Full Year Conagra Brands Inc Earnings Call - Pre-Recorded

July 10, 2025

Matthew Neisius: Thank you for listening to our prepared remarks for the Conagra Brands Q4 FY 2025 earnings. At 9:30 AM Eastern this morning, we'll hold a separate live question-and-answer session on today's results, which you can access via webcast on our Investor Relations website. Our press release, presentation materials, and a transcript of these prepared remarks are also available there. We'll be making some forward-looking statements today, and while we're making those statements in good faith based on current information, we don't have any guarantee about the results we'll achieve. Descriptions of our risk factors are included in our filings with the SEC. We'll also be discussing some non-GAAP financial measures. Please see the earnings release and presentation material for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website.

<unk>, the Conagra brands' fourth quarter fiscal 2025 earnings.

Unknown Executive: Thank you for listening to our prepared remarks for the Conagra Brands fourth quarter fiscal 2025 earnings.

At 930 Eastern this morning, we will hold a separate live question and answer session on today's results, which you can access via webcast on our Investor Relations website.

Matthew Neisius: At 9.30 Eastern this morning, we'll hold a separate live question and answer session on today's results, which you can access via webcast on our investor relations website. Our press release, presentation materials, and a transcript of these prepared remarks are also available there. We'll be making some forward looking statements today, and while we're making those statements in good faith based on current information, we don't have any guarantee about the results we'll achieve.

Our press release presentation materials and a transcript of these prepared remarks are also available there.

We will be making some forward looking statements today and while were making those statements in good faith based on current information, we don't have any guarantee about the results we will achieve.

We'll be making some forward-looking statements today, and while we're making those statements in good faith based on current information, we don't have any guarantee about the results we'll achieve. Descriptions of our risk factors are included in our filings with the SEC. We'll also be discussing some non-GAAP financial measures.

Descriptions of risk factors are included in our filings with the SEC.

Matthew Neisius: Descriptions of our risk factors are included in our filings with the SEC. We'll also be discussing some non-GAAP financial measures. Please see the earnings release and presentation materials for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the investor relations section of our website.

We will also be discussing some non-GAAP financial measures.

Please see the earnings release and presentation materials for a GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section our web site.

Please see the earnings release and presentation material for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website. I'm joined this morning by Sean Connolly, our CEO, and Dave Marburger, our CFO. I'll now turn the call over to Sean.

Shaun Connolly: I'm joined this morning by Shaun Connolly, our CEO and Dave <unk> our CFO.

Matthew Neisius: I'm joined this morning by Sean Connolly, our CEO, and Dave Marburger, our CFO. I'll now turn the call over to Sean.

Matthew Neisius: I'm joined this morning by Sean Connolly, our CEO, and Dave Marberger, our CFO. I'll now turn the call over to Sean. Thanks, Matthew. And good morning, everyone. Thank you for joining our fourth quarter Fiscal 25 earnings call. Today, I'll review the contrasting halves of our Fiscal 25 performance and provide an overview of Fiscal 26, including the near-term environment and various actions we're taking to proactively manage the business for long-term value creation.

I'll now turn the call over to Sean.

Sean: Thanks, Matthew and good morning, everyone. Thank you for joining our fourth quarter fiscal 25 earnings call.

Sean Connolly: Thanks, Matthew, and good morning, everyone. Thank you for joining our Q4, F25 earnings call. Today, I'll review the contrasting halves of our F25 performance and provide an overview of F26, including the near-term environment and various actions we're taking to proactively manage the business for long-term value creation. Let's begin with a wrap-up of F25, starting on slide 6. F25 was a tale of two halves. We entered the year with a focus on returning to volume growth, and throughout the first half, we made progress toward that goal. Our investments in innovation and maximizing consumer value delivered solid results, leading to five consecutive quarters of organic volume improvement, including a return to growth for our domestic retail segments in the second quarter. Our first-half volume recovery outpaced the peerset, drove strong market share performance, and enabled us to meet our first-half EPS plan.

Sean: Today I'll review, the contrasting halves of our fiscal 'twenty five performance.

Sean: And provide an overview of fiscal 'twenty, six including the near term environment and various actions, we're taking to proactively manage the business for long term value creation.

Sean: Let's begin with a wrap up of fiscal 'twenty five.

Sean Connolly: Let's begin with a wrap up of fiscal 25, starting on slide Fiscal 25 was a tale of two halves. We entered the year with a focus on returning to volume growth. And throughout the first half, we made progress toward that goal. Our investments in innovation and maximizing consumer value delivered solid results, leading to five consecutive quarters of organic volume improvement, including a return to growth for our domestic retail segments in the second quarter. Our first half volume recovery outpaced the peer set, drove strong market share performance, and enabled us to meet our first half EDS plan.

Sean: Starting on slide six.

Sean: Fiscal 'twenty five was a tale of two halves.

Sean: We entered the year with a focus on returning to volume growth.

Sean: And throughout the first half we made progress towards that goal.

Sean: Our investments in innovation and maximizing consumer value delivered solid results.

Our investments in innovation and maximizing consumer value delivered solid results, leading to five consecutive quarters of organic volume improvement, including a return to growth for our domestic retail segments in the second quarter. Our first-half volume recovery outpaced the peerset, drove strong market share performance, and enabled us to meet our first-half EPS plan.

Sean: To five consecutive quarters of organic volume improvement, including a return to growth for our domestic retail segments in the second quarter.

Sean: Our first half volume recovery outpaced the peer set drove strong market share performance and enabled us to meet our first half EPS plan overall, the first half delivered largely what we expected and demonstrated the strength of our strategy and portfolio.

Sean Connolly: Overall, the first half delivered largely what we expected and demonstrated the strength of our strategy and portfolio. Our investments in innovation were a key performance driver of F25. As you know, we have a proven innovation capability, which delivered in F25, highlighting the continued strength of our database approach to meeting evolving consumer needs. Slide 7 shows that innovation launched in F25 contributed more than $300 million in retail sales during the year, reflecting the success of our efforts to bring high-quality, differentiated products to market. This represented a 27% increase compared to F24 launches. Additionally, the velocity of our F25 launches improved by 36% compared to F24, indicating that our new products are not only resonating with consumers but also driving repeat purchases at a higher rate. Some standout examples of our F25 innovation slate include the Banquet Mega Filets, Dolly Parton's Whipped Cheesecake, Vlasic Pickle Balls, and Wendy's Chili.

Overall, the first half delivered largely what we expected and demonstrated the strength of our strategy and portfolio. Our investments in innovation were a key performance driver of F25. As you know, we have a proven innovation capability, which delivered in F25, highlighting the continued strength of our database approach to meeting evolving consumer needs. Slide 7 shows that innovation launched in F25 contributed more than $300 million in retail sales during the year, reflecting the success of our efforts to bring high-quality, differentiated products to market.

Sean: Our investments in innovation for a key performance driver of fiscal 'twenty five as you know we have a proven innovation capability, which delivered in fiscal 'twenty, 5% highlighting the continued strength of our database approach to meeting evolving consumer needs.

Sean: Slide seven shows that innovation launched in fiscal 'twenty, five contributed more than $300 million.

Sean: In retail sales during the year, reflecting the success of our efforts to bring high quality differentiated products to market.

Sean: This represented a 27% increase compared to fiscal 2004 launches. Additionally, the velocity of our fiscal 'twenty five launches improved by 36% compared to fiscal 'twenty four indicating that our new products are not only resonating with consumers, but also driving repeat purchase.

This represented a 27% increase compared to F24 launches. Additionally, the velocity of our F25 launches improved by 36% compared to F24, indicating that our new products are not only resonating with consumers but also driving repeat purchases at a higher rate. Some standout examples of our F25 innovation slate include the Banquet Mega Filets, Dolly Parton's Whipped Cheesecake, Vlasic Pickle Balls, and Wendy's Chili.

Sean Connolly: Additionally, the velocity of our Fiscal 25 launches improved by 36% compared to Fiscal 24, indicating that our new products are not only resonating with consumers, but also driving repeat purchases at a higher rate. Standout examples of our Fiscal 25 innovation slate include the Banquet Mega Filets, Dolly Parton's Whipped Cheesecake, Classic Pickle Balls, and Wendy's Chili. Our strong innovation performance was enabled in part by a return to historical merchandising levels, as evident on slide eight. By the second quarter of fiscal 25, we successfully rebuilt merchandising levels to their pre-COVID norm. Since 2020, our merchandising investments had been suppressed as our primary focus was on-shelf availability.

Sean: At a higher rate.

Sean: Some standout examples of our fiscal 'twenty five innovation slate.

Sean: The banquet Mega Filets daily partners with Cheesecake.

Sean: <unk> nickel malls and Wendy's chili.

Speaker Change: Our strong innovation performance was enabled in part by a return to historical merchandising levels as evident on slide eight.

Sean Connolly: Our strong innovation performance was enabled in part by a return to historical merchandising levels, as evident on slide 8. By the second quarter of F25, we successfully rebuilt merchandising levels to their pre-COVID norm. Since 2020, our merchandising investments had been suppressed, as our primary focus was on-shelf availability. Over the past year, we methodically ramped up our merchandising investment in response to the strong consumer lifts we were seeing in the marketplace. We were particularly pleased with the results in our frozen portfolio. The result was a return to domestic retail volume growth in the second quarter, shown here on slide 9. Both volume and consumption continually increased for five consecutive quarters, delivering year-over-year growth in Q2. Consistent with consumption data, we built share over time. Not only was our top-line performance strong in absolute terms, but it also stood out when compared to our peers.

Our strong innovation performance was enabled in part by a return to historical merchandising levels, as evident on slide 8. By the second quarter of F25, we successfully rebuilt merchandising levels to their pre-COVID norm. Since 2020, our merchandising investments had been suppressed, as our primary focus was on-shelf availability. Over the past year, we methodically ramped up our merchandising investment in response to the strong consumer lifts we were seeing in the marketplace.

Speaker Change: By the second quarter of fiscal 'twenty, five we successfully rebuilt merchandising levels to their pre COVID-19 norm.

Speaker Change: Since 2020, our merchandising investments had been suppressed as our primary focus was on shelf availability.

Speaker Change: But over the past year, we methodically ramped up our merchandising investment in response to the strong consumer lift we're seeing in the market place, we were particularly pleased with the results in our frozen portfolio.

