MKC: McCormick Stock Crumbles 8.5% After Reporting Sour Quarterly Figures

The seasonings maker delivered a bitter meal to investors. A dissolving stock followed right after.

• McCormick stock MKC dropped 8.5% Tuesday to float near a three-year bottom after the spices-and-herbs maker reported fiscal third-quarter figures. The company said its adjusted earnings came in at 65 cents a share on revenue of $1.69bn. Wall Street had baked in $1.7bn in revenue, while earnings hit the sweet spot.
• The company posted a 16% decline in sales for the consumer segment in the Asia-Pacific region. McCormick blamed China’s economic slowdown for the underwhelming performance. Total sales, however, increased 5.5% from the prior-year quarter, thanks in large part to a broad-based 8% price increase.
• Shares of the French’s mustard producer, a mainstay in the food business, closed Tuesday’s session at $68.40 a share. The daily loss was the worst single-day drop since March 2020, adding to a total percentage depreciation of 18% this year. Can McCormick cut the mustard or will it see sage investors depart, at least for a thyme?