Good morning. This is Kasey Jenkins, Vice President of McCormick Investor Relations. Thank you for joining today's Second Quarter Earnings Call. To accompany this call, we posted a set of slides at ir.mccormick.com. Currently, all participants are in a listen-only mode. Following our remarks, we will begin a question-and-answer session. [Operator Instructions] We'll begin with remarks from Lawrence Kurzius, Chairman, President and CEO, and Mike Smith, Executive Vice President and CFO. During our remarks, we will refer to certain non-GAAP financial measures. These include information in constant currency, as well as adjusted operating income, adjusted income tax rate and adjusted earnings per share that exclude the impact of special charges. Reconciliations to the GAAP results are included in this morning's press release and slides. In our comments, certain percentages are rounded. Please refer to our presentation for complete information. In addition, as a reminder, today's presentation contains projections and other forward-looking statements. Actual results could differ materially from those projected. The company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or other factors. It is important to note, these statements include expectations and assumptions which will be shared related to the impact of the COVID-19 pandemic. As seen on slide two, our forward-looking statement also provides information on risk factors including the impacts of COVID-19 that could affect our financial results. It is now my pleasure to turn the discussion over to Lawrence.

Thank you, Kasey. Good morning, everyone. Thanks for joining us. The last few months have been an extraordinary period and the global recovery from COVID-19 continues to evolve daily. McCormick's commitment to maintaining critical food supply across all of our markets and supporting our communities has been constant during these turbulent times. Across the globe, we've committed financial resources to many organizations to support frontline health care workers, emergency responders, and the restaurant and hospitality industries, including donating to food banks and causes nearly 20 countries to ensure reliable access to food to those most vulnerable during this ongoing pandemic. We're working through the challenges of today, while keeping our focus on the long-term goals, strategies and values that have made us so successful. We have three priorities, which we've spoken about since the first days of the crisis as we work through this period. The first is to ensure the health and safety of our employees and the quality and integrity of our product. The second is to keep our brand and our customers' brands in supply and maintain the financial strength of our business. And the third is to make sure we emerge stronger from this crisis. As a company, we've seen all phases of the pandemic, from lockdown starting in January to various stages of recovery today. Our businesses in China are fairly far along in recovery with the exception of the Hubei province, one of our most highly developed regions in China, which is in the early stages of recovery as it was under an extended lockdown through April 8. Other businesses in Asia-Pacific as well as the EMEA are about two or three months behind China with variations by market, with some markets beginning early recovery late in the second quarter. In the Americas, which…

Thanks, Lawrence. And good morning, everyone. I'll begin now by providing some additional comments on our second quarter performance, and then discuss some of our expectations for the balance of the year. Starting on slide 15, during the second quarter, sales rose 10% in constant currency. Sales growth was driven by substantially higher volume and mix in our consumer segment, offset by significant declines in our flavor solutions segment. The consumer segment sales grew 28% in constant currency, led by the Americas and EMBA region. The shift to at home consumption and cooking more at home has driven substantial demand for our consumer products. Higher volume and mix primarily drove the increase, with pricing to partially offset cost inflation also contributing. On slide 16, consumer segment sales in the Americas increased 36% in constant currency versus the second quarter of 2019. The increase was broad based, with significant growth across the McCormick branded portfolio, both in major channels and e-commerce as well as in private label products. Additionally, the pricing actions we took late in the first quarter to offset increased costs also contributed to the growth. In EMEA, constant currency consumer sales grew 26% from a year ago, with higher volume and mix in all countries across the region. The most significant growth drivers were our Vahiné homemade dessert products in France, our Schwartz and Ducros branded spices and seasonings and our Schwartz dry recipe mixes. Consumer sales in Asia-Pacific declined 13% in constant currency, driven by the extended disruption in Wuhan, which as Lawrence mentioned drove a decrease of 26 percentage points to the region's consumer sales. This decline was partially offset by increased consumer demand across the region, led by condiments in China and broad-based Australia growth, as well as strong e-commerce growth. Turning to our flavor…

