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With a net profit margin of 23.20%, McCormick & Company, Incorporated (NYSE:MKC) is included among the 10 Most Profitable Dividend Stocks to Invest In Now. UBS Revises McCormick (MKC) Outlook Following Food Sector Update

On June 2, UBS analyst Peter Grom lowered the price recommendation on McCormick & Company, Incorporated (NYSE:MKC) to $51 from $53. He reiterated a Neutral rating on the stock. In a research note, the analyst said the firm updated its expectations across the food sector to reflect current demand trends and inflation pressures.

On May 29, Reuters reported that Toms Capital Investment Management, an activist US hedge fund, had built a significant stake in McCormick, according to sources familiar with the matter. The investment comes as the food company works on a major acquisition deal.

The sources said Toms Capital, led by Benjamin Pass, invested in McCormick during the second quarter after the company announced plans to acquire Unilever's food business. The sources were not authorized to discuss the matter publicly. The size of Toms Capital's stake and the actions it may seek to pursue at McCormick could not immediately be determined.

McCormick & Company, Incorporated (NYSE:MKC) manufactures, markets, and distributes herbs, spices, seasonings, condiments, and flavors across the food and beverage industry. Its customers include retailers, food manufacturers, and foodservice businesses.

While we acknowledge the potential of MKC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

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Die Zacks-Branche für Lebensmittel und andere Produkte steht vor großen Herausforderungen. Die anhaltende Inflation und die gestiegenen Lebenskosten belasten weiterhin das Verbraucherverhalten. Trotzdem konzentrieren sich Unternehmen auf operative Effizienz, Produktinnovation und Portfolio-Optimierung, um langfristige Wachstumschancen zu schaffen. Führende Unternehmen wie Mondelez International, McCormick & Company, Post Holdings und The Chefs' Warehouse setzen auf starke Marken, strategische Investitionen und sich entwickelnde Produktangebote, um ihre Marktpositionen zu stärken.

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Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.

Unilever (LSE:ULVR) is exiting its Foods division through a merger with McCormick & Company, creating a combined global flavours-focused group. The deal marks a shift in Unilever’s portfolio away from staple foods and towards beauty, personal care, and wellbeing. Following the merger announcement, Unilever moved quickly to acquire US-based supplements player Grüns to grow its health and wellness presence.

Unilever is known for its broad mix of consumer brands across foods, home care, and personal care, and the McCormick deal would reshape that profile. The exit from Foods aligns the group more closely with beauty, personal care, and wellness categories that many global consumer companies are prioritising. For investors, LSE:ULVR starts to look less like a classic staples company and more like a focused brand owner in potentially higher margin, premium segments.

The Grüns acquisition gives Unilever a foothold in the US supplements space at a time when consumer interest in health, self care, and functional products remains strong. As these transactions progress, investors will be watching how Unilever executes on brand integration, capital allocation, and balance sheet flexibility, as it builds out a more concentrated beauty and wellbeing portfolio.

Stay updated on the most important news stories for Unilever by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Unilever.LSE:ULVR Earnings & Revenue Growth as at Apr 2026

We've flagged 2 risks for Unilever. See which could impact your investment.

Quick Assessment

✅ Price vs Analyst Target: At £43.13 versus a £52.59 analyst target, the price sits about 18% below consensus expectations. ✅ Simply Wall St Valuation: Shares are described as trading 24.2% below an estimated fair value, which supports a value angle. ❌ Recent Momentum: The 30 day return of roughly 10.8% decline shows recent sentiment has been weak.

There is only one way to know the right time to buy, sell or hold Unilever. Head to Simply Wall St's company report for the latest analysis of Unilever's Fair Value.

Key Considerations

📊 The shift out of Foods and into beauty, wellbeing, and supplements changes Unilever's mix and may alter how you think about its role in a portfolio. 📊 Watch how management handles integration of Grüns, progress on debt and cash flows, and whether the P/E of 19.0 stays in line with the new profile. ⚠️ One flagged risk is Unilever's high level of debt, which matters as it restructures and pursues further deals.

