MKC's Q3 Shows Solid Consumer Momentum: Will the Strength Last in 2026?

Core Insights - McCormick & Company, Inc. (MKC) has shown solid consumer momentum, primarily driven by volume-led growth, with organic sales in the consumer segment increasing by 3% [1][9] - The company achieved share gains in key markets, particularly in the U.S., Canada, and Europe, with notable performance in the grilling portfolio and mustard category [2][3][9] Sales Performance - In Q3 of fiscal 2025, McCormick experienced robust volume growth across its Spices and Seasonings portfolio in every region, with U.S. volumes surpassing private label for the fifth consecutive quarter [2] - The mustard category and hot sauce showed strong results, with unit and dollar share gains across the Americas and EMEA, supported by expanded distribution and enhanced marketing [3][9] Market Trends - McCormick is benefiting from health and wellness trends, with high-protein and better-for-you claims driving accelerated purchase behavior in retail and foodservice channels [5] - The company outperformed industry trends in nutrition bars, beverages, and better-for-you snack seasonings, with strong QSR performance fueled by innovation and new product promotions [4][5] Financial Outlook - The Zacks Consensus Estimate for MKC's fiscal 2025 and 2026 earnings implies a year-over-year rise of 2.4% and 6.5%, respectively [15] - MKC's shares have lost 9.5% in the past six months, aligning with industry performance, and the company trades at a forward price-to-earnings ratio of 21.96, higher than the industry average of 14.87 [6][7]