Financial Data and Key Metrics Changes - The company acknowledged that its absolute performance in the quarter was unsatisfactory, but it managed to hold unit share in a category that faced greater than expected declines [6][7] - The company is experiencing a dynamic and fluid environment, making it difficult to forecast improvements in unit share for the current year, with management suggesting a more realistic outlook towards 2026 [12][13] Business Line Data and Key Metrics Changes - The company is focusing on innovation and targeting faster-growing categories to mitigate weaknesses in traditional segments, particularly in the packaged bread category [6][7] - The Wondercake innovation is reportedly pacing ahead of expectations, contributing to unit share gains, although it is still early to determine its long-term impact on the legacy cake business [16][17] Market Data and Key Metrics Changes - The company noted a premiumization trend in consumer behavior, with traditional white bread segments facing challenges due to a shift towards healthier options [13][26] - The private label segment has shown marginal improvement in market share, with total units still down but not as significantly as the overall category [53] Company Strategy and Development Direction - The company is committed to aligning its portfolio with evolving consumer tastes and investing in brand innovation to drive sustainable growth [6][7] - Management emphasized the importance of differentiation in the traditional bread segment to reinvigorate sales and address competitive pressures [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment and consumer health, indicating that improvements may take longer than previously anticipated [12][31] - The company remains confident in its long-term financial targets despite current setbacks, with plans to address health and wellness trends through innovation [26][31] Other Important Information - The company is undergoing supply chain optimization, which includes the closure of an older bakery as part of its restructuring efforts [55] - Management highlighted the introduction of smaller product sizes to cater to changing consumer needs, particularly for smaller households [57] Q&A Session Summary Question: Insights on the core packaged bread category and stabilization - Management indicated that the current environment is challenging, and while there are new business wins, significant improvement in unit share is not expected this year [11][12] Question: Details on the Wondercake innovation's impact - Management noted that it is too early to determine the long-term impact of Wondercake on the legacy cake business, but initial results are promising [16][17] Question: Changes in promotional strategy and consumer behavior - Management acknowledged an increase in promotional activity for differentiated offerings, particularly towards the end of the quarter, while maintaining a cautious approach to avoid devaluing the brand [22][23] Question: Addressing structural headwinds in the bread category - Management confirmed plans to innovate and address health and wellness trends, positioning the company as a leader in the category [26][27] Question: Impact of tariffs on guidance and cost structure - Management explained that tariff impacts are primarily affecting gross margins, with ongoing efforts to mitigate costs in selling, general, and administrative expenses [30][43] Question: Performance of private label and away-from-home business - Management reported continued weakness in foodservice sales but noted improvements in profitability and margins due to restructuring efforts [52][53]

Financial Data and Key Metrics Changes - The company acknowledged that its absolute performance in the quarter was unsatisfactory, but it managed to hold unit share in a category that faced greater than expected declines [4] - The EBITDA margin guidance was down about 30 to 40 basis points from prior expectations, primarily due to category trends impacting gross margin and tariffs affecting input costs [28][29] Business Line Data and Key Metrics Changes - The company is focusing on innovation and targeting faster-growing categories to mitigate weaknesses in the core packaged bread category [4][5] - The Wondercake innovation is pacing ahead of expectations in distribution and has contributed to unit share gains, although it is still early to determine its overall impact on the legacy cake business [14][15] Market Data and Key Metrics Changes - The away-from-home segment continues to experience weakness in overall foodservice sales, but profitability and margins have improved due to restructuring efforts [50] - Private label market share has marginally reversed its downward trend, with a slight increase of about 10 basis points in the last quarter [51] Company Strategy and Development Direction - The company aims to align its portfolio with evolving consumer tastes and invest in on-trend innovation to drive sustainable growth over the long term [4][5] - The company plans to address the shift towards healthier eating by continuing to innovate and differentiate its offerings, particularly in the health and wellness segment [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current economic environment is challenging, making it difficult to forecast improvements in the near term, with a focus shifting towards 2026 for potential recovery [10][12] - The company remains confident in its long-term financial targets and strategies, despite acknowledging that the current situation may delay achieving those targets [30] Other Important Information - The company is undergoing supply chain optimization, which includes closing an older bakery that produced fresh bread, buns, and rolls [53] - The introduction of smaller product sizes is aimed at addressing consumer needs for convenience and value, with early returns being positive [55] Q&A Session Summary Question: Insights on the core packaged bread category and stabilization - Management indicated that the environment remains dynamic and challenging, with expectations for stabilization possibly extending into 2026 [8][10] Question: Details on the Wondercake innovation's impact - Management noted that it is too early to determine the full impact of Wondercake on the legacy cake business, but initial results are promising [14][15] Question: Changes in promotional strategy and consumer behavior - Management confirmed an increase in promotional activity for differentiated offerings, particularly Dave's Killer Bread, while emphasizing a cautious approach to avoid devaluing the brand [20][22] Question: Addressing structural headwinds in the bread category - Management acknowledged the challenges posed by a shift towards healthier eating and indicated plans to innovate in response to these trends [24][25] Question: Insights on private label and away-from-home business performance - Management reported continued weakness in foodservice sales but noted improvements in profitability due to restructuring efforts, while private label market share has shown slight recovery [50][51]