Story Continues

Dig Deeper

For the full picture including more risks and rewards, check out the complete Unilever analysis. Alternatively, you can check out the community page for Unilever to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ULVR.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Anglo-Dutch multinational Unilever agreed Tuesday to combine its food division with spice maker McCormick. The cash-and-stock deal would create a company with roughly $20 billion in annual revenue and a pantry’s worth of brands, including French’s mustard, Hellmann’s mayonnaise, Old Bay seasoning and Knorr soup mixes.

Investors are not biting. Shares in Unilever fell 7.3% in London, and McCormick sank 6.3% in New York, erasing billions in market value. Here’s why investors were left with a bad taste in their mouths.

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End of an Era

There’s been a lot for big food conglomerates to digest lately. Less affluent customers have curbed spending and switched to store brands after years of inflationary price hikes turned grocery shopping into a ritual slap in the face for many. And with the proliferation of GLP-1 weight-loss drugs, which Cornell researchers found result in an average 5.3% decline in household grocery spending, many people are simply buying less food. That leaves companies trying to eke out a more profitable foothold in this fickle environment.

In February, PepsiCo said it was cutting snack prices after earlier hikes triggered a backlash. Kraft Heinz pulled the plug on a planned breakup after sales deteriorated so much that the spinoff’s investor appeal waned. Others successfully closed acquisitions, like Mars’ purchase of Kellanova and Ferrero’s deal for WK Kellogg. And still others, like Campbell’s, GeneralMills and JMSmucker, have divested brands. For its part, Unilever spun off its ice cream business.

Tuesday’s deal would see the firm “sharpening” into a $45 billion “pure play” in global beauty, wellness and personal and home care, a noteworthy development considering Unilever has been in the food business for almost a century. But some investors worry McCormick is biting off more than it can chew:

While McCormick will pay Unilever $15.7 billion in cash and $29.1 billion in stock equivalent for the Anglo-Dutch firm’s food arm, Unilever and its shareholders will receive 65% of the combined company. The deal is structured as a tax-friendly Reverse Morris Trust, which essentially allows a spinoff that’s being acquired in theory to own the majority of the new entity. Barclays estimated the value of Unilever’s food business, which is dominated by Hellmann’s and Knorr, to be $32.3 billion to $35.8 billion, more than double McCormick’s $14.2 billion market capitalization.

Story Continues

Take Your Pick: Analysts at RBC, left “unimpressed,” wrote: “What we really can’t get our heads round is why is Unilever disposing of a business dominated by two brands, of which it owned 100%, for a minimal control premium and leaving its shareholders with a 55% shareholding in a sprawling food business.” On the other hand, Deutsche Bank analysts said the new McCormick could have “a path to potentially transformative scale” and give the spice maker added punch via the condiment market, a rare bright spot for food conglomerates.

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(Bloomberg) -- Unilever Plc agreed to combine its food business with spice maker McCormick & Co. in a $44.8 billion deal that will create a global seasonings, sauces and condiments company.

Under the agreement, McCormick will pay $15.7 billion in cash and the equivalent of $29.1 billion in shares for most of Unilever’s food business. That will leave Unilever and its shareholders with 65% of a combined entity that owns brands like French’s mustard and Hellmann’s mayonnaise.

The deal is the biggest in the histories of both companies and will help recast Unilever as a global leader in beauty, personal and home care while turning McCormick into a leading competitor in the global packaged food business. Investor reaction to the highly ambitious move by both companies was underwhelming.

McCormick, which is worth $14.4 billion, fell as much as 10% in US trading. As of the last close, the stock has fallen 21% this year. Shares of Unilever, which has a market value of about £99 billion ($131 billion), closed down 7.3% in London, extending its decline since the start of the year to nearly 14%.

