{"schemaVersion":1,"research":true,"symbol":"mkc","name":"Mccormick & Co","topic":"moat","path":"/stock/mkc/moat","status":"published","version":3,"updatedAt":"2026-10-18T14:42:13.376Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"McCormick has a narrow moat from established consumer brands, category leadership and broad distribution, supported by realized pricing and continuing demand. Pricing power is constrained: Consumer pricing contributed 2.5% to first-half 2026 sales while volume/product mix declined 1.2%. Retailer bargaining power and substitutable products limit customer dependency. Neither a relative cost advantage nor material switching costs is established. Acquisition consolidation and tariff refunds explain part of recent improvement; pending merger benefits remain potential.","advantages":[{"mechanism":"intangible_assets","claim":"Established consumer brands, supported by broad distribution and continuing marketing investment, provide a current differentiation advantage. Reported category leadership is an issuer assertion, but realized pricing and operating demand provide corroborating evidence.","durability":"Leadership disclosures recur across fiscal 2023–2025, and trademark protection supports continued brand ownership. This supports persistence, but does not establish exceptional durability or a guaranteed pricing premium.","risks":"Large retailers can resist pricing and shift shelf space. First-half 2026 Consumer volume/product mix declined despite favorable pricing. Brand investment remains necessary, and acquisition effects and tariff refunds complicate interpretation of margin improvement. Pending merger financing could constrain future investment.","invalidation":"The thesis would be invalidated by sustained loss of category leadership or distribution, repeated pricing reversals accompanied by declining organic demand, or persistent branded volume losses and margin deterioration despite continued marketing support. A single period of unfavorable mix would not suffice.","competitors":[],"evidenceIds":["q15","q18","q19","q162","q921","q219","q220","q262","q328"],"counterEvidenceIds":["q20","q35","q41","q223","q327","q322","q371","q647"]}],"evidence":[{"id":"q15","sourceId":"filing-1","location":"Business—Consumer segment geographic reach","excerpt":"Consumer Segment. From locations around the world, our brands reach consumers in approximately 150 countries and territories."},{"id":"q18","sourceId":"filing-1","location":"Business—spices and seasoning category position","excerpt":"Within the spices and seasoning category, we are the brand leader globally and a category leader in our key markets."},{"id":"q19","sourceId":"filing-1","location":"Business—condiments and sauces category position","excerpt":"In the condiments and sauces category, we are one of the brand leaders globally and in the U.S."},{"id":"q20","sourceId":"filing-1","location":"Business—competitive brands","excerpt":"There are numerous competitive brands of spices and seasonings and condiments and sauces in the U.S., as well as additional brands in international markets."},{"id":"q35","sourceId":"filing-1","location":"Risk factors—retailer bargaining power","excerpt":"Such consolidation could present a challenge to margin growth and profitability in that it has produced large, sophisticated customers with increased buying power who are more capable of operating with reduced inventories; resisting price increases; demanding lower pricing, increased promotional programs and specifically tailored products; and shifting shelf space currently used for our products to private label and other competitive products."},{"id":"q41","sourceId":"filing-1","location":"Risk factors—major customer concentration","excerpt":"We have a number of major customers, including two large customers that, in the aggregate, constituted approximately 24% of consolidated sales in 2025."},{"id":"q72","sourceId":"filing-1","location":"MD&A—net borrowing activities and debt repayments","excerpt":"The following table outlines our net borrowing activities: 2025 2024 2023 Net (decrease) increase in short-term borrowings $ (101.4) $ 211.1 (964.6) Proceeds from issuance of long-term debt, net of debt issuance costs 2.7 494.5 495.3 Repayments of long-term debt (267.9) (801.1) (268.1) Net cash (used in) net borrowing activities $ (366.6) $ (95.5) $ (737.4) In 2025, we repaid $267.9 million of long-term debt, including the $250.0 million, 3.25% notes that matured in November 2025."