The spicing and flavorings business is still booming. On Tuesday McCormick (NYSE:MKC) announced strong sales and profit results as part of its fiscal third-quarter announcement. Management also said it is conducting its first stock split since 2002 thanks to an improving demand outlook.
Revenue rose 9% in the three months ended on Aug. 31, which represented just a modest slowdown from the spike in the prior quarter that was influenced by pandemic-related restaurant shutdowns. McCormick continued to see elevated demand for its spices and condiments at supermarkets, but executives noted a solid rebound in its restaurant segment, too.
The growth through August has CEO Lawrence Kurzius and his team feeling confident enough to issue a short-term outlook for the first time since executives pulled their forecast in March. McCormick believes sales will rise by about 6% in fiscal 2020, compared to their pre-COVID-19 outlook of roughly 2% gains.
Elevated demand for at-home cooking products may continue to lift results at least into early 2021, and that trend factored into management's 2-for-1 stock split announcement. McCormick plans to distribute the new shares in late November, with the stock trading under the split-adjusted price starting on Dec. 1.