“We are unimpressed,” James Edwardes Jones from RBC Capital Markets, who has had a sell rating on Unilever for a year, wrote in a note. It’s not clear why Unilever is disposing of a food business it owns, which is dominated by two strong brands — Hellmann’s mayonnaise and Knorr stock cubes — for part ownership of a sprawling food business, he added.

While the deal will leave Unilever as a pure-play home and personal care business, “this does not strike us as a smooth way of bringing it about,” he said.

The combined company will be highly levered, and with only a primary US listing in New York initially, it will likely face significant selling pressure from domestic European holders of Unilever stock, according to Callum Elliott, an analyst at Bernstein. This will weigh on investor sentiment over the next 12 months, he said, as “Unilever shareholders debate whether they really want to be holders of this new combined food entity.”

Big Food

Unilever has been selling food for nearly 100 years. In addition to global brands like Hellmann’s and Knorr, it owns smaller regional products like Maille Dijon mustard and Marmite spread.

In recent years, big food businesses like Unilever have been struggling as less wealthy consumers pull back on spending or choose cheaper store brands. The popularity of GLP-1 weight-loss drugs also means users are eating less or choosing fresher food. Unilever Chief Executive Officer Fernando Fernandez has made it clear that going forward he sees beauty, personal care and wellbeing — not food — as the keys to future growth.

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On Tuesday, Fernandez said the McCormick deal was another step in “sharpening” the company’s portfolio and will help turn it into a €39 billion ($45 billion) “pureplay” business focused on health, wellness, home and personal care.

The combined food company will be called McCormick and will have revenue of about $20 billion across herbs, spices, seasonings, cooking aids, condiment and sauces. McCormick CEO Brendan Foley will remain in his position at the existing company headquarters in Hunt Valley, Maryland.

Unilever will appoint 4 of 12 members of the board and will hold a 9.9% stake in the new food company, which Fernandez said will be sold down in an orderly manner over time. Shareholders of Unilever will hold 55.1%.

“This is something that we’ve been thinking about for a number of years,” Foley said on a call with reporters Tuesday, calling the two companies “highly complementary businesses with a strong strategic fit” capable of meeting increasing demand for flavors in food.

The deal excludes Unilever’s operations in India, Nepal and Portugal, its lifestyle nutrition business as well as its Buavita juice and Lipton ready-to-drink units.

Hot Sauce Demand

McCormick believes the deal will deepen its exposure to the fast-growing sauce and condiment markets. That sector is particularly popular among younger consumers, with McCormick previously noting that US-based shoppers in that demographic are spending more on hot sauces than ketchup.

The company also gains Unilever’s Hellmann’s and Knorr brands, which make up about 70% of Unilever food sales. Knorr is a household name in more than 90 countries and has more than 5 billion customers. Hellmann’s is sold in more than 65 countries.

McCormick, which reaffirmed its full-year outlook, has been expanding through mergers and acquisitions for at least the last decade. It previously tried to buy Premier Foods Plc but failed to secure a deal. The company’s biggest push into condiments came about a decade ago when it bought Reckitt Benckiser Group Plc’s food division for $4.2 billion, its then-largest deal, which added French’s and Frank’s RedHot sauce to its portfolio.

The transaction will be carried out through a so-called Reverse Morris Trust, a type of merger that’s designed to be tax-free, and has been unanimously approved by the boards of both companies.

Analysts flagged investors’ concerns over the long time frame to complete the deal, which is only expected to close in 2027, as well as big food companies’ patchy track records with acquisitions. Kraft Heinz Co. had planned to split, effectively undoing its merger, but its new CEO halted the move earlier this year.

“The key question that is likely to persist is whether Unilever’s food margins are sustainable,” raising the question of whether the combined entity will have to pour resources into the business, Bernstein analyst Alexia Howard wrote in a note Tuesday.

