McCormick & Company, Incorporat MKC

Competitive advantage analysis · consumer-defensive

Corporate Default
Overall moat score
79/100
Strong

About McCormick & Company, Incorporat

McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments and sauces, and desserts. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's, Cholula Hot … Full MKC analysis →

Competitive advantage assessment

Key strengths

  • Margins Consistently Above Peers Gross margin at 37.9% (top 21%) and operating margin at 15.6% (top 0%) indicate strong pricing power.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.95), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.20), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Strong
92

Where MKC ranks in Packaged Foods

McCormick & Company, Incorporat ranks #2 of 73 scored companies in Packaged Foods by moat score — the top 3%. The widest moat in the group is McCormick & Company, Incorporat (MKC-V) at 79/100.

Moat scores for companies ranked near MKC in Packaged Foods
# Company Moat score Rating
1 McCormick & Company, Incorporat MKC-V 79/100 Strong
2 McCormick & Company, Incorporat MKC 79/100 Strong
3 Ingredion Incorporated INGR 78/100 Strong
4 BellRing Brands, Inc. BRBR 77/100 Strong
5 Seneca Foods Corp. SENEA 76/100 Strong
6 Seneca Foods Corp. SENEB 76/100 Strong
7 The Simply Good Foods Company SMPL 75/100 Moderate
8 John B. Sanfilippo & Son, Inc. JBSS 74/100 Moderate
9 Central Garden & Pet Company CENT 72/100 Moderate

See every General Corporate company ranked by moat score →

How MKC scores on the Corporate Default defenses

Pricing Power

Score 92 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 77 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 89 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 84 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 54 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 77 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding MKC's moat

What is McCormick & Company, Incorporat's moat score?

McCormick & Company, Incorporat (MKC) scores 79 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #2 of 73 scored companies in Packaged Foods, the top 3%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 72 companies in Packaged Foods. Its strongest defense is Pricing Power (92/100) and its weakest is Resilience (54/100).

How does McCormick & Company, Incorporat compare with other Packaged Foods companies?

McCormick & Company, Incorporat ranks #2 of 73 scored companies in Packaged Foods by moat score. The widest moat in Packaged Foods is McCormick & Company, Incorporat (MKC-V) at 79/100. The companies ranked closest are McCormick & Company, Incorporat (MKC-V) at 79 just above it and Ingredion Incorporated (INGR) at 78 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 72 companies in Packaged Foods. The defenses are then weighted to produce the overall score out of 100.

Why is McCormick & Company, Incorporat scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for McCormick & Company, Incorporat?

The Corporate Default template measures 6 defenses, and MKC scores: Pricing Power (92), Cost Advantage (77), Customer Stickiness (89), Capital Efficiency (84), Resilience (54), Scale & Market Position (77). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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