},{"id":"q77","sourceId":"filing-1","location":"Internal control—independent Audit Committee","excerpt":"The Audit Committee of the Board of Directors, which is composed solely of independent directors, meets periodically with members of management, the internal auditors and the independent registered public accounting firm to review and discuss internal control over financial reporting and accounting and financial reporting matters."},{"id":"q116","sourceId":"filing-1","location":"Stock compensation—actual forfeiture of price-vested options","excerpt":"The market conditions were not met in the five-year period from the date of grant and all price-vested options were forfeited in November 2025."},{"id":"q118","sourceId":"filing-1","location":"Business segment results—2023–2025 sales and operating income","excerpt":"78 Business Segment Results (millions) Consumer Flavor Solutions Total segments Corporate & other Total 2025 Net sales $ 3,950.3 $ 2,890.0 $ 6,840.3 $ — $ 6,840.3 Cost of goods sold excluding special charges 2,187.4 2,058.6 4,246.0 — 4,246.0 SG&A expense 1,028.0 472.3 1,500.3 — 1,500.3 Operating income excluding special charges 734.9 359.1 1,094.0 — 1,094.0 Income from unconsolidated operations 68.7 3.5 72.2 — 72.2 Assets — — 12,511.6 688.8 13,200.4 Capital expenditures — — 176.4 45.4 221.8 Depreciation and amortization — — 227.2 4.1 231.3 2024 Net sales $ 3,848.5 $ 2,875.2 $ 6,723.7 $ — $ 6,723.7 Cost of goods sold 2,074.2 2,058.5 4,132.7 — 4,132.7 SG&A expense 1,034.0 487.2 1,521.2 — 1,521.2 Operating income excluding special charges 740.3 329.5 1,069.8 — 1,069.8 Income from unconsolidated operations 71.2 3.0 74.2 — 74.2 Assets — — 12,359.4 710.9 13,070.3 Capital expenditures — — 234.1 40.8 274.9 Depreciation and amortization — — 204.7 4.1 208.8 2023 Net sales $ 3,807.3 $ 2,854.9 $ 6,662.2 $ — $ 6,662.2 Cost of goods sold 2,044.4 2,115.3 4,159.7 — 4,159.7 SG&A expense 1,027.4 450.9 1,478.3 — 1,478.3 Operating income excluding special charges 735.5 288.7 1,024.2 — 1,024.2 Income from unconsolidated operations 54.7 1.7 56.4 — 56.4 Assets — — 12,233.1 629.2 12,862.3 Capital expenditures — — 234.9 29.0 263.9 Depreciation and amortization — — 194.8 4.5 199.3 A reconciliation of cost of goods sold excluding special charges and operating income excluding special charges to cost of goods sold and operating income for 2025, 2024, and 2023 is as follows: (millions) Consumer Flavor Solutions Total 2025 Cost of goods sold excluding special charges $ 2,187.4 $ 2,058.6 $ 4,246.0 Special charges 1.3 0.8 2.1 Cost of goods sold $ 2,188.7 $ 2,059.4 $ 4,248.1 Operating income excluding special charges $ 734.9 $ 359.1 $ 1,094.0 Less: Special charges 13.6 9.6 23.2 Operating income $ 721.3 $ 349.5 $ 1,070.8 2024 Operating income excluding special charges $ 740.3 $ 329.5 $ 1,069.8 Less: Special charges 3.4 6.1 9.5 Operating income $ 736.9 $ 323.4 $ 1,060.3 2023 Operating income excluding special charges expenses $ 735.5 $ 288.7 $ 1,024.2 Less: Special charges 35.8 25.4 61.2 Operating income $ 699.7 $ 263.3 $ 963.0 79 Total segment operating income as disclosed in the preceding table represents our consolidated operating income."},{"id":"q162","sourceId":"filing-1","location":"Business—material trademarks","excerpt":"Although in the aggregate these trademarks are material to our business, the loss of any one of those trademarks, with the exception of our “McCormick,” “French’s,” “Frank’s RedHot,” “Lawry’s,” “Zatarain’s,” “Cholula,” “Stubb's,” “Club House,” “Ducros,” “Schwartz,” “Vahiné,” \"OLD BAY,\" \"Simply Asia,\" \"Thai Kitchen,\" “Kamis,” “La Drogheria,” \"DaQiao,\" and \"Gourmet Garden\" trademarks, would not have a material adverse effect on our business."},{"id":"q219","sourceId":"filing-1","location":"MD&A—2025 realized pricing contribution","excerpt":"Pricing actions favorably impacted sales by 0.7%."},{"id":"q220","sourceId":"filing-1","location":"MD&A—2025 volume and product mix","excerpt":"Favorable volume and product mix increased sales by 1.2% driven by favorable volume and product mix from our Consumer segment of 2.1% offset by unfavorable volume and product mix from our Flavor Solutions segment of 0.2%."