[Executive Summary](index=1&type=section&id=Executive%20Summary) McCormick achieved volume-led growth in Q3 2025, with increased net sales and operating income, while updating its FY2025 outlook due to rising costs and tariffs [CEO Remarks](index=1&type=section&id=CEO%20Remarks) McCormick's Chairman, President, and CEO, Brendan M. Foley, highlighted the fifth consecutive quarter of volume-led growth in Q3 2025, driven by brand investments, expanded distribution, and innovation. Despite gross margin pressure from rising costs and tariffs, operating profit grew due to effective cost savings initiatives. The company remains confident in its ability to capture flavor demand and achieve its updated 2025 outlook, emphasizing employee contributions and a commitment to long-term growth. - Achieved **fifth consecutive quarter** of volume-led growth in Q3 2025, reflecting differentiation and investments in brands, distribution, and innovation[2](index=2&type=chunk) - Gross margin was pressured by rising commodity costs and tariffs due to the dynamic global trade environment[2](index=2&type=chunk) - Operating profit growth was driven by effective execution of cost savings initiatives, positioning McCormick for sustained long-term growth[2](index=2&type=chunk) [Q3 2025 Financial Highlights](index=1&type=section&id=Q3%202025%20Highlights) McCormick reported a 3% increase in net sales for the third quarter of 2025, with organic sales growing 2% primarily due to volume. Operating income and earnings per share also saw slight increases compared to the prior year, with adjusted figures showing stronger growth. Q3 2025 Financial Highlights | Metric | Q3 2025 (As Reported) | Q3 2024 (As Reported) | % Change (%) | Q3 2025 (Adjusted) | Q3 2024 (Adjusted) | % Change (%) | | :-------------------- | :-------------------- | :-------------------- | :------- | :----------------- | :----------------- | :------- | | Net Sales | - | - | 3% | - | - | - | | Organic Sales Growth | - | - | 2% | - | - | - | | Operating Income | $289 million | $287 million | 0.8% | $294 million | $288 million | 1.8% | | Earnings per Share | $0.84 | $0.83 | 1.2% | $0.85 | $0.83 | 2.4% | [FY 2025 Outlook Update](index=1&type=section&id=FY%202025%20Outlook%20Update) For fiscal year 2025, McCormick reaffirmed its sales growth outlook but updated its operating income and earnings per share outlook to account for rising commodity costs and incremental tariffs. - Reaffirmed sales growth outlook for fiscal year 2025[3](index=3&type=chunk) - Updated operating income and earnings per share outlook for fiscal year 2025 to reflect rising commodity costs and incremental tariffs[3](index=3&type=chunk) [Third Quarter 2025 Financial Results](index=2&type=section&id=Third%20Quarter%202025%20Financial%20Results) McCormick reported increased net sales driven by volume, though gross profit margins contracted due to higher costs, while operating income improved from SG&A efficiencies [Sales Performance](index=2&type=section&id=Sales%20Performance) McCormick's net sales increased 3% in the third quarter of 2025, with organic sales growing 2% driven by volume. The Consumer segment showed stronger growth, while the Flavor Solutions segment also contributed positively, primarily through pricing. Third Quarter 2025 Sales Metrics | Metric | As Reported % Change (%) | Volume/Mix (%) | Price (%) | Organic % Change (%) | | :-------------------- | :------------------- | :--------- | :---- | :--------------- | | Total Net Sales | 2.7 % | 1.2 % | 0.6 % | 1.8 % | | Total Consumer | 3.8 % | 2.2 % | 0.4 % | 2.6 % | | Total Flavor Solutions| 1.2 % | (0.3)% | 0.9 % | 0.6 % | - Net sales increased **3%** in Q3 2025, including a **1%** favorable impact from currency. Organic sales increased **2%**, driven by volume (more than **1%**) and price (**1%**)[7](index=7&type=chunk) - Consumer segment net sales increased **4%** (**3%** organic) to **$973 million**, driven by volume and product mix. Flavor Solutions segment net sales increased **1%** (**1%** organic) to **$752 million**, driven by price[11](index=11&type=chunk) [Profitability Analysis](index=2&type=section&id=Profitability%20Analysis) Gross profit decreased slightly, with margins contracting due to higher commodity costs and tariffs, partially offset by cost savings. Operating income and adjusted operating income increased, primarily