MKC - Why McCormick & Company Stock Popped Almost 12% Last Month
2024-04-03 10:53:00 ET
Shares of seasonings, spices, and sauces business McCormick & Company (NYSE: MKC) popped 11.5% in March, according to data provided by S&P Global Market Intelligence . Most of the gains came on a single day following the company's financial report for its fiscal first quarter of 2024. Investors were encouraged by its profits despite headwinds for sales.
Indeed, there are headwinds. In Q1 (which ended on Feb. 29), McCormick's overall sales volume (when adjusted for foreign-currency fluctuations) was down 1% from the prior-year period. Nevertheless, the top-line number rose 3%, thanks in large part to the company charging higher prices for its products.
Higher prices can boost profit margins. Moreover, McCormick's management has been working to cut costs where it can. The combination of these things resulted in nearly an 18% year-over-year increase in its Q1 operating income , which was encouraging for shareholders.
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Why McCormick & Company Stock Popped Almost 12% Last Month