Is McCormick Stock Underperforming the Dow?

Hunt Valley, Maryland-based McCormick & Company, Incorporated (MKC) is a global leader in flavor, producing and distributing spices, seasonings, and condiments. With a market cap of $19.6 billion, it operates in over 150 countries through its Consumer and Flavor Solutions segments.

Categorized as a "large-cap stock," McCormick's valuation highlights its dominance in the flavor industry. Its innovative products and global reach underscore its position as a leader in the food sector.

McCormick touched its 52-week high of $86.24 on Mar. 10 and is currently trading 15.1% below that peak. Meanwhile, MKC stock has dropped nearly 10% over the past three months, notably underperforming the Dow Jones Industrial Average’s ($DOWI) 1.4% uptick during the same time frame.

McCormick’s performance has remained lackluster over the longer term as well. MKC stock has dropped 4% on a YTD basis and gained 6.7% over the past year, underperforming Dow’s marginal 88 bps dip in 2025 and 8.6% gains over the past 52 weeks.

To confirm the downturn, MKC stock has traded consistently below its 200-day moving average and mostly below its 50-day moving average since early April.

McCormick’s stock prices observed a marginal dip after the release of its Q1 results on Mar. 25. The company experienced a 2% growth in volumes, but it was mostly offset by currency headwinds, leading to its net sales growing by a modest 17 bps year-over-year to $1.6 billion, which missed the consensus estimates by 38 bps. Meanwhile, its adjusted EPS for the quarter decreased 4.8% year-over-year to $0.60, falling short of Street expectations by 6.3%.

On a positive note, for the full fiscal 2025, the company expects to observe a low-single-digit growth in volumes and a gradual improvement in demand from China.

While McCormick has marginally underperformed its peer Hormel Foods Corporation’s (HRL) 3.9% drop on a YTD basis, it has significantly outpaced HRL’s marginal 69 bps dip over the past 52 weeks.

Among the 14 analysts covering the MKC stock, the consensus rating is a “Moderate Buy.” Its mean price target of $84.87 suggests a 15.9% upside potential from current price levels.