driven by decreased SG&A expenses and CCI program savings, despite lower gross margin and increased investments. Third Quarter 2025 Profitability Metrics | Metric | Q3 2025 (As Reported) (million USD) | Q3 2024 (As Reported) (million USD) | % Change (%) | Q3 2025 (Adjusted) (million USD) | Q3 2024 (Adjusted) (million USD) | % Change (%) | | :-------------------- | :-------------------- | :-------------------- | :------- | :----------------- | :----------------- | :------- | | Gross profit | $645.1 | $649.9 | (0.7)% | $646.1 | $649.9 | (0.6)% | | Gross profit margin | 37.4 % | 38.7 % | (130) bps| 37.5 % | 38.7 % | (120) bps| | Operating income | $288.7 | $286.5 | 0.8% | $293.6 | $288.4 | 1.8% | | Operating income margin| 16.7 % | 17.1 % | (40) bps | 17.0 % | 17.2 % | (20) bps | | Net income | $225.5 | $223.1 | 1.1% | $229.1 | $224.4 | 2.1% | | Earnings per share - diluted| $0.84 | $0.83 | 1.2% | $0.85 | $0.83 | 2.4% | - Gross profit decreased by **$5 million**, and gross profit margin contracted **130 basis points** (**120 bps** adjusted) due to higher commodity costs, tariffs, and capacity costs, partially offset by CCI program cost savings[8](index=8&type=chunk) - Adjusted operating income increased **2%** in constant currency, driven by decreased SG&A expenses (lower employee benefits, CCI savings, streamlining) partially offset by lower gross margin, brand marketing, and technology investments[9](index=9&type=chunk) - Consumer segment adjusted operating income increased **4%** (**3%** in constant currency) due to higher sales and decreased SG&A, partially offset by increased commodity costs and tariffs. Flavor Solutions segment adjusted operating income decreased **2%** (**2%** in constant currency) due to higher commodity costs and tariffs, partially offset by pricing and decreased SG&A[12](index=12&type=chunk) [Fiscal Year 2025 Financial Outlook](index=3&type=section&id=Fiscal%20Year%202025%20Financial%20Outlook) McCormick reaffirmed its sales growth outlook for FY2025 but adjusted operating income and EPS guidance to reflect commodity costs and tariffs, while anticipating strong cash flow [Updated Guidance](index=4&type=section&id=Updated%20Guidance) McCormick updated its fiscal year 2025 guidance for operating income and EPS, reflecting the impact of rising commodity costs and incremental tariffs. Net sales growth outlook remains unchanged. Fiscal Year 2025 Financial Guidance Update | Metric | Current Guide (Oct 2025) Reported | Current Guide (Oct 2025) Constant Currency | Prior Guide (June 2025) Reported | Prior Guide (June 2025) Constant Currency | | :-------------------- | :-------------------------------- | :--------------------------------------- | :------------------------------- | :-------------------------------------- | | Net sales growth | 0% to 2% (%) | 1% to 3% (%) | 0% to 2% (%) | 1% to 3% (%) | | Operating income | 1% to 3% (%) | - (%) | 2% to 4% (%) | - (%) | | Adjusted operating income| 2% to 4% (%) | 3% to 5% (%) | 3% to 5% (%) | 4% to 6% (%) | | Earnings per share (EPS)| $2.95 to $3.00 (1% to 3%) | - | $2.98 to $3.03 (2% to 4%) | - | | Adjusted EPS | $3.00 to $3.05 (2% to 4%) | 4% to 6% | $3.03 to $3.08 (3% to 5%) | 5% to 7% | - Foreign currency rates are expected to unfavorably impact net sales by **1%**, adjusted operating income by **1%**, and adjusted earnings per share by **2%**[16](index=16&type=chunk) [Key Factors and Expectations](index=4&type=section&id=Key%20Factors%20and%20Expectations) The 2025 outlook incorporates mitigation plans for tariffs and anticipates continued volume-led growth, gradual improvement in China Consumer, and gross margin pressure from commodity costs and tariffs. SG&A benefits from the CCI program are expected to be partially offset by growth investments. - Outlook reflects mitigation plans for tariffs currently in place, which have increased since August 1, 2025. Mitigation actions include sourcing plans, cost savings, and revenue growth management[14](index=14&type=chunk) - Expectations include total volume-led growth, gradual improvement in China Consumer, and gross margin expansion impacted by increased commodity costs and tariffs[17](index=17&type=chunk) - SG&A benefits from the CCI program (including streamlining initiatives) are anticipated, partially offset by growth investments in brand marketing and digital. Special