Company Overview - McCormick is recognized as one of the few large-cap packaged food companies that has achieved consistent volume growth despite a challenging broader packaged food environment [4] Management Insights - Brendan Foley, Chairman, President, and CEO of McCormick, emphasizes that the company does not compete for calories but rather focuses on flavoring them [4] Future Plans - The company is expected to share more about its plans for the fiscal year, including the implementation of additional pricing strategies [4]

McCormick & Company (NYSE:MKC) 2026 Conference February 17, 2026 05:00 PM ET Company ParticipantsAndrew Lazar - Managing DirectorBrendan Foley - Chairman, President, and CEOMarcos Gabriel - CFONone - Video Narrator 1None - Video Narrator 2ModeratorMcCormick would like to remind you that today's discussion will refer to certain non-GAAP financial measures. The nature of those non-GAAP financial measures and the related reconciliations to the GAAP results are included in the company's materials. Additionally, ...

McCormick & Company, Inc. CAGNY I February 17, 2026 Forward-looking Information Certain information contained in this presentation, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, special charges including transaction and integration expenses, acquisitions, brand marketing support, volume and product mix, income tax expense, and the impact of foreign currency rates are "forward-looking statements" within the meaning of Section 2 ...

Company Overview - McCormick & Company, Incorporated (MKC) is based in Hunt Valley, Maryland, and specializes in manufacturing, selling, and distributing spices, seasoning mixes, condiments, and other flavorful products, with a market cap of $18.5 billion [1] Stock Performance - MKC shares have underperformed the broader market over the past year, declining 8.6% compared to a 14.4% increase in the S&P 500 Index. However, in 2026, MKC stock has risen 3.6%, outperforming the S&P 500's 1.4% increase year-to-date [2] - Compared to the First Trust Nasdaq Food & Beverage ETF (FTXG), which gained about 6% over the past year and 12.8% year-to-date, MKC's performance has been weaker [3] Financial Performance - MKC's performance has been affected by unexpected commodity inflation and tariff costs, which have offset efficiency gains. Despite growth in both consumer and flavor solutions segments, gross margins have been squeezed [6] - The company reported Q4 results with an adjusted EPS of $0.86, missing Wall Street expectations of $0.87, and revenue of $1.85 billion, falling short of forecasts of $1.86 billion. MKC expects full-year adjusted EPS in the range of $3.05 to $3.13 [7] - For fiscal 2026, analysts expect MKC's EPS to grow 3.3% to $3.10 on a diluted basis. The company's earnings surprise history is mixed, beating consensus estimates in two of the last four quarters while missing forecasts in two others [8] Management Insights - CEO Brendan Foley noted resilient consumer demand and innovation-driven sales growth but acknowledged that ongoing inflationary pressures and ERP costs will constrain profitability. The company anticipates continued volume growth through new products and distribution, although profitability will be impacted by costs and investments [6]

Core Viewpoint - McCormick & Company, Incorporated (NYSE:MKC) is facing challenges as its Q4 2025 EPS fell short of estimates, leading UBS to lower its price target to $67 from $70 while maintaining a "Neutral" rating [1]. Financial Performance - For Q4 2025, McCormick reported net sales of $1,850.4 million, reflecting a 3% year-over-year increase, which included a 1% favorable impact from currency [2]. - The company anticipates net sales growth of 13% to 17% for FY 2026 [2]. Strategic Initiatives - McCormick is leveraging its competitive advantages, productivity initiatives, and cost management strategies to navigate headwinds and rising costs [3]. - The company is focused on brand investment, distribution expansion, and innovation across its product portfolio [2].

