Investors interested in Food - Miscellaneous stocks are likely familiar with Kerry Group PLC (KRYAY) and McCormick (MKC) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimat ...

Core Insights - McCormick reported revenue of $1.85 billion for the quarter ended November 2025, reflecting a year-over-year increase of 2.9% [1] - The company's EPS was $0.86, up from $0.80 in the same quarter last year, but fell short of the consensus estimate of $0.87, resulting in an EPS surprise of -1.29% [1] - The revenue fell slightly below the Zacks Consensus Estimate of $1.86 billion, leading to a revenue surprise of -0.46% [1] Financial Performance - Net Sales in the Flavor Solutions segment were $723 million, slightly below the average estimate of $725.28 million, marking a year-over-year increase of 1.4% [4] - Net Sales in the Consumer segment reached $1.13 billion, exceeding the average estimate of $1.12 billion, with a year-over-year growth of 3.9% [4] - Operating income for Flavor Solutions, excluding special charges, was $86 million, compared to the estimated $93.29 million [4] - Operating income for the Consumer segment was $231 million, below the average estimate of $241.22 million [4] Stock Performance - McCormick's shares have returned -3.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of +0.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Financial Data and Key Metrics Changes - In the fourth quarter, total organic sales increased by 2%, driven by growth in both consumer and flavor solutions segments [4][26] - Adjusted gross profit margin declined by 120 basis points in the fourth quarter due to higher commodity costs and tariffs [29] - Adjusted earnings per share for the fourth quarter was $0.86, an increase of 7% compared to the previous year [34] Business Line Data and Key Metrics Changes - Consumer segment organic sales increased by 3%, driven by both price and volume contributions [26][27] - Flavor solutions segment organic sales rose by 1%, with a 3% price contribution offset by a 2% volume decline [28] - In the Americas, consumer organic sales grew 3%, while flavor solutions organic sales increased by 1% [27][28] Market Data and Key Metrics Changes - In the Asia-Pacific region, consumer organic sales increased by 2%, primarily driven by volume growth in China and Australia [27] - EMEA region saw consumer organic sales growth of 3%, with stable volume performance [27][29] - Flavor solutions organic sales in EMEA decreased by 3%, reflecting soft volumes from large CPG customers [29] Company Strategy and Development Direction - The company aims to sustain top-line growth while strengthening profitability and investing in growth initiatives [14][15] - Focus on innovation, brand marketing, and expanding distribution channels to drive future growth [11][23] - The acquisition of McCormick de Mexico is expected to significantly contribute to top-line growth and operating income in 2026 [20][39] Management's Comments on Operating Environment and Future Outlook - The operating environment remains volatile, with pressures from inflation and geopolitical uncertainties impacting consumer confidence [16][17] - Management expects to navigate these challenges through disciplined cost management and strategic investments [20][22] - The outlook for 2026 anticipates organic net sales growth between 1% and 3%, supported by volume growth and pricing contributions [38] Other Important Information - The company authorized a 7% increase in the quarterly dividend, marking 102 years of continuous dividend payments [15] - Recent changes to the board of directors include the retirement of two long-serving members and the addition of two new members with extensive industry experience [25] Q&A Session Summary Question: What are the key drivers underpinning the 2026 outlook? - Management indicated that the consumer segment is expected to drive mid to high-end growth, with pricing contributing more than in 2025 while maintaining volume growth [51][52][53] Question: What should be considered regarding EPS growth cadence in 2026? - EPS growth is expected to follow operating profit fluctuations, with Q1 likely to be slightly below guidance due to the timing of the McCormick de Mexico acquisition [58][59] Question: Can you elaborate on gross margin expectations for 2026? - Management expects to recover the margin compression experienced in 2025, although precise predictions are challenging due to market uncertainties [65][66][70] Question: How should the ERP implementation be viewed in terms of costs and timeline? - The ERP implementation costs are expected to shift into 2026 due to a compressed deployment plan, which aims to minimize risks associated with dual operations [71][75]

