"I am pleased with our solid finish to Fiscal 2024. In the fourth quarter, our grill revenues were better than expected, driven by healthy consumer demand at retail as well as load in of our new Woodridge series of wood pellet grills. We again saw significant gross margin expansion, which allowed us to exceed our Fiscal Year 2024 Adjusted EBITDA guidance. Qverall, we made a lot of progress on our key strategic initiatives in 2024. This includes increasing brand awareness and market share, investing into our ...

Revenue Performance - Total revenues increased 3.2% to $168.6 million in Q4 2024, compared to $163.5 million in Q4 2023[4] - Grill revenues surged 30.2% to $78.0 million in Q4 2024, driven by higher unit volumes[8] - Full year 2024 total revenues decreased 0.3% to $604.1 million, compared to $605.9 million in 2023[9] - North America revenues increased 11.2% in Q4 2024, while Rest of World revenues decreased 38.6%[5] - The company expects total revenue for Fiscal Year 2025 to be between $595 million and $615 million[18] Profitability Metrics - Gross margin improved to 40.9%, up 410 basis points from 36.8% in the prior year[6] - Adjusted EBITDA for Q4 2024 was $18.4 million, up from $13.0 million in Q4 2023[8] - Full year 2024 adjusted EBITDA increased 34.1% to $81.9 million from $61.1 million in 2023[12] - Gross profit for Q4 2024 increased to $68,890,000, up 14.0% from $60,137,000 in Q4 2023[23] - Adjusted EBITDA for Q4 2024 increased to $18,361,000, compared to $12,982,000 in Q4 2023, reflecting a margin improvement from 7.9% to 10.9%[32] Net Loss and Expenses - Net loss narrowed to $7.0 million in Q4 2024, compared to a net loss of $24.0 million in Q4 2023[8] - Net loss for the year ended December 31, 2024 was $34,008,000, a significant improvement compared to a net loss of $84,402,000 in 2023[25] - Total other expense for Q4 2024 was $8,705,000, a decrease from $11,582,000 in Q4 2023[23] - The company reported a comprehensive loss of $40,612,000 for the year ended December 31, 2024, compared to $96,725,000 in 2023[23] - Stock-based compensation expenses decreased to $4,837,000 in Q4 2024 from $6,023,000 in Q4 2023[32] Cash Flow and Operating Activities - Cash provided by operating activities for the year was $23,888,000, down from $64,042,000 in 2023[25] - Cash, cash equivalents, and restricted cash at the end of the period was $14,981,000, down from $29,921,000 at the end of 2023[25] Interest and Shares - The company incurred interest expense of $33,500,000 for the year ended December 31, 2024, compared to $31,275,000 in 2023[25] - Interest expense increased to $8,192,000 in Q4 2024 from $7,867,000 in Q4 2023[32] - Weighted average diluted shares outstanding increased to 129,174,440 in Q4 2024 from 125,094,571 in Q4 2023[32] Earnings Per Share - The company reported a basic and diluted net loss per share of $0.05 for Q4 2024, compared to $0.19 in Q4 2023[23] - The company reported a net loss per diluted share of $0.05 in Q4 2024, improving from a loss of $0.19 per diluted share in Q4 2023[32]

Group 1 - Traeger, Inc. (COOK) has integrated IoT technologies and new applications to enhance control over its wood pellet grills, which is expected to drive revenue growth and free cash flow (FCF) due to the anticipated expansion in the IoT kitchen system market [1] - The company is positioned to benefit from the growing trend of smart kitchen appliances, aligning with consumer preferences for convenience and technology integration in cooking [1] Group 2 - The analyst has a beneficial long position in COOK shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased perspective [2]

Core Insights - Traeger (COOK) is expected to report quarterly earnings of $0.01 per share, reflecting a significant increase of 112.5% year over year [1] - Analysts forecast revenues of $164.62 million for the quarter, indicating a modest increase of 0.7% compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a reevaluation of initial estimates by analysts [1] Revenue Estimates - Analysts project 'Net sales- Grills' to reach $62.12 million, representing a year-over-year increase of 3.7% [4] - The estimated 'Net sales- Consumables' is $26.97 million, indicating a year-over-year increase of 9.6% [4] - 'Net sales- Accessories' is expected to be $75.76 million, reflecting a decline of 4.1% from the prior-year quarter [4] Stock Performance - Traeger shares have decreased by 4.9% over the past