McCormick beats quarterly sales estimates on steady demand

By Reuters News

Oct 1 (Reuters) - McCormick MKC.N beat Wall Street estimates for third-quarter sales on Thursday, as consumers continued to reach for its seasonings and sauces despite tightening budgets and macroeconomic uncertainty, sending its shares up about 5% in premarket trading.

Persistent pressure on household spending has dampened consumers' appetite for dining out, driving up demand flavor-boosting condiments like McCormick's Cholula and Frank's RedHot sauces—affordable pantry staples that can turn home-cooked meals into something special without stretching budgets.

Flavor-focused brands like McCormick are also gaining popularity as GLP-1 weight-loss drugs reshape eating habits, with consumers seeking bolder tastes and smaller-but-more-satisfying meals.

McCormick said it remains on track with integration planning for the proposed $65 billion merger with Unilever's ULVR.L foods business combination and remains confident in delivering the expected strategic and financial benefits, including significant earnings per share accretion post-close.

The company reported third-quarter sales of $2.02 billion, compared with analysts' estimates of $1.98 billion, according to data compiled by LSEG.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.