Financial Data and Key Metrics Changes - In the fourth quarter, total organic sales increased by 2%, driven by growth in both consumer and flavor solutions [5][27] - Adjusted earnings per share for the fourth quarter was $0.86, a 7% increase compared to the previous year, while full-year adjusted earnings per share was $3, reflecting a 2% increase [35][43] - Adjusted gross profit margin declined by 120 basis points in the fourth quarter due to higher commodity costs and tariffs [30][31] Business Line Data and Key Metrics Changes - Consumer segment organic sales increased by 3%, driven by both price and volume, with volume growth of 1% and price contribution of 2% in the Americas [27][28] - Flavor solutions segment saw a 1% increase in organic sales, with a 3% price contribution offset by a 2% volume decline [29] - In EMEA, consumer organic sales grew by 3%, while flavor solutions organic sales decreased by 3% [28][30] Market Data and Key Metrics Changes - In the Americas, consumer organic sales grew by 3%, while in Asia-Pacific, organic sales increased by 2%, primarily driven by volume growth in China and Australia [28][29] - The company experienced softness in large CPG customer volumes and branded food service, impacting overall performance [12][30] Company Strategy and Development Direction - The company is focused on sustaining top-line growth, strengthening profitability, and investing in growth while managing costs effectively [15][16] - Continued investment in brand marketing, innovation, and expanding distribution is a key part of the strategy to drive future growth [12][15] - The acquisition of a controlling interest in McCormick de Mexico is expected to significantly contribute to top-line growth and operating income [16][39] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing challenges from inflation, geopolitical uncertainties, and low consumer confidence, particularly among low to middle-income households [17][18] - Despite these challenges, the company remains optimistic about its ability to deliver sustainable growth and profitability, supported by strong brand performance and innovation [45][46] - The outlook for 2026 anticipates organic net sales growth between 1% and 3%, with contributions from pricing and sustained volume growth [39][40] Other Important Information - The company plans to continue its digital transformation and ERP implementation, which will involve increased spending in 2026 [41][42] - The board of directors will see changes with the retirement of two members and the addition of two new members with extensive industry experience [26] Q&A Session Summary Question: What are the key drivers underpinning the 2026 outlook? - Management expects continued volume momentum driven by innovation, increased distribution, and effective marketing strategies [52][54] Question: What should be considered regarding the cadence of EPS growth in the upcoming quarters? - EPS growth is expected to follow operating profit fluctuations, with Q1 likely being slightly below guidance due to the timing of the McCormick de Mexico acquisition [59][60] Question: Can you elaborate on the gross margin outlook for 2026? - Management indicated expectations for gross margin recovery in 2026, despite challenges from inflation and tariffs [66][70]

Financial Data and Key Metrics Changes - In Q4 2025, total organic sales increased by 2%, with growth in both consumer and flavor solutions segments [5][25] - Adjusted earnings per share for Q4 was $0.86, a 7% increase compared to the previous year, driven by increased operating income and improved interest expense [33] - For the full year, adjusted earnings per share was $3, reflecting a 2% increase primarily due to growth in adjusted operating income [33] Business Line Data and Key Metrics Changes - Consumer segment organic sales increased by 3% in Q4, driven by both price and volume, with volume growth of 1% and price contribution of 2% [25][26] - Flavor solutions segment saw a 1% increase in organic sales in Q4, driven by a 2% price contribution, partially offset by a 1% volume decline [28] - For the full year, adjusted operating income in the consumer segment declined by 1%, while flavor solutions operating income grew by 9% [32][33] Market Data and Key Metrics Changes - In the Americas, consumer organic sales grew by 3%, while EMEA also saw a 3% increase, and Asia-Pacific experienced a 2% increase [26] - Flavor solutions organic sales in EMEA decreased by 3%, while Asia-Pacific saw a 3% increase driven by QSR customer promotions [29] - Overall, the company maintained or improved market share across many core categories in key markets for the last six quarters [7] Company Strategy and Development Direction - The company continues to focus on sustainable, long-term value creation through brand investment, distribution expansion, and innovation [4] - Strategic partnerships and increased brand marketing investments are key components of the company's growth strategy [11] - The acquisition of a controlling interest in McCormick de Mexico is expected to significantly contribute to top-line growth and operating income in 2026 [19][39] Management's Comments on Operating Environment and Future Outlook - The management highlighted ongoing challenges from inflation, geopolitical uncertainty, and low consumer confidence, particularly among low to middle-income households [16] - Despite these challenges, the company remains optimistic about its ability to sustain volume growth and profitability through strategic investments and cost management [19][44] - The outlook for 2026 anticipates organic net sales growth between 1% and 3%, supported by sustained volume growth and higher pricing contributions [38] Other Important Information - The company achieved a 7% increase in quarterly dividends, marking 102 years of continuous dividend payments [15] - The company successfully reduced its leverage ratio to below 2.7 times, reflecting strong cash flow from operations [34] - Recent changes to the board of directors include the retirement of two long-serving members and the addition of two new members with extensive industry experience [25] Q&A Session Summary Question: What are the key drivers underpinning the 2026 outlook? - The company expects continued volume momentum driven by strong messaging, innovation, and expansion in high-growth channels [47][50] Question: Can you elaborate on the gross margin outlook for 2026? - Management indicated expectations for gross margin recovery in 2026, despite ongoing inflation and tariff impacts [55][59] Question: How will the ERP implementation affect costs in 2026? - The ERP implementation costs are expected to shift into 2026, impacting the overall cost structure but are seen as necessary for long-term efficiency [60][65]