},{"id":"q223","sourceId":"filing-1","location":"MD&A—2025 gross margin drivers","excerpt":"Our gross profit margin was 37.9%, a decrease of 60 basis points, driven by increased commodity costs including the impact of tariffs, unfavorable product mix, and increased conversion cost including costs to support capacity for future growth, partially offset by pricing actions and CCI program-led cost savings."},{"id":"q239","sourceId":"filing-1","location":"Revenue recognition—frequency of setting sales terms","excerpt":"Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one-year or shorter duration."},{"id":"q262","sourceId":"filing-1","location":"Accounting policies—actual brand marketing expenditures","excerpt":"Total brand marketing support costs, which are included in our consolidated income statement in the line entitled \"Selling, general and administrative expense,\" were $276.7 million, $265.0 million, and $247.1 million for 2025, 2024, and 2023, respectively."},{"id":"q288","sourceId":"filing-2","location":"Unaudited cash flow statement—six months ended May 31, 2026","excerpt":"6 Table of Contents McCORMICK & COMPANY, INCORPORATED CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) (in millions) Six months ended May 31, 2026 2025 Operating activities Net income $ 1,182.5 $ 339.4 Adjustments to reconcile net income to net cash flow provided by operating activities: Depreciation and amortization 136.5 110.9 Stock-based compensation 29.3 29.6 Amortization of inventory fair value adjustments associated with acquisition 15.0 — Deferred income tax benefit (11.3) (12.1) Income from unconsolidated operations (22.7) (39.2) Gain on remeasurement of previously held equity interest (866.8) — Changes in operating assets and liabilities (net of effect of businesses acquired) Trade accounts receivable 129.4 23.2 Inventories (6.3) (19.1) Trade accounts payable 30.2 (74.5) Other assets and liabilities (199.6) (219.4) Dividends from unconsolidated affiliates 14.5 22.6 Net cash flow provided by operating activities 430.7 161.4 Investing activities Acquisition of business, net of cash acquired (729.9) (19.8) Capital expenditures (including software) (75.2) (85.4) Net cash flow used in investing activities (805.1) (105.2) Financing activities Short-term borrowings, net 945.2 116.0 Long-term debt borrowings (net of debt issuance costs of $1.1) 497.7 0.9 Debt financing fees paid (51.0) — Long-term debt repayments (504.4) (13.6) Proceeds from exercised stock options 13.6 13.3 Taxes withheld and paid on employee stock awards (11.9) (12.6) Common stock acquired by purchase (10.9) (26.5) Dividends paid (257.9) (241.5) Dividends paid to joint venture partner (8.4) — Other financing activities (9.3) 21.1 Net cash flow provided by (used in) financing activities 602.7 (142.9) Effect of exchange rate changes on cash and cash equivalents 7.0 24.7 Increase (decrease) in cash and cash equivalents 235.3 (62.0) Cash and cash equivalents at beginning of period 95.9 186.1 Cash and cash equivalents at end of period $ 331.2 $ 124.1 See notes to condensed consolidated financial statements (unaudited)."},{"id":"q301","sourceId":"filing-2","location":"Pending transaction—closing conditions","excerpt":"The pending transaction is subject to the satisfaction or waiver of customary closing conditions, including the receipt of our shareholders' approval, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, obtaining certain other consents, authorizations, orders or approvals from governmental authorities, including certain other antitrust and any foreign investment approvals, and the effectiveness of a registration statement on Form S-4 to be filed by us."},{"id":"q304","sourceId":"filing-2","location":"Pending transaction—conditional bridge financing commitment","excerpt":"In connection with the execution of the Merger Agreement, we entered into a commitment letter on March 31, 2026 (the \"Bridge Commitment Letter\") with Citigroup Global Markets Inc., Goldman Sachs Bank USA and Morgan Stanley Senior Funding, Inc., (the \"Commitment Parties\") pursuant to which the Commitment Parties committed to provide, subject to the terms and conditions set forth therein, a 364-day senior unsecured bridge term loan credit facility (the \"Bridge Facility\") in an aggregate principal amount of up to $15.7 billion."