McCormick & Company, Incorporated

McCormick is buying Unilever Foods to become a $20 billion flavor company while its U.S. consumer business stalls on price gaps and rising costs. It kept its 2026 outlook broadly intact, but higher inflation runs into 2027, so cost cuts have to do more of the work. How much of this year's sales growth came from Mexico rather than the base business?

• The Unilever Foods deal is far larger than anything McCormick has bought before.

  Management calls it "strength plus strength": a business starting at 21% operating margin, with $600 million of annual cost savings as the main lever and most of the profit coming from cuts rather than from selling more. How much debt does McCormick carry now, and how fast is it paying it down?

• Flavor Solutions now carries growth while the U.S. consumer business drags.

  Flavors sold to food makers drove volume growth and keeps expanding its margin as customers launch new products faster. U.S. grocery volumes fell on price gaps and trading down, and a packaging shortage could trim fourth-quarter volume. How do Americas consumer volumes compare with EMEA and Asia Pacific this year?

• Cost inflation is still beating the plan, and management says it runs into 2027.

  Inflation was guided at mid-single digits in January; by Q3 management called it 6% to 7%, driven by freight, fuel and commodity costs. A fourth quarter of margin decline is implied, and the pressure is expected to continue next year.