McCormick & Company, Incorporated (NYSE:MKC) is included among the Dividend Growth Stocks: 25 Aristocrats.
On January 26, Barclays analyst Andrew Lazar cut his price target on McCormick & Company, Incorporated (NYSE:MKC) to $67 from $72. The analyst maintained an Equal Weight rating after the company reported fourth-quarter results. He noted that management had already hinted in the fiscal third quarter that it might favor volume protection rather than near-term profit growth in fiscal 2026. What changed after the latest report were new headwinds. The company’s faster pace of enterprise resource planning implementation and tax-related drag were not previously on investors’ radar, Lazar noted.
Just days earlier, on Jan. 22, McCormick warned that fiscal 2026 earnings are likely to face pressure. Higher costs linked to tariffs and raw materials are weighing on margins. Trade uncertainty has driven up raw material prices and ongoing investments in brand manufacturing and marketing sites have added another layer of costs.
On the post-earnings call, CEO Brendan Foley spoke candidly about the environment. Inflation, commodity price volatility and broader macroeconomic conditions generated incremental costs that hurt margins. He also said that about 50% of the incremental tariffs on McCormick products are still in place and that the inflation tied to those tariffs has not gone away.
Looking ahead, the company expects the tariffs to add about $50 million in incremental costs in fiscal 2026. McCormick imports several key spices, including pepper and herbs, leaving it exposed when input prices rise. Deutsche Bank analyst Steve Powers said shares could remain under pressure in the near term following the weak quarter and cautious outlook. Over time, he sees support in continued demand for everyday flavor products and the company’s acquisition of McCormick de México.
McCormick & Company, Incorporated (NYSE:MKC) manufactures and sells spices, seasoning mixes, condiments and other flavor products in global markets.
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