We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will McCormick Be Able to Sustain Its 2% Organic Growth in 2026?
Read MoreHide Full Article
Key Takeaways
McCormick delivered 2% organic growth in Q3, driven by consumer volume gains across key markets.
Mustard, hot sauce and Flavour Solutions saw strong share gains supported by innovation and distribution.
MKC targets 1-3% organic growth in 2025, leaning on efficiency, sourcing, and revenue management efforts.
McCormick & Company Inc. (MKC - Free Report) experienced volume-led growth for the fifth straight quarter in the third quarter of 2025. The company reported a 2% organic sales growth, mainly fueled by increased volumes in the Consumer segment.
Mustard and hot sauce performed particularly well, boosting dollar unit share, and McCormick’s Flavor Solutions business also remained strong, supporting diversification of its customer base. Key drivers for this growth include sustained investment in brands, broader distribution and innovation.
That said, the global trade landscape and various macroeconomic challenges, like rising commodity prices and added tariffs, are still putting pressure on the company. McCormick is undertaking efficiency strategies to cope with these changing conditions. Thanks to the effective execution of these initiatives, the company's operating profit improved in the third quarter of 2025, despite some strain on gross margins. With these disciplined strategies and the ability to adapt quickly, the company seems well-prepared for future growth.
For 2025, McCormick expects organic sales growth in the range of 1-3%. To mitigate future risks, the company plans to lean more on alternative sourcing, smarter supply-chain strategies and disciplined revenue management, especially on pricing.
With strengthening category trends, ongoing innovation and improved operational discipline, McCormick appears reasonably positioned to carry its growth progress into 2026, provided market headwinds remain manageable.
McCormick Faces Competition From Conagra Brands & Kraft Heinz
In the first quarter of fiscal 2026, Conagra Brands Inc. (CAG - Free Report) reported a 5.8% drop in net sales, while organic sales dipped a bit by 0.6%. This included a 0.6% positive effect from pricing and mix, while CAG’s volumes dipped 1.2%. On a brighter note, Conagra Brands managed to gain market share in areas like frozen desserts, refrigerated whipped toppings, canned tomatoes and frozen multi-serve meals.
In the third quarter of fiscal 2025, Kraft Heinz Company (KHC - Free Report) posted a 2.3% drop in net sales to $6.24 billion. Kraft Heinz Company’s organic sales also fell 2.5%. The company also experienced a 3.5% decline in volume and mix, whereas pricing increased nearly 1%.
Image: Bigstock
Will McCormick Be Able to Sustain Its 2% Organic Growth in 2026?
Key Takeaways
McCormick & Company Inc. (MKC - Free Report) experienced volume-led growth for the fifth straight quarter in the third quarter of 2025. The company reported a 2% organic sales growth, mainly fueled by increased volumes in the Consumer segment.
Mustard and hot sauce performed particularly well, boosting dollar unit share, and McCormick’s Flavor Solutions business also remained strong, supporting diversification of its customer base. Key drivers for this growth include sustained investment in brands, broader distribution and innovation.
That said, the global trade landscape and various macroeconomic challenges, like rising commodity prices and added tariffs, are still putting pressure on the company. McCormick is undertaking efficiency strategies to cope with these changing conditions. Thanks to the effective execution of these initiatives, the company's operating profit improved in the third quarter of 2025, despite some strain on gross margins. With these disciplined strategies and the ability to adapt quickly, the company seems well-prepared for future growth.
For 2025, McCormick expects organic sales growth in the range of 1-3%. To mitigate future risks, the company plans to lean more on alternative sourcing, smarter supply-chain strategies and disciplined revenue management, especially on pricing.
With strengthening category trends, ongoing innovation and improved operational discipline, McCormick appears reasonably positioned to carry its growth progress into 2026, provided market headwinds remain manageable.
McCormick Faces Competition From Conagra Brands & Kraft Heinz
In the first quarter of fiscal 2026, Conagra Brands Inc. (CAG - Free Report) reported a 5.8% drop in net sales, while organic sales dipped a bit by 0.6%. This included a 0.6% positive effect from pricing and mix, while CAG’s volumes dipped 1.2%. On a brighter note, Conagra Brands managed to gain market share in areas like frozen desserts, refrigerated whipped toppings, canned tomatoes and frozen multi-serve meals.
In the third quarter of fiscal 2025, Kraft Heinz Company (KHC - Free Report) posted a 2.3% drop in net sales to $6.24 billion. Kraft Heinz Company’s organic sales also fell 2.5%. The company also experienced a 3.5% decline in volume and mix, whereas pricing increased nearly 1%.
The Zacks Rundown for MKC
MKC’s shares have plunged 15.3% year to date compared with the industry’s decline of 14%. MKC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
From a valuation standpoint, MKC trades at a forward price-to-earnings ratio of 20.05, higher than the industry’s average of 14.59.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MKC’s fiscal 2025 and 2026 earnings implies a year-over-year rise of 2.4% and 6.9%, respectively.
Image Source: Zacks Investment Research