Large-scale M&A has rarely worked in the broader consumer packaged goods space, according to Max Gumport, an analyst at BNP Paribas. “While McCormick has expressed its confidence in its integration capabilities and has clearly already spent much time considering this process, the combination is certainly complex,” he said.

Goldman Sachs Group Inc. and Morgan Stanley are financial advisers to Unilever and Clifford Chance LLP and Wachtell Lipton Rosen & Katz are providing legal advice. Citigroup Inc. and Rothschild & Co. are working with McCormick with Cleary Gottlieb Steen & Hamilton LLP and Hogan Lovells as legal advisers.

--With assistance from Subrat Patnaik.

(Updates with management comments, analyst comments and shares starting from third paragraph.)

More stories like this are available on bloomberg.com

©2026 Bloomberg L.P.

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A spicy deal in the world of Big Food.

McCormick & Company (MKC) and Unilever (UL) announced on Tuesday that they have entered into an agreement to combine McCormick with Unilever's foods business, excluding those in India. The deal values the combined company at about $65.8 billion.

McCormick shares rose 3% in premarket trading. Unilever rose slightly.

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Quick deal details:

McCormick chairman and CEO Brendan Foley will lead the combined company. Here is my last chat on Yahoo Finance with Foley on the business of spices. McCormick has received $15.7 billion in committed bridge financing from Citigroup Global Markets Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc., and intends to fund the cash component of the purchase price through a combination of cash from its balance sheet and proceeds from new debt issuance. The combined company expects to realize approximately $600 million in run-rate annual cost savings, net of growth reinvestments.

McCormick will get a Unilever food business performing respectably but enduring the same challenges as others in the industry, namely market softness due to evolving consumer preferences.

Unilever's food business grew sales by 2.5% last year, with operating profits gaining at a slightly faster pace of 2.7% due to a more watchful eye on expenses.

Unilever called out "declining markets" in developed countries, with Hellmann's outperforming due to a new flavoured mayonnaise range.

Sales in the Cooking Aids segment increased by a low-single-digit percentage, mostly from higher prices.

The Food Solutions segment saw flat year-over-year sales, as volume gains in North America were offset by declines in China. The company blamed "weaker out of home consumption" and economic pressure.

The combination comes as the packaged food industry battles multiple headwinds and falling valuations. Investors are fretting about sticky inflation weighing on margins and the effect of rising GLP-1 adoption on sales.

"We believe intensifying headwinds and emerging challenges have been building for some time to undermine historical assumptions underpinning the US consumer packaged goods investment case," Deutsche Bank analyst Steve Powers warned in a new note on Monday.

"Some of these dynamics may ultimately prove fleeting, temporary, or more cyclical in nature (e.g., macroeconomic or geopolitically derived factors). However, others (e.g, demographic inflections, underlying balance of power shifts in the value chain) are more likely to prove more structural or longer-lasting, in our view."

Story Continues

New Item sign at Wegmans Grocery Store in the mayonnaise aisle, Boston, Massachusetts. (Photo by: Lindsey Nicholson/UCG/Universal Images Group via Getty Images)·UCG via Getty Images

Big Food is no stranger to dealmaking, both bulking up and slimming down.

McCormick has aggressively pursued a flavor-first acquisition strategy over the past decade, pivoting from traditional spices toward high-growth, high-margin condiments and professional-grade solutions.

The most transformative move occurred in 2017 with the $4.2 billion acquisition of Reckitt Benckiser’s food division, which brought iconic brands such as French's Mustard and Frank's RedHot sauce into its portfolio. This was followed in late 2020 by an $800 million deal for Cholula Hot Sauce, further solidifying McCormick's dominance in the strong-performing hot sauce category.

Mars completed its acquisition of Kellanova in December 2025 for approximately $35.9 billion. The deal unites Kellanova brands like Pringles, Cheez-It, and Pop-Tarts with Mars’s candy portfolio (M&M's, Snickers) to create a global snacking powerhouse.

