McCormick & Company, Incorporated (NYSE:MKC) Q3 2023 Earnings Call Transcript

So, this is really an element of an economy that certainly is recovering more slowly than what we would have expected. And where we see that now, this kind of goes into sort of how we’re thinking about Flavor Solutions versus Consumer. And part of that Consumer business is in the foodservice channel, but people are just simply not necessarily going out to a lot of the catering and outside dining events that we’ve seen in the past, and that’s just been a slower recovery overall. We’re also seeing that also happening in retail. Consumer spending is just soft right now overall in China, and we’re seeing that play out. Where we start to see — and this is actually more of a change in this quarter, just more of the typical promotional activity or limited time offers that we tend to see in the QSR segment have begun to come back a little bit more.

So that gives us some reason to believe that this is just a slower recovery than what we planned, but the fundamentals that drive that business are still there and it’s just going to take a little bit more time to get back to what we expect from this part of our business.

Rob Dickerson: All right. Super. Thanks so much.

Operator: Thank you. We’ve reached the end of the question-and-answer session. I’ll turn the call over to Faten Freiha for closing remarks.

Faten Freiha: Thank you all for joining today’s call. If you have any further questions regarding today’s information, please feel free to contact me. And that concludes this morning’s conference call. Thank you.