Cholula Hot Sauce Helps Spice Up McCormick’s Results By Investing.com

By Dhirendra Tripathi

Investing.com – McCormick (NYSE:MKC) gave investors a pinch of good news, boosting its full year sales forecast as the company expects us to keep up the home cooking. 

Shares rose 4.5% after the spice maker said the shift in consumer demand to at-home consumption to be sustained at higher than pre-pandemic level, with sales expected to increase by 8% to 10% compared to 2020, up from a previous project of 7% to 9%. McCormick reported earnings per share for the quarter ended in February of 72 cents compared to the expected 58 cents, on sales of $1.48 billion versus the estimated $1.37 billion.

McCormick reported a 22% sales increase in the first quarter from the year-ago period as the pandemic kept us homebound and rediscovering home cooking (as well as take out and delivery). Sales from Cholula Hot Sauce and FONA, acquired late last year, added 4% to the sales increase.  

The current consensus among 5 TipRanks analysts is for a ‘hold’ rating of shares in McCormick, with an average target of $89.40. The analysts’ price targets range from a high of $97 to a low of $71, a variation of 8% to 21% from the stock’s current level.