Hot sauce maker McCormick raised its annual earnings forecast on Tuesday after posting better-than-expected third-quarter results, banking on consumers choosing to make meals at home to curb discretionary spending amid sticky inflation.

Key Takeaways McCormick & Co.'s earnings and revenue exceeded forecasts on its product mix and cost savings.Sales were down slightly as demand slowed in the Americas and Asia-Pacific region.Adjusted operating income gained on higher gross margin and lower expenses.

McCormick’s stock edged higher Tuesday, after the spices and flavor company beat fiscal third-quarter profit expectations and raised its full-year outlook, as volume increased for the first time in about three years.

Food flavoring company McCormick (NYSE:MKC) met Wall Street’s revenue expectations in Q3 CY2024, but sales were flat year on year at $1.68 billion. Its non-GAAP profit of $0.83 per share was 23.3% above analysts’ consensus estimates.