$MKC · MCCORMICK & CO INC

McCormick filed an 8-K with its Q3 FY2026 earnings release. Reported net sales rose 17.4% year-over-year, but organic growth was just 1.9% — the McCormick de Mexico acquisition contributed 14.6 percentage points. GAAP operating income fell 24.8% to $217M and GAAP EPS dropped 57.1% to $0.36, weighed down by $141.5M in special charges including a $43.1M non-cash impairment on a Malaysia pepper-sourcing project. Adjusted operating income rose 22% to $359M and adjusted EPS of $0.86 narrowly beat the prior-year $0.85. The company reaffirmed its full-year 2026 outlook for adjusted EPS of $3.05–$3.13

Extended-hours trading shows MKC at $48.19, up 3.86% from the regular close of $46.40, suggesting the market is rewarding the reaffirmed guidance and adjusted EPS beat despite the headline GAAP miss.

The stark GAAP-vs-adjusted gap — a 57% EPS drop masking a penny beat — plus the $43.1M impairment and the Unilever Foods integration update make this a high-signal quarter for a $12.5B consumer staple

McCormick's 1.9% organic growth and margin expansion via CCI cost savings mirrors the playbook of large-cap packaged-food peers leaning on pricing and productivity to offset volume softness. The Unilever Foods deal, targeting ~$600M in run-rate synergies, would create a ~$20B-revenue flavor giant.

The $43.1M non-cash impairment on a Malaysia pepper-sourcing project signals execution risk in supply-chain initiatives. The Unilever Foods integration carries substantial complexity — 200+ employees across 20 cross-functional teams — with close not expected until mid-2027.