Episode Details

McCormick & Company, Incorporated (MKC) Q3 FY2026 — MKC closed at $44.14 on the October 1 release date, down 4.87% from the previous close. Reference quote $45.71 on October 15 at 20:00 UTC. Exact release clock unconfirmed; daily return is not causal attribution. McCormick grew sales and adjusted operating profit, but acquisition accounting, financing and outside ownership complicate per-share returns. We trace the quarter and test three valuation routes while keeping the pending Unilever Foods combination explicit. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$52.00 vs ~$45.71 today. KEY METRICS: - Q3 sales $2,024.8M, +17.4%; organic +1.9% - Acquisition contribution 14.6 percentage points; volume / mix −0.3% - Adjusted operating income $358.5M; GAAP $217.0M - Adjusted EPS $0.86; GAAP EPS $0.36 - 2026 adjusted EPS outlook $3.05–3.13 reaffirmed - YTD OCF $598.8M; capex $131.2M; common dividends $387.0M - Debt $5,018.2M; cash $331.1M; Unilever combination pending What to watch: Positive organic volume, durable cash conversion and verified financing can lift value; otherwise require a larger cushion. The price-only entry test is $41.60 if underlying value remains intact. Full research packet: https://chargedalpha.com/research/mkc-q3-fy2026 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.