},{"id":"q322","sourceId":"filing-2","location":"MD&A—first-half 2026 gross margin drivers","excerpt":"Our gross profit margin was 39.0%, an increase of 140 basis points, driven by the impact of the McCormick de Mexico acquisition, which included a step-up of acquired inventory recognized as special charges in Cost of goods sold as the related inventory was sold, favorable pricing, the impact of the IEEPA tariff refund, and cost savings from the Company's CCI program, partially offset by increased commodity costs and higher freight costs due to the conflict in the Middle East."},{"id":"q325","sourceId":"filing-2","location":"MD&A—first-half 2026 Consumer organic sales","excerpt":"For the six months ended May 31, 2026, sales of our Consumer segment increased 23.7% as compared to the same period in 2025 and increased by 1.3% on an organic basis."},{"id":"q327","sourceId":"filing-2","location":"MD&A—first-half 2026 Consumer volume/product mix","excerpt":"Unfavorable volume and product mix decreased sales by 1.2% driven by declines in the Americas region which were partially offset by growth in the EMEA and APAC regions."},{"id":"q328","sourceId":"filing-2","location":"MD&A—first-half 2026 Consumer realized pricing","excerpt":"Favorable pricing impacted sales by 2.5% driven by the Americas region."},{"id":"q345","sourceId":"filing-2","location":"MD&A—working capital contribution to operating cash flow","excerpt":"The increase in operating cash flow was primarily driven by lower cash used for working capital."},{"id":"q371","sourceId":"filing-2","location":"Risk factors—potential effects of post-transaction indebtedness","excerpt":"Following the proposed transaction, the substantial indebtedness incurred in connection with the proposed transaction could have adverse effects on our business, operating results and financial condition, including, among other things: •increasing our vulnerability to changing economic, regulatory and industry conditions; •limiting our ability to compete and our flexibility in planning for, or reacting to, changes in our business and the industry; •placing us at a competitive disadvantage compared to our competitors with less indebtedness; 49 Table of Contents •increasing our interest expense and potentially requiring us to dedicate a substantial portion of our cash flow from operations to payments on our debt, thereby reducing the availability of cash to fund our business needs; •limiting our ability to borrow additional funds in the future to fund growth, acquisitions, working capital, capital expenditures or other purposes; and •limiting our ability to pursue other strategic opportunities or acquisitions that might otherwise be beneficial to us and our shareholders."},{"id":"q413","sourceId":"filing-2","location":"Tariff refunds—recognized cost-of-goods-sold reduction","excerpt":"During the three months ended May 31, 2026, we reduced cost of goods sold by $27.6 million, effectively reversing the IEEPA tariff expense previously recognized in connection with inventory sold to customers since the tariffs were enacted in the first quarter of 2025, and reduced the carrying value of inventory by $3.2 million."},{"id":"q427","sourceId":"filing-2","location":"Pending merger—expected ownership allocation","excerpt":"The transactions contemplated by the Merger Agreement are expected to result in current Unilever shareholders owning approximately 55.1% of the combined company, our current shareholders owning approximately 35.0% of the combined company, and Unilever retaining up to approximately 9.9% of the total outstanding equity of the combined company, assuming Unilever does not elect to dispose of such interest to its shareholders in accordance with the Merger Agreement."},{"id":"q435","sourceId":"filing-2","location":"Special charges—first-half 2026 transaction and restructuring costs","excerpt":"Those expenses consisted of $65.5 million of transaction and integration costs, $18.0 million associated with employee severance and related benefits associated with our SG&A streamlining actions and $1.6 million associated with other actions."},{"id":"q437","sourceId":"filing-2","location":"Compensatory arrangements—executed conditional retention award agreements","excerpt":"Foley) entered into a retention award agreement providing for a special one-time cash retention award of $1,000,000, 50% of which will vest on the Closing Date and 50% of which will vest on the six-month anniversary of the Closing Date, subject to the named executive officer’s continued employment through each such vesting date."