Since August 2025, McCormick has been in a holding pattern, posting a small loss of 2.5% while floating around $67.94. The stock also fell short of the S&P 500’s 6.6% gain during that period.

Is there a buying opportunity in McCormick, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Is McCormick Not Exciting?

We're cautious about McCormick. Here are two reasons there are better opportunities than MKC and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Unfortunately, McCormick’s 2.5% annualized revenue growth over the last three years was sluggish. This fell short of our benchmarks.

2. Previous Growth Initiatives Haven’t Impressed

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

McCormick historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 8.9%, somewhat low compared to the best consumer staples companies that consistently pump out 20%+.

Final Judgment

McCormick isn’t a terrible business, but it doesn’t pass our quality test. With its shares underperforming the market lately, the stock trades at 21.6× forward P/E (or $67.94 per share). Investors with a higher risk tolerance might like the company, but we don’t really see a big opportunity at the moment. We're pretty confident there are more exciting stocks to buy at the moment. Let us point you toward one of our top digital advertising picks.

Stocks We Would Buy Instead of McCormick

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