence Kurzius CEO 2016-September 2023 retired; Foley ex-McCormick President + COO 2022-2023 + ex-McCormick President Americas 2018-2022 + ex-Heinz Senior VP 2007-2018 + Procter & Gamble + ~25-year consumer goods executive career). Pre-Foley Kurzius tenure executed 2017 RB Foods $4.2B (French's + Frank's RedHot + Cattlemen's BBQ from Reckitt Benckiser) + 2020 Cholula $800M + 2020-2022 COVID home cooking boom + 2021-2022 commodity inflation + selected pricing pass-through. Foley tenure has executed 2023 GOPS launch (~$200M+ annual savings) + 2023-2024 pricing pass-through completion + 2024 volume stabilization beginning + selected new product launches + selected Flavor Solutions B2B customer wins. Capital return: dividend $1.68-1.76/share annual (~38 consecutive year increases — Dividend Aristocrat) + buybacks $0.1-0.3B; investment-grade Baa1/BBB+ credit rating; net debt $3.5-4B (post-RB Foods 2017 deleveraging in progress). FY2026 thesis: volume recovery + Flavor Solutions B2B + GOPS savings + capital return. Risks: consumer discretionary spending, GLP-1 long-term, commodity cost volatility, tariff exposure (~30%+ international sourcing).