McCormick & Co. (NYSE:MKC) is a name that we have traded a number of times in the past, and most recently, we got behind the name at the very beginning of April. We told you that there was potential for strong returns during the market turmoil under the thesis that "people need to eat." We had highlighted a few defensive food names at that time, all of which fell less during the crisis and saw business boom with stay-at-home trends. Fantastic returns have been had in the last two months. That is winning. Interestingly, we note that MKC took a hit from restaurant closures, or restaurants only being available for takeout/delivery, during the COVID-19 crisis, but more people were cooking at home. So we started buying at $130, $135. We think that this trade has played out well, as evidenced by the just reported Q2 which we will discuss. Ultimately, we think it is prudent to take some profit here, buy yourself something nice, but let the rest run. While valuation is still a bit stretched, sales are likely to remain elevated as families stay home and cook meals, but the Flavor Solutions segment should start seeing improvement in the back half of 2020 as things reopen.

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