Sean Connolly: But over the past year, we methodically ramped up our merchandising investment in response to the strong consumer lifts we were seeing in the marketplace. We were particularly pleased with the results in our frozen portfolio. The result was a return to domestic retail volume growth in the second quarter, shown here on slide nine. Both volume and consumption continually increased for five consecutive quarters, delivering year-over-year growth in Q2. Consistent with consumption data, we built share over time. Not only was our top line performance strong in absolute terms, but it also stood out when compared to our peers.

We were particularly pleased with the results in our frozen portfolio. The result was a return to domestic retail volume growth in the second quarter, shown here on slide 9. Both volume and consumption continually increased for five consecutive quarters, delivering year-over-year growth in Q2. Consistent with consumption data, we built share over time. Not only was our top-line performance strong in absolute terms, but it also stood out when compared to our peers.

Speaker Change: The result was a return to domestic retail volume growth in the second quarter shown here on slide nine.

Speaker Change: Both volume and consumption continually increased for five consecutive quarters delivering year over year growth in Q2.

Speaker Change: Consistent with consumption data, we built share overtime.

Speaker Change: Not only was our topline performance strong in absolute terms.

Speaker Change: But it also stood out when compared to our peers.

Speaker Change: We significantly outperformed our closest peer 29 percentage points and 67% of conagra's portfolio held or gained volume share in the second quarter.

Sean Connolly: We significantly outperformed our closest peer by 29%, and 67% of Conagra's portfolio held or gained volume share in the second quarter, marking the fifth consecutive quarter of share gains. Taken together, the first half of F25 underscores the strength of our brands and effectiveness of our strategy. Now let's take a closer look at the second half of F25, which proved to be more challenging than we anticipated, driven by four key factors. First, inflation. While we originally expected to get some relief from inflation in the second half of F25, it actually worsened. At the same time, foreign exchange headwinds emerged, providing another challenge. Additionally, beginning in the third quarter, we experienced supply challenges in two product platforms: frozen meals containing chicken and frozen vegetables.

We significantly outperformed our closest peer by 29%, and 67% of Conagra's portfolio held or gained volume share in the second quarter, marking the fifth consecutive quarter of share gains. Taken together, the first half of F25 underscores the strength of our brands and effectiveness of our strategy. Now let's take a closer look at the second half of F25, which proved to be more challenging than we anticipated, driven by four key factors.

Sean Connolly: We significantly outperformed our closest peer by 29 percentage points and 67% of Conagra's portfolio held or gained volume share in the second quarter, marking the fifth consecutive quarter of share gain.

Speaker Change: Marking the fifth consecutive quarter of share gains.

Speaker Change: Taken together the first half of fiscal 'twenty five underscores the strength of our brands and effectiveness of our strategy.

Sean Connolly: Taken together, the first half of fiscal 25 underscores the strength of our brands and effectiveness of our strategy.

Speaker Change: Now, let's take a closer look at the second half of fiscal 'twenty, five which proved to be more challenging than we anticipated driven by four key factors.

Sean Connolly: Now, let's take a closer look at the second half of fiscal 25, which proved to be more challenging than we anticipated, driven by four key factors. First, inflation. While we originally expected to get some relief from inflation in the second half of fiscal 25, it actually worsened. At the same time, foreign exchange headwinds emerged, providing another challenge. Additionally, beginning in the third quarter, we experienced supply challenges in two product platforms, frozen meals containing chicken and frozen vegetables. These discrete supply challenges prevented us from fully servicing demand and required us to incur additional costs to add capacity and rebuild inventory.

Speaker Change: Inflation.

First, inflation. While we originally expected to get some relief from inflation in the second half of F25, it actually worsened. At the same time, foreign exchange headwinds emerged, providing another challenge. Additionally, beginning in the third quarter, we experienced supply challenges in two product platforms: frozen meals containing chicken and frozen vegetables.

Speaker Change: While we originally expected to get some relief from inflation in the second half of fiscal 'twenty five.

Speaker Change: <unk> worsened.

Speaker Change: At the same time.

Speaker Change: Foreign exchange headwinds emerged providing another challenge.

Speaker Change: Additionally, beginning in the third quarter, we experienced supply challenges in two product platforms frozen meals containing chicken and frozen vegetables.

Speaker Change: These discrete supply challenges prevented us from fully servicing demand and required us to incur additional cost to add capacity and rebuild inventory.

Sean Connolly: These discrete supply challenges prevented us from fully servicing demand and required us to incur additional costs to add capacity and rebuild inventory. Lastly, consumer sentiment further weakened in Q4, as prolonged inflation and economic pressures weighed on purchasing behaviors. Our H2 overall performance reflected this extremely challenging operating environment. Let's take a look at each of these issues individually. Starting with inflation and foreign exchange headwinds on slide 12, our cost of goods sold inflation rate actualized at 4% during H2, well above the sub-3% levels we had expected. Inflation was most challenging within certain proteins like beef, chicken, and eggs, where it persisted and in some cases even worsened. At the same time, foreign exchange created additional pressure. The strengthening of the US dollar relative to the Canadian dollar and Mexican peso negatively impacted our international segment.

These discrete supply challenges prevented us from fully servicing demand and required us to incur additional costs to add capacity and rebuild inventory. Lastly, consumer sentiment further weakened in Q4, as prolonged inflation and economic pressures weighed on purchasing behaviors. Our H2 overall performance reflected this extremely challenging operating environment. Let's take a look at each of these issues individually.

Speaker Change: Lastly, consumer sentiment further weakened in the fourth quarter.

Sean Connolly: Lastly, consumer sentiment further weakened in the fourth quarter as prolonged inflation and economic pressures weighed on purchasing pH.

Speaker Change: Prolonged inflation and economic pressures weighed on purchasing behaviors.

Speaker Change: Our second half overall performance reflected this extremely challenging operating environment.

Sean Connolly: Our second half overall performance reflected this extremely challenging operating environment. Let's take a look at each of these issues individually. Starting with inflation and foreign exchange headwinds on slide 12, our cost of goods sold inflation rate actualized at 4% during the second half, well above the sub 3% levels we had expected. Inflation was most challenging within certain proteins, like beef, chicken and eggs, where it persisted, and in some cases, even worsened. At the same time, foreign exchange created additional pressure. The strengthening of the U.S. dollar relative to the Canadian dollar and Mexican peso negatively impacted our international segment.

Speaker Change: Let's take a look at each of these issues individually.

Speaker Change: Starting with inflation and foreign exchange headwinds on slide 12, our cost of goods sold inflation rate actualized at 4% during the second half.

Starting with inflation and foreign exchange headwinds on slide 12, our cost of goods sold inflation rate actualized at 4% during H2, well above the sub-3% levels we had expected. Inflation was most challenging within certain proteins like beef, chicken, and eggs, where it persisted and in some cases even worsened. At the same time, foreign exchange created additional pressure. The strengthening of the US dollar relative to the Canadian dollar and Mexican peso negatively impacted our international segment.

Speaker Change: Well above the sub 3% levels, we had expected.

Speaker Change: Deflation was most challenging within certain proteins like beef chicken eggs, where it persisted and in some cases even worse.

Speaker Change: At the same time foreign exchange created additional pressure the.

Speaker Change: The strengthening of the U S dollar relative to the Canadian dollar and Mexican peso negatively impacted our international segment.

Speaker Change: Slide 13 highlights the impact of the discrete supply challenges we faced in the second half of fiscal 'twenty five within two key product platforms frozen vegetables and meals containing chicken.

Sean Connolly: Slide 13 highlights the impact of the discrete supply challenges we faced in the second half of Fiscal 25 within two key product platforms, frozen vegetables, and meals containing chicken. These issues impacted both our sales and our costs. On the top line, supply constraints limited our ability to meet demand, resulting in lost sales, particularly during the third quarter. However, service levels rebounded in Q4 to exit the year close to our target. As you would expect, we also pulled back on merchandising support within these categories amidst the disruption, which further weakened sales. On the cost side, we incurred incremental expenses to address these challenges as we supplemented internal production with an external manufacturer.

Sean Connolly: Slide 13 highlights the impact of the discrete supply challenges we faced in H2 F25 within two key product platforms: frozen vegetables and meals containing chicken. These issues impacted both our sales and our costs. On the top line, supply constraints limited our ability to meet demand, resulting in lost sales, particularly during Q3. However, service levels rebounded in Q4 to exit the year close to our target. As you would expect, we also pulled back on merchandising support within these categories amidst the disruption, which further weakened sales. On the cost side, we incurred incremental expenses to address these challenges as we supplemented internal production with an external manufacturer. This resulted in higher product costs and unfavorable fixed cost absorption at our facility.

Slide 13 highlights the impact of the discrete supply challenges we faced in H2 F25 within two key product platforms: frozen vegetables and meals containing chicken. These issues impacted both our sales and our costs. On the top line, supply constraints limited our ability to meet demand, resulting in lost sales, particularly during Q3. However, service levels rebounded in Q4 to exit the year close to our target.

Speaker Change: These issues impacted both our sales and our costs.

Speaker Change: On the top line supply constraints limited our ability to meet demand, resulting in lost sales, particularly during the third quarter. However.

Speaker Change: However service levels rebounded in Q4 to exit the year close to our target.

Speaker Change: As you would expect we also pulled back on merchandising support.

As you would expect, we also pulled back on merchandising support within these categories amidst the disruption, which further weakened sales. On the cost side, we incurred incremental expenses to address these challenges as we supplemented internal production with an external manufacturer. This resulted in higher product costs and unfavorable fixed cost absorption at our facility.

Speaker Change: Within these categories amidst the disruption, which further we can sale.

Speaker Change: On the cost side.

Speaker Change: Incurred incremental expenses to address these challenges as we supplemented internal production with an external manufacturer.

Speaker Change: This resulted in higher product costs and unfavorable fixed cost absorption at our facility.

Sean Connolly: This resulted in higher product costs and unfavorable fixed cost absorption at our facility.

Speaker Change: While the increased cost impacted our bottom line.

Sean Connolly: While the increased cost impacted our bottom line, these investments in infrastructure and strategic partnerships enabled us to make solid progress towards restoring inventory and improving customer service levels across these key product platforms. Slide 14 shows the decline in consumer sentiment during the fourth quarter of Fiscal 25, driven by the cumulative impact of persistent inflation, rising interest rates, and overall economic uncertainty. This decline in sentiment translated into more cautious spending behaviors. Consumers became increasingly focused on seeking value, prioritizing affordability, and trading down where possible. While our brands are well positioned to deliver value and meet these shifting needs, the environment created additional pressure on volume.

