Spice maker McCormick & Co. (NYSE: MKC) just reported a solid second quarter and told investors it is well positioned to mitigate the current tariff environment. That helped send shares higher Thursday.
After jumping more than 6%, McCormick stock was trading higher by 5.1% as of 11:38 a.m. ET. That came as the company reported adjusted earnings of $0.69 per share, beating consensus estimates of $0.65.
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Robust tariff mitigation plan
The company known for its Old Bay Seasoning has expanded over the years, and now includes other well-known brands such as Frank’s Red Hot, Cholula, Lawry’s, French’s, and more. Its popular seasonings helped the company grow organic sales by 2% in the second quarter.
McCormick also pleased investors by reaffirming its profit and sales guidance for 2025. It also soothed concerns surrounding tariff-related uncertainty. CEO Brendan Foley stated, “Additionally, for this fiscal year, we are well positioned with our robust plans to mitigate current tariff-related costs, fuel growth investments, and expand operating margins.”
McCormick’s consumer segment is driving its positive momentum. The company said it is seeing strong volume growth in spices and seasonings across all regions, as well as market share gains in the hot sauce category.
A dividend stock to love
That should keep income investors confident that the company will continue to pay its century-old dividend. McCormick has consistently paid its annual dividend since 1925 and has boosted the payout each year for the last 38 years.
Management expects strong cash flow this year and believes it is well-positioned to weather any tariff scenario. Sourcing initiatives, cost savings, and “surgical pricing” has mitigated McCormick’s tariff exposure.
It was a strong quarter overall for McCormick. Healthy eating trends should also play in its favor in its consumer business going forward. That has investors jumping into McCormick stock today.
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Howard Smith has positions in McCormick. The Motley Fool recommends McCormick. The Motley Fool has a disclosure policy.