Thanks, Mike. Now that Mike has shared our financial results and 2020 expectations in more detail, I'd like to recap the key takeaways as seen on slide 30. Our second quarter played out during an extraordinary period, and our results speak to the value of our product and to our capabilities as a company. Our ability to execute during the volatility of the quarter highlights our agility, strong foundation and engagement of our people. We will emerge a stronger company by focusing on our long-term strategies, responding to the changing consumer behavior and capitalizing on global and growing consumer trends, which are further accelerated during the crisis. We're confident in our ability to perform in this dynamic environment and continue on our growth trajectory. Our commitment to our long-term financial objectives has not changed. We're sustainably positioned for growth and will continue to deliver differentiated results. Now, let's turn to your questions.

Thank you. [Operator Instructions]. And our first question comes from the line of Andrew Lazar with Barclays. Please state your questions.

Good morning, everybody.

Hey, good morning, Andrew.

Hi, there. Thanks for the question. On the outlook slide for the balance of the year, we talked about expecting elevated consumer segment demand for a period of time. And yet, the sales to the packaged food players within your flavor solutions business to return to pre-COVID-19 levels. And on the face of it, those two would seem maybe a little contradictory because if elevated demand in your branded business – would think we'd see elevated demand to other packaged food customers as well. Is it something with your customer mix maybe in terms of those customers in flavor solutions? Or is there potentially a little conservatism there if the broader sort of consumer packaged food landscape remains somewhat elevated on an ongoing basis, if you see what I'm getting at?

I do see exactly what you're getting at, Andrew. And by the way, for you and for all of the participants on the call, we're sitting here with face masks on. And so, if we're a little bit muffled and hard to understand, please let us know and we'll try to speak up. The mix of customers within that sector is one of the factors. And there is a tremendous variability between our different customers, some of whom are still up solid double-digits and others who are down. For each one of them, there's a story that goes along with that. For some, they are also impacted by sales to food service and convenience store channel that have been depressed and are not up to current performance. Some of them are beverage manufacturers who will also have sales cut across both the at home and away from home channel. And many say, if not all, have curtailed some of their innovation and focus on a core group of items in order to meet the demand from the retail side of the business, which has also, in some cases, contributed to an impact on us. We did see an initial big surge from those customers during the during the stock up period and as they adjusted their supply chains, but we've seen that steadily settle as we've gone through the quarter. So, we do expect that to gradually return to a more normal rate. Also, I'll add, Andrew, that one of the things that's different about McCormick versus the rest of the industry is that, for most of our products, herbs, spices, seasonings, condiments like mustard and Frank's RedHot, it doesn't matter whether the consumer cooked the product at home or if they purchased it at a restaurant through takeaway. And part of the new normal for food service broadly is going to be a greater proportion of it being for a drive-thru takeaway away from premise consumption. And Frank's doesn't care if your bought it at home or if you cooked it at home.

Well, that Frank's thick buffalo ranch sauce, I can tell you, is being consumed like it's water with my college age son here at home.

Thank you. We appreciate every package.

Great salad dressing too.

The trial we've gotten on the new products we've launched has really been one of the long-term benefits that we've gotten from the crisis.

Great. Thanks, everybody.

Thanks, Andrew.

Our next question is from the line of Ken Goldman with JP Morgan. Please proceed with your question.

Hi, good morning. Thank you.

Hi, Ken.

Hey, guys. Two from me. One, you talked about – I think the phrase you said was canceled promotions. Many companies we talk to are talking about promotions being delayed to the back half of the year. You used the word canceled. It may just be semantics, but I was just curious if you feel those promotions will not necessarily come back in the back half of the year. So, I just wanted to get your color on what you're seeing from the environment on the deal space, from deal bag space. And then, the second question for Mike. Mike, you talked about the tax rate benefiting from entity structure refinements in the slides. Can you just give us a little more color on what those are and how they might affect your tax rate going ahead? Thank you.

