McCormick Looks More Attractive After Strong Q2 Results
McCormick (NYSE: MKC) is handling an unprecedented spike in demand right now. The global spice and flavorings giant announced fiscal second quarter earnings results this week that surpassed investors' high expectations as the COVID-19 pandemic powered sustained increases in at-home cooking.
McCormick did see a sharp drop in sales to its restaurant and foodservice partners. However, its soaring consumer segment, plus surging cash flow, imply solid returns for investors ahead.
As expected, McCormick reported pressure from the closing of most of the global restaurant industry in April and May. Sales in its flavor segment dropped 18% globally. But the consumer segment, which represents a bigger portion of its business, soared. Sales to retailers like supermarket chains and warehouse stores jumped 28% after accounting for exchange rate shifts.
Source Fool.com
