Financial Data and Key Metrics Changes - In Q4 of fiscal 2024, comparable store sales decreased by 9.4% year-over-year on a like-for-like basis [32] - Revenue for the quarter was $535 million, with a net income of $9 million, or $0.25 per diluted share, and adjusted net income of $27 million, or $0.69 per diluted share [32] - Adjusted EBITDA was $127 million, resulting in an adjusted EBITDA margin of 23.8% [32] - Operating cash flow for the quarter was $108.9 million, ending with $6.9 million in cash and $503.5 million available under a $650 million revolving credit facility [33] Business Line Data and Key Metrics Changes - The company has reintroduced TV advertising and returned to a historical cadence of promotional activity, including the classic eat and play combo promotion [17][18] - The menu is being revamped to reintroduce popular items and improve pricing architecture [19][20] - The company completed 15 remodels in Q4, totaling 44 remodels since the program began in 2023 [21] Market Data and Key Metrics Changes - The company opened five new stores in Q4, bringing the total to 14 new stores for fiscal 2024, including its first international franchise location in India [28][29] - The company has entered into 35 franchise partnership agreements, anticipating at least six additional franchise units opening in the next 12 months [29] Company Strategy and Development Direction - The current leadership is focused on a "back to basics" strategy to improve operational performance and shareholder value [11][12] - The company aims to enhance its marketing strategy by reallocating funds back to TV advertising and optimizing digital marketing [57] - A renewed focus on capital expenditures is being implemented, with expectations for total capital expenditures not to exceed $220 million in fiscal 2025 [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving revenue and cash flow, with March and April showing notable improvements compared to Q4 [12][44] - The leadership team is optimistic about the company's ability to navigate economic uncertainties and capitalize on strategic opportunities [114] Other Important Information - The company repurchased nearly 3 million shares for approximately $85 million in Q4, totaling 5 million shares for fiscal 2024 [34] - The company is committed to generating free cash flow while investing in new store growth and high ROI initiatives [37] Q&A Session Summary Question: Improvements seen in March and April - Management noted that March and April showed marked improvements in traffic and ticket sales, indicating a positive trend [44] Question: Impact of calendar shifts and late Easter - Management acknowledged that the holiday calendar played a role but emphasized that the overall business is building positively [46][48] Question: Back-to-basics strategy and cost structure implications - The strategy involves smarter spending on marketing and a focus on core menu items without significantly increasing costs [57][59] Question: Value proposition for the brand - Management is re-evaluating the gaming side's value proposition and testing ways to enhance guest experience [67] Question: Recent traffic and sales pressures breakdown - Management indicated that recent challenges were largely self-inflicted due to execution errors rather than competitive pressures [76][78] Question: Competitive environment and differentiation - Management believes that improving execution will mitigate competitive pressures and is focused on driving traffic through new initiatives [100][102] Question: Clarification on remodel spending and TV advertising mix - The remodel hurdle rate is expected to be lowered to mid to high single digits, and TV advertising is moving back towards a 50% mix [110][108]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025 with organic net revenue growth of 9%, exceeding expectations across sales, margins, and EPS [9][10][48] - Gross margin reached a record 62.1%, up from 58.2% in Q1 2024 and 56.5% in Q1 2023, driven by lower product costs and higher full-price selling [48][49] - Adjusted diluted EPS was 38 cents, up 52% year-over-year, reflecting strong financial performance [51] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenue grew 12%, driven by positive comp growth and strong e-commerce performance [10][29] - The wholesale business also showed positive growth, up 5%, with U.S. wholesale specifically up 9% [10][36] - Women's business grew 12% overall, now representing 38% of net revenues, while tops grew 7% [20][26][90] Market Data and Key Metrics Changes - The U.S. business grew 8%, while international markets saw a 9% increase [11][38] - The Americas segment reported an 11% increase in net revenues, with strong performance in both DTC and wholesale channels [54] - Asia's net revenues increased by 10%, with double-digit growth in key markets like Japan and Korea [57] Company Strategy and Development Direction - The company is focused on becoming a DTC-first brand, with plans to increase DTC revenue to 55% of total business [35][66] - The strategy includes expanding product offerings beyond jeans to lifestyle categories, with significant growth