MKC (McCormick & Company Inc) vs S&P 500 Comparison

MKC

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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MKC

S&P 500

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MKC

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

MKC

NESN

MDLZ

OCB

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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McCormick & Company Inc
Glance View

Economic Moat

None

Market Cap

20B USD

Industry

Food Products

McCormick & Company Inc., founded in 1889 by Willoughby M. McCormick, has steadily grown into a global leader in the spice, seasonings, and flavorings industry. What started as a small spice business peddling its wares from a horse-drawn wagon in Baltimore has transformed into a vast enterprise that flavors the kitchens of millions around the world. McCormick's success lies in its strategic acquisitions and relentless focus on quality, which have helped them build an extensive portfolio, including iconic brands like McCormick, Lawry's, and Old Bay. By continuously innovating and responding to consumer trends, such as the growing demand for organic and natural products, the company ensures its relevance and leadership. Central to McCormick's operation is its robust supply chain, sourcing high-quality raw materials from farmers across the globe. This intricate supply network allows McCormick to maintain stringent quality control while producing a wide array of spice blends, herbs, and flavor solutions catering to both retail consumers and industrial clients. The retail segment includes household staples sold through supermarkets and online platforms, while the industrial side services restaurants and packaged food manufacturers with customized flavor solutions. Their business model thrives on creating value through brand strength and innovation, allowing McCormick & Company to maintain its position as a dominant force in the culinary world.

View MKC Analysis

MKC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ZA	T	Tiger Brands Ltd JSE:TBS	Add
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JP	G	Goyo Foods Industry Co Ltd TSE:2230	Select
CH		Nestle SA SIX:NESN	Select
US		Mondelez International Inc NASDAQ:MDLZ	Select
ZA	T	Tiger Brands Ltd JSE:TBS	Select
FR		Danone SA PAR:BN	Select
MY	O	Ocb Bhd KLSE:OCB	Select
US		Kraft Heinz Co NASDAQ:KHC	Select
ZA	A	Avi Ltd JSE:AVI	Select
US		General Mills Inc NYSE:GIS	Select
US		Hershey Co NYSE:HSY	Select

JP	G	Goyo Foods Industry Co Ltd TSE:2230	Add
CH		Nestle SA SIX:NESN	Add
US		Mondelez International Inc NASDAQ:MDLZ	Add
ZA	T	Tiger Brands Ltd JSE:TBS	Add
FR		Danone SA PAR:BN	Add
MY	O	Ocb Bhd KLSE:OCB	Add
US		Kraft Heinz Co NASDAQ:KHC	Add
ZA	A	Avi Ltd JSE:AVI	Add
US		General Mills Inc NYSE:GIS	Add
US		Hershey Co NYSE:HSY	Add

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MKC

vs

S&P 500

Stocks Performance
MKC vs S&P 500

Performance Gap
MKC vs S&P 500

Performance By Year
MKC vs S&P 500

Competitors Performance
McCormick & Company Inc vs Peers

McCormick & Company Inc
Glance View

Company

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MKC vs S&P 500

Stocks Performance MKC vs S&P 500

Performance Gap MKC vs S&P 500

Performance By Year MKC vs S&P 500

Competitors Performance McCormick & Company Inc vs Peers

McCormick & Company Inc Glance View

Company

Help

Tools

Stocks

MKC

vs

S&P 500

Stocks Performance
MKC vs S&P 500

Performance Gap
MKC vs S&P 500

Performance By Year
MKC vs S&P 500

Competitors Performance
McCormick & Company Inc vs Peers

McCormick & Company Inc
Glance View