},{"id":"q458","sourceId":"filing-3","location":"Annual meeting—non-voting common stock rights","excerpt":"Holders of Common Stock Non-Voting (NYSE: MKC) may not vote but are welcome to virtually attend the Annual Meeting at www.virtualshareholdermeeting.com/MKC2026."},{"id":"q467","sourceId":"filing-3","location":"Proxy business highlights—2025 operating cash flow and dividends","excerpt":"We generated strong cash flow from operations of $962 million.(1) Increased stockholder return We returned approximately $483.0 million of cash to our stockholders through dividends in 2025 and, through the execution of our proven strategies, we have driven a total annual stockholder return of 7% over the past 10-year period."},{"id":"q476","sourceId":"filing-3","location":"Executive compensation—annual incentive formula","excerpt":"Our annual incentive is based on a formula that includes adjusted earnings per share (\"EPS\") growth, net sales growth, volume sales growth, and adjusted operating income growth, adjusted for working capital charges and currency impact."},{"id":"q479","sourceId":"filing-3","location":"Executive compensation—acquisition-adjusted three-year sales metric","excerpt":"Cumulative net sales represents the cumulative growth rate for continuing operations over a three-year period, adjusted for items including foreign currency and the sales impact associated with acquisitions and divestitures."},{"id":"q482","sourceId":"filing-3","location":"Executive compensation—actual completed PSU cycle outcome","excerpt":"The PSUs that concluded their performance period at the end of fiscal 2025 were earned at 142.5% of target (or 47.5% of the maximum opportunity), reflecting strong three-year cumulative net sales and no TSR modifier."},{"id":"q495","sourceId":"filing-3","location":"Corporate governance—officer and director hedging and pledging restrictions","excerpt":"Among other things, the Corporate Governance Guidelines make clear that directors and officers of the Company appointed by the Board (including all executive officers) may not pledge Company stock as collateral for a loan or otherwise use Company stock to secure a debt, and may not engage in any hedging transactions with respect to Company stock."},{"id":"q528","sourceId":"filing-3","location":"Board leadership—Lead Director and non-independent Chairman","excerpt":"The Board also has the position of Lead Director who provides additional independent oversight of board matters in our current structure where the Chairman is not an independent director."},{"id":"q546","sourceId":"filing-3","location":"Executive compensation—actual fiscal 2025 equity award mix","excerpt":"Secondly, executive officers' fiscal 2025 target awards were made in an equal mix of PSUs and restricted stock units (RSUs), rather than PSUs and stock options."},{"id":"q553","sourceId":"filing-3","location":"Executive compensation—independent compensation committee","excerpt":"McCormick’s CHCC is comprised solely of independent directors."},{"id":"q569","sourceId":"filing-3","location":"Executive compensation—RSU retirement eligibility vesting","excerpt":"•Awards generally vest at a rate of one-third per year or, if earlier, upon the retirement eligibility date of the holder."},{"id":"q646","sourceId":"filing-3","location":"Director independence—commercial supply relationship context","excerpt":"and has not been involved in the execution of any commercial transactions between McCormick and Flowers Foods, Inc.; and (3) the products supplied by McCormick to Flowers Foods, Inc."},{"id":"q647","sourceId":"filing-3","location":"Director independence—alternative sources for supplied products","excerpt":"are readily available from other sources of supply."},{"id":"q921","sourceId":"filing-5","location":"Business—fiscal 2023 spices and seasoning category position","excerpt":"Within the spices and seasoning category, we are the brand leader globally and a category leader in our key markets."