McCormick: Better Than Feared – Now It’s About US Consumer Delivery

研报英文原文证据摘录

McCormick: Better Than Feared – Now It’s About US Consumer Delivery

Deutsche Bank

Research

Rating Company Date

Buy McCormick 26 June 2026

Results

North America

United States

Reuters Bloomberg Exchange Ticker Price at 25 Jun 2026 (USD) 48.35

MKC.N MKC US NYS MKC

Price target 60.00

Consumer

52-week range 76.58 - 45.60

Consumer Staples

Better Than Feared – Now It’s About US

Valuation & Risks Consumer Delivery

Steve Powers

Key takeaways from MKC's FY2Q26 results Research Analyst

As highlighted this morning, MKC’s FY2Q26 results came in better-than-feared, +1-212-250-5480

with solid Flavor Solutions performance and resilient ex-US Consumer trends

Christopher Barnes, CFA

offsetting expected softness in Americas Consumer. Profitability was further Research Analyst

supported by $28 million in IEEPA tariff refunds, though importantly, underlying +1-212-454-0778

gross margin expansion also remained healthy. Management reaffirmed FY26

Angeline Goh

guidance, with tariff refunds largely offsetting incremental inflation (i.e., recent

Research Associate

cost pressures arising from the Middle East conflict) while also helping fund

+1-212-250-4515

stepped-up reinvestment to drive improved US demand (e.g., value-based

corrections and +low-to-mid-teens brand marketing). Nikhil Jain, CFA

+1-212-250-3253

While we agree that proof of improvement in the US Consumer business is still

required, we are incrementally more encouraged exiting results regarding strength

Key changes

in Consumer outside the US as well as in Flavor Solutions (particularly tied to

TP 59.00 to 60.00 ↑ 1.7%

reformulation activity and customer wins). Such momentum, should it prove

EPS (USD) 3.06 to 3.08 ↑ 0.4% durable, helps reinforce the broader health of the underlying business.

Revenue (USDm) 7,881 to 7,928 ↑ 0.6%