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McCormick & Company, IncorporatNYSE: MKC

Consumer Staples · Packaged Foods & Meats

$47.26

-1.27%

Vol: 1.2M

Research Digest

Tuesday, June 16, 2026

Neutral

No significant overnight updates

No material news in the last 48 hours.

Price 50d 200d

Previous Market Intelligence

13 days
Jun 15No significant overnight updatesNeutral

No material news in the last 48 hours.

Jun 14Reuters reported June 13 that activist hedge fund Toms Capital built a significant McCormick stake tied to the company's planned acquisition of Unilever's food business, a deal that would create a ~$65 billion sauces-and-spices giant.Mixed

On June 13, 2026, Toms Capital Investment Management was reported to have built a significant stake in McCormick during Q2, after McCormick announced plans to acquire Unilever's food business. A successful takeover would create roughly a $65 billion sauce-and-spice company, adding brands such as Hellmann's mayonnaise alongside McCormick's French's mustard. The deal is expected to close by mid-2027, subject to regulatory and McCormick shareholder approval. The activist presence plus a transformational acquisition could shape McCormick's governance and capital allocation. The bear case is integration and financing risk on a large, leverage-adding deal, regulatory hurdles, and the long timeline to close, against a backdrop where UBS recently cut its target to $51 on softer food-sector demand.

May 21McCormick stock closed at $46.70 (-1.16%) on May 20 amid continued market skepticism over its $44.8B merger with Unilever's Foods business, despite securing a $2B term loan on May 1 to fund the deal.Mixed

McCormick's transformative merger with Unilever Foods (announced March 2026) would more than double sales to roughly $20B, with $600M/year in synergies expected by year three but near-term leverage rising to 4x. Unilever shareholders would initially own 55%, intending to retain around 10% post-deal. On May 1, McCormick secured a $2B term loan to fund the merger. The stock has fallen 38.1% over the past year as markets digest the integration risk. Q1 2026 results showed strong execution with net sales up 16.7% and margin expansion, with the heat portfolio (Frank's RedHot, Cholula) driving above-average growth. Among 13 analysts the consensus is Moderate Buy (7 Strong Buy, 6 Hold), with 9 analysts rating Buy as of May 12 and a $68.11 average 2026 price target implying 36.7% upside. Next earnings June 25.

May 20McCormick navigates market concerns over its announced combination with Unilever Foods while reaffirming 2026 outlook on Q1 organic sales growth.Mixed

McCormick announced a major combination with Unilever Foods that offers compelling cost synergies of roughly $600M/year by year three and global distribution opportunities, though the deal initially spooked markets as near-term leverage will rise to 4x and Unilever shareholders will own 55% of the combined entity. The company reported Q1 fiscal 2026 results (quarter ended Feb 28) with net sales up 16.7% (including 3.1% FX benefit) and organic sales growth of 1.2%, reaffirming its full-year 2026 sales, adjusted operating income, and adjusted EPS outlook. Bernstein maintained a Buy rating on May 13, and Deutsche Bank also kept a Buy. Wall Street analysts hold a consensus rating of Buy with an average price target of around $64-$68, implying about 33% upside from levels near $48 in mid-May. Shares have struggled, hitting a 52-week low of $46.82 versus a high of $78.16. Next earnings are scheduled for June 25.

May 19McCormick shares slipped to $46.35 as proposed Unilever Foods merger overhang weighs on stock despite Q1 sales up 17%.Mixed

McCormick shares finished the week down at $46.35, with the proposed merger with Unilever Foods continuing to weigh on sentiment due to financing and execution questions. The deal is expected to close by mid-2027 pending McCormick shareholder vote and regulatory clearance. On the fundamentals side, Q1 fiscal 2026 net sales rose 17% (helped by the McCormick de Mexico acquisition completed in January, lifting ownership to 75%) with organic growth of 1.2% and adjusted EPS of $0.66 vs $0.60 prior year. The company reaffirmed its fiscal 2026 outlook. Recent brand initiatives include collectible Old Bay tins, community scholarships, a Preakness Stakes partnership, and a MICA artist collaboration. According to 9 analysts, MKC carries a Buy consensus rating as of May 12, 2026. The stock faces ongoing pressure from rising costs and the deal-related overhang.

