While many companies in food space are grappling with rising operational costs and stiff competition, McCormick & Company, Incorporated (MKC - Free Report) is among the few that have maintained their appeal to investors. This global leader of flavors and spices has managed to stay afloat on the back of its popular brands. In fact, McCormick’s well-strategized buyouts have boosted brand strength. Let’s take a look at some of the aspects that are driving this Zacks Rank #2 (Buy) company.
Adorning Kitchen Shelves With Popular Brands
Courtesy of popular brands, McCormick has become a cherished name in culinary. A significant chunk of the popularity is attributable to the acquisition of the food division of RB Foods. The deal, which is among the company’s largest, has added iconic brands such as Frank's and French's to the portfolio. These brands command popular products such as Frank's RedHot Sauce and French's Mustard. Indeed, such renowned products have positioned the company in the leading U.S. condiments category.
Encouragingly, the Frank’s and French’s brands drove McCormick’s sales by 10% in the third quarter of fiscal 2018. In fact, the brands boosted sales in the consumer and flavor solutions segments by 10% and 9%, respectively. Going ahead, management is on track with product launches under these banners.
Management expects gains from acquisitions to continue bolstering performance in the forthcoming periods. In the past as well, the company made important acquisitions, which include Italy-based Enrico Giotti SpA (Dec 2016) and Australia-based Botanical Food Company (April 2016). These takeovers have also fortified portfolio strength.
Apart from enhancing brand strength with strategic takeovers, the company has also been resorting to innovation. Notably, innovations enable McCormick to benefit from the evolving demand for new flavors, spices and herbs. Aided by a sturdy brand image, McCormick enjoys strong retail acceptance for new products. In fact, newly-added products boosted sales in the consumer and flavor solutions segments during the third quarter. Health and wellness also continue to drive the innovation agenda.
Further, to ensure brand popularity, the company regularly engages in marketing. In fact, the company has been consistently increasing spending on digital marketing. McCormick expects such moves to aid connecting with consumers in a more personalized manner and drive awareness for new products.
Wrapping Up
Buoyed by the company’s robust brand development strategies and savings from the comprehensive Continuous Improvement (CCI) program, McCormick flaunts a stellar top- and bottom-line growth record. Clearly, the company’s impressive performance is a treat for investors, as its shares have rallied 34.6% in a year, against the industry’s decline of 2.3%. That said, we expect the company’s yielding growth endeavors to sustain its bullish run in the forthcoming periods.
Looking for More Savories in Consumer Staples? Check These
MEDIFAST INC (MED - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), delivered average positive earnings surprise of 16.6% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chefs' Warehouse, Inc (CHEF - Free Report) , with long-term earnings per share (EPS) growth rate of 19%, carries a Zacks Rank #2.
Danone (DANOY - Free Report) has long-term EPS growth rate of 8.2% and a Zacks Rank #2.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
While many companies in food space are grappling with rising operational costs and stiff competition, McCormick & Company, Incorporated (MKC - Free Report) is among the few that have maintained their appeal to investors. This global leader of flavors and spices has managed to stay afloat on the back of its popular brands. In fact, McCormick’s well-strategized buyouts have boosted brand strength. Let’s take a look at some of the aspects that are driving this Zacks Rank #2 (Buy) company.
Adorning Kitchen Shelves With Popular Brands
Courtesy of popular brands, McCormick has become a cherished name in culinary. A significant chunk of the popularity is attributable to the acquisition of the food division of RB Foods. The deal, which is among the company’s largest, has added iconic brands such as Frank's and French's to the portfolio. These brands command popular products such as Frank's RedHot Sauce and French's Mustard. Indeed, such renowned products have positioned the company in the leading U.S. condiments category.
Encouragingly, the Frank’s and French’s brands drove McCormick’s sales by 10% in the third quarter of fiscal 2018. In fact, the brands boosted sales in the consumer and flavor solutions segments by 10% and 9%, respectively. Going ahead, management is on track with product launches under these banners.
Management expects gains from acquisitions to continue bolstering performance in the forthcoming periods. In the past as well, the company made important acquisitions, which include Italy-based Enrico Giotti SpA (Dec 2016) and Australia-based Botanical Food Company (April 2016). These takeovers have also fortified portfolio strength.
Apart from enhancing brand strength with strategic takeovers, the company has also been resorting to innovation. Notably, innovations enable McCormick to benefit from the evolving demand for new flavors, spices and herbs. Aided by a sturdy brand image, McCormick enjoys strong retail acceptance for new products. In fact, newly-added products boosted sales in the consumer and flavor solutions segments during the third quarter. Health and wellness also continue to drive the innovation agenda.
Further, to ensure brand popularity, the company regularly engages in marketing. In fact, the company has been consistently increasing spending on digital marketing. McCormick expects such moves to aid connecting with consumers in a more personalized manner and drive awareness for new products.
Wrapping Up
Buoyed by the company’s robust brand development strategies and savings from the comprehensive Continuous Improvement (CCI) program, McCormick flaunts a stellar top- and bottom-line growth record. Clearly, the company’s impressive performance is a treat for investors, as its shares have rallied 34.6% in a year, against the industry’s decline of 2.3%. That said, we expect the company’s yielding growth endeavors to sustain its bullish run in the forthcoming periods.
Looking for More Savories in Consumer Staples? Check These
MEDIFAST INC (MED - Free Report) , flaunting a Zacks Rank #1 (Strong Buy), delivered average positive earnings surprise of 16.6% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Chefs' Warehouse, Inc (CHEF - Free Report) , with long-term earnings per share (EPS) growth rate of 19%, carries a Zacks Rank #2.
Danone (DANOY - Free Report) has long-term EPS growth rate of 8.2% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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