month, contrasting with a 1.3% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Product Launch - Traeger Inc launches the all-new Woodridge Series, featuring three models: Woodridge, Woodridge Pro, and Woodridge Elite, combining cutting-edge technology, elevated flavor, and unmatched versatility at approachable price points [1] - The Woodridge Series celebrates 40 years of Traeger's leadership in wood-fire cooking and redefines the capabilities of its grills [1][2] - The series aims to bring quality and innovation to price points accessible for every outdoor cook, marking the most important product platform since the first wood pellet grill was introduced 40 years ago [4] Product Features - The Woodridge Pro offers 970 square inches of cooking capacity, Flavor Optimization, Effortless Cleanup, WiFIRE Technology, Generous Cooking Space, Innovative Design, and Endless Customization [5] - The Woodridge Elite introduces insulated construction for superior heat retention, a 1100-watt infrared side burner, and an enclosed cabinet for secure storage, building on the features of the Woodridge Pro [7] - The Woodridge series transforms outdoor grilling into an art form with new features, advancements, and upgrades [4] Pricing and Availability - The Woodridge series is priced at $799 (Woodridge), $999 (Woodridge Pro), and $1,599 (Woodridge Elite), offering greater accessibility in Traeger's premium product line [8] - All three models will be available at www.Traeger.com and key retailers across the US and Canada [8] Company Background - Traeger Grills, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, with 35 years of experience in outdoor cooking [10] - The company's grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with unique flavor [10]

Group 1 - Traeger, Inc. (NYSE: COOK) focuses on producing and selling grills and cooking equipment [1] - The company was revisited in early January of this year, indicating a renewed interest in its performance and market position [1] Group 2 - Crude Value Insights offers an investing service and community centered on oil and natural gas [1] - The focus is on cash flow and identifying companies that generate it, which leads to value and growth prospects [1]

Core Points - Ken Cook has been appointed as Chief Financial Officer of Wendy's, effective December 2, 2024, succeeding Gunther Plosch who has held the position since 2016 [1][2] - Cook brings 20 years of experience in finance, having previously served as Head of Financial Planning and Analysis at UPS and CFO for the U.S. Domestic segment [2][3] - The company aims to drive operational performance and improve restaurant profitability as part of its growth strategy, with Cook expected to play a key role in these initiatives [3] Company Overview - Wendy's was founded in 1969 and is known for its made-to-order square hamburgers and commitment to quality [5] - The company operates over 7,000 restaurants worldwide and employs hundreds of thousands of people [5] - Wendy's is dedicated to making a positive difference through initiatives like the Dave Thomas Foundation for Adoption [5]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 4% in Q3 2024, reaching $122 million, with a significant increase in grill revenues by 32% to $75 million compared to the previous year [8][24] - Gross margin expanded by 440 basis points to 42.3%, driven by lower supply chain costs and margin optimization efforts [28][29] - Adjusted EBITDA improved to $12 million from $5 million in the same period last year, with an adjusted EBITDA margin expansion of 610 basis points [8][32] Business Line Data and Key Metrics Changes - Grill category revenues increased by 32% to $75 million, driven by strong sell-through and successful promotional strategies [24][36] - Accessories revenues decreased by 31% to $25 million, primarily due to lower sales at MEATER and a decline in Traeger branded accessories [26][36] - Consumables revenues declined by 11% to $23 million, attributed to revenue pacing shifts, although underlying demand trends remained healthy [20][25] Market Data and Key Metrics Changes - North America revenues increased by 10%, while revenues from the Rest of the World decreased by 40%, impacted by a reduction in sales related to a European product partnership with MEATER [27] - The company noted that consumer demand remains discerning, particularly favoring grills priced below $1,000, indicating a selective