Elsewhere, Campbell Soup (CPB) completed its acquisition of Sovos Brands, the parent company of the premium Rao's pasta sauce brand, for roughly $2.7 billion in March 2024.

Hormel (HRL) — known for Applegate organic deli meats, Spam, and Hormel-branded bacon — in 2021 acquired Planters from struggling Kraft Heinz (KHC) for $3.35 billion.

Meanwhile, investors have increasingly scrutinized Big Food conglomerates — viewing them as bloated cost-wise and slow to react to consumer trends. That has led to an activist campaign by Elliott Management against serial acquirer PepsiCo (PEP), for instance.

General Mills (GIS) completed the $2.1 billion sale of its US yogurt business to Lactalis in June 2025 as it focuses on its core cereal and Blue Buffalo pet food businesses.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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Hellmann’s maker Unilever has said it is in late-stage talks to merge its food business with a US rival in a deal worth around 15.7 billion US dollars (£11.9 billion).

The consumer goods giant also confirmed it was temporarily freezing recruitment in a bid to rein in costs amid the global turbulence caused by conflict in the Middle East.

Unilever told investors that it was in advanced discussions with McCormick & Company, which makes Cholula hot sauce and French’s mustard among its range of spices and seasoning brands.

A deal is likely to involve merging Unilever’s food business with McCormick for about 15.7 billion dollars (£11.9 billion) of cash upfront and equity in McCormick.

This would mean Unilever and its shareholders hold 65% of the combined company once a sale completes.

Unilever said it is possible that an agreement could be reached today, but that there was no certainty over a sale.McCormick & Company makes French’s mustard among its range of spices and seasoning brands (Alamy/PA)

The company also said it was pausing hiring, with reports linking the move to the war in Iran driving up costs across supply chains.

A spokesperson for Unilever said: “Reflecting the uncertain external environment, we have decided to put in place a temporary pause on our recruitment.

“We remain an agile business and will always adjust our plans as necessary.”

Any deal for the food unit would mark a significant overhaul for the multinational business which owns household-name food brands including Hellmann’s, Colman’s and Marmite.

Selling the food business would leave it with a collection of major beauty, personal and home care labels such as Dove, Radox, Vaseline and Persil.

Beauty and wellbeing brands have been selling particularly well in recent months, according to its latest results.Unilever’s brands include Dove (Alamy/PA)

Last year, the group spun off its ice cream business to create the Magnum Ice Cream Company, which it floated with a primary listing in Amsterdam and secondary listings in New York and the UK.

It has also sold off a number of food brands, including snacking business Graze and plant-based brand The Vegetarian Butcher, in recent years.

On the other hand, it has sought to grow its personal care business over the past year with deals to acquire the fast-growing Wild and Dr Squatch brands.

Derren Nathan, head of equity research at Hargreaves Lansdown, said the potential deal would include an upfront payment “but would be mainly settled in McCormick shares”.

“Compared to beauty products, the division has been a drag on growth in recent years, but it may seek to hold onto some of the jewels in the food business crown, such as the faster-growing Indian market,” he said.

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Stocks rose on Tuesday morning on the back of hopes of a de-escalation of conflict in the Middle East.

Markets were in the green following a Wall Street Journal report that president Donald Trump told his aides he was willing to end the US military campaign against Iran, even if the Strait of Hormuz remained largely closed.

Read more: Stocks rise as Trump willing to end Iran war without Hormuz deal

In the UK, the FTSE 100 (^FTSE) climbed 0.8%, while Germany's DAX (^GDAXI) rose 0.7% and the CAC (^FCHI) in Paris headed 0.6% into the green. The pan-European STOXX 600 (^STOXX) was up 0.7% at the time of writing.

Over in the US, contracts linked to the S&P 500 (ES=F), Nasdaq 100 (NQ=F) and Dow Jones Industrial Average (YM=F) all jumped 1%.