Hi, Ken. I'll take the first part of that on the promotional activity, and I will gladly let Mike go over the tax question. I want to make sure that we're really clear on this point. We're definitely leaning into our brands through this crisis. Our brand building activity through our engagement with consumers, our advertising through traditional channels or through social and digital marketing has not only not been curtailed, but we've ramped those up. Consumers are very interested in cooking right now and we want to take advantage of that interest, get as much trial on our brands as possible, and it's part of us coming out of this as a stronger company. The promotional matters are a little bit different. Now, with a huge surge in demand, we've had to try to manage that demand. And so, curtailing our promotions and, in some cases, canceling promotions has been part of managing through that huge surge in demand. We have, in our US business, had a sustained surge in – growth in demand. I don't really want to call it a surge because it's not pantry loading. It's consumption. Over 50% across the quarter. And there just wasn't that much slack in our supply chain. So, we did, working with our customers, curtail promotions. And in some cases, they are genuinely canceled. We cannot go back and repeat the Memorial Day grilling promotions. That we can't. Those aren't going to happen. We are in a stronger, I'd say, supply position today, and we are reinstating our promotional activities. I would say, through May, we largely suspended trade promotion activity.

Thank you for that.

From a tax perspective, Ken, just to take you back, our underlying tax rate globally is about 24% to 25%. And it really goes up and down based on geographic mix. So, we do give you when we have visibility to discrete items, such as some of these legal restructurings we do, as we talked about earlier in January, even though it's underlying 24% to 25%, we said for the year to be around 22% because of some of the things we're doing. As a global company, through a lot of our global entities, we've been built through acquisitions. And as you make acquisitions globally, there's tax strategies that happen later on to take advantage of losses/gains around the world. So, we have a great tax team that works on these things. And you could probably teach a college class on this stuff, but it's very complicated. But it's really taking advantage of some of the global infrastructure we have. And we give you insight when we know those things can happen.

Ken, before we…

Yeah, sorry.

Go ahead. Did you have any follow-up on the tax question because I want to come back to promotion for a second?

I hate to say I do. But I do. Just really quickly, Mike. I guess the implication is we should not be modeling anything necessarily unusual going ahead in terms of a reversal on that.

No, definitely not. No. 100% no.

Right. Right.

Hey, Ken. Just one more point on the promotion. So, the lift that we're seeing in Nielsen and IRI and the share gains are coming in spite of curtailment of promotion. I just want to put that point out there.

Yes. Very helpful. Thank you, gentlemen.

Our next question is from the line of Robert Moskow with Credit Suisse. Please proceed with your question.

Hey, good morning, Rob.

Good morning. Thanks for the question. I was hoping you could zero in a little more on the inventory deloading that you saw in US retail. You mentioned that as one of the factors explaining the discrepancy between consumption growth and shipments. Do you have any sense of how many weeks of inventory you're down versus normal? And what's the plan for the back half of the year? Are you going to try to reinstate inventory levels back to normal? Or is it just kind of like hand to mouth for a while? Thanks.

I'm going to say that, first of all, this reduction in inventory is not a plan by the retailer. The supply chain has been challenged to keep up with the surge in demand. It's been a challenge for us primarily on manufacturing capacity in the Americas. And it's been a challenging time for the retailers because of the surge in demand and their ability to actually receive product. And for a good part of this quarter, they were prioritizing things like paper products and sanitation products, which are pretty bulky, all of their time and ability to receive. It hasn't always allowed us to replenish inventory. But we're estimating at least there's a one week delay between the purchase and the restock signal. So, it's certainly at least a week that's been taken out of trade inventories. And retailers, definitely, are wanting to get in better supply. You can see it in the scan data. The points of distribution are down. That's reflecting in out of stock situations. We want to get that replenished and we're working towards that. Our ability to service this demand was really good in the initial weeks. But as it continued at a sustained rate, it really dipped as we went through May. And we took a lot of steps to initially expand just our logistics capabilities and capacity to meet the surge in demand and then shifted – and as we debottleneck that, our manufacturing capacity became a pressure point. So, we've taken steps to add workforce. We have optimized the schedules. And really by the fourth quarter, we'll either be 24/7 or 24/5 in all of our facilities, not just in the US, but around the world. We've made some short-term capital investments of our blending capacity. And we've brought on, frankly, some more comanufacturer as strategic partners in order to meet the surge in demand. So, we're really past the low point in our ability to service the customers which we hit right around the end of the quarter and our service has been improving week by week since then. And we think we're going to be in good position to meet the demand. And this inventory will be restored to the system, which they'll be a driver of some volume growth in the rest of the year, but the real key is just what happens with consumer demand and how strong is that strong preference for cooking at home continues for the rest of the year.