}],"changes":["Retain the previous narrow verdict; the expanded evidence supports a brand advantage without establishing a separate cost or switching-cost moat.","Clarify timing: fiscal 2025 Consumer volume/product mix was favorable, whereas first-half 2026 Consumer volume/product mix declined alongside favorable pricing.","Add actual compensation outcomes, contractual pricing terms and governance disclosures; distinguish executed conditional retention agreements from vested payments.","Separate acquisition consolidation and recognized tariff refunds from organic competitive improvement, and incorporate pending merger financing and ownership commitments."],"limitations":["Assessment uses only supplied passages. Source dates are filing dates: January 25, 2024; January 23, 2025; January 22, February 18, March 31 and June 25, 2026. Later developments are not established.","Category leadership and brand reputation are issuer assertions; operating results support the assessment but do not independently verify market shares or brand premiums.","No competing company is explicitly established as a named rival. Transaction counterparties, customers and compensation peers are not automatically competitors, so the competitors array is empty.","No relative production-cost comparison, exclusivity, quantified switching friction or network effect is demonstrated. The alternative-supply disclosure concerns particular customer products and cannot be generalized to all Flavor Solutions offerings.","Repeat demand is inferred from operating results rather than customer-level retention data; volume/product mix does not isolate unit volumes or establish price elasticity.","Proxy evidence establishes compensation design and some realized outcomes, but the supplied passages do not quantify current management beneficial ownership. Conditional merger awards and ownership changes are not completed outcomes.","Recent margin improvement includes acquisition and tariff-refund effects. Generic competitive and financing risks are possibilities, not proof that the described adverse outcomes occurred."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Broad distribution, material brands and recurring category leadership disclosures are corroborated by realized pricing and demand. This supports strong brand differentiation, with issuer-source limitations; relative cost leadership is unproven.","evidenceIds":["q15","q18","q19","q162","q219","q220"]},{"criterion":"durability","grade":2,"rationale":"Leadership is disclosed across fiscal 2023–2025, but this limited observation window and continuing marketing requirements do not establish exceptional persistence. Recent Consumer volume/product mix weakness tempers the evidence.","evidenceIds":["q921","q18","q262","q327"]},{"criterion":"customer_dependency","grade":1,"rationale":"Frequently negotiated pricing and quantities, powerful retailers and disclosed alternative supply for particular customer products indicate weak dependency. Brand preference does not establish customer lock-in.","evidenceIds":["q239","q35","q646","q647"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Favorable fiscal 2025 pricing and volume/product mix demonstrate resilience, but subsequent Consumer volume/product mix declines and acquisition-assisted margin gains leave mixed evidence. Retailer risks are weighed as potential pressure rather than realized losses.","evidenceIds":["q219","q220","q327","q328","q322","q35"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Pricing contributed positively by 0.7% to fiscal 2025 consolidated sales and 2.5% to first-half 2026 Consumer sales. These are demonstrated outcomes across successive periods, although they do not establish an unlimited premium or isolate elasticity.","evidenceIds":["q219","q328"]},{"criterion":"retention","grade":2,"rationale":"Indirect operating evidence is mixed: fiscal 2025 volume/product mix improved, while first-half 2026 Consumer organic sales increased 1.3% through pricing despite a 1.2% volume/product mix decline. No customer retention rate is disclosed.","evidenceIds":["q220","q325","q327","q328"]},{"criterion":"margin_resilience","grade":2,"rationale":"Pricing and cost savings partly absorbed fiscal 2025 inflation, but gross margin declined 60 basis points. First-half 2026 recovery also reflects acquisition consolidation and a recognized tariff refund, limiting attribution to pricing power.","evidenceIds":["q223","q322","q413"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Frequent establishment of pricing and quantities provides repricing opportunities, with