McCormick vs Performance Food Group
McCormick and Performance Food Group are examined in this page, which compares business models, financial performance and market context to provide a clear, neutral overview. The content is designed to inform readers about industry context and company dynamics. Educational content, not financial advice.
McCormick and Performance Food Group are examined in this page, which compares business models, financial performance and market context to provide a clear, neutral overview. The content is designed t...
Which Baskets Do They Appear In?
Clean Label Snacks
Tap into the growing market for natural food ingredients as major brands like Hershey remove synthetic dyes by 2027. These carefully selected stocks represent companies providing the essential natural colors, flavors, and verification services that food giants need for their clean-label transformations.
Published: July 2, 2025
Explore BasketWhich Baskets Do They Appear In?
Clean Label Snacks
Tap into the growing market for natural food ingredients as major brands like Hershey remove synthetic dyes by 2027. These carefully selected stocks represent companies providing the essential natural colors, flavors, and verification services that food giants need for their clean-label transformations.
Published: July 2, 2025
Explore BasketInvestment Analysis
McCormick
MKC
Pros
- McCormick reported Q3 2025 earnings beating EPS forecasts by 3.66% with revenue slightly above expectations at $1.72 billion.
- Organic net sales growth of 1-3% is expected for 2025, supported by a 2% increase in total organic sales and 3% growth in consumer segment sales.
- The company is actively innovating with new product launches such as McCormick Gourmet and Schwartz air fryer seasonings, showing strategic adaptability.
Considerations
- McCormick’s adjusted gross profit margin declined by 120 basis points in Q3 2025 despite increased operating income, indicating margin pressure.
- The stock has experienced a near 12% decline year-over-year in 2025, reflecting market concerns about rising input costs and changing consumer preferences.
- Valuation metrics show McCormick scores low on undervaluation checks, with only a 2 out of 6 value score, suggesting limited current bargain appeal.
Pros
- Performance Food Group operates across diversified segments including Foodservice, Convenience, and Specialty, reducing reliance on any single market.
- The company has a strong market capitalisation around $15 billion, with a forward P/E ratio of 18.21 indicating moderate valuation compared to earnings expectations.
- Analyst sentiment is positive with a strong buy rating and price targets suggesting potential upside of about 19.5%.
Considerations
- Despite high revenues exceeding $61 billion, net income remains modest at $325.8 million, indicating tight margins on operations.
- Performance Food Group’s beta of 0.94 shows exposure to market volatility, which could impact stock performance in cyclical economic swings.
- The company does not currently pay dividends, which may deter income-focused investors seeking regular cash returns.
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