in women's and tops segments [20][22] - The company aims to navigate the dynamic macro environment by leveraging its strong brand and global supply chain [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by recent tariff announcements but expressed confidence in the company's ability to adapt [12][60] - The company is currently assessing various scenarios and mitigation strategies related to tariffs [60][64] - Full-year guidance remains unchanged, with expectations for organic net revenue growth of 3.5% to 4.5% in Q2 [62] Other Important Information - The company closed 21 net stores but opened 30 new stores, primarily full-price Levi's brand locations [52] - The company returned $81 million to shareholders through dividends and share buybacks, reflecting a commitment to shareholder value [53] Q&A Session Summary Question: Can you provide a percentage breakdown of sourcing by key countries and discuss potential pricing strategies? - Management indicated they source from 28 countries, with key suppliers in Bangladesh, Cambodia, and Vietnam, and emphasized the brand's pricing power while considering surgical price adjustments [69][74] Question: How are you planning inventory levels going forward on wholesale orders? - Inventory levels were reported as healthy, with no changes in wholesale orders from customers, and global wholesale was up 5% [80][85] Question: What are the key drivers of the 9% organic growth? - Growth was driven by strength across all geographies and channels, with DTC up 12% and wholesale up 5%, indicating sustainable demand [96][100] Question: Can you clarify the guidance for Q2 organic net revenue growth by region? - Guidance for Q2 suggests low to mid-single-digit growth in the U.S. and mid-single-digit growth in Europe and Asia, with DTC expected to grow in the high single digits [112][113] Question: Can you walk us through the expense deleverage expected in Q2? - SG&A expenses are expected to increase in Q2, with a focus on maintaining a strong balance sheet and managing costs effectively [121][122]

Financial Data and Key Metrics Changes - For fiscal year 2024, total revenue increased by 32.9% to $28.34 million compared to fiscal year 2023 [2] - Adjusted EBITDA for fiscal year 2024 increased by 8.9% to $8.9 million [2][18] - In Q4 2024, total revenue rose by 59.2% to $9.1 million compared to Q4 2023 [18] - Net income for fiscal year 2024 increased by 258% to $2.2 million, or $0.33 per diluted share [17] Business Line Data and Key Metrics Changes - Revenue from direct patient services segment for fiscal year 2024 was $12.6 million, a 253% increase from $3.4 million in fiscal year 2023 [13][14] - Revenue from the equipment leasing segment decreased by 15.6% to $17.8 million in fiscal year 2024 [14] - Gamma Knife revenue decreased by 11.6% to $9.7 million for fiscal year 2024 [14] - Proton beam therapy revenue decreased by 1.8% to $10 million in fiscal year 2024 [15] Market Data and Key Metrics Changes - The company has established its first direct patient services cancer treatment centers in the U.S. with the acquisition of three centers in Rhode Island [11] - The international business segment is expected to see continued growth, particularly in Ecuador and the newly opened center in Puebla, Mexico [9][10] Company Strategy and Development Direction - The company is transitioning from a cancer treatment equipment leasing focus to a more patient-centric service model [1] - Strategic initiatives include expanding the business footprint in Rhode Island and establishing new treatment centers in Mexico [10][11] - The company aims to enhance operational efficiencies and improve patient care through partnerships with local health systems [7][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and the ability to navigate industry challenges [39][40] - The company anticipates stronger international growth and increased treatment volumes from new facilities [10][12] - Management highlighted the importance of operational efficiencies and technology investments to support growth initiatives [16][39] Other Important Information - The company ended the year with cash and cash equivalents of $11.3 million, down from $13.8 million at the end of 2023 [25] - Shareholders' equity increased to $25.2 million, or $3.92 per outstanding share, compared to $22.6 million, or $3.59 per outstanding share, at the end of 2023 [25] Q&A Session Summary Question: Benefits of expanding footprint in Rhode Island - Analyst inquired about additional benefits from expanding the footprint in Rhode Island and potential economies of scale with new facilities [30] Response: Synergies from partnerships - Management confirmed that there will be synergies from the relationship with Brown University Health and other local health systems, enhancing cancer care provision in the state [32]