Sean Connolly: While the increased cost impacted our bottom line, these investments in infrastructure and strategic partnerships enabled us to make solid progress towards restoring inventory and improving customer service levels across these key product platforms. Slide 14 shows the decline in consumer sentiment during the fourth quarter of F25, driven by the cumulative impact of persistent inflation, rising interest rates, and overall economic uncertainty. This decline in sentiment translated into more cautious spending behaviors. Consumers became increasingly focused on seeking value, prioritizing affordability, and trading down where possible. While our brands are well-positioned to deliver value and meet these shifting needs, the environment created additional pressure on volumes. Despite these challenges, I'm proud of the Conagra team for their hard work throughout F25 as we navigated through an environment that proved to be more difficult than we anticipated. That brings us to F26.

While the increased cost impacted our bottom line, these investments in infrastructure and strategic partnerships enabled us to make solid progress towards restoring inventory and improving customer service levels across these key product platforms. Slide 14 shows the decline in consumer sentiment during the fourth quarter of F25, driven by the cumulative impact of persistent inflation, rising interest rates, and overall economic uncertainty.

Speaker Change: These investments in infrastructure and strategic partnerships enabled us to make solid progress towards restoring inventory and improving customer service levels across these key product platforms.

Speaker Change: Slide 14 shows the decline in consumer sentiment during the fourth quarter of fiscal 'twenty five.

Speaker Change: Driven by the cumulative impact of persistent inflation rising interest rates and overall economic uncertainty.

Speaker Change: This decline in sentiment translated into more cautious spending behaviors consumer.

This decline in sentiment translated into more cautious spending behaviors. Consumers became increasingly focused on seeking value, prioritizing affordability, and trading down where possible. While our brands are well-positioned to deliver value and meet these shifting needs, the environment created additional pressure on volumes. Despite these challenges, I'm proud of the Conagra team for their hard work throughout F25 as we navigated through an environment that proved to be more difficult than we anticipated. That brings us to F26.

Speaker Change: Consumers became increasingly focused on seeking value.

Speaker Change: <unk> affordability and trading down where possible.

Speaker Change: While our brands are well positioned to deliver value and meet the shifting needs the environment created additional pressure on volumes.

Speaker Change: Despite these challenges I'm proud of the Conagra team for their hard work throughout fiscal 'twenty five as we navigated through an environment that proved to be more difficult.

Sean Connolly: Despite these challenges, I'm proud of the Conagra team for their hard work throughout Fiscal 25 as we navigated through an environment that proved to be more difficult than we anticipated.

Speaker Change: We anticipated.

Speaker Change: That brings us to fiscal 'twenty six.

Sean Connolly: That brings us to Fiscal 26. The near-term environment continues to present significant challenges driven by three key factors. First, inflation remains persistent. For fiscal 26, we expect core cost of goods inflation to be approximately 4%. To put that in context, this level of inflation in fiscal 26 will bring our five-year cumulative net inflation to approximately 45%, a historic amount of inflation over such a short period of time. On top of that, the current tariff environment is expected to add approximately 3% to our cost of goods sold for more than $200 million annually. This brings total anticipated inflation for fiscal 26 to approximately 7%.

Speaker Change: The near term environment continues to present significant challenges driven by three key factors.

Sean Connolly: The near-term environment continues to present significant challenges driven by three key factors. First, inflation remains persistent. For F26, we expect core cost of goods inflation to be approximately 4%. To put that in context, this level of inflation in F26 will bring our five-year cumulative net inflation to approximately 45%, a historic amount of inflation over such a short period of time. On top of that, the current tariff environment is expected to add approximately 3% to our cost of goods sold for more than $200 million annually. This brings total anticipated inflation for F26 to approximately 7%. Finally, consumer sentiment remains under pressure. The cumulative impact of inflation and economic uncertainty has led to value-seeking behaviors becoming even more pronounced. Given these dynamics, we recognize the importance of a thoughtful and measured approach to future pricing decisions.

The near-term environment continues to present significant challenges driven by three key factors. First, inflation remains persistent. For F26, we expect core cost of goods inflation to be approximately 4%. To put that in context, this level of inflation in F26 will bring our five-year cumulative net inflation to approximately 45%, a historic amount of inflation over such a short period of time.

Speaker Change: First inflation remains persistent.

Speaker Change: For fiscal 'twenty six weeks.

Speaker Change: We expect core cost of goods inflation to be approximately 4%.

Speaker Change: To put that in context.

Speaker Change: This level of inflation in fiscal 'twenty, six will bring our five year cumulative net inflation to approximately 45% a historic amount of inflation over such a short period of time.

Speaker Change: On top of that.

On top of that, the current tariff environment is expected to add approximately 3% to our cost of goods sold for more than $200 million annually. This brings total anticipated inflation for F26 to approximately 7%. Finally, consumer sentiment remains under pressure. The cumulative impact of inflation and economic uncertainty has led to value-seeking behaviors becoming even more pronounced. Given these dynamics, we recognize the importance of a thoughtful and measured approach to future pricing decisions.

Speaker Change: Current tariff environment is expected to add approximately 3% to our cost of goods sold for more than $200 million annually.

Speaker Change: This brings total anticipated inflation for fiscal 'twenty six to approximately 7%.

Speaker Change: Finally, consumer sentiment remains under pressure.

Sean Connolly: Finally, consumer sentiment remains under pressure. cumulative impact of inflation and economic uncertainty has led to value seeking behaviors becoming even more pronounced.

Speaker Change: Cumulative impact of inflation and economic uncertainty has led to value seeking behaviors, becoming even more pronounced.

Speaker Change: These dynamics.

Speaker Change: We recognize the importance of a thoughtful and measured approach to future pricing decisions.

Sean Connolly: Given these dynamics, we recognize the importance of a thoughtful and measured approach to future pricing decisions. Amidst this dynamic environment, our focus is on driving long term value creation by investing to restore growth, while maximizing cash and minimizing costs. We believe this is the right course of action to put the business back on its long term algorithm as fast as possible.

Speaker Change: Amidst this dynamic environment, our focus is on driving long term value creation by investing to restore growth, while maximizing cash and minimizing costs.

Sean Connolly: Amidst this dynamic environment, our focus is on driving long-term value creation by investing to restore growth while maximizing cash and minimizing cost. We believe this is the right course of action to put the business back on its long-term algorithm as fast as possible. Our F26 priorities include: first, driving growth in our frozen and snacks domains, which remains critical to achieving our long-term financial algorithm. Growing volume is our top priority, even if it means investing margin in the short term. Second, increasing our supply chain resiliency by investing to modernize our facilities and expand capacity in high-growth categories. Third, differentiating the approach to our canned products to address the impact of tariffs through a combination of alternative sourcing methods, cost-savings initiatives, and targeted price adjustments. And fourth, actively managing the business to drive strong productivity savings and continue our focus on cash flow.

Amidst this dynamic environment, our focus is on driving long-term value creation by investing to restore growth while maximizing cash and minimizing cost. We believe this is the right course of action to put the business back on its long-term algorithm as fast as possible. Our F26 priorities include: first, driving growth in our frozen and snacks domains, which remains critical to achieving our long-term financial algorithm.

Speaker Change: We believe this is the right course of action to put the business back on its long term algorithm as fast as possible.

Speaker Change: Our fiscal 'twenty priorities include.

Sean Connolly: Our fiscal 26 priorities include, first, driving growth in our frozen and snacks domains, which remains critical to achieving our long-term financial algorithm. Growing volume is our top priority, even if it means investing margin in the short term. Second, increasing our supply chain resiliency by investing to modernize our facilities and expand capacity in high-growth categories. Third, differentiating the approach to our canned products to address the impact of tariffs through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustment. And fourth, actively managing the business to drive strong productivity savings and continue our focus on cash flow.

Speaker Change: First driving growth in our frozen and snacks domains, which remains critical to achieving our long term financial algorithm.

Speaker Change: Growing volume is our top priority, even if it means investing margin in the short term.

Growing volume is our top priority, even if it means investing margin in the short term. Second, increasing our supply chain resiliency by investing to modernize our facilities and expand capacity in high-growth categories. Third, differentiating the approach to our canned products to address the impact of tariffs through a combination of alternative sourcing methods, cost-savings initiatives, and targeted price adjustments. And fourth, actively managing the business to drive strong productivity savings and continue our focus on cash flow.

Speaker Change: Second increasing our supply chain resiliency by investing to modernize our facilities and expand capacity in high growth categories.

Speaker Change: Third.

Speaker Change: Differentiating the approach to our can products to address the impact of tariffs.

Speaker Change: Through a combination of alternative sourcing methods cost savings initiatives and targeted price adjustments.

Speaker Change: And fourth actively managing the business to drive strong productivity savings and continue our focus on cash flow.

Speaker Change: Again, we're focused on the long game in our effort to deliver sustainable growth and stronger margins overtime. We will continue to make prudent decisions today to best position Conagra for the future.

Sean Connolly: Again, we're focused on the long game. In our effort to deliver sustainable growth and stronger margins over time, we will continue to make prudent decisions today to best position Conagra for the future. That starts by delivering growth within our strategic domains. As we look to return to our long-term financial algorithm, the path forward starts with our strategic focus areas, frozen and snacks. These domains are critical for a good reason. They represent almost 70% of our portfolio's retail sales and present significant growth opportunity. The frozen meals category has delivered strong above-market growth for the past 40 years, and we have an advantage position as the largest frozen food manufacturer in North America. The opportunity is equally compelling in snacks.

Again, we're focused on the long game. In our effort to deliver sustainable growth and stronger margins over time, we will continue to make prudent decisions today to best position Conagra for the future. That starts by delivering growth within our strategic domains. As we look to return to our long-term financial algorithm, the path forward starts with our strategic focus areas, frozen and snacks.

Speaker Change: That starts by delivering growth within our strategic domains.

Sean Connolly: that starts by delivering growth within our strategic domain. As we look to return to our long-term financial algorithm, the path forward starts with our strategic focus areas, frozen and SMACs. These domains are critical for a good reason. They represent almost 70% of our portfolio's retail sales and present significant growth opportunities. frozen meals category has delivered strong above market growth for the past 40 years and we have an advantage position as the largest frozen food manufacturer in North America. The opportunity is equally compelling in snacks. The large snacks domain is expected to expand further, with occasion projected to grow by an estimated nine billion over the next two years, fueled by consumer demand for on-the-go options with modern attributes such as our leading meat sticks portfolio.

Speaker Change: As we look to return to our long term financial algorithm. The path forward starts with our strategic focus areas frozen and snacks.