And if I can ask a follow-up to that, is it time of year right now where you start talking to retailers about merchandising for the holiday season? And what would you normally tell them that would be different this time versus what you might have told them in the past?

Yeah, that conversation is ongoing right now because, of course, retailers are concerned about supply for the holiday season. Right now, we believe that we're going to be in a good position to meet the fourth quarter demand that is very strong. And that's what we're guiding our retailers to.

The good news, Rob, is our holiday items tend to be longer runs and more efficient for us to produce. It's a different set than being produced now. So, that gets us some opportunity there.

Got it. Well, lots of cinnamon. All right, thank you very much.

Our next question is coming from the line of Alexia Howard with Bernstein. Please proceed with your question.

Good morning, everyone.

Good morning,

Hi there. Okay, so two questions. Firstly, given that a consumer would only use a little out of a full spice jar to make a single meal, what gives you the confidence that we won't see a sharp slowdown in sales in consumer once those shoppers are fully stocked up on the range of different spices that they need for their repertoire of recipes for cooking from scratch? I guess I'm asking, could there be a temporary one-time cliff at some point? And then, my second question is, more broadly, given Dr. Fauci's recent comments about how chronic health conditions have contributed to the disproportionate impact of COVID-19 on the African-Americans community in the US, how are you thinking about systemic issues like food deserts or food apartheid and the role that McCormick and the food system more broadly can play in addressing these problems of racial injustice? Thank you.

Two very different questions. And the last question has a number of different facets to it. So, I'm going to try to tackle both of those. First of all, many of our products are single use. A big part of the surge in demand that we're seeing is from our dry recipe mixes, for example, which would be a single use product or wet marinades or single use. And just the sheer level of increase in cooking says that consumers are going through their spice supply. We've had a very high level of repeat purchase even during the second quarter. So, consumers – we're getting certainly new trial, but we've had an 11% increase in repeat buyer rate at the same time that we've had a 16% increase in household penetration. And if you know how that works, usually when your penetration goes up, your repeat rate goes down for a period of time because they're bringing in lighter users. There's a high level of usage. And we don't see any evidence at all that consumers have built inventory in their pantries. It's just not a stock up category. We're a usage category. People are worried that they're going to run out of cinnamon, and so they buy three bottles, the way they might buy three packs of toilet paper. And so, we believe that consumers are buying for their immediate use and consumption. And we do not believe that there's going to be any kind of consumer need to destock. And I'll go even further out on that. But our own survey data because we're doing weekly tracker with consumers shows that most consumers only have a week or two of food on hand. And so, they're not stocked up on [Technical Difficulty] food. And the question of food…

Appreciate it. Thank you very much and hope to catch up soon. Thank you.

Thanks, Alexia.

The next question is from the line of Faiza Alwy with Deutsche Bank. Please proceed with your questions.

Yes. Hi. Good morning. So, I wanted to first just follow-up on the supply chain. I think you had mentioned in your prepared remarks that there were some raw materials where you're seeing some pressure. So, just wanted to get more color on that. And then, I have a follow up.