charges of **$20 million** are expected, primarily for organizational and streamlining actions[17](index=17&type=chunk) [Cash Flow and Shareholder Returns](index=5&type=section&id=Cash%20Flow%20and%20Shareholder%20Returns) For fiscal 2025, McCormick expects strong cash flow driven by profit and working capital initiatives, with a significant portion anticipated to be returned to shareholders through dividends. - Strong cash flow is expected for fiscal 2025, driven by profit and working capital initiatives[18](index=18&type=chunk) - A significant portion of cash flow is anticipated to be returned to shareholders through dividends[18](index=18&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) McCormick uses non-GAAP measures to provide clearer insights into operational performance by excluding special charges, acquisitions, and foreign currency impacts [Definition and Purpose](index=5&type=section&id=Definition%20and%20Purpose) McCormick utilizes non-GAAP financial measures such as organic net sales, adjusted gross profit, adjusted operating income, and adjusted EPS to complement GAAP results. These measures exclude special charges, acquisitions/divestitures, and foreign currency impacts to provide enhanced comparability to prior periods and better insight into underlying operational performance and trends. - Non-GAAP financial measures (e.g., organic net sales, adjusted gross profit, adjusted operating income, adjusted EPS) are used to complement GAAP results[19](index=19&type=chunk) - These measures exclude special charges (expenses for cost reduction, process improvement, competitiveness, and transaction/integration costs), acquisitions/divestitures, and foreign currency impacts[19](index=19&type=chunk)[25](index=25&type=chunk) - The purpose is to provide additional information for enhanced comparisons to prior periods, facilitate future projections, measure ongoing profitability, and analyze business performance and trends[20](index=20&type=chunk) [Q3 and YTD Reconciliation Tables](index=6&type=section&id=Q3%20and%20YTD%20Reconciliation%20Tables) The provided tables reconcile GAAP financial measures to their adjusted non-GAAP counterparts for the three and nine months ended August 31, 2025, and 2024. Key adjustments include special charges impacting gross profit, operating income, income tax expense, and net income. Reconciliation of GAAP to Adjusted Financial Measures (Q3 and YTD) | Metric | Three Months Ended 8/31/2025 (million USD) | Three Months Ended 8/31/2024 (million USD) | Nine Months Ended 8/31/2025 (million USD) | Nine Months Ended 8/31/2024 (million USD) | | :-------------------------------- | :--------------------------- | :--------------------------- | :-------------------------- | :-------------------------- | | Gross profit (GAAP) | $645.1 | $649.9 | $1,871.9 | $1,868.8 | | Impact of special charges | $1.0 | $0.0 | $1.0 | $0.0 | | Adjusted gross profit | $646.1 | $649.9 | $1,872.9 | $1,868.8 | | Operating income (GAAP) | $288.7 | $286.5 | $759.7 | $754.1 | | Impact of special charges | $4.9 | $1.9 | $17.7 | $7.9 | | Adjusted operating income | $293.6 | $288.4 | $777.4 | $762.0 | | Net income (GAAP) | $225.5 | $223.1 | $562.8 | $573.3 | | Impact of special charges | $3.6 | $1.3 | $13.4 | $5.8 | | Adjusted net income | $229.1 | $224.4 | $576.2 | $579.1 | | Earnings per share - diluted (GAAP)| 0.84 USD | 0.83 USD | 2.09 USD | 2.13 USD | | Impact of special charges | 0.01 USD | 0.00 USD | 0.05 USD | 0.02 USD | | Adjusted earnings per share - diluted| 0.85 USD | 0.83 USD | 2.14 USD | 2.15 USD | [Constant Currency and Organic Growth Rates](index=7&type=section&id=Constant%20Currency%20and%20Organic%20Growth%20Rates) McCormick provides constant currency and organic growth rates to isolate the impact of foreign exchange fluctuations and other non-operational factors. For Q3 2025, total net sales grew 1.8% on a constant currency and organic basis, with varying performance across segments and regions. Year-to-date, total net sales also showed a 1.8% organic growth. - Constant currency basis excludes the translation effects of changes in foreign currency exchange rates to provide insight into underlying operational performance[24](index=24&type=chunk) - Organic net sales growth rates exclude the effect of foreign currency exchange rate fluctuations, acquisitions, and divestitures to show