Financial Data and Key Metrics Changes - In Q4, revenues increased by 5% to $932 million, with an adjusted growth of 14% when accounting for currency and last year's extra week [12][53] - For the full year, revenues grew by 8% in U.S. dollars to $3 billion, and by 10% in constant currency [21] - Adjusted earnings per share (EPS) for Q4 was $1.48, down from $2.01 in the previous year [66] Business Line Data and Key Metrics Changes - The Rag & Bone acquisition contributed 9 points to the 14% growth, while the core guest business contributed 5 points [12] - The licensing business grew by 18% in Q4, driven by strong performance in footwear, fragrances, handbags, and eyewear [15][61] - The Americas retail business saw a 14% constant currency comp decline, while the European retail business had a 5% constant currency comp increase [15][56] Market Data and Key Metrics Changes - In Europe, revenues grew by 2% to $494 million, with a constant currency growth of 13% [53] - Asia revenues decreased by 15% to $70 million, with a constant currency decline of 4% [60] - The U.S. and Canadian stores experienced a 14% comp decline, while e-commerce in the region delivered an 8% increase in constant currency [55][56] Company Strategy and Development Direction - The company aims to strengthen brand awareness and customer engagement, improve retail store and e-commerce productivity, and optimize its business model for better profitability [22][51] - Plans include opening new stores for Rag & Bone and Guess Jeans, with a focus on expanding in Europe and Asia [92][128] - The company is exploring the integration of its infrastructures across different regions to improve cost structure and profitability [35][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflationary pressures, the Red Sea crisis, and traffic declines in retail stores [10][70] - Despite these challenges, the company expects revenue growth in fiscal 2026 between 3.9% and 6.2%, with adjusted operating margins between 4.5% and 5.4% [47][79] - The company plans to address consumer price sensitivity by expanding entry price point offerings [32][105] Other Important Information - The company ended the quarter with $563 million in inventory, a 21% increase, primarily due to the Rag & Bone acquisition [66] - A new Chief Financial Officer, Alberto Toni, will join the company in June, bringing extensive experience [24] - The board approved a quarterly cash dividend of 30 cents per share [70] Q&A Session Summary Question: What are the drivers for Rag & Bone's growth? - Management expressed excitement about the Rag & Bone acquisition, highlighting strong e-commerce performance and plans for new store openings in Europe and North America [90][92] Question: What is the strategy for the Americas business? - Management discussed plans to improve retail productivity through exclusive product collections and a speed-to-market model to capitalize on current trends [100][102] Question: What is the opportunity for Guess Jeans? - Management noted strong initial performance in Europe and plans for expansion in the U.S. and Japan, with a focus on sustainability and appealing to younger customers [120][128]

Financial Data and Key Metrics Changes - The company achieved double-digit ARR growth, supported by six major logo renewals in Q4, indicating strong customer satisfaction and product value [51] - Subscription revenue accounted for 87% of total revenue, up from 78% in 2023, driving a gross margin of 82% compared to 78% last year [52] - The net retention rate reached 100%, significantly up from 73% in 2023, showing reduced churn and expansion within the existing customer base [52] - Q4 revenue was $1.66 million, down slightly compared to Q4 of 2023, while gross profit increased to $1.43 million [53] - Full-year revenue slightly declined year over year, but subscription revenue grew 10% year-over-year, totaling over $6.2 million [58] Business Line Data and Key Metrics Changes - The company completed the transformation to a single code base with Sky 1.0%, enabling feature upgrades and stability across all applications [44] - A significant expansion customer achieved over 100% increase in their ARR, indicating strong growth potential [45] - The Sky Kiosk product has been deployed with a large technology company in Silicon Valley, enhancing the return-to-office experience [47] Market Data and Key Metrics Changes - There was a 34 basis points increase in return-to-office across industries from 2023 to 2024, reflecting a growing trend in in-office usage [21] - Employee satisfaction and productivity rates are relatively lower across working models, highlighting the need for improved employee experiences [23] Company Strategy and Development Direction - The company is focused on investing in Agentech AI to reshape the market for employee experiences, positioning itself as a pioneer in this new software category [11] - The strategy includes enhancing AI capabilities for deeper product stickiness and maintaining tight cost discipline while investing in long-term growth [63] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating significant expansion demand from existing customers and new enterprise clients in 2025 [72] - The company aims to leverage cutting-edge AI technology to enhance productivity, engagement, and efficiency in the enterprise [71] Other Important Information - The company has filed an extension for its 10K and plans to file before the extension deadline [4] - The company