Summary of McCormick & Company 2026 Conference Call Company Overview - **Company**: McCormick & Company (NYSE: MKC) - **Industry**: Packaged Food - **Date of Conference**: February 17, 2026 Key Points Industry Position and Growth - McCormick is recognized as a global leader in flavor, delivering consistent volume growth in a challenging packaged food environment [2][4] - The company emphasizes that it competes with flavor rather than calories, differentiating itself from peers [3][7] - The global demand for flavor is projected to grow by 5%-7%, with a market growth of 35% within McCormick's current geographic footprint [10] Financial Performance - From 2015 to 2025, McCormick achieved a 12% organic sales growth, with a compounded annual growth rate of 6% [36][37] - The company expects to maintain organic sales growth of 3%-4% in 2026, driven by new products and increased brand marketing [49][50] - Operating income margins are anticipated to improve through operating leverage and cost savings initiatives [50] Strategic Initiatives - McCormick is focused on digital transformation, leveraging data and AI to enhance innovation, operations, and consumer engagement [12][41] - The company is committed to sustainability and health trends, aiming to meet consumer demands for healthier options [32][33] - McCormick's Flavor Solutions segment is central to its growth strategy, emphasizing partnerships with customers to reformulate products [31] Brand and Product Innovation - McCormick holds the number one brand position in spices, seasonings, hot sauce, and mustard, with strong household penetration [16] - The company is innovating with new flavors and packaging, including the McCormick Gourmet collection and modernized seasoning blends [20][23] - Marketing campaigns, particularly for Frank's RedHot, have successfully engaged younger consumers, driving brand loyalty [22][29] Acquisitions and Market Expansion - Recent acquisitions, including a majority stake in McCormick de Mexico, are expected to contribute to both top and bottom-line growth [46][49] - The company maintains a disciplined approach to acquisitions, with a focus on enhancing its portfolio and market presence [47] Challenges and Outlook - McCormick faces cost pressures from inflation and increased tax rates, but is implementing strategies to offset these challenges [39][48] - The company remains confident in its ability to deliver on its long-term objectives, reaffirming targets of 4%-6% net sales growth and 8%-11% earnings per share growth [51] Conclusion - McCormick is well-positioned to capitalize on the growing demand for flavor, supported by a strong brand portfolio, innovative product offerings, and strategic initiatives aimed at enhancing profitability and market reach [52]

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 ...