underlying sales performance[25](index=25&type=chunk) Percentage Change on Constant Currency and Organic Basis (Q3 2025) | Metric | Percentage Change as Reported (%) | Impact of Foreign Currency Exchange (%) | Percentage Change on a Constant Currency and Organic Basis (%) | | :-------------------- | :---------------------------- | :---------------------------------- | :--------------------------------------------------------- | | Total Net Sales | 2.7 % | 0.9 % | 1.8 % | | Total Consumer | 3.8 % | 1.2 % | 2.6 % | | Americas | 2.7 % | 0.0 % | 2.7 % | | EMEA | 11.4 % | 7.0 % | 4.4 % | | APAC | 0.0 % | 0.8 % | (0.8)% | | Total Flavor Solutions| 1.2 % | 0.6 % | 0.6 % | | Americas | 0.1 % | (0.8)% | 0.9 % | | EMEA | 2.1 % | 5.2 % | (3.1)% | | APAC | 7.7 % | 1.4 % | 6.3 % | Percentage Change on Constant Currency Basis (Adjusted Operating Income, Q3 2025) | Segment | Percentage Change as Reported (%) | Impact of Foreign Currency Exchange (%) | Percentage Change on Constant Currency Basis (%) | | :-------------------- | :---------------------------- | :---------------------------------- | :------------------------------------------- | | Consumer segment | 3.7 % | 0.5 % | 3.2 % | | Flavor Solutions segment| (1.8)% | (0.2)% | (1.6)% | | Total adjusted operating income| 1.8 % | 0.2 % | 1.6 % | [FY2025 Outlook Reconciliation](index=9&type=section&id=FY2025%20Outlook%20Reconciliation) The fiscal year 2025 projections for net sales, adjusted operating income, and adjusted earnings per share are also presented on a constant currency basis, with foreign currency exchange expected to have an unfavorable impact across these metrics. The reconciliation of estimated GAAP EPS to adjusted EPS for 2025 is also provided. FY2025 Projection on Constant Currency Basis | Metric | Projection for the Year Ending November 30, 2025 (%) | | :------------------------------------------------ | :----------------------------------------------- | | Percentage change in net sales | 0% to 2% | | Impact of unfavorable foreign currency exchange | 1 % | | Percentage change in net sales in constant currency| 1% to 3% | | Percentage change in adjusted operating income | 2% to 4% | | Impact of unfavorable foreign currency exchange | 1 % | | Percentage change in adjusted operating income in constant currency| 3% to 5% | | Percentage change in adjusted earnings per share diluted| 2% to 4% | | Impact of unfavorable foreign currency exchange | 2 % | | Percentage change in adjusted earnings per share in constant currency - diluted| 4% to 6% | Reconciliation of Estimated EPS to Adjusted EPS (FY2025) | Metric | 2025 Projection (USD) | 11/30/24 (USD) | | :-------------------------- | :-------------- | :------- | | Earnings per share - diluted| 2.95 to 3.00 | 2.92 | | Impact of special charges | 0.05 | 0.03 | | Adjusted earnings per share - diluted| 3.00 to 3.05 | 2.95 | [Company Information](index=10&type=section&id=Company%20Information) McCormick is a global flavor leader operating in two segments, with its forward-looking statements highlighting potential risks and uncertainties affecting future performance [About McCormick](index=11&type=section&id=About%20McCormick) McCormick & Company, Incorporated is a global flavor leader with over $6.7 billion in annual sales across 150 countries. It manufactures and distributes herbs, spices, seasonings, condiments, and flavors to various food industry sectors. Operating in two complementary segments, Consumer and Flavor Solutions, McCormick leverages its portfolio and insights to capitalize on consumer demand for flavor, guided by its purpose to Stand Together for the Future of Flavor. - McCormick & Company is a global leader in flavor, with over **$6.7 billion** in annual sales across **150** countries and territories[37](index=37&type=chunk) - The company manufactures, markets, and distributes herbs, spices, seasonings, condiments, and flavors to retailers, food manufacturers, and foodservice businesses[37](index=37&type=chunk) - Operates in two segments: Consumer and Flavor Solutions, which complement each other and drive sustainable growth[37](index=37&type=chunk)[38](index=38&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding expected performance, sales growth, earnings, cost savings, and other financial and operational aspects. These statements are based on management's current views and