Great. I'll be glad to say, first of all, I don't want to create a misperception. And so, I'm really glad you asked that question. I think that global sourcing has actually been one of the bright spots for us and has been a real differentiator that has enabled us to win through this situation. We have very thoroughly insight into – that sourcing might be a pressure point because of our operations in Wuhan, so we saw this crisis coming right at the beginning. And we began developing contingency plans and alternative sourcing all the way back in January. And I think we spoke about this on our year-end call and in some subsequent media the first week of February. So, this has been a real win for us. Any supply chain in any industry would have been challenged going through this, and so there have been a rolling series of challenges. But I will say that our ability to source raw materials and packaging has not had a material impact on our service, and we think that we're very much advantaged in this area.

As we've talked in the past, we source over 14,000 raw materials and packaging items globally. And as Lawrence said, we really have not had any significant shortages in sales due to that.

Scale is an advantage in this. We're really the only – I would say only company with the scale to be able to have the resources on the ground in the actual sourcing areas for some of these raw materials, especially the most important ones. And that has proven invaluable and we've been able to work locally with local suppliers in emerging markets where many of our raw materials come from, work with local suppliers, local logistics and local authorities to keep our raw materials flowing.

When you see headlines like when the COVID hit in India they're shutting down the country, our global supply chains is able to work with those people to get our product out. So, they've done a great job.

Yeah.

Okay, great. And then, just the new US capacity addition that you had talked about, I'm curious if this is something that you had planned on doing that you were able to accelerate into this year. And I guess, the real underlying question, how are you thinking about long-term demand? Outside of just what's happening with COVID right now and the lap next year, do you think you're creating sort of a new generation of people who enjoy cooking or have at least gotten comfortable with it? Just your perspective around long-term demand would be helpful?

Yes. Well, on the supply chain side, I'll take that part first, we did not anticipate that we would have this much growth in demand this year. So, the things that we're doing in our US – particularly in our US manufacturing to create additional capacity are all new things that we're doing in response to an incredible situation. We do have a long-term capital plan. We do actually have spoken externally…

We were talking at CAGNY about it.

Exactly. And for the past three years, our real focus, I think from a capital standpoint, has been building our capacity and capabilities in Asia and other emerging markets. Beginning this year, we were pivoting back to Western Europe and the US specifically. And so, we do have a number of big projects underway and this will only accelerate our thinking in that space. As far as the demand creation goes, right now, we really believe that consumers are going to continue to cook at home more for an extended period of time, which is going to be constructive to our growth. And further, the new normal for restaurants is going to involve more takeout consumption at home, as I mentioned in the earlier question. And that's also going to be constructive for our consumer brands of herbs, spices, seasonings, and condiments. The gains that we're getting in share of household penetration, which, by the way, translates to millions of new households, and the increased repeat rate that we're seeing all say that consumers are trying our brands and like them enough to buy them again, and they're clearly having good experiences that for many of them are going to be the new habit. Everybody's been cooking at home more and found it to be easy, fun and economical.

Perfect, thank you so much.

Thank you. The next question is from the line of Chris Growe with Stifel. Please proceed with your question.

Hey, Chris.

Hello. Good morning. Thank you. Appreciate the time this morning and all the color you've given. I just want to ask, first of all, two I think pretty easy questions. Have you rationalized your SKUs during this time? Are you focusing more on those core items? And then, what has that done to shelf space, was one of my questions? And then, the second question was just the COVID-related costs in the quarter. And I think you'd indicated they're going to be peaking in the third quarter. Does that mean they're higher than second quarter in Q3? And then, kind of how to think about, if you can, that level of cost overall?

I'll take the first part of that and let Mike speak to the COVID costs. But in terms of SKUs, we have prioritized our top selling SKUs in order to maximize our throughput and service to the customer, which has meant that there's a group of, call them, secondary SKUs that have – where we've either suspended production or have just had to curtail production to more as available basis that we needed to do that to give us a longer runs on the on top seller. Again, we've done that in cooperation with retailers. As our capacity grows, we're adding those back. But we did do some SKU management. Now, I'd say one of the learnings that we got going through this, and which our retailers have gotten as well, is that SKU rationalization does bring some benefit in terms of efficiency and reduction of complexity. And so, I think that coming out of this, some of these SKUs will probably not ever put back into service and many retailers are also taking a look at their assortment and will probably carry a lower assortment going forward. I think they're also not just evaluating new SKUs, they're evaluating the brands that they carry. I think that retailers are going to want to simplify that business. And they're finding that some of the small brands that they were carrying had unnecessary duplication and complexity and justifying it aren't worth it. I think that contributes to the share gain that we're seeing. I think this is going to give us a lot more traction than second half of the year, particularly with our category management initiatives and the aisle reinvention program that we set for herbs and spices. Mike, do you want to take…?

Hey, Chris. On the COVID costs, we estimate we're going to spend in the $30 million range from a cost of goods sold perspective for the year. It really splits between the second and third quarter. We don't see a lot in the fourth quarter. All that's pretty uncertain now, depending on how long COVID lasts. But I would just think the second and third quarter would be the biggest expense for things like essential pay we've had for our essential workers in the plants and DCs, paid leave, all the PPE we've had to buy, some small inventory write-offs. But think about a second, third quarter impact.

And just to be clear on that, Mike, there was a comment about 3Q being larger than 4Q, but does that necessarily mean that 3Q is larger than 2Q or is 2Q sort of the highest level of the year and then they're kind of still higher, but lower in Q3?

I think they're roughly the same.

Okay. Great. I appreciate all the color. Thanks so much.

Thank you. Our next question is from the line of Peter Galbo from Bank of America.

Hey, good morning. Thanks for taking the question. Just one for me. Mike, in the press release this morning, there was quite a bit of discussion around just fixed cost leverage and deleverage associated with the higher and lower volumes in the two kind of parent segments. I guess, just is there any way to dimension for us how much of the margin improvement or the deleverage was due to that fixed cost leverage as we think about it going forward? The volumes will obviously still be up in consumer, but maybe not as much. And that could help us from a modeling perspective on the margins.

Peter, you've read the book by Charles Dickens The Tale of Two Cities. This is really the tale of two segments. From a consumer perspective, obviously, with this huge volume increases, we've got a lot of great fixed leverage. On the other side, flavor solutions, we did not. For the company, it was really not that positive overall. What you're seeing at the gross margin line, a good – over half of that increase is due to the segment mix as consumer has higher margins than flavor solutions at the gross margin line and the operating margin line. It all depends on – over the next six months – what happens with that consumer demand and flavor solutions demand, but it was not a significant impact overall for the company from a fixed leverage perspective, especially as we've had some of this additional manufacturing related COVID cost in Q2.

Got it. No, that's helpful. Thank you.

Thank you. Our final question today comes from the line of David Driscoll from DD Research. Please proceed with your question.

Great. Thank you. Appreciate you sneaking me in here before it concludes.

[Multiple Speakers]

Okay. I'll try to make it a good one. I do want to follow-up on the margins. I want to say that the biggest variants that I think that happened in my model versus your actuals and consensus for that matter was the differential on margins, Mike. So, I want to go back over it. Sales up 8%, operating income up 21%. Specifically, in that consumer segment, margins up 600 basis points, maybe a little more than that, and volume up 25%. I really like this volume leverage point that was just brought up a second ago. And I know you blended it with the whole company. But if we just stay focused on the consumer segment for a moment, is it fair that the consumer segment was benefited by substantial volume leverage? I know the volume leverage probably works the other way in the other segment, but I'd just like to talk about consumer for a moment. Would it be fair to say that that's the number one point driving the consumer margin improvement? And then, honestly, the real point of all of this is to try to understand how to project forward. Your quarters have a lot of seasonality in terms of margins. If you were to get the same 25 point pop to volumes in Q3, in consumer that you got in Q2, could we just add 600 basis points to the consumer margin? Or is there some funny seasonal effects that would reduce those types of leverage? I just get worried about the seasonal pattern on your margins and how we might think about these factors given such tremendous impacts in the current quarter. Sorry for the long question.