is preparing for an annual investor day in May 2025 to provide further details on new product offerings and customer case studies [73] Q&A Session Summary Question: Insights on strategic initiatives and partnerships - Management indicated a focus on building AI capabilities and investing in tools, with a positive outlook for the company [75] Question: Why wait until earnings to post updates - Management acknowledged the need for improved communication and plans to provide more updates leading up to the investor meeting in May [77] Question: Future challenges and opportunities - Management highlighted competition from large companies but emphasized their unique differentiation in user experience and partnership approach with clients [79][80]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $35.2 million, a decrease of 2% compared to $35.7 million for the same period last year [9] - Gross profit for Q3 2025 was $9.8 million, down from $11.9 million in the prior year, primarily due to a decrease in CDMO gross profit [10] - The company recorded a net loss of $14.8 million or $0.47 per diluted share, compared to net income of $15.6 million or $0.42 per diluted share for the same period last year [12] - Adjusted EBITDA for Q3 2025 was $5.7 million, a decrease of $0.7 million compared to $6.4 million in the prior year [12] - For the first nine months of fiscal 2025, revenues were $92.4 million, an increase of 2% compared to $90.4 million for the same period last year [13] Business Line Data and Key Metrics Changes - CDMO revenues decreased by $1.5 million due to the completion of discrete development revenue project life cycles [10] - Hyaluronic acid (HA) manufacturing revenues increased by $1 million due to increased demand from a customer [10] - For the nine months ended February 23, 2025, gross profit improved to $26.3 million from $24.6 million, driven by increased volumes in HA manufacturing [14] Market Data and Key Metrics Changes - The company signed multiple new agreements with both new and existing customers during the quarter, indicating strong market engagement [6] - LifeCorps added six new customers in the first nine months of fiscal 2025, including a significant agreement with Nersim Laboratories [25][26] Company Strategy and Development Direction - The company aims to drive a 12% revenue growth and increase EBITDA margins to over 25% in the coming years [19] - Key growth strategies include maximizing existing customer business, advancing late-stage development programs towards commercialization, and winning new impactful business [20] - The company is focused on reducing operational expenses and enhancing productivity through various initiatives [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that discussions around domestic drug manufacturing have increased among prospective customers, indicating a potential shift in the industry [44] - The company expects to be cash flow positive from operations in the second half of the fiscal year, with a focus on improving free cash flow [63] - Management reiterated financial guidance for the fiscal year, expecting revenue to be approximately $126.5 million to $130 million [17] Other Important Information - The company has made significant improvements in operational efficiencies and productivity without compromising quality [32][38] - LifeCorps is implementing live production monitoring to enhance operational performance [35] Q&A Session Summary Question: Insights on the desire to bring back drug manufacturing in the US - Management noted increased discussions about domestic manufacturing among large pharmaceutical companies, driven by administrative uncertainty [44] Question: Details on the Humanetics contract signed post-quarter - The contract involves a tech transfer for a promising project, indicating a phase two development stage [46] Question: Progress on identified opportunities with multinational companies - Management reported positive progress and increased engagement with large multinationals, indicating a successful strategy [54] Question: Cash flow from operations and capital expenditures in the quarter - Positive cash flow from operations was approximately $2 million, with capital expenditures around $2 million as well [56][58] Question: Expectations for cash flow generation in the remainder of the fiscal year - Management expects to be cash flow positive in the second half of the year, with potential improvements in free cash flow [63] Question: Outlook on SG&A expenses - SG&A expenses are expected to decrease further in the second half of the year, with ongoing improvements in operational efficiency [66]

Reading International (RDI) Q4 2024 Earnings Call April 03, 2025 10:57 PM ET Company Participants Andrzej Matyczynski - Executive Vice President of Global OperationsEllen Cotter - President, CEO & Vice ChairmanGilbert Avanes - CFO, Executive VP & Treasurer Andrzej Matyczynski This is the earnings call script for the fourth quarter twenty twenty four. Thank you for joining Reading International's earnings call to discuss our twenty twenty four fourth quarter and full year results. My name is Andrei Matuchins ...

