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McCormick & Company Leverages AI and Analytics to Strengthen Operations

Spicing "IT" up.
Emory Odom
Contributing Writer

McCormick & Company (NYSE:MKC) reported its first-quarter 2025 financial results, posting sales of $1.61 billion, an increase of 3% year-over-year in constant currency. Operating income was $226 million, up from $218 million in Q1 2024, while adjusted operating income increased 1% to $235 million. Earnings per share came in at $0.60, with adjusted EPS at $0.63, compared to $0.59 and $0.63 respectively in the prior year. Growth was primarily driven by pricing actions and demand for flavor across its Consumer and Flavor Solutions segments.

On the technology front, McCormick’s leadership reaffirmed its ongoing digital transformation, underscoring the role of AI, data analytics, and IT modernization in supporting productivity and customer experience. Executives detailed initiatives around intelligent automation, supply chain analytics, and enterprise digital capabilities as key contributors to their performance improvement plans and long-term strategic goals.

Technology was positioned as central to McCormick’s efforts to drive efficiency, scalability, and innovation.

Why It Matters: McCormick’s affirmation of its technology roadmap illustrates how technology investment is becoming deeply embedded in operational strategy, even in traditional sectors like food manufacturing. From AI-powered automation to digital capabilities embedded across commercial functions, the company is leveraging tech to scale performance and navigate margin pressures. For CIOs and technology leaders, McCormick’s approach offers a compelling blueprint for aligning enterprise IT strategy with tangible business outcomes.

  • AI and Automation Drive Productivity Gains: McCormick emphasized intelligent automation as a key lever in its productivity improvement plans. The company highlighted the use of AI and automated processes to streamline operations, particularly within supply chain functions. As CEO Brendan Foley noted, “We are leveraging intelligent automation and driving productivity through enhanced digital capabilities.” These tools have supported consistent margin expansion and are expected to play an even larger role moving forward.
  • Enhanced Enterprise Digital Capabilities: Executives pointed to the development of enterprise-wide digital capabilities as foundational to both commercial execution and internal efficiency. These investments have improved data visibility and enabled better decision-making across the business. Brendan Foley stated that these digital capabilities are “embedded across our business,” contributing to everything from pricing execution to cost management.
  • IT Infrastructure Supporting Growth: McCormick’s ability to scale its global business is increasingly underpinned by its modernized IT infrastructure. While not detailed extensively, the company’s focus on operational scalability and data centralization implies ongoing upgrades to its systems architecture. These improvements are enabling the company to maintain agility and consistency across geographies.
  • Data Analytics Elevating Commercial Strategy: McCormick continues to deploy advanced analytics to support commercial initiatives such as pricing optimization and promotional effectiveness. These insights are enabling more targeted customer engagement and efficient resource allocation. The company cited strong momentum in pricing execution, supported by “robust analytics and improved processes.
  • Digital Enablers in Supply Chain Execution: The company spotlighted its tech-driven approach to supply chain efficiency, particularly around service improvement and inventory management. Brendan Foley noted improvements in customer service levels and a “more stable supply environment,” which are tied to data-driven visibility and digital planning tools. These investments are helping to mitigate volatility and improve reliability.

Go Deeper -> McCormick & Company Q1 2025 Earnings Call Transcript – MarketBeat

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