McCormick & Co. Inc.
) recently recalled more than 1000 McCormick Ground Oregano 0.75 oz
bottles, after FDA testing showed that these products might contain
Salmonella. The recall however did not impact any other McCormick
Ground, Whole or Oregano Leaves products. The company manufactures,
markets, and distributes spices, seasoning mixes, condiments, and
other flavored products to retail outlets, food manufacturers, and
Salmonella is an organism that can cause serious and sometimes
fatal infections in young children, elderly people, and others with
weakened immune systems. Thankfully, no such case has been reported
as of now.
McCormick, on its part, has alerted grocery outlets to remove
McCormick Ground Oregano products with code dates BEST BY AUG 21 16
H and AUG 22 16 H from its stores. Also, consumers who have
purchased the products have been urged to destroy them and ask for
a replacement or refund from McCormick Consumer Affairs.
Last month, the company reported second quarter fiscal 2014
results wherein it delivered better-than-expected earnings, but
missed the revenue expectation by a slight margin. Earnings of 64
cents per share beat the Zacks Consensus Estimate of 62 cents by
3.2% and increased 8% from the year-ago earnings of 59 cents per
share. Top-line growth, cost saving initiatives, higher operating
income and a lower tax rate contributed to the higher earnings in
the quarter. Lower shares outstanding owing to share buybacks also
contributed to the bottom line.
Revenues of $1,033.4 million grew 3% year over year, driven by
positive results in both the consumer and industrial business
segments. The acquisition of Wuhan Asia-Pacific Condiments Co. Ltd.
(acquired in May 2013) contributed 3% to net sales growth. (Read:
McCormick Beats on Q2 Earnings; Re-Affirms View
McCormick currently holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the food industry include Treehouse
Foods Inc. (
), Boulder Brands Inc. (
) and Pinnacle Foods Inc (
). While Treehouse sports a Zacks Rank #1 (Strong Buy), Boulder
Brands and Pinnacle Foods carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
MCCORMICK & CO (MKC): Free Stock Analysis
BOULDER BRANDS (BDBD): Free Stock Analysis
PINNACLE FOODS (PF): Free Stock Analysis Report
TREEHOUSE FOODS (THS): Free Stock Analysis
To read this article on Zacks.com click here.