McCormick's Earnings Jumped Almost 30% Due to Pandemic-Driven Home-Cooking Trend
Leading spice and sauce company McCormick & Company (NYSE: MKC) reported fiscal second-quarter earnings Thursday that reflected the shift to a stay-at-home lifestyle necessitated by the COVID-19 pandemic. For the period that ended May 31, sales grew by 10% in constant currency year over year -- a major acceleration from the 3% revenue growth it booked in fiscal 2019 overall. Adjusted earnings per share jumped 27% from the year-ago quarter, the company said.
McCormick is benefiting from a growth trend in home cooking that got a natural boost when most restaurants closed (whether completely or only to dine-in service) and people began sheltering in place to help slow the spread of COVID-19. The company experienced a "substantial increase in demand" in its consumer segment that more than offset the sharp 18% decline in sales through its flavor solutions segment, which supplies restaurants and other foodservice customers.
Source Fool.com