Speaker Change: These domains are critical for a good reason they represent almost 70% of our portfolio is retail sales and presents significant growth opportunities.

These domains are critical for a good reason. They represent almost 70% of our portfolio's retail sales and present significant growth opportunity. The frozen meals category has delivered strong above-market growth for the past 40 years, and we have an advantage position as the largest frozen food manufacturer in North America. The opportunity is equally compelling in snacks.

Speaker Change: Frozen meals category has delivered strong above market growth for the past 40 years and.

Speaker Change: And we have an advantage position as the largest frozen food manufacturer in North America.

Speaker Change: The opportunity is equally compelling in snacks.

Speaker Change: The large snacks domain is expected to expand further with occasion projected to grow by an estimated $9 billion over the next two years fueled by consumer demand for on the go options with modern attributes such as our leading stakes portfolio.

Sean Connolly: The large snacks domain is expected to expand further, with occasion projected to grow by an estimated 9 billion over the next two years, fueled by consumer demand for on-the-go options with modern attributes, such as our leading meat sticks portfolio. In line with this trend, we plan to further scale Fatty Smoked Meat Sticks, our most recent acquisition in F26. Our snacks portfolio is already performing exceptionally well, with 91% of our snack brands growing volume share in Q4 versus last year. To drive volume growth in these critical areas, we're continuing to invest in innovation, adding incremental merchandising, and supporting our brands with more marketing consistent with our proven Conagra way playbook. F25 demonstrated that our innovation pipeline continues to deliver results. Disciplined merchandising ensures we support our brands in store, while targeted A&P investments will amplify brand visibility and consumer engagement via social media and traditional advertising.

The large snacks domain is expected to expand further, with occasion projected to grow by an estimated 9 billion over the next two years, fueled by consumer demand for on-the-go options with modern attributes, such as our leading meat sticks portfolio. In line with this trend, we plan to further scale Fatty Smoked Meat Sticks, our most recent acquisition in F26. Our snacks portfolio is already performing exceptionally well, with 91% of our snack brands growing volume share in Q4 versus last year.

Speaker Change: In line with this trend we plan to further scale fatty smoked meat sticks, our most recent acquisition in fiscal 'twenty six.

Sean Connolly: In line with this trend, we plan to further scale Fatty Smoked Meat Sticks, our most recent acquisition in fiscal 26. Our snacks portfolio is already performing exceptionally well, with 91% of our snack brands growing volume share in Q4 versus last year. To drive volume growth in these critical areas, we're continuing to invest in innovation, adding incremental merchandising, and supporting our brands with more marketing, consistent with our proven Conagra way playbook.

Speaker Change: Our snacks portfolio is already performing exceptionally well with 91% of our snack brands growing volume share in Q4 versus last year.

Speaker Change: To try to drive volume growth in these critical areas, we're continuing to invest in innovation, adding incremental merchandising.

To drive volume growth in these critical areas, we're continuing to invest in innovation, adding incremental merchandising, and supporting our brands with more marketing consistent with our proven Conagra way playbook. F25 demonstrated that our innovation pipeline continues to deliver results. Disciplined merchandising ensures we support our brands in store, while targeted A&P investments will amplify brand visibility and consumer engagement via social media and traditional advertising.

Speaker Change: And supporting our brands with more marketing consistent with our proven Conagra way playbook.

Speaker Change: <unk> demonstrated that our innovation pipeline continues to deliver results.

Sean Connolly: Fiscal 25 demonstrated that our innovation pipeline continues to deliver results. Discipline merchandising ensures we support our brands in store, while targeted A&P investments will amplify brand visibility and consumer engagement via social media and traditional advertising. We were intentionally investing margin to enable this growth, as we believe these categories have the potential to deliver outsized value over the long term.

Speaker Change: Upland merchandising ensures we support our brands and store, while targeted A&P investments will amplify brand visibility and.

Speaker Change: And consumer engagement via social media and traditional advertising.

Speaker Change: We were intentionally investing margin.

Sean Connolly: We're intentionally investing margin to enable this growth, as we believe these categories have the potential to deliver outsized value over the long term. Moving to slide 20, a critical focus for F26 is materially strengthening our supply chain resiliency to support growth and ensure we can meet consumer demand effectively, not just today, but well into the future. This includes previously planned investments to modernize our facilities, as well as new investments to expand capacity in high-growth categories. As we detailed already, we're taking steps to modernize our chicken production facilities to resolve constraints in baked chicken, which were a challenge in F25. Our baked chicken plant modernization project is expected to be completed by early Q2. It's also worth noting that we have resolved the challenges within our frozen vegetable platform.

We're intentionally investing margin to enable this growth, as we believe these categories have the potential to deliver outsized value over the long term. Moving to slide 20, a critical focus for F26 is materially strengthening our supply chain resiliency to support growth and ensure we can meet consumer demand effectively, not just today, but well into the future.

Speaker Change: To enable this growth as we believe these categories have the potential to deliver outsized value over the long term.

Speaker Change: Moving to slide 28.

Sean Connolly: Moving to slide 20, a critical focus for fiscal 26 is materially strengthening our supply chain resiliency to support growth and ensure we can meet consumer demand effectively, not just today, but well into the future. This includes previously planned investments to modernize our facilities as well as new investments to expand capacity and high growth category. As we've detailed already, we're taking steps to modernize our chicken production facilities to resolve constraints in baked chicken, which were a challenge in Fiscal 25. Our baked chicken plant modernization project is expected to be completed by early Q2. It's also worth noting that we have resolved the challenges within our frozen vegetable platform.

Speaker Change: A critical focus for fiscal 2006 is materially strengthening our supply chain resiliency to support growth and ensure we can meet consumer demand effectively.

Speaker Change: Not just today, but well into the future.

Speaker Change: This includes previously planned investments to modernize our facilities as.

This includes previously planned investments to modernize our facilities, as well as new investments to expand capacity in high-growth categories. As we detailed already, we're taking steps to modernize our chicken production facilities to resolve constraints in baked chicken, which were a challenge in F25. Our baked chicken plant modernization project is expected to be completed by early Q2. It's also worth noting that we have resolved the challenges within our frozen vegetable platform.

Speaker Change: As well as new investments to expand capacity in high growth categories as.

Speaker Change: As we detailed already we're taking steps to modernize our chicken production facilities to resolve constraints.

Speaker Change: Chicken, which were a challenge in fiscal 'twenty five.

Speaker Change: Our chicken plant modernization project is expected to be completed by early Q2.

Speaker Change: It's also worth noting that we have resolved the challenges within our frozen vegetable platform.

Speaker Change: Beyond baked chicken, we're also expanding capacity for fried chicken, which Dave will unpack for you in a minute.

Sean Connolly: Beyond baked chicken, we're also expanding capacity for fried chicken, which Dave will unpack for you in a minute. Chicken has been the fastest growing protein, and fried chicken in particular has proven to be a consumer favorite, mirroring what we've seen in food service QSRs in recent years. This new investment will better support innovations like banquet mega filets, which was a huge hit in fiscal 25, and Marie Callender's fried chicken bowls, another consumer favorite. These investments will not only help resolve current constraints but also enable us to build a more resilient, consistent foundation that supports long-term growth capabilities, ensuring we can continue to deliver for our customers.

Sean Connolly: Beyond baked chicken, we're also expanding capacity for fried chicken, which Dave will unpack for you in a minute. Chicken has been the fastest-growing protein, and fried chicken in particular has proven to be a consumer favorite, mirroring what we've seen in food service QSRs in recent years. This new investment will better support innovations like Banquet Mega Filets, which was a huge hit in F25, and Marie Callender's Fried Chicken Bowls, another consumer favorite. These investments will not only help resolve current constraints, but also enable us to build a more resilient, consistent foundation that supports long-term growth capabilities, ensuring we can continue to deliver for our customers. Slide 21 underscores the differentiated approach needed for our canned products, which are disproportionately impacted by recent steel and aluminum tariffs. The focus within our staples portfolio is generating cash, particularly within our canned products business.

Beyond baked chicken, we're also expanding capacity for fried chicken, which Dave will unpack for you in a minute. Chicken has been the fastest-growing protein, and fried chicken in particular has proven to be a consumer favorite, mirroring what we've seen in food service QSRs in recent years. This new investment will better support innovations like Banquet Mega Filets, which was a huge hit in F25, and Marie Callender's Fried Chicken Bowls, another consumer favorite.

Speaker Change: Chicken has been the fastest growing protein and fried chicken in particular has proven to be a consumer favorite mirroring what we've seen in foodservice <unk> in recent years.

Speaker Change: This new investment will better support innovations like banquet Mega <unk>, which was a huge hit in fiscal 'twenty five and.

Speaker Change: And Murray calendar prescribed chicken bowls, another consumer favorites.

Speaker Change: These investments will not only help resolve current constraints.

These investments will not only help resolve current constraints, but also enable us to build a more resilient, consistent foundation that supports long-term growth capabilities, ensuring we can continue to deliver for our customers. Slide 21 underscores the differentiated approach needed for our canned products, which are disproportionately impacted by recent steel and aluminum tariffs. The focus within our staples portfolio is generating cash, particularly within our canned products business.

Speaker Change: But also enable us to build a more resilient consistent foundation that supports long term growth capabilities, ensuring we can continue to deliver for our customers.

Speaker Change: Slide 21 underscores the differentiated approach needed for our <unk> products, which are disproportionately impacted by recent steel and aluminum tariffs.

Sean Connolly: Slide 21 underscores the differentiated approach needed for our canned products, which are disproportionately impacted by recent steel and aluminum tariffs. The focus within our staples portfolio is generating cash, particularly within our canned products business. Cash Contributors help fund the investments that drive growth in frozen and snacks. We're committed to managing them in a way that maintains their value while mitigating the impact of higher input costs. Accordingly, we look to offset recent cost increases in this portfolio through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments that are expected to benefit the second half of the year.

Speaker Change: The focus within our staples portfolio is generating cash, particularly within our Cam products business.

Speaker Change: These cash contributors helped fund the investments that drive growth in frozen and snacks.

Sean Connolly: These cash contributors help fund the investments that drive growth in frozen and snacks. We're committed to managing them in a way that maintains their value while mitigating the impact of higher input costs. Accordingly, we will look to offset recent cost increases in this portfolio through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments that are expected to benefit the second half of the year. The final piece of our F26 plan is our ongoing work to actively manage the business for strong productivity and cash flow. We're working to accelerate our productivity savings to help offset persistent inflation. We're also focused on driving out stranded costs from recent investments, including Chef Boyardee. And of course, we continue to focus on cash, including working capital.

