McCormick & Co. (NYSE: NYSE:MKC) saw a notable positive shift in sales, marking the first such increase in five months. According to BofA, the total packaged food retail sales rose by 1.4% in the latest four-week period, driven by a 1.8% increase in pricing, despite volumes dipping by 0.4%.
The performance is consistent with the previous month's data, where sales also increased by 1.4%, volumes were down by 0.6%, and price/mix was up by 2% for the four weeks ending August 10, 2024.
Comparing sequential retail sales growth for companies covered by BofA, the results were mixed. While no companies reported a sequential acceleration greater than 150 basis points, Hormel Foods (NYSE: NYSE:HRL) experienced a sequential deceleration exceeding 150 basis points.
The week concluding on August 31, 2024, showed a general weakness in sales across the board, attributed to the timing of Labor Day.
In other recent news, Hormel Foods reported mixed Q3 results for fiscal 2024. The company's retail brands, including Hormel Black Label bacon, Jennie-O turkey, and SPAM luncheon meat, experienced sales growth.
The Foodservice segment, too, marked its fifth consecutive quarter of above-industry sales growth, while the International segment saw a significant recovery. However, Hormel faced challenges in the turkey market and production disruptions at its Planters facility.
As a result, Hormel has updated its fiscal 2024 net sales and earnings guidance, reflecting current market conditions and strategic investments. Goldman Sachs (NYSE:GS) maintained its Sell rating for Hormel Foods, expressing skepticism regarding the sustainability of earnings growth driven by market changes.
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