Financial Data and Key Metrics Changes - Revenue for Q4 grew by 13% year-over-year to $94.5 million, with non-GAAP gross profit increasing by 17% year-over-year [11][12] - Full year revenue reached approximately $351 million, reflecting a 12% year-over-year growth, while adjusted EBITDA was $29 million, more than three times the previous fiscal year [12][13] - Non-GAAP gross margin for the year was 71%, expanding by 180 basis points year-over-year, with full year gross profit increasing by about 15% [29][30] Business Line Data and Key Metrics Changes - Total software revenue for the full year was $306.7 million, representing about 87% of total revenue, with recurring revenue at $186.6 million, or 53% of total revenue [27] - In Q4, software revenue was $37.4 million, an increase of $6 million year-over-year, while software services revenue was $45.9 million, up by $3.6 million [33][35] - Recurring revenue in Q4 reached $47.3 million, or 50% of total revenue, compared to $42.9 million in the same period last year [35] Market Data and Key Metrics Changes - Geographic revenue mix for the year was 55% from EMEA, 31% from APAC, and 14% from the Americas, with revenue from the U.S. increasing meaningfully [27][28] - Total remaining performance obligations (RPO) at the end of Q4 was $545.8 million, down by about $45 million versus last year, with short-term RPO increasing to $335.3 million [39][41] Company Strategy and Development Direction - The company aims to drive growth through new advanced capabilities, deepening customer relationships, and expanding market reach, with expectations of revenue around $392 million for fiscal '26 [17][44] - The strategy includes significant investments in the U.S. market, focusing on state, local, and federal law enforcement agencies, with plans to hire more sales personnel and increase marketing efforts [56][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market despite current policy uncertainties, noting strong engagement with federal agencies and positive feedback from demonstrations [56][58] - The company anticipates continued global demand and evolving market conditions, believing that their strategy will drive sustained profitable growth [13][18] Other Important Information - The company ended the year with a strong balance sheet, cash position of $113.3 million, and no debt, with cash flow from operations at approximately $47 million [31][32] - The company initiated a stock repurchase program, buying about 586,000 shares for approximately $5.3 million [32] Q&A Session Summary Question: What are the demand trends in the U.S. market? - Management believes the U.S. presents a good opportunity, with increased investments to improve market reach and positive engagement with federal agencies [56][58] Question: Are sales cycles extending due to current market conditions? - Sales cycles in the U.S. are longer due to being in penetration mode, but management does not expect current unrest to negatively impact efforts [61][62] Question: What drove the decline in billings year-over-year? - Billings for Q4 were $95 million, consistent with expectations, and management noted that Q3 was unusually high [64][66] Question: What are the U.S. demand drivers compared to international markets? - Demand drivers globally remain healthy, with commonality in criminal activities, but specific U.S. focus includes border control and organized crime [74][75] Question: What investments are being made to accelerate sales cycles in the U.S.? - The company is investing significantly in local sales teams, marketing efforts, and expanding partnerships to enhance market penetration [79][81] Question: What should be expected regarding long-term growth sustainability? - Management indicated that the fundamentals of the business are healthy, with expectations for continued growth and improved profitability [85][86]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 FY2025 increased by 23% to $187.1 million compared to $151.5 million in the prior year [14] - Net earnings for the quarter increased by 47% to $26.6 million or $2.44 per diluted share, compared to $18.1 million or $1.64 per diluted share in the prior year, marking the highest quarterly net earnings in the company's history [15] Business Segment Data and Key Metrics Changes - Irrigation segment revenues increased by 11% to $148.1 million compared to $133 million in the prior year, with North America Irrigation revenues decreasing by 7% to $77.1 million [16] - International Irrigation revenues increased by 42% to $71 million, driven by large projects in the MENA region [17] - Infrastructure segment revenues more than doubled to $38.9 million from $18.5 million in the prior year, primarily due to the completion of a large Road Zipper project valued at over $20 million [19] Market Data and Key Metrics Changes - In North America, no meaningful improvement in market conditions is expected in the near term, with USDA forecasting a 29% increase in net farm income primarily due to higher government support payments [9] - Internationally, particularly in developing regions, continued growth is expected driven by project activity focused on food security and water resource conservation [10] Company Strategy and Development Direction - The company is focused on growing its Road Zipper system leasing business for a higher and more stable margin profile [7] - A comprehensive