Why Shares of McCormick & Co. Fell Today
Shares of McCormick (NYSE: MKC) fell more than 10% on Thursday, weighed down by fears the U.S. economy would fall into a recession due to the COVID-19 coronavirus. The spice-and-flavors giant gets a growing portion of its revenue serving restaurants and institutional kitchens, and that business could come under pressure if the outbreak causes consumers to hunker down.
McCormick is best known for its consumer spices, but the company in recent years has made a big push into providing flavors for restaurants. The company's non-consumer segment currently makes up about 39% of total sales and 31% of operating income, and that segment is growing faster than consumer sales.
Image source: Getty Images.
Source Fool.com
