Financial Data and Key Metrics Changes - Q3 net sales were approximately $3 billion, reflecting an organic net sales decline of 2% [7][19] - Adjusted gross margin increased by 52 basis points to 28.7%, driven by increased productivity [7][20] - Adjusted operating margin was 16.4%, representing a 49 basis point decrease compared to the prior year quarter [7] - Q3 adjusted EPS was $0.69, a decrease of $0.07 over the prior year quarter [7][20] - Free cash flow for the year to date reached $1.2 billion, with a conversion rate of approximately 124% [17][27] Business Line Data and Key Metrics Changes - Grocery and Snacks segment net sales increased by 3.4% compared to the prior year, driven by improved price mix [22] - Refrigerated and Frozen segment net sales declined by 8.1%, primarily due to increased strategic investments [22] - International segment saw volume and net sales increase over the prior year quarter, driven by strong performance in Mexico and global exports [16] - Foodservice segment net sales decreased due to reduced or exited less profitable business and softness in food away from home traffic [16] Market Data and Key Metrics Changes - Approximately 52% of brands held or gained unit share, a 12% increase compared to the prior year [13] - In the frozen category, Conagra's portfolio outperformed the market on a volume basis [12][14] - Recent four weeks of volume consumption improved to -1.2% year-over-year, a 6.5 percentage point improvement since Q1 [12] Company Strategy and Development Direction - The company continues to prioritize brand building investments across merchandising, innovation, and advertising to drive volumes while sustaining gross margin recovery [10][11] - Innovation remains a key strategic tool, with plans to modernize recipes and expand product offerings [15] - The company is focused on operational efficiency and cost savings to improve margins while maintaining investment in brands [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving targets and driving shareholder value based on consumer response to investments and cost savings progress [5] - The company is increasing expectations for adjusted operating margin while reaffirming net sales and adjusted EPS guidance [5][28] - Management noted that the stabilization in the supply chain has enabled further productivity initiatives [8] Other Important Information - The company reduced its net leverage ratio to 3.44 times, reflecting strong free cash flow and debt reduction efforts [17][27] - Adjusted SG&A increased by 7.4%, primarily due to the timing of incentive compensation expense [20] Q&A Session Summary Question: What are the expectations for the adjusted operating margin? - The company has modestly increased its adjusted operating margin expectations to approximately 15.8% for the full year [28] Question: How is the company addressing the challenges in the Foodservice segment? - The company is focusing on reducing or exiting less profitable business while managing price mix increases to offset volume declines [16][22]