Will McCormick Be Able to Sustain Its 2% Organic Growth in 2026?

McCormick & Company Inc. MKC experienced volume-led growth for the fifth straight quarter in the third quarter of 2025. The company reported a 2% organic sales growth, mainly fueled by increased volumes in the Consumer segment.Mustard and hot sauce performed particularly well, boosting dollar unit share, and McCormick’s Flavor Solutions business also remained strong, supporting diversification of its customer base. Key drivers for this growth include sustained investment in brands, broader distribution and innovation.That said, the global trade landscape and various macroeconomic challenges, like rising commodity prices and added tariffs, are still putting pressure on the company. McCormick is undertaking efficiency strategies to cope with these changing conditions. Thanks to the effective execution of these initiatives, the company's operating profit improved in the third quarter of 2025, despite some strain on gross margins. With these disciplined strategies and the ability to adapt quickly, the company seems well-prepared for future growth.For 2025, McCormick expects organic sales growth in the range of 1-3%. To mitigate future risks, the company plans to lean more on alternative sourcing, smarter supply-chain strategies and disciplined revenue management, especially on pricing.With strengthening category trends, ongoing innovation and improved operational discipline, McCormick appears reasonably positioned to carry its growth progress into 2026, provided market headwinds remain manageable.McCormick Faces Competition From Conagra Brands & Kraft HeinzIn the first quarter of fiscal 2026, Conagra Brands Inc. CAG reported a 5.8% drop in net sales, while organic sales dipped a bit by 0.6%. This included a 0.6% positive effect from pricing and mix, while CAG’s volumes dipped 1.2%. On a brighter note, Conagra Brands managed to gain market share in areas like frozen desserts, refrigerated whipped toppings, canned tomatoes and frozen multi-serve meals.In the third quarter of fiscal 2025, Kraft Heinz Company KHC posted a 2.3% drop in net sales to $6.24 billion. Kraft Heinz Company’s organic sales also fell 2.5%. The company also experienced a 3.5% decline in volume and mix, whereas pricing increased nearly 1%.The Zacks Rundown for MKCMKC’s shares have plunged 15.3% year to date compared with the industry’s decline of 14%. MKC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Image Source: Zacks Investment ResearchFrom a valuation standpoint, MKC trades at a forward price-to-earnings ratio of 20.05, higher than the industry’s average of 14.59.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MKC’s fiscal 2025 and 2026 earnings implies a year-over-year rise of 2.4% and 6.9%, respectively. Image Source: Zacks Investment ResearchZacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG): Free Stock Analysis Report McCormick & Company, Incorporated (MKC): Free Stock Analysis Report Kraft Heinz Company (KHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks