Unilever (NYSE: UL | UL Price Prediction) reported full-year 2025 results on January 22, 2026, while McCormick (NYSE: MKC) closed out its fiscal year the same day. Both are consumer staples stalwarts navigating commodity pressure and cautious shoppers, but their strategies could not look more different.
Simplification Carries Unilever. Spices Hold McCormick Steady.
Unilever finished 2025 with underlying sales growth of 3.5% and volume growth of 1.5% for the full year, with Q4 accelerating to 4.2% underlying sales growth. That momentum came from its Power Brands, which represent 78% of turnover and grew at 4.3%. CEO Fernando Fernandez set the tone clearly: “We are moving at speed to build a business that drives desire at scale…prioritising premium segments and digital commerce, and anchoring our growth in the US and India.” The Ice Cream demerger completed in December 2025 stripped out a lower-margin distraction, leaving a cleaner portfolio built around Dove, Vaseline, Liquid I.V., and Hellmann’s.
McCormick posted full-year revenue of $6.84B, up 1.73%, with its Consumer segment leading at $1.127B in Q4, up 3.9%. Frank’s RedHot, OLD BAY, and Cholula kept retail shelves moving. The problem: Gross margin contracted 130 basis points to 38.9% in Q4, as commodity costs and tariffs overwhelmed savings from its CCI efficiency program.
| Metric | Unilever (FY2025) | McCormick (FY2025) |
|---|---|---|
| Revenue | ~$53B | $6.84B |
| Gross Margin | 46.9% | 38.9% (Q4) |
| Forward P/E | 18x | 20x |
| Dividend Yield | 3.4% | 2.8% |
One Is Shedding Weight. One Is Adding It.
Unilever is narrowing its focus, acquiring premium personal care brands like Dr. Squatch, Minimalist, and K18 while shedding Ice Cream. A new €1.5B share buyback starts in Q2 2026. McCormick went the opposite direction, closing the McCormick de Mexico acquisition on January 2, 2026, which adds 11-13% to reported net sales growth in FY2026 but also brings higher interest expense and a tax rate climbing toward 24%.
Margin Recovery Is the Whole Story in 2026
The key question for McCormick is whether it can deliver on its gross margin recovery promise. CEO Brendan Foley said “our outlook reflects continued top-line momentum, gross margin recovery, and strong operating profit performance”, but two consecutive quarters of 130-basis-point margin compression make that a show-me story. Unilever faces currency headwinds across Latin America and India, and its 2026 guidance targets only the bottom end of its 4-6% growth range.
Valuation Comparison: Where Each Stock Stands
McCormick’s stock has dropped nearly 16% year-to-date, hitting a 52-week low of $57.29. Analysts have a consensus target of $73.85, implying real upside if margins recover — but that is a big if with tariffs still unresolved. Unilever trades at a forward P/E of about 18x with a 3.4% dividend yield and a cleaner post-demerger story. Unilever trades at a forward P/E of about 18x with a 3.4% dividend yield and a cleaner post-demerger story, offering better margin visibility heading into 2026. McCormick’s beaten-down price, 40-year dividend streak, and analyst consensus target of reflect potential upside if margins recover and tariff pressure eases.
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