Here’s our daily roundup of the key trending stocks on Tuesday.

Micron Technology (MU)

Memory stocks were in focus after resuming a sell-off in the previous session, after an algorithm breakthrough by Google (GOOG) sparked concerns about a future slowdown in demand.

Last week, Google published research unveiling its TurboQuant algorithm that it said can to reduce the memory needed to run artificial intelligence (AI) models.

The development has weighed on memory chipmaker Micron Technology (MU), with shares slipping nearly 10% on Monday. Shares in data storage company Western Digital Corporation (WDC) fell nearly 9% in the previous session, while flash memory company Sandisk (SNDK) declined 7% on Monday.

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Unilever (ULVR.L)

In London, consumer goods giant Unilever (ULVR.L) was in the spotlight, after the company said it was in advanced talks to combine its food business with spice maker McCormick & Company (MKC).

Unilever said in a statement on Tuesday that it was possible an agreement could be concluded today, but added that there could be no certainty that a deal will be agreed.

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If a deal were to go forward, Unilever said that it is currently thought that this would involve a combination of its food business with McCormick, for around $15.7bn (£11.9bn) cash upfront and equity in McCormick.

Unilever shares edged 0.7% higher on Tuesday morning, while New York-listed McCormick was up 1.7% in pre-market trading.

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Raspberry Pi (RPI.L)

Shares in Raspberry Pi (RPI.L) surged nearly 23% on Tuesday morning, after the company reported 25% increase in revenue and earnings.

The London-listed firm, which makes small, low-cost computers, said that revenue grew to $323.2m in 2025. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to $46.4m, while pre-tax profit jumped 63% to $26.5m.

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Read more: Stocks that are trending today

Dan Lane, lead analyst at Robinhood UK (HOOD), said: “Raspberry Pi’s results are strong on the surface but the interesting shift is underneath.

“Revenue is outpacing unit growth, margins are holding despite memory cost pressure and semiconductor volumes have now overtaken boards,” he said. “That points to a business moving beyond its hobbyist roots into something more industrial and diversified. “

AG Barr (BAG.L)

On the FTSE 250 (^FTMC), shares in Iru-Bru maker AG Barr (BAG.L) jumped 10%, after the soft drinks company reported strong annual results.

AG Barr posted a 4% increase in revenue at £437.3m ($578m) for the year ended 31 January, while adjusted pre-tax profit grew 12.5% to £65.8m.

Read more: Average UK house price rises to £277,186 in March

Mark Crouch, market analyst at eToro, said that AG Barr shares “have gained a touch of extra sparkle, as the maker of IRN-BRU demonstrates it can still mix a compelling blend of steady growth and margin expansion in an increasingly competitive market”.

“The group’s core brands, including Rubicon and Boost, continue to do much of the heavy lifting, supported by expanded distribution, targeted brand investment and a more active innovation pipeline,” he said.

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McCormick & Company, Incorporated MKC is likely to witness growth in both top and bottom lines when it reports first-quarter 2026 earnings on March 31, 2026. The Zacks Consensus Estimate for revenues is pegged at $1.79 billion, indicating an 11.3% increase from the prior-year quarter’s figure.

The consensus mark for earnings has increased a penny in the past 30 days to 61 cents per share, which implies a 1.7% increase from the figure reported in the year-ago quarter. MKC has a trailing four-quarter earnings surprise of 0.9%, on average.

McCormick & Company, Incorporated Price, Consensus and EPS SurpriseMcCormick & Company, Incorporated Price, Consensus and EPS Surprise

McCormick & Company, Incorporated price-consensus-eps-surprise-chart | McCormick & Company, Incorporated Quote

Factors Likely to Influence MKC’s Upcoming Results

McCormick has been benefiting from steady consumer demand across its core portfolio of spices, seasonings and condiments. Higher pricing, expanded distribution and continued brand marketing investments bode well for the Consumer segment volumes. However, management highlighted some early-year volume pressure from price elasticity, which might have tempered overall performance in the quarter under review.