These cash contributors help fund the investments that drive growth in frozen and snacks. We're committed to managing them in a way that maintains their value while mitigating the impact of higher input costs. Accordingly, we will look to offset recent cost increases in this portfolio through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments that are expected to benefit the second half of the year.

Speaker Change: We're committed to managing them in a way that maintains their value.

Speaker Change: While mitigating the impact of higher input costs accordingly.

Speaker Change: We will look to offset recent cost increases in this portfolio through a combination of alternative sourcing methods cost savings initiatives and targeted price adjustments that are expected to benefit the second half of the year.

Speaker Change: The final piece of our fiscal 'twenty six plant is our ongoing work to actively manage the business for strong productivity and cash flow.

The final piece of our F26 plan is our ongoing work to actively manage the business for strong productivity and cash flow. We're working to accelerate our productivity savings to help offset persistent inflation. We're also focused on driving out stranded costs from recent investments, including Chef Boyardee. And of course, we continue to focus on cash, including working capital.

Sean Connolly: The final piece of our Fiscal 26 plan is our ongoing work to actively manage the business for strong productivity and cashflow. We're working to accelerate our productivity savings to help offset persistent inflation. We're also focused on driving out stranded costs from recent divestitures, including Chef Boyardee. And of course, we continue to focus on cash, including working capital. Our cash priorities for Fiscal 26 are to invest in CapEx to drive supply chain resiliency, continue to repay debt, and maintain our healthy dividends.

Speaker Change: We're working to accelerate our productivity savings to help offset persistent inflation. We're also focused on driving out stranded costs from recent divestitures, including chef Boyardee.

Speaker Change: And of course, we continue to focus on cash including working capital.

Speaker Change: Our cash priorities for fiscal 'twenty, six or to invest in capex to drive supply chain resiliency.

Sean Connolly: Our cash priorities for F26 are to invest in CapEx to drive supply chain resiliency, continue to repay debt, and maintain our healthy dividend. We're confident in our strategy and the actions we're taking to navigate these headwinds as we lay the groundwork to deliver sustainable growth and value creation in the years to come. Thank you, and I'll now turn it over to Dave to discuss our financial results and outlook in more detail. Thanks, Sean, and good morning, everyone. I'll start today with a brief update on our fourth quarter and full year F25 performance and then provide more detail on our F26 outlook. Slide 26 shows our financial results for key metrics in the quarter and the year. For the fourth quarter, Conagra's organic net sales were $2.8 billion, a 3.5% decline versus the prior year.

Our cash priorities for F26 are to invest in CapEx to drive supply chain resiliency, continue to repay debt, and maintain our healthy dividend. We're confident in our strategy and the actions we're taking to navigate these headwinds as we lay the groundwork to deliver sustainable growth and value creation in the years to come. Thank you, and I'll now turn it over to Dave to discuss our financial results and outlook in more detail.

Speaker Change: To repay debt and maintain our healthy dividend.

Speaker Change: We're confident in our strategy and the actions, we're taking to navigate these headwinds as we lay the groundwork to deliver sustainable growth and value creation in the years to come.

Sean Connolly: We're confident in our strategy and the actions we're taking to navigate these headwinds as we lay the groundwork to deliver sustainable growth and value creation in the years to come.

Speaker Change: Thank you and I'll now turn it over to Dave to discuss our financial results and outlook in more detail.

Sean Connolly: Thank you.

Matthew Neisius: And I'll now turn it over to Dave to discuss our financial results and outlook in more detail.

Dave: Thanks, Ron and good morning, everyone.

Dave Marburger: Thanks, Sean, and good morning, everyone. I'll start today with a brief update on our fourth quarter and full year F25 performance and then provide more detail on our F26 outlook. Slide 26 shows our financial results for key metrics in the quarter and the year. For the fourth quarter, Conagra's organic net sales were $2.8 billion, a 3.5% decline versus the prior year.

Dave Marberger: Thanks, Sean, and good morning, everyone.

Speaker Change: I'll start today with a brief update on our fourth quarter and full year fiscal 'twenty five performance and then provide more detail on our fiscal 'twenty outlook.

Dave Marberger: I'll start today with a brief update on our 4th quarter and full year Fiscal 25 performance and then provide more detail on our Fiscal 26 Outlook. Slide 26 shows our financial results for key metrics in the quarter and the year. For the fourth quarter, Conagra's organic net sales were $2.8 billion, a 3.5% decline versus the prior year. Adjusted Gross Margin was 25.8% and Adjusted Operating Margin was 13.8%, both down year over year, but improved versus Q3. Adjusted earnings per share were $0.56, down $0.05 versus a year ago. For the full year fiscal 25, organic net sales of $11.6 billion were down 2.9%.

Speaker Change: Slide 26 shows our financial results for key metrics in the quarter and the year.

Speaker Change: For the fourth quarter.

Speaker Change: <unk> organic net sales were $2 8 billion a.

Speaker Change: Three 5% decline versus the prior year.

Speaker Change: Adjusted gross margin was 25, 8% and adjusted operating margin was 13, 8%.

Sean Connolly: Adjusted gross margin was 25.8%, and adjusted operating margin was 13.8%, both down year over year, but improved versus Q3. Adjusted earnings per share were $0.56, down $0.05 versus a year ago. For the full year of F25, organic net sales of $11.6 billion were down 2.9%. Adjusted gross profit margin was 25.7%. Adjusted operating margin was 14.1%, and adjusted EPS was $2.30. Slide 27 shows our fourth quarter net sales bridge. Total Conagra organic net sales decreased 3.5% over the previous year, with volumes down 2.5% and price mix down 1%. Foreign exchange was a 60 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar and Mexican peso. As expected, reduced sales from the divestiture of our ATFL joint venture exceeded the additional net sales from our acquisition of fatty smoked meats.

Adjusted gross margin was 25.8%, and adjusted operating margin was 13.8%, both down year over year, but improved versus Q3. Adjusted earnings per share were $0.56, down $0.05 versus a year ago. For the full year of F25, organic net sales of $11.6 billion were down 2.9%. Adjusted gross profit margin was 25.7%. Adjusted operating margin was 14.1%, and adjusted EPS was $2.30. Slide 27 shows our fourth quarter net sales bridge.

Speaker Change: Both down year over year, but improved versus Q3.

Speaker Change: Adjusted earnings per share were <unk> 56.

Speaker Change: Down <unk> <unk> versus a year ago.

Speaker Change: For the full year fiscal 'twenty five.

Speaker Change: Net sales of $11 6 billion were down two 9%.

Speaker Change: Adjusted gross profit margin was 25, 7%.

Dave Marberger: Adjusted Gross Profit Margin was 25.7%, Adjusted Operating Margin was 14.1%, and Adjusted EPS was $2.35. Slide 27 shows our fourth quarter net sales breach. Total Conagra organic net sales decreased three and a half percent over the previous year, with volumes down two and a half percent and price mix down 1%. foreign exchange was a 60 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar and Mexican peso. And as expected, reduced sales from the divestiture of our ATFL joint venture exceeded the additional net sales from our acquisition of Fatty Smoked Meat.

Speaker Change: Adjusted operating margin was 14, 1% and.

Speaker Change: And adjusted EPS was $2 30.

Speaker Change: Slide 27 shows our fourth quarter net sales bridge.

Speaker Change: Total conagra organic net sales decreased three 5% over the previous year.

Total Conagra organic net sales decreased 3.5% over the previous year, with volumes down 2.5% and price mix down 1%. Foreign exchange was a 60 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar and Mexican peso. As expected, reduced sales from the divestiture of our ATFL joint venture exceeded the additional net sales from our acquisition of fatty smoked meats.

Speaker Change: With volumes down two 5%.

Speaker Change: And price mix down 1%.

Speaker Change: Foreign exchange was a 60 basis points unfavorable due to the strength of the U S dollar relative to the Canadian dollar and Mexican peso.

Speaker Change: And as expected reduced sales from the divestiture of our <unk> joint venture exceeded the additional net sales from our acquisition of fatty smoked meats.

Speaker Change: As a reminder, the divestitures of the chef Boyardee Vanda camps and Mrs. Paul's brands did not close until the first quarter of fiscal 'twenty.

Sean Connolly: As a reminder, the divestitures of the Chef Boyardee, Van de Kamp's, and Mrs. Paul's brands did not close until the first quarter of F26. Slide 28 shows the composition of net sales by segment. In grocery and snacks, we delivered net sales of $1.2 billion, representing a 3.3% decline in organic net sales versus the prior year, driven by lower volumes and unfavorable price mix, primarily concentrated within our grocery business. Our refrigerated and frozen segment delivered $1.1 billion in net sales, down 4.4% versus the prior year, driven by lower price mix and lower volumes. Volume declines improved versus Q3, and we made progress restocking retailer inventory in frozen vegetables and frozen meals with chicken as the quarter progressed. In our international segment, organic net sales increased 0.8% versus the prior year.

As a reminder, the divestitures of the Chef Boyardee, Van de Kamp's, and Mrs. Paul's brands did not close until the first quarter of F26. Slide 28 shows the composition of net sales by segment. In grocery and snacks, we delivered net sales of $1.2 billion, representing a 3.3% decline in organic net sales versus the prior year, driven by lower volumes and unfavorable price mix, primarily concentrated within our grocery business.

Dave Marberger: As a reminder, the divestitures of the Chef Boyardee, Bandicamps, and Mrs. Paul's Brands did not close until the first quarter of Fiscal 2016. Slide 28 shows the composition of net sales by segment. In Grocery and Snacks, we deliver net sales of $1.2 billion, representing a 3.3% decline in organic net sales versus the prior year, driven by lower volumes and unfavorable price mix, primarily concentrated within our grocery business. Our refrigerated and frozen segment delivered 1.1 billion in net sales, down 4.4% versus the prior year, driven by lower price mix and lower volume. volume declines improved versus Q3 and we made progress restocking retailer inventory in frozen vegetables and frozen meals with chicken as the quarter progressed.

Speaker Change: Slide 28 shows the composition of net sales by segment.

Speaker Change: And grocery and snacks, we delivered net sales of $1 2 billion.

Speaker Change: Representing a three 3% decline in organic net sales versus the prior year.

Speaker Change: Driven by lower volumes and unfavorable price mix.

Speaker Change: Primarily concentrated within our grocery business.