Core Viewpoint - McCormick's quarterly earnings of $0.86 per share fell short of the Zacks Consensus Estimate of $0.87 per share, marking an earnings surprise of -1.29% [1]. Financial Performance - The company reported revenues of $1.85 billion for the quarter ended November 2025, which was below the Zacks Consensus Estimate by 0.46%, compared to $1.8 billion in the same quarter last year [2]. - Over the last four quarters, McCormick has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2]. Stock Performance - McCormick shares have declined approximately 2.3% since the beginning of the year, while the S&P 500 has gained 0.4% [3]. - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $1.78 billion, and for the current fiscal year, it is $3.21 on revenues of $7.63 billion [7]. - The estimate revisions trend for McCormick was favorable prior to the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]. Industry Context - The Food - Miscellaneous industry, to which McCormick belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8].

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4th Quarter 2025 McCormick & Company, Inc. Business Update, Financial Results, and Outlook | January 22, 2026 The following slides accompany a January 22, 2026 earnings release conference call. This information should be read in conjunction with the press release issued on that date. 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 inc ...

Financial Performance - Net sales increased by 3% in Q4 2025, with organic sales growing by 2% and a 1% favorable impact from currency[1] - For fiscal year 2025, total net sales rose by 2%, with organic sales remaining flat due to minimal currency impact; earnings per share was $2.93, up from $2.92 in 2024[1] - Operating income for Q4 2025 was $311 million, a 1.6% increase from the previous year, while adjusted operating income rose to $317 million[3] - The consumer segment net sales increased by 4% in Q4 2025 to $1,127 million, with organic sales up by 3% driven by price and volume[4] - Cash flow from operations for fiscal year 2025 was $962 million, an increase from $922 million in 2024[5] - Gross profit margin for fiscal year 2025 was 37.9%, a contraction of 60 basis points compared to the previous year[5] - Adjusted gross profit for the year ended November 30, 2025, was $2,594.3 million, maintaining a gross profit margin of 37.9%[8] - Adjusted operating income for the year ended November 30, 2025, was $1,094.0 million, reflecting a 2.3% increase compared to the previous year[8] - Net income for the year ended November 30, 2025, was $789.4 million, with an adjusted net income of $807.1 million, a 1.4% increase year-over-year[8] - The company's gross profit for the year ended November 30, 2025, was $2,592.2 million, slightly up from $2,591.0 million in the previous year[14] - Operating income for the year increased to $1,070.8 million, compared to $1,060.3 million in 2024, reflecting a growth of 1.5%[14] - Net income for the year was $789.4 million, a marginal increase from $788.5 million in 2024[14] - Earnings per share (diluted) for the year remained stable at $2.93, compared to $2.92 in the previous year[14] Future Outlook - Fiscal year 2026 outlook projects net sales growth of 13% to 17%, with organic sales growth expected to be between 1% to 3%[6] - Adjusted earnings per share for fiscal year 2026 is forecasted to be between $3.05 and $3.13, reflecting a growth of 2% to 5%[6] - The acquisition of a controlling interest in McCormick de Mexico is expected to contribute 11% to 13% to net sales growth in 2026[6] - Projected net sales growth for the year ending November 30, 2026, is expected to be between 13% to 17%, with an impact of favorable foreign currency exchange of 1%[11] - Adjusted operating income is projected to increase by 16% to 20% for the same period, with a constant currency increase of 15% to 19%[11] - Adjusted earnings per share (diluted) is expected to rise by 2% to 5%, with a constant currency increase of 1% to 4%[11] Assets and Liabilities - Total assets as of November 30, 2025, were $13,200.4 million, up from $13,070.3 million in 2024[15] - Total liabilities decreased to $7,432.3 million from $7,753.5 million in the previous year, indicating improved financial health[15] - Cash and cash equivalents at the end of the year were $95.9 million, down from $186.1 million at the beginning of the year[16] - The company invested $221.8 million in capital expenditures during the year, compared to $274.9 million in 2024[16] Strategic Initiatives - The company plans to continue investing in core categories to sustain volume trends and drive long-term profitable growth[2] - McCormick's commitment to innovation and market expansion continues to drive its strategy, focusing on consumer demand for flavor[13] - The company plans to continue providing non-GAAP financial measures to enhance comparisons to prior periods and facilitate future projections[7]

Core Viewpoint - McCormick forecasts fiscal 2026 profit below analysts' estimates due to higher costs from tariffs and commodities, which are squeezing margins amid macroeconomic uncertainty [1] Company Summary - McCormick is facing increased costs that are impacting its profit margins, primarily due to tariffs and rising commodity prices [1] - The company's profit forecast for fiscal 2026 is lower than what analysts had anticipated, indicating potential challenges ahead [1] Industry Summary - The food industry, particularly companies like McCormick, is experiencing margin pressures due to macroeconomic factors, including tariffs and commodity price fluctuations [1]