The company’s focus on innovation, renovation and category management is likely to have supported performance in the quarter. Ongoing product launches, including renovated gourmet offerings and relaunches across key seasoning lines, along with increased marketing, are expected to have aided consumption trends and shelf visibility. These efforts, combined with McCormick’s strong brand equity and expansion in e-commerce and other high-growth channels, are likely to have supported top-line performance.

In the Global Flavor Solutions segment, performance is likely to have reflected mixed trends. Demand from quick-service restaurants and growth with private-label and emerging customers might have supported results, while softness in large CPG customer volumes and foodservice traffic is likely to have weighed on overall performance, partly offset by increased reformulation activity.

On the cost front, McCormick has been facing inflationary pressures, including higher commodity and tariff-related costs. Elevated input costs, along with increased marketing and digital investments, are likely to have weighed on margins in the quarter. However, pricing actions, productivity initiatives under its CCI program and SG&A streamlining efforts are likely to have provided partial offsets.

Earnings Whispers for MKC Stock

Our proven model conclusively predicts an earnings beat for McCormick this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

McCormick currently carries a Zacks Rank #3 and has an Earnings ESP of +0.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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More Stocks With the Favorable Combination

Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.

Hormel Foods Corporation HRL currently has an Earnings ESP of +1.70% and a Zacks Rank of 2. The consensus estimate for Hormel Foods’ quarterly revenues is pinned at $2.95 billion, which calls for 1.6% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 35 cents, indicating flat year-over-year growth. HRL delivered a trailing four-quarter earnings surprise of negative 0.4%, on average.

Tyson Foods, Inc. TSN currently has an Earnings ESP of +8.64% and a Zacks Rank of 3. The consensus estimate for Tyson Foods’ quarterly revenues is pinned at $13.78 billion, which calls for 5.4% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 81 cents, which implies a 12% decrease year over year. TSN delivered a trailing four-quarter earnings surprise of nearly 16.5%, on average.

Monster Beverage Corporation MNST currently has an Earnings ESP of +0.60% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.15 billion, which indicates an increase of 15.7% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Monster Beverage’s quarterly EPS of 53 cents implies an increase of 12.8% from 47 cents reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 7.8%, on average.

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Hormel Foods Corporation (HRL) : Free Stock Analysis Report

Tyson Foods, Inc. (TSN) : Free Stock Analysis Report

McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report

Monster Beverage Corporation (MNST) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Marmite and Hellmann’s mayonnaise firm Unilever has said it is in talks over a potential deal to merge its food business with rival firm McCormick.

It came after the Wall Street Journal reported that Unilever could spin off its foods business to combine it with the Schwartz spices and French’s mustard maker.

In an update to investors, Unilever said it “confirms that it has received an inbound offer for its foods business and is in discussions with McCormick & Company”.McCormick owns brands including French’s mustard (Alamy/PA)

It added: “There can be no certainty that any transaction will be agreed.”

Bosses nevertheless stressed that the division is “a highly attractive business, with a strong financial profile led by market-leading brands”.

It also said that it is “confident in the future of the Foods business as part of Unilever”.

McCormick has been contacted for comment.

It follows reports earlier this week that Unilever was looking at potentially demerging the food division – which also makes Colman’s mustard and Knorr – to focus on its beauty, personal care and home operations.

Last year, the group spun off its ice cream business to create the Magnum Ice Cream Company, which it floated with a primary listing in Amsterdam and secondary listings in New York and the UK.

It has also sold off a number of food brands, including snacking business Graze and plant-based brand The Vegetarian Butcher, in recent years.

Unilever has however sought to grow its personal care business over the past year with deals to acquire the fast-growing Wild and Dr Squatch brands.

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