McCormick & Company, Incorporated (NYSE:MKC) outlined its strategy, reviewed recent financial performance, and provided updates on a proposed combination with Unilever Foods during its annual shareholders’ meeting, with Chairman, President, and CEO Brendan Foley emphasizing the company’s “global leader in flavor” positioning and a focus on volume-led growth, innovation, digital transformation, and profitability.
Proposed combination with Unilever Foods
Foley opened by referencing an announcement made the prior day, describing a plan to “bring together two leading organizations, McCormick and Unilever Foods,” to create a larger company “that will be flavor-focused and exceptionally well-positioned to succeed in today’s dynamic environment.” He said the businesses are “strategically and culturally aligned,” with portfolios spanning “herbs, spices, seasonings, bouillon, condiments, and sauces.”
He highlighted what he called a complementary brand set, naming McCormick, Knorr, Hellmann’s, French’s, Frank’s RedHot, Cholula, and Maille, along with regional brands. Foley said the transaction “will take some time and will be executed thoughtfully” and is “expected to close by mid-2027,” subject to shareholder approval, regulatory clearances, and other customary conditions.
Board changes and voting results
Foley noted two director retirements effective the day of the meeting: Maritza Montiel, a director since 2015, and Tony Vernon, a director since 2017. He also welcomed two new independent directors who joined in February 2026: Rick Dierker, President and CEO of Church & Dwight, and Gavin Hattersley, former President and CEO of Molson Coors.
During the formal business session, Corporate Secretary Jeff Schwartz said proxy materials were distributed beginning Feb. 18, 2026, and that proxies representing more than 78% of voting shares had been received. Schwartz later reported preliminary vote results, including:
- Director elections: All 11 nominees were elected, each receiving at least 6,738,588 votes in favor, or 92% of votes cast.
- Auditor ratification: Ernst & Young LLP was ratified as independent registered public accounting firm for fiscal 2026 with 11,534,545 votes in favor, or 99% of votes cast.
- Say-on-pay: The advisory executive compensation proposal was approved with 6,948,168 votes in favor, or 96% of votes cast.
The company said final results would be filed in a Form 8-K within four business days.
CFO reviews performance and 2026 outlook
EVP and CFO Marcos Gabriel told shareholders the company is “executing with discipline on what we can control while staying agile as we navigate external challenges,” and reiterated McCormick’s focus on “differentiated volume-led sales growth.” He said that since 2015, the company has grown total sales at a 6% compound annual growth rate, driven by organic growth and acquisitions.
On capital allocation, Gabriel said priorities include funding growth investments, returning cash to shareholders through dividends and share repurchases, and maintaining a flexible balance sheet. He said McCormick expects capital investments to be 3% to 4% of net sales in 2026, with about three-quarters directed toward capacity, capabilities, and efficiencies and the remaining portion toward IT and digital transformation. Gabriel also noted McCormick has paid dividends since 1925 and described the company as a Dividend Aristocrat.
Gabriel said the company reaffirmed its 2026 outlook on an earnings call “yesterday,” and noted it reflects continued investments, macro uncertainty, and contributions from “the acquisition of a controlling interest in McCormick de México.”
Reviewing first-quarter results also announced the prior day, Gabriel reported constant-currency sales growth of 14%, including a 13% contribution from the McCormick de México acquisition. Organic sales increased 1%, with both segments contributing. Consumer segment constant-currency sales rose 22%, including 20% from McCormick de México, while organic sales grew 2% “primarily driven by price.” Flavor Solutions sales increased 3% in constant currency, including a 2% contribution from McCormick de México, with 1% organic growth “driven by price.” Gabriel also said adjusted operating income grew 16% in constant currency, supported by gross margin expansion and top-line performance, partially offset by higher SG&A, and that adjusted EPS was $0.66, up 10% year over year, including an estimated 5% favorable currency impact.
Strategy: flavor leadership, innovation, and digital transformation
Foley said McCormick’s differentiation comes from its focus on flavor rather than competing broadly for “calories,” arguing the company can participate across consumption occasions. He described consumer behavior trends including more frequent shopping trips, fewer items per trip, and an emphasis on flavor as households manage budgets and as health and wellness trends persist.
He outlined refined strategic priorities that include strengthening leadership in global reach and core categories, advancing the company’s position as a “go-to flavor expert” through Flavor Solutions, sharpening innovation focus, accelerating digital transformation, driving sustainable profitability, and developing a “future-ready workforce.” Foley said McCormick is “unlocking the power of data and AI,” including governance oversight, pilots, and an internal AI chat platform.
Foley highlighted brand and product initiatives across categories, including renovated McCormick Gourmet Collection packaging, modernization of seasoning blend packaging, and a data-driven approach to pricing. He also cited product innovation and marketing efforts in hot sauce and mustard, including new Frank’s and Cholula campaigns and examples such as Frank’s Spicy Maple Wing Sauce and Cholula Chipotle Cremosa Sauce. Foley said the company launched Cholula on TikTok Shop and described it as generating strong response, with 72% of TikTok purchasers being Gen Z and millennials.
In Flavor Solutions, Foley said McCormick is “the only major flavor house with a 100% focus on flavor,” emphasizing natural ingredient expertise and work with customers on reformulation, sodium reduction, and eliminating artificial ingredients. He also referenced the McCormick Science Institute, which he said is celebrating two decades supporting scientific research on the health benefits of culinary herbs and spices.
Shareholder Q&A: headquarters, dividends, and meeting format
In response to a question about local Maryland job opportunities and the impact of the Unilever Foods combination, Foley said the company’s global footprint is about growth, not shifting roles, and stated that “our headquarters will remain here in Hunt Valley, Maryland.” He added McCormick would “continue to invest in our talent to help support our continued growth and larger footprint.”
On the timing of the quarterly dividend announcement, Foley said the board meeting had not yet been held and would occur the following week. He attributed the later timing to the calendar, including Passover and Easter. Asked about returning to in-person annual shareholder meetings, Foley said the company considers the format annually and cited the virtual meeting’s ability to reach more people, while leaving open the possibility of change in future years.
About McCormick & Company, Incorporated (NYSE:MKC)
McCormick & Company, Incorporated (NYSE: MKC) is a global leader in spices, seasonings and flavor solutions. Headquartered in Hunt Valley, Maryland, the company traces its origins to the late 19th century and has grown into a major manufacturer and marketer of branded and private‑label flavor products for consumer, industrial and foodservice markets.
McCormick’s product portfolio includes pure spices and herbs, blended seasonings, marinades, rubs, sauces, extracts and specialty flavorings, along with ingredient systems and custom flavor development for manufacturers and foodservice operators.
