McCormick Beats Q1 Estimates with Pricing Power Despite Slowing Demand, Shares Jump 10%

• McCormick reported better-than-expected Q1 revenue and earnings, leading shares to rise 10% • The company used pricing power to offset a slight decline in demand/volumes • Gross profit margin expanded 140 basis points thanks to favorable product mix and cost savings • McCormick forecasts 2024 revenue to be flat to down slightly, but sees 8-10% operating income growth • The quarter shows McCormick's ability to price brands aggressively and cut costs, making it a steady stock pick