May 18McCormick shares closed at $46.35 on May 15 after a volatile week, pressured by ongoing concerns over the Unilever Foods merger which required securing a $2B term loan on May 1.Negative

McCormick stock remained volatile with shares falling to $46.35 by week's end (started Monday at $48.49, hit $44.82 low Wednesday), as the proposed Unilever Foods tie-up continues to overhang the stock amid financing and execution concerns. McCormick secured a $2 billion term loan on May 1, 2026 to support the merger, which targets $600M/year in cost synergies by year three but raises near-term leverage to 4x with Unilever shareholders initially owning 55%. The deal is set to close by mid-2027 pending shareholder vote and regulatory clearance. Q1 results showed net sales up 17% and adjusted EPS at $0.66 (vs $0.60 prior year), aided by the McCormick de Mexico acquisition. Heat portfolio (Frank's RedHot, Cholula) drove above-average growth. Analyst consensus is Buy with average price target of $64.27 implying 33% upside.

May 15McCormick analyst consensus targets 33% upside to $64.27 amid Unilever Foods deal skepticism; stock at $46.79 on May 15Neutral

McCormick & Company shares traded between $45.68 and $47.16 on May 15, 2026, last at $46.79, after falling 2.59% on May 11. Wall Street maintains a Hold consensus with an average price target of $64.27 implying 33% upside (14 analysts: 6 Buys, 8 Holds, per MarketBeat May 8). The Unilever Foods combination announcement continues to weigh on sentiment despite strong Q1 results with margin expansion and reaffirmed FY26 guidance — Unilever shareholders would initially own 55% and pro-forma leverage would rise to 4x, though the deal offers ~$600M of annual cost synergies by year three. McCormick previously completed its acquisition of an additional 25% in McCormick de Mexico (now 75%). Risk: deal complexity, leverage build-up, and broad food-industry headwinds continue to pressure the stock; next earnings June 25.

May 14McCormick stock hits 52-week low at $46.80 amid Unilever foods merger overhang, down 28.8% YTDNegative

McCormick & Co stock hit a 52-week low of $46.80, down 28.8% YTD and 35.3% over the past year. The dominant story remains the $44.8 billion deal in which Unilever agreed to combine its foods business with McCormick, expected to close by mid-2027. Andrew Foust was appointed Chief Integration Officer to oversee the merger, while Patrick Davis became Interim President Americas. McCormick reported Q1 2026 EPS of $0.66 beating the $0.60 estimate by 10%, and the Board declared a $0.48 quarterly dividend. Recently launched products include the 2026 Flavor of the Year Black Currant with Sensoria experience, MISSION BBQ Sauces retail line, and Cholula's "Cho-lu-la!" summer campaign with three new products. Barclays cut its PT to $57 from $58 (Equal Weight); consensus PT of $67 implies 49.15% upside according to 10 analysts rating MKC as Buy.

May 13McCormick hit 52-week low near $47 amid Unilever Foods merger scrutiny despite Q1 beat with adjusted EPS of $0.66 vs $0.60 consensusMixed

McCormick & Company shares fell 2.59% on May 11, 2026 to $47.07, hitting a new 52-week low of $46.82 amid investor concerns about its pending Unilever Foods combination. The deal offers $600M/year in cost synergies by year three and global distribution upside, but near-term leverage will rise to 4x and Unilever shareholders will initially own 55% of the combined entity. The company secured a $2B term loan on May 1 to finance the merger and named a Chief Integration Officer. Despite the stock weakness, McCormick delivered strong Q1 results with adjusted EPS of ~$0.66 beating $0.60 consensus, robust margin expansion, and reaffirmed FY26 guidance. Wall Street maintains a Hold consensus with a $64.27 average price target implying 33% upside.

