Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [13] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [13] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [19] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [16] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [16][20] - Adjusted EBITDA in North America declined 6% to $260 million, while the international segment's adjusted EBITDA increased by $6 million to $57 million [20] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [14][72] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [15][72] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aimed at driving profitable growth and enhancing customer partnerships [4][7] - The company is prioritizing specific markets and products where it believes it has a sustainable competitive advantage [5] - New innovative products are set to launch in the fall, aligning with customer trends [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter results exceeded expectations, the outlook remains cautious due to potential pressures from soft restaurant market demand and increased competition [25][29] - The company expects unfavorable price/mix to continue in the first half of the year, moderating in the second half [25][27] - Management reaffirmed the fiscal 2026 revenue outlook, expecting a range of $6.35 billion to $6.55 billion [24] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [22] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [23] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [34] Question: Price/mix expectations for the first half of the year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [36] Question: Gross margin commentary for North America - Management confirmed that the increase in gross margin is expected to be seasonal, with input cost inflation anticipated in the second quarter [42] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil and is expected to be about $25 million annually, with full amounts included in guidance [44] Question: Customer win growth in North America - Management noted that new customer wins have materialized quicker than anticipated, contributing to volume growth [55] Question: Impact of restarting the curtailed line - Management stated that restarting the line would not incur significant costs and is expected to maintain production based on demand signals [63] Question: Phasing of cost savings in fiscal 2026 - Management confirmed that they are on track to deliver the $100 million target for fiscal 2026, with two-thirds of the benefits expected in the back half of the year [67] Question: Drivers of business wins with QSR customers - Management emphasized a renewed focus on service quality and consistency, alongside joint business planning with customers [70]