Financial Data and Key Metrics Changes - Net sales increased by 1.5% year-over-year, with a volume decline of 2.4% primarily due to traditional loaf bread [18][19] - Gross margin decreased by 110 basis points to 48.8% compared to the same quarter last year, driven by increased outside purchases and lower production volumes [19] - GAAP diluted EPS for the quarter was $0.28, a decrease of $0.04 from the prior year, while adjusted diluted EPS decreased by $0.06 to $0.30 [20] Business Line Data and Key Metrics Changes - Branded retail products accounted for 67% of sales, up from 64% a year ago, indicating a shift towards higher-margin products [3] - Bread sales volumes declined by 3%, with traditional loaf products down 6%, while differentiated products like organic and keto saw sales increases of 3% and 4% respectively [4][5] - The Simple Mills acquisition contributed $61.4 million in net sales and $10.9 million to adjusted EBITDA [20] Market Data and Key Metrics Changes - The bread category overall is under pressure, with a 3% decline in volumes compared to a 1% decline in the general food category [4] - The competitive environment has intensified, particularly affecting traditional loaf segments, which saw a 7.9% decline in sales [30] - Higher-income consumers are increasing their food and beverage spend, while lower-income consumers are more affected by price increases [28] Company Strategy and Development Direction - The company is focusing on innovation and M&A to align with consumer demand, particularly in healthier product segments [6][31] - The integration of Simple Mills is progressing well, enhancing the company's capabilities in the natural snacking category [16] - The company aims to maximize near-term results while supporting long-term growth through strategic initiatives [7][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment and shifting consumer trends impacting the bread category [3][4] - The company is adjusting its 2025 financial outlook due to softness in traditional loaf products and increased competitive pressure [21][22] - Management remains confident in the long-term potential of their strategies despite current headwinds [32] Other Important Information - The company is implementing additional cost-saving initiatives to offset top-line pressures, including labor efficiencies [15] - Approximately 92% of key raw materials are covered for 2025, with a focus on minimizing volatility through historical hedging strategies [23] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.