Core Insights - McCormick & Company is facing challenges in fiscal 2026, with management indicating a preference for protecting volumes over short-term profit growth [2][3] - The company is experiencing increased costs due to tariffs and commodity prices, which are negatively impacting margins [3][4] - Analysts have adjusted their price targets and outlooks for McCormick, reflecting concerns over the company's near-term performance [2][5] Group 1: Financial Performance and Outlook - Barclays analyst Andrew Lazar reduced the price target for McCormick to $67 from $72, maintaining an Equal Weight rating after the fourth-quarter results [2] - The company warned that fiscal 2026 profits are likely to be pressured by higher costs associated with tariffs and commodities [3] - CEO Brendan Foley highlighted that inflation and volatile commodity prices are driving incremental costs that hurt margins, with about 50% of tariffs still in effect [4] Group 2: Cost Pressures and Market Position - McCormick anticipates an additional $50 million in costs due to tariffs in fiscal 2026, as it imports key spices that are sensitive to price fluctuations [5] - Trade uncertainties have led to increased raw material prices, compounding the company's cost challenges [3] - Despite the current pressures, there is potential for support from steady demand for flavor products and the acquisition of McCormick de Mexico [5]

Core Insights - McCormick has faced challenges from tariffs since April 2025, impacting costs significantly [3][4] - The company managed to reduce tariff impacts from $70 million to $20 million through cost-cutting, alternative sourcing, and price increases [4] - McCormick anticipates a similar mid-single-digit inflation rate for the current year due to tariffs and commodity costs [4] Tariff Impact and Mitigation Strategies - The incremental gross tariff impact for McCormick is expected to be around $50 million in 2026, with plans to mitigate this through productivity savings, alternative sourcing, and revenue management strategies [8] - The company has already adjusted its supply chain efforts to align with new tariff rates, which may limit immediate benefits from reduced tariffs [5] - Other companies in the industry, such as J.M. Smucker and Monster Beverage, are also managing tariff-related costs through various strategies [6]

Core Viewpoint - McCormick & Company, Incorporated (NYSE:MKC) is facing challenges due to weaker Q4 results and a cautious outlook for fiscal 2026, leading to a price target reduction by BofA while maintaining a Buy rating [2]. Group 1: Financial Performance - BofA lowered its price target on McCormick to $80 from $89, citing negative market reaction to the earnings report after several misses in Q4 [2]. - Organic sales in Q4 fell short of expectations, particularly in the Americas Flavor Solutions segment [2]. - Gross margin missed consensus by approximately 150 basis points, and the outlook indicates slower EPS growth in fiscal 2026 than previously anticipated [2]. Group 2: Cost Pressures - McCormick warned that profits are likely to be under pressure in fiscal 2026 due to higher costs from tariffs and commodities impacting margins [3]. - CEO Brendan Foley noted that inflation, volatile commodity costs, and broader macro conditions have led to incremental costs that negatively affected margins [4]. - The company expects tariffs to contribute about $50 million in incremental costs in fiscal 2026, with exposure to higher input costs from imported spices [5]. Group 3: Market Outlook - Deutsche Bank analyst Steve Powers indicated that while the stock may face near-term pressure due to the weak quarter and cautious outlook, McCormick could benefit from steady demand and its acquisition of McCormick de Mexico in the long term [5].

Core Insights - McCormick & Co. is increasing prices in its consumer goods segment due to rising costs from tariffs and ingredients [1][2] - Price increases are expected to contribute more significantly to growth in 2026 compared to 2025, as the company has not fully passed on tariff costs [2] Company Actions - McCormick plans to implement targeted price increases starting in February 2025, with additional increases anticipated [2] - Other companies in the spice and seasoning industry, such as B&G Foods and International Flavors & Fragrances, are also raising prices due to similar cost pressures [5][6] Market Trends - The U.S. seasoning and spice market, valued at approximately $2.9 billion, is projected to grow to $4 billion by 2030, driven by a multicultural population and diverse tastes [4] - Despite rising prices, consumers are still inclined to cook at home as a cost-saving measure, which supports ongoing demand for spices and seasonings [7][8] Consumer Behavior - Consumers, particularly those from low-to-middle income households, are making more frequent shopping trips while purchasing fewer items per trip, indicating a focus on budget management [8] - The importance of flavor in everyday cooking remains strong, with herbs and spices leading in unit consumption [8]

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group emphasizes high-yield, dividend growth investment ideas, targeting dividend yields up to 10% [2] Investment Strategy - Earnings season presents opportunities for investors to capitalize on price swings caused by knee-jerk reactions, particularly for those with a medium- to long-term investment horizon [2] - The group provides research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2] Target Audience - The service is designed for investors seeking dependable monthly income and portfolio diversification [2]