McCormick (MKC) Risk Factor Changes

We are party to a variety of legal claims and proceedings in the ordinary course of business.

In addition, there are various compliance obligations for companies that process personal data of certain individuals, including such obligations required by the European Union’s General Data Protection Regulation (GD…

Food products are extensively regulated in most of the countries in which we sell our products.

We continue to implement our multi-year business transformation initiative to execute significant change to our global processes, capabilities and operating model , including in our Global Business Services (GBS) oper…

Furthermore, our information technology systems, and the systems of our customers, vendors, suppliers, and other third-party service providers, are subject to cyber-attacks or other security incidents including comput…

We possess intellectual property rights that are important to our business, and we are provided access by certain customers to particular intellectual property rights belonging to such customers.

Risks Related to Intellectual Property, Information Technology, and Cybersecurity

We have a significant amount of indebtedness outstanding.

On November 30, 2025, we had total outstanding variable rate debt of approximately $351.8 million at a weighted-average interest rate of approximately 4.06%.

In addition to environmental issues these constituencies are also focused on social and other governance issues, including matters such as, but not limited to, human capital and social issues.

Climate change and sustainability issues may have an adverse effect on our business, financial condition and results of operations and damage our reputation.

In addition, we could be criticized by those opposed to environmental and sustainability efforts for the scope or nature of our initiatives or goals or for any revisions to these goals.

Moreover, from time to time we establish and publicly announce goals and commitments, including to reduce our impact on the environment.

There has been an increased focus by foreign, federal, state and local regulatory and legislative bodies regarding environmental policies relating to climate change, regulating greenhouse gas emissions (including carb…

From time to time, we may, based on an evaluation of our business portfolio, acquire other businesses and/or divest existing businesses.

The global economy has been negatively impacted by changing political and geopolitical conditions, including conflicts.

Changing political and geopolitical conditions, including conflicts and the related implications may negatively impact our operations.

Our attempts to offset these cost pressures, such as through increases in the selling prices of some of our products, may not be successful.

As a manufacturer and distributor of flavor products, we rely on raw materials, packaging materials, plant labor, distribution resources, and transportation providers.

Political, socio-economic, cultural, and geopolitical conditions, as well as disruptions caused by terrorist activities or otherwise, could also create additional risks for regulatory compliance.

Our purchases of raw materials are subject to fluctuations in market price and availability caused by inflationary pressures, weather, growing and harvesting conditions, climate change, market conditions, governmental…

We have a number of major customers, including two large customers that, in the aggregate, constituted approximately 24% of consolidated sales in 2025.

The food industry generally is subject to risks posed by food spoilage and contamination, product tampering, product recall, import alerts and consumer product liability claims.

Damage to our reputation or brand name, loss of brand relevance, increase in use of private label or other competitive brands by customers or consumers, competitive pressures in marketing and technology, or product qu…

continue to be volatile or economic uncertainty remains, trends in consumer spending also remain unpredictable and subject to reductions due to credit constraints and uncertainties about the future.

Global economic conditions can be uncertain and volatile.

We are party to a variety of legal claims and proceedings in the ordinary course of business.

Similarly, outside of the U.S., there are various laws and regulations governing the collection, use, disclosure, transfer, or other processing of personal data.

In the U.S., for example, the CCPA imposes requirements on companies that do business in California and collect personal information from certain individuals, including notice, consent and service provider requirements.

Food products are extensively regulated in most of the countries in which we sell our products.

Furthermore, our information technology systems, and the systems of our customers, vendors, suppliers, and other third-party service providers, are subject to cyber-attacks or other security incidents including comput…

On November 30, 2024, we had total outstanding variable rate debt of approximately $449 million at a weighted-average interest rate of approximately 4.7%.

perceived to have failed or been delayed in achieving, or improperly report our progress toward achieving these goals and commitments, it could negatively affect consumer or customer preference for our products or inv…

assets) in connection with acquired businesses, which may reduce our profitability.

financial condition or operating results may be adversely affected.

material to our business or financial results.

There also is the threat of consumer class actions related to these laws and the overall protection of personal data.

be perceived to be unsuccessful, which could adversely affect our business in the U.S., the European Union and in other countries.

transactions accurately and efficiently and remain in step with the changing needs of our business, which could result in the loss of customers and revenue.

property (and the intellectual property of customers to which we have been given access), the value of our products and brands could be reduced and there could be an adverse impact on our business, financial condition…

costs associated with, the running of our manufacturing facilities and our business, as well as increase distribution and supply chain costs.

Changes in the political conditions in markets in which we manufacture, sell or distribute our products, as well as changing geopolitical conditions, including conflicts, may be difficult to predict and may adversely…

Our attempts to offset these pressures through supply chain management initiatives and increases in the selling prices of some of our products may not be successful or may result in reductions in sales volume.

Changes in global trade policies, including tariffs, have caused inflationary pressures and higher costs on certain raw materials and imports.

Changes in global trade policies have impacted and may continue to impact our financial condition or results of operations.