Speaker Change: Our refrigerated and frozen segment delivered a $1 $1 billion in net sales down four 4% versus the prior year, driven by lower price mix and lower volume.

Our refrigerated and frozen segment delivered $1.1 billion in net sales, down 4.4% versus the prior year, driven by lower price mix and lower volumes. Volume declines improved versus Q3, and we made progress restocking retailer inventory in frozen vegetables and frozen meals with chicken as the quarter progressed. In our international segment, organic net sales increased 0.8% versus the prior year.

Speaker Change: Volume declines improved versus Q3.

Speaker Change: And we made progress restocking retailer inventory and frozen vegetables, and frozen meals with chicken as the quarter progressed.

Speaker Change: In our international segment organic net sales increased 8% versus the prior year.

Dave Marberger: In our international segment, organic net sales increased 0.8% versus the prior year. Elasticity-related volume declines were more than offset by an increase in price mix following price increases across each of our international markets. Organic net sales in our food service segment declined 4.3% over prior year, as volume declines were partially offset by favorable price max. Our food service business saw ongoing softness in commercial traffic during the quarter, though trends showed signs of improvement versus Q3. Slide 29 shows that adjusted operating margin declined to 96 basis points over the previous year to 13.8%. Price mix was a 110 basis point headwind, reflecting an increase in strategic investments in our domestic retail business, an unfavorable mix, partially offset by pricing benefits in our international and food service segment.

Speaker Change: Elasticity related volume declines were more than offset by an increase in price mix following price increases across each of our international markets.

Sean Connolly: Elasticity-related volume declines were more than offset by an increase in price mix following price increases across each of our international markets. Organic net sales in our food service segment declined 4.3% over prior year, as volume declines were partially offset by favorable price mix. Our food service business saw ongoing softness in commercial traffic during the quarter, though trends showed signs of improvement versus Q3. Slide 29 shows that adjusted operating margin declined 96 basis points over the previous year to 13.8%. Price mix was a 110 basis point headwind, reflecting an increase in strategic investments in our domestic retail business, an unfavorable mix partially offset by pricing benefits in our international and food service segments. Q4 cost of goods sold inflation continued to be elevated in the fourth quarter at 4%. We experienced double-digit inflation in categories including chicken, beef, and eggs, as proteins remained highly inflationary.

Elasticity-related volume declines were more than offset by an increase in price mix following price increases across each of our international markets. Organic net sales in our food service segment declined 4.3% over prior year, as volume declines were partially offset by favorable price mix. Our food service business saw ongoing softness in commercial traffic during the quarter, though trends showed signs of improvement versus Q3.

Speaker Change: Organic net sales in our foodservice segment declined four 3% over prior year.

Speaker Change: As volume declines were partially offset by favorable price mix.

Speaker Change: Our foodservice business saw saw ongoing softness in commercial traffic during the quarter.

Speaker Change: Though trend showed signs of improvement versus Q3.

Speaker Change: Slide 29 shows that adjusted operating margin declined to 96 basis points over the previous year to 13, 8%.

Slide 29 shows that adjusted operating margin declined 96 basis points over the previous year to 13.8%. Price mix was a 110 basis point headwind, reflecting an increase in strategic investments in our domestic retail business, an unfavorable mix partially offset by pricing benefits in our international and food service segments. Q4 cost of goods sold inflation continued to be elevated in the fourth quarter at 4%. We experienced double-digit inflation in categories including chicken, beef, and eggs, as proteins remained highly inflationary.

Speaker Change: Price mix was a 110 basis point headwind.

Speaker Change: Reflecting an increase in strategic investments and our domestic retail business and.

Speaker Change: An unfavorable mix.

Speaker Change: Partially offset by pricing benefits in our international and foodservice segments.

Speaker Change: Core cost of goods sold inflation continued to be elevated in the fourth quarter at 4%.

Dave Marberger: Core cost of goods sold inflation continued to be elevated in the fourth quarter at 4%. We experienced double-digit inflation in categories including chicken, beef, and eggs as proteins remained highly inflationary. Our overall productivity pacing rebounded in Q4 as operational efficiency across the network continued to improve. We experienced a slight decline in operating leverage from lower internal production volume. partly due to building baked chicken inventory with a third party manufacturer in advance of our facility modernization expected to be completed in early Q2.

Speaker Change: We experienced double digit inflation in categories, including chicken beef and eggs as proteins remained highly inflationary.

Speaker Change: Our overall productivity peso rebounded in Q4 as operational efficiency across our network continue to improve.

Sean Connolly: Our overall productivity pacing rebounded in Q4, as operational efficiency across the network continued to improve. We experienced a slight decline in operating leverage from lower internal production volumes, partly due to building baked chicken inventory with a third-party manufacturer in advance of our facility modernization expected to be completed in early Q2. The fourth quarter capped off the delivery of our three-year $1 billion cost savings target ending F25, a testament to the hard work of our teams. We expect to continue this momentum into F26. Adjusted SG&A, which includes advertising and promotion expense, was 90 basis points favorable to a year ago, primarily due to lower incentive compensation expense and slightly lower A&P spent. Lastly, foreign exchange was a headwind of approximately 10 basis points.

Our overall productivity pacing rebounded in Q4, as operational efficiency across the network continued to improve. We experienced a slight decline in operating leverage from lower internal production volumes, partly due to building baked chicken inventory with a third-party manufacturer in advance of our facility modernization expected to be completed in early Q2.

Speaker Change: We experienced a slight decline in operating leverage from lower internal production volume.

Speaker Change: Partly due to building baked chicken inventory with a third party manufacturer in advance of our facility modernization expected to be completed in early Q2.

Speaker Change: The fourth quarter capped off the delivery of our three year $1 billion cost savings target ending fiscal 'twenty five.

The fourth quarter capped off the delivery of our three-year $1 billion cost savings target ending F25, a testament to the hard work of our teams. We expect to continue this momentum into F26. Adjusted SG&A, which includes advertising and promotion expense, was 90 basis points favorable to a year ago, primarily due to lower incentive compensation expense and slightly lower A&P spent. Lastly, foreign exchange was a headwind of approximately 10 basis points.

Dave Marberger: The fourth quarter capped off the delivery of our three-year, $1 billion cost-savings target, ending fiscal 25. A testament to the hard work of our team. We expect to continue this momentum into fiscal 20. Adjusted SG&A, which includes advertising and promotion expense, was 90 basis points favorable to a year ago, primarily due to lower incentive compensation expense and slightly lower A&P spent. And lastly, foreign exchange was a headwind of approximately 10 basis points. Our segment operating profit and margin results summarized on slide 30 were impacted by the same drivers that I just discussed on slide 29.

Speaker Change: A testament to the hard work of our teams.

Speaker Change: We expect to continue this momentum into fiscal 'twenty.

Speaker Change: Adjusted SG&A, which includes advertising and promotion expense was 90 basis points favorable to a year ago, primarily due to lower incentive compensation expense and slightly lower A&P spend.

Speaker Change: And lastly, foreign exchange was a headwind of approximately 10 basis points.

Speaker Change: Our segment operating profit and margin results summarized on slide 30 were impacted by the same drivers that I just discussed on slide 29.

Sean Connolly: Our segment operating profit and margin results summarized on slide 30 were impacted by the same drivers that I just discussed on slide 29. The adjusted EPS bridge for the fourth quarter and full year are shown on slide 31. Adjusted EPS was $0.56 in the quarter compared to $0.61 a year ago, driven by lower adjusted operating profit. In addition, we had a higher adjusted tax rate and unfavorable FX rates, which more than offset favorable adjusted pension income, interest expense, and strong performance from our Ardent Mills joint venture. For the full year, the adjusted EPS decline was driven by similar factors, except for the tax rate providing slight favorability. Key cash flow metrics are shown on slide 32. Conagra generated $1.7 billion in net cash flows from operating activities in F25, in line with our plan.

Our segment operating profit and margin results summarized on slide 30 were impacted by the same drivers that I just discussed on slide 29. The adjusted EPS bridge for the fourth quarter and full year are shown on slide 31. Adjusted EPS was $0.56 in the quarter compared to $0.61 a year ago, driven by lower adjusted operating profit.

Speaker Change: The adjusted EPS Bridge for the fourth quarter and full year are shown on slide 31.

Dave Marberger: The adjusted EPS bridge for the fourth quarter and full year are shown on slide 31. Adjusted EPS was $0.56 in the quarter compared to $0.61 a year ago, driven by lower adjusted operating profit. In addition, we had a higher adjusted tax rate and unfavorable FX rates, which more than offset favorable adjusted pension income, interest expense, and strong performance from our Ardent Mills joint venture. For the full year, the adjusted EPS decline was driven by similar factors, except for the tax rate providing slight favorability. Cash flow metrics are shown on slide 32. Conagra generated $1.7 billion in net cash flows from operating activities in fiscal 25, in line with our plan.

Speaker Change: Adjusted EPS was <unk> 56 in the quarter compared to 61 cents a year ago, driven by lower adjusted operating profit.

Speaker Change: In addition, we had a higher adjusted tax rate and unfavorable FX rates, which more than offset.

In addition, we had a higher adjusted tax rate and unfavorable FX rates, which more than offset favorable adjusted pension income, interest expense, and strong performance from our Ardent Mills joint venture. For the full year, the adjusted EPS decline was driven by similar factors, except for the tax rate providing slight favorability. Key cash flow metrics are shown on slide 32. Conagra generated $1.7 billion in net cash flows from operating activities in F25, in line with our plan.

Speaker Change: <unk> adjusted pension income interest expense and strong performance from our ardent mills joint venture.

Speaker Change: For the full year <unk>.

Speaker Change: The adjusted EPS decline was driven by similar factors, except for the tax rate providing slight favorability.

Speaker Change: Cash key cash flow metrics are shown on slide 32.

Speaker Change: Conagra generated $1 $7 billion of net cash flows from operating activities in fiscal 'twenty five in.

Speaker Change: In line with our plan.

Speaker Change: Capital expenditures totaled $389 million and dividends paid were $669 million for the year.

Dave Marberger: Capital expenditures totaled $389 million, and dividends paid were $669 million for the year, both largely in line with the prior year. Slide 33 shows that our free cash flow conversion was 118% in fiscal 25, enabling us to reduce net debt by over $360 million. Net leverage at the end of the quarter was 3.6 times and we remain committed to paying down debt as we target long-term leverage of three times.

