Core Viewpoint - High-yield dividend stocks like Prologis, MPLX, and McCormick not only offer attractive yields but also have the potential for rapid dividend growth, making them appealing long-term investment opportunities. Group 1: Prologis - Prologis is the largest owner of logistics-related real estate globally, currently offering a 3.6% yield [3] - The company has a strong credit rating, allowing it to borrow at favorable rates, which benefits its tenants [4] - Amazon is its largest tenant, contributing only 5% of total rent, indicating stability in dividend payouts even if Amazon's performance declines [5] - Prologis has raised its dividend payout by 11.7% annually over the past five years, with less than 30% of its net operating income coming from international markets, suggesting room for growth [6] Group 2: MPLX - MPLX is a midstream energy company with a significant focus on gas and crude oil transportation, offering a substantial 7.5% yield [8] - The company has a reliable revenue stream due to its ties with Marathon Petroleum, which enhances its ability to raise dividends [9] - MPLX has increased its dividend payout by 8.1% annually over the past decade, with a recent 12% year-over-year rise in net income indicating potential for further increases [9] Group 3: McCormick - McCormick, a leader in spices and flavorings, has paid dividends consistently since 1925 and has raised its payout for 38 consecutive years [11] - The company has increased its dividend payout by 8.4% annually over the past decade, although it faced challenges due to rising commodity costs [12] - Despite a 31% decline in stock price from its peak in 2020 and stagnant sales in the first quarter of 2025, McCormick expects adjusted earnings to rise by 6% this year [13] - Currently, McCormick offers a 2.5% yield, which could lead to a double-digit yield on cost for patient investors [14]

Ms. Jenkins began her 32-year career at McCormick in 1993 as a Financial Analyst in U.S. Consumer and progressed to roles with increasing leadership in Corporate Finance, Flavor Solutions, and Supply Chain Finance. In 2015, she became Vice President and Chief Financial Officer (CFO), North America, followed by Vice President, Investor Relations in 2017. Since 2022, Ms. Jenkins' responsibilities expanded beyond finance to include Corporate Strategy, Corporate Sustainability, and Corporate Development. She ha ...

McCormick is working to reformulate products to remove certain ingredients like food dyes that have been scrutinized by Health and Human Services Secretary Robert F. Kennedy Jr. and some U.S. food regulators as part of an effort to make a healthier America. McCormick CEO Brendan Foley told analysts of the activity during an earnings call on Tuesday."We are seeing a tick-up in reformulation activity," Foley said, regarding food dyes and sodium, the latter of which he added they’ve always been working on. Fol ...

HUNT VALLEY, Md., March 26, 2025 /PRNewswire/ -- The Board of Directors of McCormick & Company, Incorporated (NYSE:MKC) declared a quarterly dividend of $0.45 per share on its common stocks, payable April 21, 2025 to shareholders of record April 7, 2025.This is the 101st year of consecutive dividend payments by the Company.About McCormickMcCormick & Company, Incorporated is a global leader in flavor. With over $6.7 billion in annual sales across 150 countries and territories, we manufacture, market, and dis ...

Financial Performance - Net sales for the three months ended February 28, 2025, were $1,605.5 million, a slight increase from $1,602.7 million in the same period last year[11] - Gross profit for the same period was $604.0 million, compared to $599.3 million, reflecting a gross margin improvement[11] - Operating income decreased to $225.2 million from $233.5 million year-over-year, indicating a decline of approximately 3.5%[11] - Net income for the three months was $162.3 million, down from $166.0 million, representing a decrease of about 0.4%[13] - Earnings per share (EPS) remained stable at $0.60 for both basic and diluted shares, compared to $0.62 in the prior year[11] - Comprehensive income for the three months ended February 28, 2025, was $129.8 million, compared to $163.0 million in the same period last year[13] - The consumer segment generated net sales of $919.2 million, while the flavor solutions segment contributed $686.3 million for the three months ended February 28, 2025[68] - Operating income for the consumer segment was $146.7 million, down from $176.3 million in the prior year, while the flavor solutions segment reported operating income of $78.5 million, up from $61.4 million[68] - Operating income excluding special charges for the three months ending February 28, 2025, was $237.7 million, compared to $233.5 million for the same period in 2024[69] Cash Flow and Liquidity - Cash and cash equivalents decreased to $102.8 million from $186.1 million, indicating a decline of approximately 44.7%[15] - The company reported a net cash flow provided by operating activities of $115.5 million, down from $138.4 million year-over-year[18] - Cash dividends paid per share increased to $0.45 for the three months ended February 28, 2025, compared to $0.42 for the same period in 2024[11] - The company paid dividends totaling $120.7 million, an increase from $112.7 million in the previous year, marking a rise of 7.1%[18] - Cash and cash equivalents at the end of the period were $102.8 million, down from $178.0 million at the end of February 29, 2024, indicating a decrease of 42.2%[18] - The balance of cash and cash equivalents at the beginning of the period was $186.1 million, compared to $166.6 million in the prior year, showing an increase of 11.4%[18] Assets and Liabilities - Total assets as of February 28, 2025, were $12,899.8 million, down from $13,070.3 million at the end of November 2024[15] - Total liabilities decreased to $7,450.1 million from $7,753.5 million, reflecting a reduction of about 3.9%[15] - The carrying amount of long-term debt as of February 28, 2025, was $3,850.8 million, with a total fair value of $3,678.4 million[51] - The carrying amount of long-term debt was $3,850.8 million as of February 28, 2025, slightly down from $3,858.8 million on November 30, 2024[51] Special Charges and Expenses - Special charges for the three months ended February 28, 2025, were recorded as $0, compared to $4.2 million for the same period in 2024, which included $2.8 million related to the Global Operating Effectiveness program[34] - Stock-based compensation expense for the three months ended February 28, 2025, was $20.0 million, compared to $11.7 million for the same period in 2024[55] - The company recorded a deferred income tax benefit of $(9.2) million, compared to $(2.8) million in the previous year, indicating a larger tax benefit[18] - Interest expense for the three months ended February 28, 2025, was $48.5 million, down from $50.3 million for the same period in 2024[11] Derivative Financial Instruments - The company utilizes derivative financial instruments to manage risks, with all derivatives designated as hedges and no material hedge ineffectiveness reported[36] - The company recorded a loss of $0.6 million on foreign exchange contracts in the income statement for the three months ended February 28, 2025[43] - The fair value of foreign currency derivatives was $15.8 million as of February 28, 2025, unchanged from the previous reporting period[47] - Interest rate contracts had a notional amount of $600.0 million as of February 28, 2025, with a fair value of $35.3 million[42] Future Outlook and Strategic Initiatives - Future outlook remains positive with a focus on market expansion and potential new product developments[69] - The company is committed to enhancing its financial performance through strategic initiatives and operational improvements[69] - The company continues to focus on maintaining operational efficiency while managing special charges effectively[69]