assumptions, involving risks and uncertainties that could materially affect actual results, and the company undertakes no obligation to update them. - The release contains "forward-looking statements" concerning expected performance, including net sales, gross margin, earnings, cost savings, and the impact of foreign currency rates[33](index=33&type=chunk) - These statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results[34](index=34&type=chunk) - Risks include general economic conditions, consumer spending, supply chain issues, commodity prices, tariffs, competition, and the ability to drive productivity improvements[33](index=33&type=chunk)[35](index=35&type=chunk) [Financial Statements (Unaudited)](index=13&type=section&id=Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for Q3 and YTD 2025 detail the company's income, balance sheet, and cash flows, showing key financial positions and performance [Consolidated Income Statement](index=13&type=section&id=Consolidated%20Income%20Statement) The unaudited consolidated income statement for the three and nine months ended August 31, 2025, and 2024, shows net sales, cost of goods sold, gross profit, operating income, and net income, along with earnings per share. Consolidated Income Statement (Unaudited) | Metric | Three months ended Aug 31, 2025 (million USD) | Three months ended Aug 31, 2024 (million USD) | Nine months ended Aug 31, 2025 (million USD) | Nine months ended Aug 31, 2024 (million USD) | | :------------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net sales | $1,724.9 | $1,679.8 | $4,989.9 | $4,925.7 | | Cost of goods sold | $1,079.8 | $1,029.9 | $3,118.0 | $3,056.9 | | Gross profit | $645.1 | $649.9 | $1,871.9 | $1,868.8 | | Gross profit margin | 37.4 % | 38.7 % | 37.5 % | 37.9 % | | Selling, general and administrative expense| $352.5 | $361.5 | $1,095.5 | $1,106.8 | | Special charges | $3.9 | $1.9 | $16.7 | $7.9 | | Operating income | $288.7 | $286.5 | $759.7 | $754.1 | | Interest expense | $50.2 | $53.5 | $149.7 | $156.7 | | Other income, net | $9.4 | $13.2 | $29.0 | $36.7 | | Income from consolidated operations before income taxes| $247.9 | $246.2 | $639.0 | $634.1 | | Income tax expense | $39.3 | $41.0 | $130.2 | $116.8 | | Net income from consolidated operations| $208.6 | $205.2 | $508.8 | $517.3 | | Income from unconsolidated operations | $16.9 | $17.9 | $54.0 | $56.0 | | Net income | $225.5 | $223.1 | $562.8 | $573.3 | | Earnings per share - diluted | 0.84 USD | 0.83 USD | 2.09 USD | 2.13 USD | [Consolidated Balance Sheet](index=14&type=section&id=Consolidated%20Balance%20Sheet) The unaudited consolidated balance sheet as of August 31, 2025, and November 30, 2024, presents the company's assets, liabilities, and shareholders' equity. Key changes include an increase in total assets and shareholders' equity, while total liabilities slightly decreased. Consolidated Balance Sheet (Unaudited) | Metric | August 31, 2025 (million USD) | November 30, 2024 (million USD) | | :------------------------------------- | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $94.9 | $186.1 | | Trade accounts receivable, net | $668.7 | $587.4 | | Inventories, net | $1,323.6 | $1,239.9 | | Total current assets | $2,224.0 | $2,139.0 | | Property, plant and equipment, net | $1,419.8 | $1,413.0 | | Goodwill | $5,314.2 | $5,227.5 | | Intangible assets, net | $3,302.5 | $3,318.9 | | Total assets | $13,247.0 | $13,070.3 | | **Liabilities** | | | | Short-term borrowings and current portion of long-term debt| $1,253.4 | $748.3 | | Trade accounts payable | $1,196.8 | $1,238.1 | | Total current liabilities | $3,120.0 | $2,882.8 | | Long-term debt | $3,104.9 | $3,593.6 | | Total liabilities | $7,463.4 | $7,753.5 | | **Shareholders' equity** | | | | Total McCormick shareholders' equity | $5,752.8 | $5,291.0 | | Total shareholders' equity | $5,783.6 | $5,316.8 | | Total liabilities and shareholders' equity| $13,247.0 | $13,070.3 | [Consolidated Cash Flow Statement](index=15&type=section&id=Consolidated%20Cash%20Flow%20Statement) The unaudited consolidated cash flow statement for the nine months ended August 31, 2025, and 2024, details cash flows from operating, investing, and financing activities. Net cash provided by operating activities decreased, while net cash used in investing activities also decreased. Net cash used in financing activities