Sean Connolly: Capital expenditures totaled $389 million, and dividends paid were $669 million for the year, both largely in line with the prior year. Slide 33 shows that our free cash flow conversion was 118% in F25, enabling us to reduce net debt by over $360 million. Net leverage at the end of the quarter was 3.6x, and we remain committed to paying down debt as we target long-term leverage of 3x. That wraps up our summary of the fourth quarter and full year of F25, and I'll now move to F26. Slide 35 shows our F26 guidance. For the fiscal year, we expect organic net sales growth in the range of -1% to +1%, adjusted operating margin of approximately 11 to 11.5%, and adjusted EPS in the range of $1.70 to $1.85.

Capital expenditures totaled $389 million, and dividends paid were $669 million for the year, both largely in line with the prior year. Slide 33 shows that our free cash flow conversion was 118% in F25, enabling us to reduce net debt by over $360 million. Net leverage at the end of the quarter was 3.6x, and we remain committed to paying down debt as we target long-term leverage of 3x.

Speaker Change: Both largely in line with the prior year.

Speaker Change: Slide 33 shows that our free cash flow conversion was 118% in fiscal 'twenty five.

Speaker Change: Enabling us to reduce net debt by over $360 million.

Speaker Change: Net leverage at the end of the quarter was three six times and we remain committed to paying down debt as we target long term leverage of three times.

Speaker Change: That wraps up our summary of the fourth quarter and full year fiscal 'twenty, five and I will now move to fiscal 'twenty.

That wraps up our summary of the fourth quarter and full year of F25, and I'll now move to F26. Slide 35 shows our F26 guidance. For the fiscal year, we expect organic net sales growth in the range of -1% to +1%, adjusted operating margin of approximately 11 to 11.5%, and adjusted EPS in the range of $1.70 to $1.85.

Dave Marberger: That wraps up our summary of the fourth quarter and full year Fiscal 25, and I'll now move to Fiscal 22.

Speaker Change: Slide 35 shows our fiscal 'twenty guidance.

Dave Marberger: Slide 35 shows our fiscal 26 guidance. For the fiscal year, we expect organic net sales growth in the range of minus 1% to plus 1%. adjusted operating margin of approximately 11 to an 11 and a half percent. and Adjusted EPS in a range of $1.70 to $1.85.

Speaker Change: For the fiscal year.

Speaker Change: We expect organic net sales growth in the range of minus 1% to plus 1%.

Speaker Change: Adjusted operating margin of approximately 11 to 11, 5%.

Speaker Change: And adjusted EPS in the range of $1 70 to $1 85.

Speaker Change: I'd like to spend a moment on slide 36, unpacking the EPS guidance range as there are several factors impacting our estimate.

Sean Connolly: I'd like to spend a moment on slide 36, unpacking the EPS guidance range, as there are several factors impacting our estimate. We closed on both the Chef Boyardee and frozen seafood divestitures in early Q1 F26. Proceeds from the divestitures have already been used to reduce debt, and as previously disclosed, we expect roughly $0.11 of F26 EPS headwind from the two divestitures, net of interest savings. Next, inflation remains persistent, and we expect our core cost of goods sold inflation to be approximately 4% for the year, driven by higher costs in areas such as proteins, cocoa, and eggs. In addition, enacted tariffs present a headwind to our business, despite most of our manufacturing taking place in the US.

I'd like to spend a moment on slide 36, unpacking the EPS guidance range, as there are several factors impacting our estimate. We closed on both the Chef Boyardee and frozen seafood divestitures in early Q1 F26. Proceeds from the divestitures have already been used to reduce debt, and as previously disclosed, we expect roughly $0.11 of F26 EPS headwind from the two divestitures, net of interest savings.

Dave Marberger: I'd like to spend a moment on slide 36, unpacking the EPS guidance range, as there are several factors impacting our estimate. We closed on both the Shepherd 8 and frozen seafood divestitures in early Q1, fiscal 26. Proceeds from the divestitures have already been used to reduce debt, and as previously disclosed, we expect roughly $0.11 of fiscal 26 EPS headwind from the two divestitures, net of interest savings. Next, inflation remains persistent, and we expect our core cost of goods sold inflation to be approximately 4% for the year, driven by higher costs in areas such as proteins, cocoa and eggs.

Speaker Change: We closed on both the chef Boyardee and frozen seafood divestitures in early Q1 fiscal 2006.

Speaker Change: Proceeds from the divestitures have already been used to reduce debt and.

Speaker Change: And as previously disclosed we expect roughly <unk> 11.

Speaker Change: 2006, EPS headwind from the two divestitures net of interest savings.

Speaker Change: Next inflation remains persistent and.

Next, inflation remains persistent, and we expect our core cost of goods sold inflation to be approximately 4% for the year, driven by higher costs in areas such as proteins, cocoa, and eggs. In addition, enacted tariffs present a headwind to our business, despite most of our manufacturing taking place in the US.

Speaker Change: And we expect our core cost of goods sold inflation to be approximately 4% for the year driven by higher costs in areas, such as proteins cocoa and eggs.

Speaker Change: In addition.

Speaker Change: And that the tariffs present, a headwind to our business. Despite most of our manufacturing taking place in the U S.

Dave Marberger: In addition, Enacta Paris present a headwind to our business, despite most of our manufacturing taking place in the US. Our canned food products make up the largest tariff exposure, as steel and aluminum tariffs significantly increase the cost to procure tinplate steel, as domestic supply is very limited. In addition, tariffs on our low level of imports from China and other countries impact items such as palm oil, cocoa, and other inputs. Taken together, gross annualized tariff exposure is projected to add approximately 3% to our cost of goods sold inflation, bringing our total fiscal 26 inflation rate to roughly 7%.

Speaker Change: Our <unk> food products make up the largest tariff exposure as steel and aluminum tariffs significantly increased the cost to procure tin plate steel as domestic supply is very limited.

Sean Connolly: Our canned food products make up the largest tariff exposure, as steel and aluminum tariffs significantly increased the cost of procured tin plate steel, as domestic supply is very limited. In addition, tariffs on our low level of imports from China and other countries impact items such as palm oil, cocoa, and other inputs. Taken together, gross annualized tariff exposure is projected to add approximately 3% to our cost of goods sold inflation, bringing our total F26 inflation rate to roughly 7%. Managing this inflation will be a critical focus this year. We expect core productivity to accelerate in F26 to approximately 4% of cost of goods sold, largely offsetting core inflation. Additionally, we have established a cross-functional task force to mitigate our tariff exposure through various cost reduction levers. We currently expect these efforts to help mitigate approximately 1% of the 3% tariff headwind in F26.

Our canned food products make up the largest tariff exposure, as steel and aluminum tariffs significantly increased the cost of procured tin plate steel, as domestic supply is very limited. In addition, tariffs on our low level of imports from China and other countries impact items such as palm oil, cocoa, and other inputs. Taken together, gross annualized tariff exposure is projected to add approximately 3% to our cost of goods sold inflation, bringing our total F26 inflation rate to roughly 7%. Managing this inflation will be a critical focus this year.

Speaker Change: In addition, tariffs on our low level of imports from China and other countries.

Speaker Change: Impact items, such as palm oil cocoa and other inputs taken.

Speaker Change: Taken together.

Speaker Change: Gross annualized tariff exposure is projected to add approximately 3% to our cost of goods sold inflation.

Speaker Change: Bringing our total fiscal 2006 inflation rate to roughly 7%.

Speaker Change: Managing this inflation will be a critical focus this year.

Dave Marberger: Managing this inflation will be a critical focus this year. We expect core productivity to accelerate in fiscal 26 to approximately 4% of cost of goods sold, largely offsetting core Additionally, we have established a cross-functional task force to mitigate our tariff exposure through various cost reduction levers. We currently expect these efforts to help mitigate approximately 1% of the 3% tariff headwind in Fiscal 26. This is before factoring in any potential targeted pricing action.

Speaker Change: We expect core productivity to accelerate in fiscal 2006 to approximately 4% of cost of goods sold.

We expect core productivity to accelerate in F26 to approximately 4% of cost of goods sold, largely offsetting core inflation. Additionally, we have established a cross-functional task force to mitigate our tariff exposure through various cost reduction levers. We currently expect these efforts to help mitigate approximately 1% of the 3% tariff headwind in F26.

Speaker Change: Largely offsetting core inflation.

Speaker Change: Additionally, we have established a cross functional task force to mitigate our tariff exposure through various cost reduction levers.

Speaker Change: We currently expect these efforts to help mitigate approximately 1% of the 3% tariff headwind in fiscal 'twenty.

Speaker Change: This is before factoring in any potential targeted pricing actions.

Sean Connolly: This is before factoring in any potential targeted pricing actions. All in, we have forecasted the net impact of core inflation, core productivity, and tariffs after cost mitigation to approximate $0.25 of EPS versus F25. Moving on, we see F26 as a year to continue investments. From a brand standpoint, we expect roughly $0.05 per share headwind related to increases in our A&P spend and slightly higher levels of promotional investment. We are also expanding our investments in our supply chain to increase the resiliency, capacity, and technology of our facilities. We expect these incremental investments to more than offset the favorable lapping impact of F25 supply challenges. The planned facility modernization that we discussed last quarter is expected to be completed in early Q2, which will improve capacity of our baked chicken manufacturing and reduce reliance on external manufacturing.

This is before factoring in any potential targeted pricing actions. All in, we have forecasted the net impact of core inflation, core productivity, and tariffs after cost mitigation to approximate $0.25 of EPS versus F25. Moving on, we see F26 as a year to continue investments. From a brand standpoint, we expect roughly $0.05 per share headwind related to increases in our A&P spend and slightly higher levels of promotional investment.

Speaker Change: All in we have forecasted a net impact of core inflation core productivity.

Dave Marberger: All in, we have forecasted the net impact of core inflation, core productivity, and tariffs after cost mitigation to approximate 25 cents of EPS versus fiscal 25.

Speaker Change: And tariffs after cost mitigation to approximate 25 of EPS versus fiscal 'twenty five.

Speaker Change: Moving on we see fiscal 'twenty six as a year to continue investments.

Dave Marberger: Moving on, we see fiscal 26 as a year to continue investment. From a brand standpoint, we expect roughly $0.05 per share headwind related to increases in our A&P spend and slightly higher levels of promotional investment. We are also expanding our investments in our supply chain to increase the resiliency, capacity, and technology of our facility. We expect these incremental investments to more than offset the favorable lapping impact of Fiscal 25's supply challenge. The planned facility modernization that we discussed last quarter is expected to be completed in early Q2, which will improve capacity of our baked chicken manufacturing and reduce reliance on external manufacturing.