I'll answer this and Lawrence can add to it. Generally, we build margins throughout the year, and I'll speak about consumer now. The fourth quarter is generally our highest margin business due to this holiday items. Second quarter was pretty extraordinary. There was a lot of leverage coming through the consumer due to the huge increases, mid double-digit, meaning 50% in some cases, of increases. I'd be a little careful, though, because things like – if you look at A&P for example, A&P for the company was up 1%, a couple more percent for consumer. Now, that being said, we're going to heavy up more in the second half to get to that mid-single digit guidance we've given. However, even though we didn't spend a huge percentage, you think like working media are up double digit globally if some of our CCI savings are coming through in A&P. So, we're actually really leaning into A&P. But you'll see that A&P line increase in the second six. So that will take 600 basis points down by some number. We had really good product mix in the quarter as well as segment mix. Within the consumer side, good product mix too. I'd just be a little careful about trying to take the second quarter and expand it out to the year.

I also want to emphasize that we're not giving guidance because there's so much uncertainty and I don't want to run away with saying too much about gross margin here because that's getting us into an area of maybe providing more guidance than we are prepared to. But, certainly, the mix between the segments, to the extent that there's more consumption at home and less away from home, it's going to be a benefit to our margin. And correspondingly, that will have leverage – or deleverage based on those volume trends.

And then, guys, if I could just sneak in one last one. Sorry, go ahead.

No, no, that was good. Go ahead.

Okay, the other one, just because this is – I think it's reasonably important and hard to model, in your EMEA business, you've talked about the impact of QSRs and that, in Europe, it was just all but shut down in this past quarter. Where does it stand today? And do we – is it reasonable to think that those quick service restaurants are going to be doing plenty of drive-thru and take-outs, and so that business sees – your business sees a substantial improvement because you're just not in total lockdown like you were in this past quarter. So, I feel like there's a big variance coming right there. But pull me back if that's…

No, no. I'm not pulling you back. I think we pointed to that. And actually, I thought we tried to get that clear in the remarks, but maybe not have. Our remarks were extraordinarily long and I apologize for that. The restaurant – the quick service restaurants in Europe did completely close down at the end of March. I'm not speaking out of school or there are customers, and so I don't want to get into guiding for their business. But all of their CEOs have been out publicly saying that they will close. So, that's out there. But they also all reopened in June, heavily towards drive-thru and pickup, but they have pretty much all reopened in the month of June. So, I would expect to see that better in the – our third quarter. And I'll say the challenge – I'll just mention, where we talk about supply chain, this was one of the challenges that we've had and where we've had to really be nimble and responsive because they shut down with a few days' notice to us, completely idling our facilities, and then they literally started back up with about a week's notice to us. So, we had to get cranked up and we've worked our way through it with them.

Really appreciate the comments. And great job on the quarter, by the way. No one said it, but the results are stellar. Thank you.

Thank you very much.

Thank you. At this time, I'll hand the call back to Lawrence Kurzius for closing comments.

Great. Well, thank you, everyone, for your questions and for participating in today's call, and I realize that it did go a bit long and I thank you for your patience. McCormick is a global leader in flavor and we're differentiated by the broad and advantaged portfolio which continues to drive growth. It's a growing and profitable business with a balanced portfolio to drive consistency in our performance in the volatile environment which we currently operate to deliver flavor to all markets and channels, while responding readily to changes in industry and the world with new ideas, innovation and purpose. One of the most significant risks to any company is being unprepared to respond with agility to a significant unexpected disruption. We're all experiencing that disruption now and McCormick is well prepared to not only manage through it, but to emerge from it stronger. With a relentless focus on growth, performance and people, we're confident our strategies will enable us to become even better positioned to drive future growth and build long-term value for our shareholders.

Thank you, Lawrence. And thanks to all for joining today's call. If you have any further questions regarding today's information, please reach out to me. This concludes this morning's call. Thank you. Have a good day. And I hope everyone stays healthy and safe.