most arrangements and incentives lasting one year or less. Terms remain negotiated with powerful buyers; unilateral pricing freedom is not established.","evidenceIds":["q239","q35","q41"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Actual cash generation and debt repayments support discipline, but the Mexico acquisition required substantial cash and increased borrowing. Pending merger financing and ownership commitments materially expand capital exposure without demonstrated merger returns. The bridge commitment is not treated as drawn debt.","evidenceIds":["q467","q72","q288","q345","q304","q427"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Actual annual and multi-year incentives incorporate operating performance, acquisition-adjusted sales and equity payouts; failed price-vested options were forfeited. Alignment is mixed because half of fiscal 2025 equity awards were RSUs with retirement-related accelerated vesting, and executed merger retention agreements reward continued employment rather than investment returns. Conditional cash awards are not treated as vested.","evidenceIds":["q476","q479","q482","q116","q546","q569","q437"]},{"criterion":"execution","grade":2,"rationale":"Indirect operating evidence shows consolidated sales and operating income growth across 2023–2025, with particularly improved Flavor Solutions operating income. Consumer operating income softened in 2025, subsequent organic demand was mixed, and transaction costs increased. Acquisition consolidation and refunds prevent treating recent headline gains as exceptional execution.","evidenceIds":["q118","q325","q327","q322","q435"]},{"criterion":"governance","grade":2,"rationale":"Independent audit and compensation committees, a Lead Director and hedging restrictions provide substantive safeguards. Non-voting MKC shares and a non-independent Chairman limit shareholder influence and independent leadership. These disclosures support a mixed assessment without implying misconduct.","evidenceIds":["q77","q553","q528","q495","q458"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"552e6d706c5edb718e3bc53ce5357251d760dfd9d473a303bae4b0bb47780c51","updatedAt":"2026-10-18T14:42:13.376Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm","publishedAt":"2026-01-22","sha256":"b81a453f1a7e3dd83ef83b84e6c1cb05e39e6f44228025b50a32f846569965a3","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375426000274/mkc-20260531.htm","publishedAt":"2026-06-25","sha256":"a6cadaa5e593289e53e5b64ec3f75a12bcb2e7d6f2b4ea482eef2cefcf687c38","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375426000140/mkc-20260217.htm","publishedAt":"2026-02-18","sha256":"69691b1cc7facf2081d4f267c9f706ceeeb5486dadc2ff632c3db31d11cdd6a5","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375425000005/mkc-20241130.htm","publishedAt":"2025-01-23","sha256":"af44ea760230fccdefcb493896e33d09606186ab92574a1734cd28b25aedd18f","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375424000027/mkc-20231130.htm","publishedAt":"2024-01-25","sha256":"f774542113af623a03e1e22a98acc42328cee97c2ba677d579ce5c0da81062ef","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/63754/000006375426000192/mkc-20260228.htm","publishedAt":"2026-03-31","sha256":"bd3e314a030dffb81f14886d95ed56d96ae54157c82e026e6958d1a48f8b0cb9","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:70a2183c346946dfaa49d6d20d5c0afef27bb2e877157da4cbb84a2aa10ad2f8","usage":{"input_tokens":85072,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3866,"reasoning_output_tokens":151}},"signals":[{"period":"2021","end":"2021-11-30","values":{"gross_margin":39.484638883173204,"operating_margin":16.067047594928695,"roic":8.963529700955823,"fcf_margin":8.710172683961442,"sbc_revenue":1.0541477389638962},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2022","end":"2022-11-30","values":{"gross_margin":35.81607747421463,"operating_margin":13.598929218171799,"roic":7.254004758548696,"fcf_margin":6.133375324777576,"sbc_revenue":0.9495315329501615},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-11-30","values":{"gross_margin":37.56266698688121,"operating_margin":14.454684638707935,"roic":7.988109504943214,"fcf_margin":14.610789228783286,"sbc_revenue":0.9516375971901174},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. 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