McCormick's price hikes spice up quarterly results despite sluggish demand
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓McCormick reported third-quarter sales of $2.02 billion, beating estimates despite sluggish demand.
- ✓Prices rose 2.2% from a year ago, but volumes fell in the Consumer Americas division.
- ✓CEO Brendan Foley said, "In the US, higher gas prices and the cyclospora outbreak have added pressure and contributed to softer traffic."
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
McCormick, like other branded food companies, has come under pressure from elevated costs and financially stretched consumers trading down to cheaper private label goods. Its shares, which have fallen around 32% this year, dipped about 1% in volatile morning trading, reversing premarket gains.
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"In the US, higher gas prices and the cyclospora outbreak have added pressure and contributed to softer traffic across foodservice and grocery channels," CEO Brendan Foley said in prepared remarks.
Cyclospora is a foodborne parasite that has sickened thousands of Americans this summer. McCormick said the outbreak had mainly impacted fast-food restaurants.
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