McCormick & Company (MKC) Reports 2% Organic Sales Growth in Q4 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Sales Growth: McCormick achieved a 2% organic sales growth in Q4 2025, with the Global Consumer segment experiencing volume growth for the seventh consecutive quarter, reflecting the company's sustained momentum from brand investments and distribution expansion.
- Margin Pressures: Despite facing gross margin pressures from higher-than-expected inflation and tariff costs in Q4, management anticipates recovering the 60 basis points of margin compression in 2026, indicating confidence in future profitability.
- Acquisition Strategy: The acquisition of a controlling interest in McCormick de Mexico is expected to contribute 11% to 13% to revenue, further solidifying the company's position in the Latin American market.
- Future Outlook: McCormick projects organic net sales growth of 1% to 3% for 2026, supported by higher pricing and sustained volume growth, while adjusted earnings per share are expected to range from $3.05 to $3.13.
Analyst Views on MKC
Wall Street analysts forecast MKC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MKC is 83.67 USD with a low forecast of 75.00 USD and a high forecast of 89.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 66.560
Low
75.00
Averages
83.67
High
89.00
Current: 66.560
Low
75.00
Averages
83.67
High
89.00
About MKC
McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry, including retailers, food manufacturers and foodservice businesses. It operates through two segments: consumer and flavor solutions. The consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the McCormick brand and a variety of brands around the world, including French's, Frank's RedHot, Lawry’s, Zatarain’s, Simply Asia, Thai Kitchen, Ducros, Vahine, Cholula, Schwartz, Club House, Kamis, DaQiao, La Drogheria, Stubb's, OLD BAY, Gourmet Garden, and others. In its flavor solutions segment, it provides a range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied with branded, packaged products both directly by the Company and indirectly through distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
