Financial Data and Key Metrics Changes - The company is experiencing balanced growth across its portfolio, with a long-term revenue growth algorithm of 2% to 4% expected to be maintained [8][19] - Cocoa costs have moderated significantly, although the company still anticipates year-over-year inflation [7][41] - The company has slightly lowered its tariff estimate, contributing to a more favorable outlook for earnings recovery over time [7][41] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth in the last four weeks, indicating strong performance in this segment [15][16] - The core business achieved close to 5% growth in Q3, excluding the impact of new innovations like Reese's Oreo [32] Market Data and Key Metrics Changes - The company noted that Halloween sales have been disappointing, with a slow start attributed to warm weather and consumer behavior [23][24] - The convenience store channel is performing well, with CMG growth at over 6%, indicating a healthy market presence [76] Company Strategy and Development Direction - The company is focused on long-term growth while rebuilding margins, emphasizing the importance of investing in brands and innovation [8][41] - There is a robust pipeline of innovation planned for 2026 and 2027, with a balance between core business growth and new product introductions [32][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer market is challenging but believes the category remains resilient [84][85] - The company is optimistic about cocoa costs moderating and potential tariff relief, although it remains cautious about the overall economic environment [41][42] Other Important Information - The company is actively analyzing consumer insights to improve product offerings and marketing strategies for future seasons [24][25] - The tax rate has been impacted by several factors, including adjustments in reserves and procurement strategies, with further guidance expected in future calls [105][106] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth and the importance of defining success for 2026, focusing on category growth and margin recovery [8][19] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor in planning for next year, with current expectations being cautiously optimistic [10][11] Question: Halloween sales performance - Management acknowledged a slow start for Halloween but emphasized the importance of consumer insights for future improvements [23][24] Question: Cocoa costs and pricing strategy - Management noted that cocoa costs are still significantly higher than previous years, and pricing strategies will be carefully managed [27][51] Question: Innovation pipeline for 2026 - Management highlighted the importance of innovation, particularly with successful products like Reese's Oreo, and a strong pipeline for future growth [32][33] Question: Consumer health and SNAP program impacts - Management expressed that while consumer sentiment is under pressure, the category remains resilient, with minimal expected impact from SNAP changes [85][87] Question: International market performance - Management acknowledged challenges in the international market but remains optimistic about growth and returning to profitability [59][60]

Financial Data and Key Metrics Changes - The company anticipates a non-algorithmic year for both top and bottom lines in 2026, with a focus on balanced growth across its portfolio [9][10] - Cocoa costs have moderated significantly, although the company still expects year-over-year inflation [9][10] - The long-term revenue growth algorithm is projected at 2%-4%, with EPS showing potential for upside [10][44] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth in the last four weeks, indicating strong performance [18][27] - Halloween sales have been disappointing, with a slow start attributed to weather and timing, but the company is analyzing consumer insights for future improvements [26][28] Market Data and Key Metrics Changes - The competitive landscape remains rational, with no significant price gaps causing concern [22][59] - The convenience store channel is performing well, with a 6% growth in CMG, and the company is focused on enhancing its presence in this segment [79][80] Company Strategy and Development Direction - The company is committed to investing in its brands while rebuilding margins over the long term [10][110] - Innovation is a key focus, with successful products like REESE'S OREO driving growth, and a robust pipeline planned for 2026 and beyond [35][36] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the challenging consumer environment but remains optimistic about the category's resilience [88][90] - There is cautious optimism regarding cocoa prices and potential tariff relief, with ongoing monitoring of consumer health and demand [44][90] Other Important Information - The company is experiencing a shift in tax rates due to various factors, including adjustments in reserves and procurement strategies [108][109] - The international segment is currently loss-making but is expected to grow share in core markets despite cocoa challenges [62] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth strategy and the importance of defining success for 2026, emphasizing long-term investments [10][11] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor in planning for next year, with current pricing aligning with expectations [12][13] Question: Halloween sales performance - Management noted that Halloween sales have been soft, with a focus on learning from consumer insights for future seasons [26][28] Question: Competitive pricing environment - Management highlighted the rationality of the U.S. market compared to Europe, with no major price gaps causing concern [22][59] Question: Innovation pipeline for 2026 - Management confirmed a strong innovation pipeline, with successful products driving growth and plans for continued innovation [35][36] Question: Consumer health and SNAP program impacts - Management acknowledged the challenging consumer sentiment but noted minimal expected impact from SNAP changes on the business [88][90] Question: Cocoa cost outlook and pricing strategy - Management expressed cautious optimism about cocoa prices potentially turning deflationary, while maintaining a focus on balanced recovery [54][96]

Financial Data and Key Metrics Changes - The company anticipates a non-algorithm top and bottom line year for 2026, with cocoa costs moderating significantly, although year-over-year inflation is still expected [7][8] - The long-term revenue growth algorithm is projected at 2% to 4%, with potential upside for EPS growth in 2026 [9][40] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth over the past four weeks, indicating strong performance in that segment [16][17] - The core business experienced close to 5% growth in Q3, excluding the impact of new innovations like Reese's Oreo [32] Market Data and Key Metrics Changes - The company noted that Halloween sales have been disappointing, with a slow start to the season, but there are opportunities to learn from consumer insights for future seasons [25][27] - The international segment faced challenges, resulting in a loss-making quarter, but the company remains optimistic about growth and share gains in core markets [87][88] Company Strategy and Development Direction - The company is focused on balanced growth across its portfolio while investing in brands and innovation to recover margins over the long term [9][32] - There is a strong emphasis on innovation, with a robust pipeline planned for 2026 and 2027, particularly in the salty snacks category [32][95] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer market is challenging, but the category remains resilient, with expectations for continued growth despite pressures [117][120] - The company is optimistic about cocoa costs moderating and potential tariff relief, which could positively impact future performance [42][40] Other Important Information - Cocoa prices are still 70% higher than in 2023, and the company is working closely with retailers to manage pricing strategies effectively [29][30] - The company is investing in digital marketing and innovation to drive performance during key seasons like Halloween and the holidays [35][95] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth and the importance of defining success for 2026, focusing on category growth and margin recovery [8][9] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor for planning, with current expectations being cautiously optimistic [11][12] Question: Halloween sales performance - Management acknowledged a slow start to Halloween but emphasized the importance of learning from consumer insights for future improvements [25][27] Question: International market challenges - Management noted that while the international segment is currently loss-making, they are optimistic about future growth and share gains [87][88] Question: Innovation pipeline for 2026 - Management highlighted the importance of innovation, particularly with successful products like Reese's Oreo, and a strong pipeline for future growth [32][95] Question: Consumer health and SNAP program impacts - Management stated that while consumer sentiment is under pressure, the category remains resilient, and the impact of SNAP changes is expected to be minimal [117][120]