Speaker Change: From a brand standpoint.

Speaker Change: We expect roughly <unk> <unk> per share headwind related to increases in our A&P spend.

Speaker Change: And slightly higher levels of promotional investment.

Speaker Change: We are also expanding our investments in our supply chain to increase the resiliency capacity and technology of our facility.

We are also expanding our investments in our supply chain to increase the resiliency, capacity, and technology of our facilities. We expect these incremental investments to more than offset the favorable lapping impact of F25 supply challenges. The planned facility modernization that we discussed last quarter is expected to be completed in early Q2, which will improve capacity of our baked chicken manufacturing and reduce reliance on external manufacturing.

Speaker Change: We expect these incremental investments to more than offset the favorable lapping impact of fiscal 'twenty five supply challenges.

Speaker Change: The planned facility modernization that we discussed last quarter is expected to be completed in early Q2.

Speaker Change: Which will improve capacity of our baked chicken manufacturing and reduced reliance on external manufacturing.

Speaker Change: In addition, we have expanded the scope of our frozen investments to include adding fried chicken capacity in light of strong demand.

Dave Marberger: In addition, we have expanded the scope of our frozen investments to include adding fried chicken capacity in light of strong demand. We will source fried chicken from an external manufacturer to meet demand while pre-building inventory as facility investments are made throughout Fiscal 26. This will result in elevated sourcing costs in Fiscal 26, with improved internal fried chicken capacity coming in Fiscal 27. Next, we expect an approximate 10 cents per share headwind as it relates to rebate incentive compensation within SG&A as we are paying below target in fiscal 25. The last box on the bridge includes several other variables that we expect will impact fiscal 26, including the expected volume response to our increased investments, targeted pricing, and the related elasticity impact.

Sean Connolly: In addition, we have expanded the scope of our frozen investments to include adding fried chicken capacity in light of strong demand. We will source fried chicken from an external manufacturer to meet demand while pre-building inventory as facility investments are made throughout F26. This will result in elevated sourcing costs in F26, with improved internal fried chicken capacity coming in F27. Next, we expect an approximate $0.10 per share headwind as it relates to rebates incentive compensation within SG&A, as we are paying below target in F25. The last box on the bridge includes several other variables that we expect will impact F26, including the expected volume response to our increased investments, targeted pricing and the related elasticity impacts, and other profit drivers such as equity earnings, pension income, interest expense, and tax. In addition, F26 will have a 53rd week.

In addition, we have expanded the scope of our frozen investments to include adding fried chicken capacity in light of strong demand. We will source fried chicken from an external manufacturer to meet demand while pre-building inventory as facility investments are made throughout F26. This will result in elevated sourcing costs in F26, with improved internal fried chicken capacity coming in F27.

Speaker Change: We will source fried chicken from an external manufacturer to meet demand while pre building inventory as facility investments are made throughout fiscal 'twenty.

Speaker Change: This will result in elevated sourcing cost in fiscal 'twenty six.

Speaker Change: With improved internal fried chicken capacity coming in fiscal <unk>.

Speaker Change: Next we expect an approximate <unk> <unk> per share headwind as it relates to rebased incentive compensation in SG&A.

Next, we expect an approximate $0.10 per share headwind as it relates to rebates incentive compensation within SG&A, as we are paying below target in F25. The last box on the bridge includes several other variables that we expect will impact F26, including the expected volume response to our increased investments, targeted pricing and the related elasticity impacts, and other profit drivers such as equity earnings, pension income, interest expense, and tax. In addition, F26 will have a 53rd week.

Speaker Change: As we are paying below target in fiscal 'twenty five.

Speaker Change: The last box on the bridge includes several other variables that we expect will impact fiscal 'twenty six.

Speaker Change: Including the expected volume response to our increased investments tar.

Speaker Change: <unk> targeted pricing and a related elasticity impacts in.

Speaker Change: In other profit drivers such as equity earnings pension income interest expense and tax.

Dave Marberger: and other profit drivers, such as equity earnings, pension income, interest expense and tax. In addition, Fiscal 26 will have a 53rd week. Given the range of outcomes around volume, pricing, and inflation in this environment, We believe we've taken a prudent approach to building fiscal 26 projections.

Speaker Change: In addition fiscal 'twenty six we'll have a 50 <unk> week.

Speaker Change: Given the range of outcomes around volume pricing and inflation in this environment.

Sean Connolly: Given the range of outcomes around volume, pricing, and inflation in this environment, we believe we've taken a prudent approach to building F26 projections. Slide 37 provides a few key assumptions for the remainder of the fiscal year. We expect first half organic net sales to be down slightly versus prior year, with growth in the second half driven by the benefit of our targeted pricing actions and the wrap of our F25 supply constraints, partially offset by the estimated elasticity impacts related to pricing. Adjusted gross and operating margins are expected to improve sequentially each quarter. First quarter margins are expected to be the lowest of the year, given the timing of our supply chain modernization investments, as well as forecasted pricing actions being weighted towards the second half.

Given the range of outcomes around volume, pricing, and inflation in this environment, we believe we've taken a prudent approach to building F26 projections. Slide 37 provides a few key assumptions for the remainder of the fiscal year. We expect first half organic net sales to be down slightly versus prior year, with growth in the second half driven by the benefit of our targeted pricing actions and the wrap of our F25 supply constraints, partially offset by the estimated elasticity impacts related to pricing.

Speaker Change: We believe we've taken a prudent approach to building fiscal 'twenty six projections.

Speaker Change: Slide 37 provides a few key assumptions for the remainder of the fiscal year.

Dave Marberger: Slide 37 provides a few key assumptions for the remainder of the fiscal year. We expect first half organic net sales to be down slightly versus prior year, with growth in the second half, driven by the benefit of our targeted pricing actions and the wrap of our fiscal 25 supply constraints, partially offset by the estimated elasticity impacts related to pricing. Adjusted gross and operating margins are expected to improve sequentially each quarter. First quarter margins are expected to be the lowest of the year, given the timing of our supply chain modernization investment. as well as forecasted pricing actions being weighted towards the second half.

Speaker Change: We expect first half organic net sales to be down slightly versus prior year.

Speaker Change: With growth in the second half driven by the benefit of our targeted pricing actions and the wrap of our fiscal 'twenty five supply constraints, partially offset by the estimated elasticity impacts related to pricing.

Speaker Change: Adjusted gross and operating margins are expected to improve sequentially each quarter.

Adjusted gross and operating margins are expected to improve sequentially each quarter. First quarter margins are expected to be the lowest of the year, given the timing of our supply chain modernization investments, as well as forecasted pricing actions being weighted towards the second half.

Speaker Change: First quarter margins are expected to be the lowest of the year given the timing of our supply chain modernization investments.

Speaker Change: As well as forecasted pricing actions being weighted towards the second half.

Speaker Change: For the fiscal year.

Dave Marberger: For the fiscal year, A&P is expected to increase to approximately two and a half percent of net sales, and SG&A excluding A&P is expected to be approximately 10% of net sales. Further down slide 37, you'll see our expectations for other line items of RP&L, including interest expense, pension income, equity earnings, and tax rate. And finally, we are expecting to reduce net debt by approximately $700 million in Fiscal 26, driven by proceeds from our recent divestitures and from free cash flow in excess of our dividend payout. We are expecting to hold our dividend payout flat in fiscal 26.

Speaker Change: A&P is expected to increase to approximately two 5% of net sales.

Sean Connolly: For the fiscal year, A&P is expected to increase to approximately 2.5% of net sales, and SG&A excluding A&P is expected to be approximately 10% of net sales. Further down, slide 37, you'll see our expectations for other line items of our P&L, including interest expense, pension income, equity earnings, and tax rate. Finally, we are expecting to reduce net debt by approximately $700 million in F26, driven by proceeds from our recent divestitures and from free cash flow in excess of our dividend payouts. We are expecting to hold our dividend payout flat in F26, and yesterday we announced that our board approved a quarterly dividend of $0.35 per share to be paid in August. Year-end net leverage is expected to be approximately 3.85x, with debt reduction being more than offset by a reduction in EBITDA. Cash conversion is expected to approximate 90%.

For the fiscal year, A&P is expected to increase to approximately 2.5% of net sales, and SG&A excluding A&P is expected to be approximately 10% of net sales. Further down, slide 37, you'll see our expectations for other line items of our P&L, including interest expense, pension income, equity earnings, and tax rate. Finally, we are expecting to reduce net debt by approximately $700 million in F26, driven by proceeds from our recent divestitures and from free cash flow in excess of our dividend payouts.

Speaker Change: And SG&A excluding A&P.

Speaker Change: As expected to be approximately 10% of net sales.

Speaker Change: Further down slide 37, you.

Speaker Change: Youll see our expectations for other line other line items of our P&L, including interest expense pension income equity earnings and tax rates.

Speaker Change: And finally.

Speaker Change: We are expecting to reduce net debt by approximately $700 million in fiscal 'twenty six driven.

Speaker Change: Driven by proceeds from our recent divestitures.

Speaker Change: And from free cash flow in excess of our dividend payout.

Speaker Change: We are expecting to hold our dividend payout flat in fiscal 'twenty six.

We are expecting to hold our dividend payout flat in F26, and yesterday we announced that our board approved a quarterly dividend of $0.35 per share to be paid in August. Year-end net leverage is expected to be approximately 3.85x, with debt reduction being more than offset by a reduction in EBITDA. Cash conversion is expected to approximate 90%. That concludes our prepared remarks for today's call. Thank you for joining us today.

Speaker Change: And yesterday, we announced that our board approved a quarterly dividend of <unk> 35 per share to be paid in August.

Dave Marberger: And yesterday, we announced that our board approved a quarterly dividend of 35 cents per share to be paid in August. Year-end net leverage is expected to be approximately 3.85 times with debt reduction being more than offset by a reduction in EBITDA. cash conversion is expected to approximate 90%.

Speaker Change: Year end net leverage is expected to be approximately 385 times.

Speaker Change: With that reduction being more than offset by a reduction in EBITDA.

Speaker Change: Cash conversion is expected to approximate 90%.

Speaker Change: That concludes our prepared remarks for today's call. Thank you for joining us today.

Unknown Executive: That concludes our prepared remarks for today's call.

Sean Connolly: That concludes our prepared remarks for today's call. Thank you for joining us today.

Unknown Executive: Thank you for joining us today.

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