spending pattern [10][11] Company Strategy and Development Direction - The company aims to accelerate brand awareness and penetration in the U.S. market, with a focus on community engagement and brand activation [13][15] - The strategy includes leveraging promotional activities to drive sales, particularly in a challenging consumer demand environment [9][10] - The company is optimistic about future growth, with plans for product innovation and a strong product pipeline expected to accelerate into 2025 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and ability to drive growth, despite a challenging consumer backdrop [23][40] - The outlook for the grill segment has been revised to assume positive low single-digit growth for the year, reflecting strong demand [12][36] - Management acknowledged the need to remain cautious about consumer spending patterns and the overall economic environment [10][49] Other Important Information - The company is increasing its fiscal 2024 financial guidance, expecting sales of $595 million to $605 million and adjusted EBITDA of $78 million to $81 million [9][36] - The company has a healthy liquidity profile, ending Q3 with total liquidity of $177 million [33] Q&A Session Summary Question: Guidance for grills in Q4 - Management indicated that while Q3 grill growth was strong, they expect moderation in Q4, with some marginal growth anticipated [42][43] Question: Competitive landscape in pellets - Management noted that while competition exists, Traeger brand loyalty remains strong, and they continue to focus on quality and marketing [44][45] Question: MEATER's marketing transition - Management confirmed ongoing improvements in MEATER's marketing strategy, with expectations for better performance in Q4 [58] Question: Tariff exposure and mitigation - Management discussed their manufacturing diversification strategy to mitigate tariff risks, with a focus on increasing production in Vietnam and exploring other options [62][64] Question: Gross margin drivers - Management explained that Q4 gross margin is expected to be lower due to product mix and promotional activities, but long-term gross margin outlook remains positive [67][68]

Core Insights - Traeger reported revenue of $122.05 million for Q3 2024, a 3.7% increase year-over-year, and an EPS of -$0.06, improving from -$0.12 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $118.44 million by 3.05%, while the EPS matched the consensus estimate [1] Revenue Breakdown - Net sales from Grills reached $74.90 million, significantly surpassing the estimated $60.41 million, reflecting a year-over-year increase of 32.3% [3] - Net sales from Consumables were reported at $22.50 million, below the estimated $25.66 million, marking an 11.4% decline year-over-year [3] - Net sales from Accessories totaled $24.60 million, falling short of the $32.70 million estimate, representing a 31.3% decrease compared to the previous year [3] Stock Performance - Traeger shares have declined by 1.5% over the past month, contrasting with a 0.7% increase in the Zacks S&P 500 composite [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Revenue Performance - Revenue for the three months ended September 30, 2024, was $122.1 million, a 3.7% increase from $117.7 million in the same period of 2023[107]. - Revenue for the nine months ended September 30, 2024, was $435.4 million, a decrease of 1.6% from $442.4 million in the same period of 2023[108]. - Revenue increased by $4.3 million, or 3.7%, to $122.1 million for the three months ended September 30, 2024, compared to $117.7 million for the same period in 2023[126]. - Total revenue decreased by $7.0 million, or 1.6%, to $435.4 million for the nine months ended September 30, 2024, compared to $442.4 million for the same period in 2023[138]. Profitability and Margins - The company recorded a net loss of $19.8 million for the three months ended September 30, 2024, compared to a net loss of $19.3 million in the same period of 2023[108]. - Gross margin increased to 42.8% for the nine months ended September 30, 2024, up from 36.9% in the same period of 2023[111]. - Gross profit increased by $23.2 million, or 14.2%, to $186.6 million, with gross margin rising to 42.8% from 36.9%[142]. - Gross profit increased by $7.0 million, or 15.7%, to $51.7 million, with gross margin rising to 42.3% from 37.9%[130]. Expenses - Research and development expenses were $3.3 million for the three months