McCormick & Company reported stronger-than-expected Q2 results Thursday, causing its stock value to increase roughly 1.6% to end the day at slightly more than $48 per share.
The global spice and sauce company, which is in the midst of an estimated $44.8 billion acquisition of multinational consumer goods company Unilever’s food business, reported Q2 earnings of 80 cents per share on revenue of $1.94 billion.
The results beat Wall Street consensus earnings estimates of 69 cents per share on revenue of $1.9 billion, according to Earnings Whispers.
The positive results were due in part to consumer trends toward cooking at home and innovations at McCormick, according to Chairman, President and CEO Brendan Foley.
“Health and wellness trends continue to shape behavior, driving sustained growth in perimeter categories, at-home cooking, protein and broader, better-for-you categories across retail and foodservice,” Foley said. “Within this environment, flavor remains a powerful constant. At-home cooking continues to benefit from consumers seeking affordable, healthier meal solutions, and flavor is the primary driver of purchase across occasions. As a result, spices and seasonings remain the top performer in terms of center store growth.”
Unilever integration continues
McCormick has made “strong progress” on integration planning of Unilever’s food business, since announcing plans for the acquisition in March, Foley said.
The integration plan is being led by McCormick President – Americas Andrew Foust, who also oversaw acquisitions of RB Foods, Cholula and FONA, Foley said.
“Unilever has established parallel teams. Altogether, there are more than 200 individuals fully dedicated to working across integration streams. From a separation standpoint, approximately 80% of Unilever Foods operates as a standalone organization, which reduces complexity,” Foley explained.
At-home cooking continues to benefit from consumers seeking affordable, healthier meal solutions, and flavor is the primary driver of purchase across occasions.
Brendan Foley, chairman, president, CEO, McCormick & Company
He noted that there is overlap between the two companies in six of the 10 countries that make up nearly three-quarters of the combined companies’ sales.
“Looking ahead, we expect to deliver several key milestones in the coming months,” he said. “By the end of July, we expect to announce the location of a secondary listing on a European exchange. By the end of September, we expect to share further detail on the operating model, cost synergies and growth plans and the scope of the Transition Services Agreements (TSA).”
Mexican flavors driving growth
McCormick’s recipe portfolio spans multiple segments, but Latin flavors are the fastest growing.
“We see an opportunity to accelerate growth in Mexican flavors, one of the faster growing segments in the category” said Foley. “We plan to realize this opportunity with innovation, expanded distribution and focused brand investment behind authentic Mexican brands like Cholula.”
Expanded distribution and innovation at McCormick, such as a new round of sauces under the Cholula brand, helped the company deliver dollar and unit share gains for the third consecutive quarter, Foley said.
McCormick launched 11 Mexican hot sauces in May that “recreate a taco truck experience at home,” the company said in a press release. Those include cooking and topping sauces, chamoy, chili crisp, salsa and taco seasoning.
“With these new product innovations, we’re enabling consumers to explore the distinctiveness of Mexican cooking in their everyday lives by opening the door to new, flavorful ways to experience Cholula,” said Valda Coryat, North America vice president of marketing for McCormick.
That release followed a rollout of Cholula-brand hot sauces and salsas in 2023, when Coryat said that spicy products made up roughly 20% of McCormick sales in 2022.
“There is so much variety, so many different ways that you can leverage the great flavor of the Mexican chiles, herbs and spices that we’re using and help just about anyone bring true, unique and authentic Mexican flavor home,” Coryat said in 2023.
The new product rollout also comes on the heels of McCormick’s expansion of its ownership stake in McCormick de Mexico, which was completed at the beginning of 2026. McCormick purchased an additional 25% stake in the Latin American subsidiary for $750 million.
“With this expanded ownership, we will advance our global flavor leadership and increase our presence in condiments and sauces,” Foley said in August.
Heading forward in 2026
McCormick expects to deliver on the high end of its projections for the remainder of 2026 through organic growth driven by improving volume trends.
This volume growth is expected to be driven in part by new flavor innovations but also by redesigned package sizes and price points.
“This improvement will be driven by expanded distribution, sustained renovation, refined revenue growth management to address increased price sensitivity in specific segments, including optimized price pack architecture,” Foley said, calling the price architecture move “an important lever in today’s value-focused environment.”
Celebrity endorsement partnerships also are helping McCormick scale its newer product lines, including franchises such as Harry Potter, Paris Hilton, Minions and Bridgerton, promoting its finishing sugars and finishing salts, Foley noted.
“These partnerships expand household penetration, engage younger consumers and reinforce the role of flavor as an affordable way to elevate everyday meals,” he said.