Shares of McCormick & Company, Incorporated (MKC) tumbled 5.1% in the pre-market session today after the company posted disappointing first-quarter fiscal 2025 results amid a challenging consumer and macro environment. The bottom line missed the Zacks Consensus Estimate and declined year over year. The top line met the consensus mark and was unchanged from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The adjusted earnings of 60 cents per share declined from 63 ...

Group 1 - The long-term outlook for McCormick & Company, Incorporated (NYSE: MKC) is positive, with previous trading activity indicating a buy call at the bottom in October 2023 [1] - The company has been identified as a high-conviction pick that has performed well during recent market selloffs [1] - A blended trading and income approach is suggested to enhance savings and retirement timelines, indicating a strategic investment methodology [1]

Faten Freiha Good morning. This is Faten Freiha, VP of Investor Relations. Thank you for joining today's first quarter earnings call. To accompany this call, we've posted a set of slides on our IR website, ir. mccormick. com. With me this morning are Brendan Foley, Chairman, President and CEO; and Marcos Gabriel, Executive Vice President and CFO. During this call, we will refer to certain non-GAAP financial measures. The nature of those non-GAAP financial measures and the related reconciliations to the GAAP ...

Core Insights - McCormick reported revenue of $1.61 billion for the quarter ended February 2025, reflecting a year-over-year increase of 0.2% and a slight revenue surprise of -0.38% compared to the Zacks Consensus Estimate [1] - The company's EPS for the same period was $0.60, down from $0.63 a year ago, resulting in an EPS surprise of -6.25% against the consensus estimate of $0.64 [1] Revenue Breakdown - Flavor Solutions net sales reached $686 million, exceeding the average estimate of $682.40 million, marking a year-over-year increase of 0.7% [4] - Consumer net sales were reported at $919 million, falling short of the average estimate of $928.64 million, representing a year-over-year decline of 0.3% [4] Operating Income Analysis - Operating income for Flavor Solutions, excluding special charges and transaction expenses, was $79 million, surpassing the average estimate of $65.54 million [4] - Operating income for Consumer, excluding special charges and transaction expenses, was $147 million, below the average estimate of $166.59 million [4] Stock Performance - McCormick's shares have returned -1.1% over the past month, compared to a -3.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - McCormick reported Q1 2025 earnings that fell short of analysts' expectations, with EPS of $0.60 versus the expected $0.64 and revenue of $1.605 billion compared to the anticipated $1.611 billion, indicating a mixed but resilient performance [2][3] Financial Performance - Q1 2025 EPS was $0.60, a decrease of 4.8% year-over-year from $0.63 in Q1 2024 [3] - Revenue for Q1 2025 was $1.605 billion, showing a slight increase of 0.2% from $1.603 billion in Q1 2024 [3] - Adjusted operating income was $225 million, down 5.3% from $238 million in Q1 2024 [3] - Gross profit margin improved to 37.6%, up 0.2 percentage points from 37.4% in Q1 2024 [3] Segment Performance - The Consumer segment experienced a 0.2% decline in sales to $919 million, with a 2.6% volume growth offset by a 1.4% pricing decrease [6] - The Flavor Solutions segment saw sales increase by 0.8% to $686 million, with a 28% rise in adjusted operating income attributed to favorable product mix and pricing strategies [7] Strategic Operations - McCormick's strategic pricing, product innovation, and brand recognition are key factors for its success [5] - The company is focused on enhancing its brand portfolio and strengthening its global market position [4] - Currency impacts negatively affected total sales by approximately 1.8% and adjusted operating income by 2.1% [8] Future Outlook - For fiscal 2025, McCormick forecasts net sales growth of 0% to 2% and operating income growth of 3% to 5% [10] - The company remains committed to margin expansion and cost structure management despite potential foreign exchange challenges [10] - A 7% dividend increase reflects management's confidence in future cash flow generation [9]