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Jim Cramer: McCormick Is a 'Story of Cooking at Home'

Jim Cramer has some thoughts on McCormick and how to approach the stock after earnings.

McCormick handily beat second-quarter earnings expectations as increased cooking at home due to the coronavirus-pandemic quarantine boosted the spice and condiment maker's sales.

For the second quarter ended May 31 McCormick reported net income of $195.9 million, or $1.46 a share, up from $149.4 million, or $1.12, in the year-earlier quarter. Adjusted earnings came to $1.47, beating FactSet's consensus estimate of $1.16.

Sales grew 7.6% to $1.4 billion, ahead of FactSet's call for $1.38 billion.

Consumer segment sales rose 26% to $962.6 million, while flavor solutions sales slipped 19% to $438.5 million.

"Our exceptional consumer-segment growth was driven by the substantial increase in demand as consumers were cooking more at home," Lawrence Kurzius, chairman, president and CEO, said in a statement. "In our flavor-solutions segment, our results were significantly impacted by sharp declines in demand from restaurant and other food-service customers as away-from-home dining was significantly curtailed." 

The company said consumer segment sales growth was driven by higher volume and product mix in the Americas and Europe, Middle East and Africa regions.

Did your cooking at home bolster McCormick stock? Jim Cramer weighs in on McCormick's earnings in the video above? 

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