significantly increased. Consolidated Cash Flow Statement (Unaudited) | Metric | Nine Months Ended Aug 31, 2025 (million USD) | Nine Months Ended Aug 31, 2024 (million USD) | | :------------------------------------- | :----------------------------- | :----------------------------- | | Net cash flow provided by operating activities| $420.2 | $463.2 | | Net cash flow used in investing activities| ($172.2) | ($189.1) | | Net cash flow used in financing activities| ($378.3) | ($205.9) | | Effect of exchange rate changes on cash and cash equivalents| $39.1 | ($34.0) | | Increase (decrease) in cash and cash equivalents| ($91.2) | $34.2 | | Cash and cash equivalents at end of period| $94.9 | $200.8 | - Net cash flow provided by operating activities decreased from **$463.2 million** in 2024 to **$420.2 million** in 2025[43](index=43&type=chunk) - Net cash flow used in financing activities significantly increased from **$205.9 million** in 2024 to **$378.3 million** in 2025, primarily due to higher dividends paid and common stock acquired by purchase[43](index=43&type=chunk)

Core Insights - McCormick & Company reported a 3% increase in net sales for Q3 2025, driven by a 2% organic sales growth, with a favorable currency impact of 1% [5][6][13] - The company reaffirmed its sales growth outlook for fiscal 2025 while updating its operating income and earnings per share outlook due to rising commodity costs and tariffs [6][10][11] Financial Performance - Total net sales for Q3 2025 reached $1.725 billion, compared to $1.680 billion in Q3 2024, reflecting a 3% year-over-year increase [36] - Gross profit decreased by $5 million to $645.1 million, with a gross profit margin of 37.4%, down 130 basis points from the previous year [4][7] - Operating income for Q3 2025 was $288.7 million, a slight increase of 0.8% from $286.5 million in Q3 2024 [4][8] - Earnings per share (EPS) for Q3 2025 was $0.84, up from $0.83 in the same period last year, while adjusted EPS was $0.85 compared to $0.83 [6][8] Segment Performance - The Consumer segment saw a 4% increase in net sales to $973 million, with organic sales growth of 3% driven by volume and product mix [13] - The Flavor Solutions segment experienced a 1% increase in net sales to $752 million, with organic sales growth of 1% primarily from price increases [13][14] Outlook for Fiscal Year 2025 - The company expects net sales growth of 0% to 2% and adjusted operating income growth of 2% to 4% for fiscal 2025, with adjusted EPS projected to be between $3.00 and $3.05 [11][27] - McCormick's outlook incorporates the impact of current tariffs and anticipates a 1% unfavorable impact from foreign currency exchange rates [10][12] Strategic Initiatives - McCormick continues to invest in its Comprehensive Continuous Improvement (CCI) program, which aims to drive growth while managing costs effectively [9][15] - The company is focused on adapting to consumer trends and maintaining strong demand for flavor products across various channels [2][6]

Economic Policy and Market Sentiment - Kansas City Fed President Jeff Schmid emphasized the need for continued monetary policy measures to combat persistently high inflation, suggesting that current interest rates are only "slightly restrictive" [1] - Mark Hackett from Nationwide noted a "self-fulfilling rally" in the market, driven by strong earnings and investor confidence despite a lack of data and ongoing government shutdown [2] - Wall Street's main stock indexes ended mixed, with the S&P 500 and Nasdaq 100 reaching new record highs, indicating strong market momentum [2] Company Performance and Earnings - Advanced Micro Devices (AMD) surged over +23% after announcing a partnership with OpenAI, which could generate tens of billions in new revenue [2] - Tesla (TSLA) rose more than +5% following a teaser for an upcoming event, reflecting positive market sentiment [2] - Comerica (CMA) increased over +13% after Fifth Third Bancorp agreed to acquire the regional lender for approximately $10.9 billion in stock [2] - McCormick & Company (MKC) is set to report its quarterly results, highlighting ongoing interest in the spice and condiments sector [7] Market Trends and Economic Indicators - U.S. rate futures indicate a 92.5% probability of a 25 basis point rate cut at the Fed's October meeting, reflecting market expectations for monetary easing [4] - Japan's household spending rose +0.6% month-over-month and +2.3% year-over-year in August, exceeding expectations and suggesting consumer optimism [12] - Germany's factory orders unexpectedly fell -0.8% month-over-month in August, indicating challenges in international demand [9] International Developments - President Trump is scheduled to meet with Canadian Prime Minister Mark Carney to discuss tariff relief in key sectors, including autos and steel [5] - The Euro Stoxx 50 Index is down -0.04% amid political turmoil in France, with mining and healthcare stocks underperforming [8]

