McCormick & Company Inc.

MKC
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.7B
Q3 FY2025 · +2.7% YoY
TTM ROIC
9.1%
FY2025 · NOPAT / Invested Capital (Total Equity + Net Debt) · WACC ~6.6% · Moat spread +2.5pp

Financial Snapshot


ticker: MKC step: 04 generated: 2026-05-12 source: quick-research

McCormick & Company, Incorporated (MKC) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$6.35B $6.66B $6.72B +0.9%
Gross Margin ~36.7% ~38.5% ~38.7% +20bps
Adj. Operating Income $917M $1.02B ~$1.08B +5.9%
EPS (GAAP) ~$2.52 $2.52 ~$2.70 +7.1%
Adj. EPS $2.53 $2.70 ~$2.90 +7.4%

FY2022–FY2023 revenue growth was primarily price-driven as input cost inflation was passed through to customers. FY2024 saw volume recovery alongside continued margin expansion from the CCI program. FY2025 "strong results" with +2% net sales growth on volume/mix. Long-term targets: 4–6% net sales growth, 9–11% adj. EPS growth.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$900M–1.0B
Free Cash Flow ~$750–850M
Capital Expenditures ~$150–200M
Total Debt ~$4.5B (elevated from acquisitions)
Dividend Yield ~2.3% (39 consecutive years of increases)

Debt is elevated post-2017 Frank's/French's and 2020 Cholula acquisitions, but FCF generation comfortably services debt. Dividend has grown consistently — McCormick is a Dividend Aristocrat.

Key Ratios (approximate)

  • P/E: ~27x | EV/EBITDA: ~22x | FCF Yield: ~4%
  • Gross Margin (FY2024): ~38.7% | Adj. Operating Margin: ~16%
  • Long-term Net Sales Growth Target: 4–6% annually
  • Long-term Adj. EPS Growth Target: 9–11% annually

Growth Profile

McCormick's revenue growth has been modest (1–2% recently) as post-COVID normalization and consumer value-seeking pressure volumes. The Comprehensive Continuous Improvement (CCI) program consistently delivers 1–2% cost savings per year that fund growth investment and margin expansion. The long-term story is margin expansion + volume recovery driving mid-single-digit revenue growth and high-single-digit EPS growth.

Forward Estimates

  • FY2026 adj. EPS: ~$3.00–3.10 (consensus; management targets 9–11% growth)
  • FY2026 net sales growth: ~4–6% (long-term target)
  • Dividend: 40th consecutive annual increase expected in 2025

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $MKC.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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