Bernstein has increased its price target for McCormick (MKC, Financial) from $101 to $102, maintaining an Outperform rating on the stock. This recommendation follows the release of the company's robust second-quarter results and the reaffirmation of its forecasts. Despite facing a 10% tariff on imports from most countries and an additional 30% tariff on Chinese imports, McCormick has managed to uphold its fiscal year 2025 guidance. This ability showcases the resilience and strength of MKC's underlying business operations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for McCormick & Co Inc (MKC, Financial) is $84.46 with a high estimate of $101.00 and a low estimate of $69.11. The average target implies an upside of 8.89% from the current price of $77.57. More detailed estimate data can be found on the McCormick & Co Inc (MKC) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, McCormick & Co Inc's (MKC, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for McCormick & Co Inc (MKC, Financial) in one year is $82.39, suggesting a upside of 6.21% from the current price of $77.57. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the McCormick & Co Inc (MKC) Summary page.
MKC Key Business Developments
Release Date: June 26, 2025
- Total Organic Sales Growth: Increased by 2% for the quarter, driven by volume and mix.
- Consumer Segment Organic Sales: Increased by 3%, with 4% volume growth in the Americas.
- Flavor Solutions Segment Organic Sales: Flat, with a 1% contribution from price offset by a 1% decline in volume and mix.
- Gross Profit Margin: Flat compared to the previous year, impacted by higher commodity costs.
- Adjusted Operating Income: Increased by 10%, or 11% excluding currency impacts.
- Adjusted Earnings Per Share: $0.69, comparable to the previous year.
- Cash Flow from Operations: $161 million, down from $302 million in the previous year.
- Capital Expenditures: $85 million used for capital expenditures.
- Tariff Exposure: Total gross annualized tariff exposure approximately $90 million, with $50 million in-year exposure for 2025.
- 2025 Financial Outlook: Net sales growth expected between 1% and 3%, with adjusted EPS projected at $3.03 to $3.08.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- McCormick & Co Inc (MKC, Financial) reported a 2% increase in total organic sales for the second quarter, driven by volume growth, particularly in the Consumer segment.
- The company achieved volume growth of more than 3% in the Consumer segment, with strong performance in the Americas and EMEA regions.
- McCormick & Co Inc (MKC) continues to see strong demand for its products, driven by consumer trends towards flavorful, fresh, and healthy meals.
- The company is effectively managing tariff impacts through strategic sourcing and cost-saving initiatives, maintaining its volume-led growth and operating profit outlook for 2025.
- McCormick & Co Inc (MKC) is expanding its distribution and launching new products, such as air fryer seasonings and finishing salts, to drive growth and meet consumer demand.
Negative Points
- The Flavor Solutions segment experienced a decline in volume, particularly in the EMEA region, due to softness in customer volumes and geopolitical boycotts.
- The company faces increased cost pressures from the global trade environment, impacting its gross margin expectations for 2025.
- McCormick & Co Inc (MKC) is experiencing softness in volumes from some large CPG customers, affecting its Flavor Solutions segment.
- The company anticipates continued challenges in the quick service restaurant (QSR) sector in EMEA, impacting its performance in that region.
- McCormick & Co Inc (MKC) reported a decrease in cash flow from operations compared to the previous year, driven by higher cash used due to the timing of working capital.