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 56.7, indicating a shift to the "Greed" zone from a previous reading of 53.7 [5] - U.S. stocks mostly settled higher, with the Nasdaq Composite gaining over 150 points and both the S&P 500 and Nasdaq Composite reaching record highs [1] Company Performance - Advanced Micro Devices Inc. (NASDAQ:AMD) shares surged approximately 24% following the announcement of a multi-year partnership with OpenAI to deploy 6 Gigawatts of AMD GPUs, along with issuing OpenAI a warrant for up to 160 million shares [2] - Most sectors on the S&P 500 closed positively, with utilities, consumer discretionary, and communication services stocks showing the largest gains, while consumer staples and real estate stocks declined [3] Upcoming Earnings - Investors are anticipating earnings results from McCormick & Company Inc. (NYSE:MKC) and Penguin Solutions Inc. (NASDAQ:PENG) [4]

Earnings Expectations - Wall Street anticipates McCormick & Company Inc. to report quarterly earnings of 81 cents per share with revenue projected at $1.71 billion [2] - Analysts expect Penguin Solutions Inc. to post quarterly earnings of 38 cents per share on revenue of $342.11 million [2] - Saratoga Investment Corp. is expected to report quarterly earnings of 68 cents per share with revenue of $31.98 million [2] Stock Performance - McCormick shares increased by 1.3% to $69.19 in after-hours trading [2] - SANUWAVE Health Inc. shares fell by 19.2% to $33.00 after issuing preliminary third-quarter revenue results below estimates and cutting FY25 revenue guidance from $48 million-$50 million to $44 million-$46 million [2] - Penguin Solutions shares rose by 1.7% to $29.80 in after-hours trading [2] - Telomir Pharmaceuticals Inc. shares surged by 38.7% to $1.97 following promising preclinical study results for its lead compound, Telomir-1 [2]

Company Overview - McCormick & Company, Incorporated is a leading entity in the global food industry, known for its spices, seasoning mixes, and condiments, operating through two primary segments: Consumer and Flavor Solutions [1] Price Target and Analyst Sentiment - The consensus price target for McCormick has decreased from $80.83 to $76.50 over the past year, indicating a more conservative stance from analysts [2] - Deutsche Bank has set a higher price target of $91, reflecting a bullish outlook on McCormick's financial health [2][5] Upcoming Earnings Report - McCormick's forthcoming Q3 earnings report is significant for investors, as the company faces challenges such as pricing power, margin pressures, and subdued demand from China [3][6] - Analysts are particularly interested in how McCormick will address these challenges in its earnings report, with Deutsche Bank's optimistic price target of $91 underscoring the importance of this event [3][4] Dividend Growth - Despite recent declines in share price, McCormick remains attractive to dividend growth investors, boasting a decade-high dividend yield and a 39-year streak of annual dividend increases [5][6]

Core Insights - McCormick & Company, Incorporated (MKC) is expected to report a revenue increase of 2.1% year-over-year, with third-quarter 2025 revenues estimated at $1.71 billion [1][9] - Earnings per share are projected to decline by 2.4% to 81 cents compared to the previous year [2][9] - The company has a trailing four-quarter earnings surprise average of 6.5% [2] Consumer Segment Performance - McCormick is benefiting from strong consumer demand in its core categories, including spices, seasonings, sauces, and condiments [3] - The Consumer segment's momentum is driven by innovation, increased brand marketing investments, and expanded distribution [3] - Health-conscious and flavor-driven cooking trends are resonating