ended September 30, 2024, compared to $2.8 million in the same period of 2023[118]. - Research and development expenses for the nine months ended September 30, 2024, were $11.8 million, up from $8.0 million in the same period of 2023[118]. - Total operating expenses increased by $1.6 million, or 2.7%, to $59.1 million for the three months ended September 30, 2024[130]. - General and administrative expenses decreased by $0.7 million, or 2.8%, to $24.1 million, as a percentage of revenue decreased to 19.8%[133]. - General and administrative expenses decreased by $17.1 million, or 16.5%, to $86.8 million, as a percentage of revenue decreased to 19.9%[145]. Revenue Breakdown - Revenue from grills increased by $7.3 million to $246.7 million for the nine months ended September 30, 2024, compared to the prior year period[110]. - Revenue from grills increased by $18.4 million, or 32.5%, to $74.9 million, driven by unit volume growth in excess of 80%[127]. - Revenue from consumables decreased by $2.9 million, or 11.2%, to $22.5 million, primarily due to seasonal ordering shifts[128]. - Revenue from accessories decreased by $11.2 million, or 31.3%, to $24.6 million, driven by lower sales of MEATER smart thermometers[129]. - Revenue from consumables decreased by $1.7 million, or 1.9%, to $88.6 million, primarily due to a low-single digit reduction in wood pellet unit volume[140]. - Revenue from accessories decreased by $12.5 million, or 11.1%, to $100.1 million, mainly due to lower sales of MEATER smart thermometers[141]. Financial Position and Liquidity - As of September 30, 2024, cash and cash equivalents were $16.9 million, with a borrowing capacity of $125.0 million under the Revolving Credit Facility[150]. - Net cash provided by operating activities was $16.4 million, a decrease from $44.4 million in the prior year[151]. - The First Lien Term Loan Facility totals $560.0 million, including a $50.0 million delayed draw term loan[156]. - As of September 30, 2024, the total principal amount outstanding on the First Lien Term Loan Facility was $403.6 million[157]. - The fixed interest rate on the Revolving Credit Facility ranges from 2.75% to 3.25% per annum, with no outstanding loan amounts as of September 30, 2024[158]. - The maximum borrowing capacity under the Receivables Financing Agreement was decreased from $100.0 million to $75.0 million as of November 8, 2023[162]. - As of September 30, 2024, the company had drawn down $12.0 million under the Receivables Financing Agreement for general corporate and working capital purposes[165]. - The company is required to maintain a First Lien Net Leverage Ratio not to exceed 6.20 to 1.00, and was in compliance with this covenant as of September 30, 2024[160]. - The Revolving Credit Facility expires on June 29, 2026, with no principal payments due before that date[158]. - The fixed interest rate on outstanding cash advances under the Receivables Financing Agreement is approximately 2.6%[164]. - The company entered into Amendment No. 10 to the Receivables Financing Agreement to extend the expiration of the facility to August 6, 2027[164]. - The company is subject to a new liquidity threshold of $42.5 million under the Receivables Financing Agreement[163]. - There have been no material changes to the company's contractual obligations as of September 30, 2024[166]. Strategic Initiatives - The company has seen unit volume growth in excess of 80%, despite a high-double digit reduction in average selling price due to strategic pricing actions[110]. - The company continues to monitor macroeconomic conditions and has implemented cost savings initiatives to maintain product quality and reliability[111]. - The company expects general and administrative expenses to normalize as it manages investments to support growth and product development[119]. Other Expenses - Interest expense increased by $1.0 million, or 13.5%, to $8.5 million for the three months ended September 30, 2024[135]. - Total other expense increased by $7.0 million, or 126.2%, to $12.5 million, primarily due to unrealized losses from interest rate swaps[135]. - Total other expense increased by $8.9 million, or 58.0%, to $24.3 million, primarily due to unrealized losses from interest rate swaps[147]. - Change in fair value of contingent consideration increased by $2.3 million, attributed to the revalued earn-out obligation associated with the Apption Labs business combination[134].