McCormick Beats Q2 Profit Expectations, Maintains FY25 Forecast: Retail Turns More Optimistic

Spice maker McCormick (MKC) beat profit expectations for the second quarter and reaffirmed its full-year forecast on Thursday, underscoring that consumers continue to spend on essential food items.

McCormick’s shares rose 5.3% to $77.57, their highest intraday gains in over a year, while retail sentiment improved.

The company reported adjusted income of $0.69 per share, topping the $0.65 estimate from FactSet. Sales rose 1% to $1.66 billion, in line with Wall Street estimates.

"We are pleased with our strong results for the first half of the year, as we are managing in a dynamic environment," CEO Brendan Foley said.

"For this fiscal year, we are well positioned with our robust plans to mitigate current tariff related costs, fuel growth investments, and expand operating margins."

The initiatives include optimizing sourcing strategies and implementing cost-saving and revenue-growth management measures, the company said.

McCormick manufactures and sells spices and seasonings under its namesake brand as well as French's, Frank's RedHot, Old Bay, and Cholula. The company recently elevated CEO Foley to the position of chairman of the board of directors.

McCormick maintained its net sales outlook of flat to 2% growth in the current fiscal year, as well as its adjusted earnings guide of $3.03 to $3.08 per share.

On Stocktwits, the retail sentiment for McCormick climbed a few notches higher in the 'extremely bullish' territory, while message volume jumped to 'extremely high' from 'high.'

Users posted expectations of near-term upside for the stock, with one forecasting it to hit $90 by the end of this year.

McCormick shares are up 1.7% year-to-date.

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