McCormick shares fell 3.7% after earnings, with softer-than-expected Global Flavor Solutions volumes and continued pressure in the U.S. consumer business likely weighing on sentiment. Organic sales grew 2%, but management flagged muted food-industry demand and said U.S. herbs, spices and seasonings still have room to improve.
- Total sales rose 17% in constant currency, including the McCormick de Mexico acquisition; organic sales grew 2%.
- Global Flavor Solutions had organic growth from pricing and volume, but volumes were slightly below expectations as softer CPG and QSR demand, a U.S. cyclospora outbreak and lower EMEA QSR foot traffic weighed on performance.
- Global Consumer trends improved from the second quarter, with momentum in EMEA and Asia Pacific and early improvement in the Americas; U.S. consumption remains pressured by value-conscious shoppers and higher seafood and beef prices.
- The company reported margin expansion and increased earnings, citing productivity and operational discipline to offset higher input, freight and other inflationary costs.
- Management said Asia Pacific Flavor Solutions volume growth should continue for the rest of the year, but at a more normalized rate than in the third quarter; it reaffirmed confidence in delivering its 2026 outlook.
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