May 12McCormick shares hovering near 52-week lows on May 11 with Unilever food-business merger under ESG scrutiny from Unilever investors.Negative

MKC traded between $46.82-$48.93 on May 11, with shares near 52-week lows as the planned combination with Unilever's food business (a $44.8B deal first unveiled March 31) faces ESG-related scrutiny from Unilever shareholders around sustainability and forestry standards. McCormick secured a $2B term loan on May 1 to fund the merger. Midwest Trust disclosed a 16.1% position increase in Q4. Bear case: 52-week-low pricing reflects investor caution on consumer-spending headwinds and cost inflation, and execution/regulatory risk on the Unilever deal could continue to weigh until closing milestones are reached.

May 11McCormick navigates investor skepticism over $600M-synergy Unilever Foods deal as Q1 results beat and FY26 guidance reaffirmed.Mixed

McCormick delivered strong Q1 2026 results with margin expansion, reaffirming FY26 guidance of 13-17% net sales growth (12-16% constant currency). The Unilever Foods combination offers $600M/year cost synergies by year three but raises near-term leverage to 4x, with Unilever shareholders initially owning 55% of the combined entity. The company arranged a new $2.00B term loan to fund the deal. Stock opened at $48.29, trading below its 50-day ($55.38) and 200-day ($62.60) moving averages, reflecting market skepticism. Buy consensus rating maintained by 9 analysts.

May 8Q1 earnings beat with Mexico acquisition boost; $2B term loan arranged for Unilever Foods dealMixed

McCormick reported Q1 2026 results exceeding estimates with growth driven by January 2026 McCormick de Mexico acquisition and reaffirmed full-year guidance. Company arranged $2B term loan for pending Unilever Foods combination (set to close mid-2027) which includes $600M annual synergies by year three. Despite earnings beat, stock traded at $48.49 on May 6, down 5.73% one-month and 36.38% over 52 weeks. Nine analysts maintain Buy consensus rating with 2026 price target of $68.11.

May 7McCormick beats Q1 earnings by 10% amid $44.8B Unilever Foods merger deal expected to close mid-2027Positive

McCormick reported Q1 2026 EPS of $0.66, beating estimates of $0.60 by 10%. The company is navigating a transformative merger with Unilevers Foods business valued at $44.8 billion, projected to close by mid-2027, and has appointed a Chief Integration Officer. Analysts maintain cautious outlook with mixed ratings reflecting integration complexities, though consensus rating is Buy with $67.0 target price representing 32.7% upside.

Sector Peers

CompanyPriceDay1MFwd P/EBetaMkt Cap
MKCMCCORMICK$47.26-1.27%+2.5%14.4x0.64$12.9B
MDLZMONDELEZ$61.46-0.07%-0.2%18.2x0.40$78.9B
HSYHERSHEY$182.94+1.01%-5.5%18.2x0.08$36.7B
KHCKRAFT$23.64-1.46%+2.7%11.5x0.08$28.4B
TSNTYSON$57.53+0.40%-14.1%12.6x0.38$20.2B
GISGENERAL$34.54+0.79%+2.5%10.9x-0.04$18.3B

Key Fundamentals

Market Cap$12.9B
P/E (TTM)7.8
Forward P/E14.4
Beta0.64
Div Yield392.00%
Prev Close$47.87

RSI (14-Day)

34Neutral
0305070100

52-Week Range

$44.82$47.26$78.16
From High-39.5%
From Low+5.4%

Moving Averages

50d SMA
$51.91-9.0%
200d SMA
$63.01-25.0%

Price below 200d MA — bearish structure.

Historical Returns

1W
+2.0%
1M
-13.0%
3M
-31.7%
6M
-28.0%
1Y
-35.5%
YTD
-29.8%

Volume

Today1.2M
20d Avg2.7M
Ratio0.42x