action plan has been implemented to address potential cost impacts from tariffs, including supplier negotiation and strategic inventory placement [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the Road Zipper project sales pipeline despite challenges in predicting the timing of large projects [6] - The company anticipates stable demand for irrigation equipment in the second half of FY2025, pending significant storm damage activity [9] Other Important Information - Total available liquidity at the end of Q2 was $236.7 million, including $186.7 million in cash and equivalents [20] - The company is evaluating the potential impact of additional or retaliatory tariffs and has a structure in place to react quickly [12] Q&A Session Summary Question: Insights on international revenue recognition timing - The company shipped more of the large project than originally anticipated, but this does not affect expectations for future quarters [26] Question: Details on tariff exposure and actions - The biggest impact is expected on the Irrigation business, with a marginal increase in cost of goods projected [30][32] Question: Margin performance in the Irrigation segment - Margins in North America remained comparable to last year, with volume leverage from international projects helping to offset gross margin dilution [38][40] Question: Impact of tariffs on agricultural economy - Potential disruptions in US agricultural exports could impact pricing and customer sentiment, but government support is expected if needed [45][46] Question: Pricing expectations in the domestic irrigation market - The company has already taken pricing actions based on increased steel costs and believes it can pass these costs along to customers [53][54] Question: Potential benefits of retaliatory tariffs for investment in Brazil - The company is positioned to react quickly to any increase in demand in Brazil, leveraging its global footprint [56][57]

Financial Data and Key Metrics Changes - In Q3 2025, net sales increased by 4% year-over-year, with volume growth of 9% primarily due to recovering from the previous year's ERP transition and new customer contracts [26][12] - Adjusted EBITDA grew by 6% to $364 million, driven by higher sales volumes and lower manufacturing costs [31][32] - Price mix declined by 5% compared to the prior year due to competitive pricing strategies [27][28] Business Line Data and Key Metrics Changes - North America net sales grew by 4%, with volume improving by 8%, although offset by soft restaurant traffic trends [27][28] - International segment sales increased by 5%, with volume up by 12%, despite weak restaurant traffic in key markets [30] - Adjusted EBITDA for North America increased by $15 million to $301 million, while the international segment saw a decline of $8.5 million to $93 million [34] Market Data and Key Metrics Changes - QSR traffic in North America declined by 2%, with hamburger chains experiencing a 6% drop in February [28][29] - The company anticipates a mid-single-digit percent decline in potato prices for the 2025 crop in North America, with flat prices expected in Europe [19][20] Company Strategy and Development Direction - The company is focusing on a value creation plan with the help of Alex Partners to optimize operations and drive growth [9][10] - A restructuring plan is in place to achieve at least $55 million in pre-tax savings for fiscal 2025 [12][51] - The company aims to enhance customer relationships and innovate product offerings to meet evolving market demands [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and consumer uncertainty, which is impacting restaurant traffic [13][18] - The company expects continued pressure on pricing and margins due to competitive dynamics and inflationary costs [44][45] - Despite these challenges, management remains optimistic about long-term growth opportunities through customer engagement and operational efficiencies [53][54] Other Important Information - The company ended Q3 with approximately $1.1 billion in liquidity and a net debt of $4.2 billion, maintaining a leverage ratio of 3.4 times [35][36] - Capital expenditures for the year are projected to be $750 million, down from the previous year [38] Q&A Session Summary Question: Impact of crop prices on QSR contract negotiations - Management indicated that customer contract negotiations will begin in the summer, and while potato prices are expected to decline, other inflationary costs will also impact negotiations [57][58] Question: Opportunities with Alex Partners - The focus is on cost savings, productivity, and a data-driven approach to identify growth opportunities across the P&L [61][63] Question: Gross margin expectations for Q4 - Management explained that higher fixed cost absorption and other input costs will pressure gross margins, with a forecasted decline of around 700 basis points [69][71] Question: Connell plant future plans - The company has decided not to sell the Connell plant and is conducting a strategic review of other options [100][101] Question: Weakness in QSR traffic - Management attributed the decline in QSR traffic to macroeconomic uncertainty and is monitoring demand signals closely [108][109] Question: Changes in QSR operations and competitive threats - The company is adjusting contract schedules and is open to new ideas as customers seek to drive traffic to their restaurants [138][139]