with consumers, leading to more home meal preparations [3] Flavor Solutions Segment Challenges - The Flavor Solutions segment is experiencing softness due to sluggish volumes among large consumer packaged goods (CPG) customers [4] - Demand in certain quick-service restaurant (QSR) channels, particularly in the EMEA region, has been muted due to geopolitical tensions and reduced consumer footfall [4] Consumer Behavior Trends - Consumer behavior in major markets like North America is mixed, with value-seeking tendencies leading to smaller purchases [5] - McCormick's strong brand equity and diversified portfolio have helped maintain resilience, but cautious spending patterns may limit pricing power and pressure margins [5] Cost and Inflation Pressures - The company is navigating elevated commodity costs and tariff-related expenses, which have not been fully offset by mitigation efforts [6] - Challenges from volatile foreign currency movements and inflationary impacts on the cost of goods sold remain a concern for the quarter [6] Earnings Prediction Insights - Current models do not predict an earnings beat for McCormick, with a Zacks Rank of 4 (Sell) and an Earnings ESP of -1.70% [7]

Company Overview - McCormick is highlighted for its seasonal product, Pumpkin Pie Spice, which is associated with the upcoming Halloween and holiday season [1] Investment Philosophy - The focus is on U.S. and European equities, particularly undervalued growth stocks and high-quality dividend growers [1] - Sustained profitability is emphasized as a more reliable driver of returns compared to valuation alone, with key metrics including strong margins, stable and expanding free cash flow, and high returns on invested capital [1] Portfolio Management - The portfolio is managed publicly on eToro, where the manager has achieved the status of Popular Investor, allowing others to replicate real-time investment decisions [1] - The investment strategy aims to balance asset management to ensure freedom in work choices rather than complete financial independence [1]

Earnings Report - McCormick & Company is set to release its third-quarter earnings results on October 7, with analysts expecting earnings of 82 cents per share, a decrease from 83 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $1.71 billion, an increase from $1.68 billion a year earlier [1] Dividend Information - McCormick currently offers an annual dividend yield of 2.64%, with a quarterly payment of 45 cents per share, totaling $1.80 annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 3,333 shares, equating to a total investment of about $226,944 [3] - For a more conservative monthly income goal of $100, an investor would need 667 shares, requiring an investment of around $45,416 [3] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which means it fluctuates with changes in stock price [4] - For instance, if a stock's price rises, the dividend yield decreases, and vice versa [4] - Changes in the dividend payment itself can also affect the yield; an increase in dividends raises the yield if the stock price remains constant [5] Stock Performance - McCormick's shares increased by 0.5%, closing at $68.09 on Thursday [5]

Earnings Report - McCormick & Company is set to release its third-quarter earnings results on October 7, with analysts expecting earnings of 82 cents per share, a decrease from 83 cents per share in the same period last year [1] - The projected quarterly revenue is $1.71 billion, an increase from $1.68 billion a year earlier [1] Acquisition Plans - On August 21, McCormick announced plans to acquire an additional 25% stake in McCormick De Mexico for $750 million, raising its ownership to 75% [2] - Following the announcement, McCormick's shares rose by 0.5%, closing at $68.09 [2] Analyst Ratings - UBS analyst Bryan Adams maintained a Neutral rating and reduced the price target from $79 to $71 [4] - Stifel analyst Matthew Smith kept a Hold rating and cut the price target from $82 to $76 [4] - JP Morgan analyst Ken Goldman maintained an Underweight rating but increased the price target from $66 to $69 [4] - TD Cowen analyst Robert Moskow upgraded the stock from Hold to Buy and raised the price target from $86 to $90 [4] - Jefferies analyst Rob Dickerson also upgraded the stock from Hold to Buy, increasing the price target from $85 to $91 [4]