MKC's Q3 Shows Solid Consumer Momentum: Will the Strength Last in 2026?

McCormick & Company, Inc. MKC experienced solid consumer momentum, primarily driven by volume-led growth. Particularly in the consumer segment, organic sales grew 3%, driven by volume growth across categories such as spices, seasonings, and certain other core categories. The company also achieved share gains in key markets and increased penetration.

In the third quarter of fiscal 2025, McCormick demonstrated strong, broad-based momentum across its Spices and Seasonings portfolio, driving robust volume growth in every region. In the United States, volumes surpassed private label for the fifth consecutive quarter, while Canada continued to increase its overall share. In Europe, especially in France and Poland, share gains significantly contributed to EMEA’s performance. The grilling portfolio also showed notable strength, supported by the rollout of new consumer-preferred Grill Mates packaging and increased promotions and innovation for Frank’s RedHot.

McCormick’s mustard category delivered solid results, with sustained unit and dollar share gains across the Americas and EMEA. Hot sauce performance remained strong, driven by expanded U.S. distribution, enhanced brand marketing and innovation. The U.K. also experienced accelerated consumption and share gains.

Additionally, McCormick outperformed industry trends in nutrition bars, beverages, and better-for-you snack seasonings, with QSR performance remaining strong across regions, fueled by innovation, customer growth and new product promotions.

McCormick continues to benefit from strong momentum in health and wellness trends, with high-protein and better-for-you claims driving accelerated purchase behavior across both retail and foodservice channels. The company’s strong consumer momentum, broad-based share gains and health-forward trends position it well heading into 2026. Sustained innovation and category expansion will be key to maintaining this strength amid evolving demand and competitive pressures.

The Zacks Rundown for MKC

MKC’s shares have lost 9.5% in the past six months, in line with the industry’s performance. MKC carries a Zacks Rank #4 (Sell).

From a valuation standpoint, MKC trades at a forward price-to-earnings ratio of 21.96, higher than the industry’s average of 14.87.

The Zacks Consensus Estimate for MKC’s fiscal 2025 and 2026 earnings implies a year-over-year rise of 2.4% and 6.5%, respectively. 

Stocks to Consider

Some better-ranked stocks have been discussed below:

Lamb Weston Holdings, Inc. LW engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. LW currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% and earnings indicate a decline of 6.3% from the prior-year levels. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.

Ollie’s Bargain Outlet Holdings, Inc. OLLI operates as a retailer of closeout merchandise and excess inventory in the United States. OLLI currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Ollie’s Bargains' current fiscal-year sales and earnings indicates growth of 16.4% and 16.5%, respectively, from the prior-year levels. The company delivered a trailing four-quarter earnings surprise of 4.2%, on average.

PepsiCo, Inc. PEP engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. PEP currently holds a Zacks Rank #2. 

The Zacks Consensus Estimate for PepsiCo's current fiscal-year sales indicates growth of 1.8% and earnings indicate a decline of 0.7% from the prior-year levels. PepsiCo delivered a trailing four-quarter earnings surprise of 1.1%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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