Good morning. My name is Tanya, and I will be your conference call facilitator today. At this time, I would like to welcome everyone to The Marzetti Company Fiscal Year 2023, Q4 conference call. Conducting today's call will be David Ciesinski, President and CEO, and Tom Pigott, CFO. All lines have been placed on mute to prevent any background noise. After the speakers have completed their prepared remarks, there will be a question-and-answer period. If you would like to ask a question during this time, simply press star, then 1, 1 on your telephone keypad, and questions will be taken in that order they are received. Thank you. Now, to begin the conference call, here is Dale Ganobsik, Vice President of Corporate Finance and Investor Relations for The Marzetti Company. You may begin. Good morning, everyone, thank you for joining us today for Lancaster Colony's Fiscal Year 2023, Q4 Conference Call. Our discussion this morning may include forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to update these statements based upon subsequent events. A detailed discussion of these risks and uncertainties is contained in the Company's filings with the SEC. Note that the audio replay of this call will be archived and available at our Company's website, lancastercolony.com, later this afternoon. For today's call, Dave Ciesinski, our President and CEO, will begin with a business update and highlights for the quarter. Tom Pigott, our CFO, will then provide an overview of the financial results. Dave will then share some comments regarding our current strategy and outlook for fiscal 2024. At the conclusion of our prepared remarks, we'll be happy to respond to any of your questions. Once again, we appreciate your participation this morning. I'll now turn the call over to Lancaster Colony's President and CEO, David Ciesinski. Dave? Thanks, Dale. Good morning, everyone. It's a pleasure to be here with you today as we review our Q4 results for fiscal year 2023. In our fiscal Q4, which ended June 30th, consolidated net sales increased 50 basis points to a Q4 record, $455 million, while gross profit declined 5.2% to $93.2 million. As a reminder, last year's Q4 included an estimated $25 million in incremental net sales, or 6% of the total, which were attributed to advanced orders ahead of our ERP go live on July 1st, 2022. These incremental sales added about $5 million to last year's Q4 gross profit. In our retail segment, net sales increased 1.3%, driven by the favorable impact of pricing actions to offset inflation and continued growth from our licensing program. Excluding the prior year advance ordering ahead of our ERP go live, retail sales volumes measured in pound shipped increased 1.7%. Given these period-on-period shifts, it's informative to look at retailer scanner data as a barometer of our retail business. During the quarter ending June 30th, retailer consumption for our branded products, measured in pounds, was up 4.7%, led by growth in our licensing program. Circana data, formerly IRI, showed notable share gains in the quarter for our category-leading New York Bakery and Sister Schubert's brands. New York Bakery's leading share of the frozen garlic bread category grew 180 basis points to 42.3%, and Sister Schubert's leading share of the frozen dinner roll category increased 200 basis points to 56.1%. Our licensed products also continued to perform very well during the quarter, as Chick-fil-A sauces were up 28% to $43.7 million. Olive Garden dressings were up 15.8% to $42.6 million, and Buffalo Wild Wings sauces were up 43.1% to $20.7 million. I'm also happy to report that Chick-fil-A sauces were recently recognized by Circana as a new product pacesetter. In calendar year 2022, Chick-fil-A sauces were the fastest growing retail food item in the food and mass channels, generating more than $140 million in retail sales. In the food service segment, net sales were essentially flat at $218 million and compared to a significant increase of 28% in last year's Q4. In addition to the impact of last year's advanced ordering, which comprised about 8%, food service sales also reflect a modest slowdown in traffic for some of our national chain customers. During Q4, we continued to experience high levels of inflation for raw materials and packaging, although we did note a considerable decline in the rate of inflation compared to the first three quarters of fiscal year 2023. Through the benefit of our pricing actions, our Q4 PNOC, or Pricing Net of Commodities, was favorable versus the prior year. This is a continuation of the trend that began in Q1 of fiscal year 2023, whereby we are recovering some of the prior year's negative PNOC. Q4 gross profit fell short of our expectations as we incurred some temporary costs associated with our long-term strategic investments in production capacity and our ERP network... These issues have since been resolved, and we look forward to the many benefits these investments will provide our business in the years ahead. Our focus on supply chain productivity, value engineering, and revenue management will also remain core elements to improve our financial performance during fiscal year 2024 and beyond. I'll now turn the call over to Tom Pigott, our CFO, for his commentary on our Q4 results. Thanks, Dave. The results for the quarter reflected continued top-line growth in favorable Pricing Net of Commodities performance versus the prior year quarter. These positive contributions were offset by three items: comping to the prior year quarter's customer pull forward of shipments in advance of our SAP go live, short-term challenges we experienced in our gross profit performance that Dave mentioned, and a non-cash impairment charge we recorded in our Flatout business. Q4 consolidated net sales increased by 50 basis points to $454.7 million. Decomposing the revenue performance, revenue was unfavorably impacted by approximately 5.9 percentage points from the pull forward, while higher pricing contributed 6.4 percentage points of growth. Consolidated gross profit declined by $5.2 million, or 5.3% to $93.2 million versus the prior year quarter. The gross profit decline was driven by comping to the prior year's pull forward of customer orders, which we estimate to have been an approximate $5 million headwind, startup costs at our recently expanded Horse Cave dressings and sauce facility, interim inefficiencies at facilities we recently added to our SAP network, and costs related to a discontinued product line. These unfavorable impacts were partially offset by favorable Pricing Net of Commodities performance. Our commodity inflation was approximately 9% this quarter, reflecting some moderation in the level of year-over-year inflation we experienced. Selling, General, & Administrative expenses increased 4.7% or $2.6 million. The increase reflects investments to support the growth of the business, as well as higher IT and personnel costs. The investments to support the growth of the business included higher consumer spending and increased brokerage costs. Consumer spending increased in the H2 as our product supply position has improved. Expenditures for Project Ascent, our ERP initiative, were down, partially offsetting these increases. Costs related to the project totaled $5.6 million in the current year quarter versus $11 million in the prior year quarter. During the quarter, we recorded a $25 million non-cash impairment charge to reduce the carrying value of our Flatout flatbread businesses and tangible assets. The impairment charge was reflected in our retail segment. In the prior year quarter, restructuring impairment charges totaled $10.5 million. Consolidated operating income decreased $22.2 million to $11.5 million due to the impact of the impairment charge, as well as the lower gross profit and higher SG&A costs I mentioned. Our tax rate for the quarter was 26.4%. The tax rate was impacted by lower pre-tax income due to the impairment charge. We estimate our tax rate for fiscal 2024 to be 23%. Q4 diluted earnings per share decreased $0.73- $0.33. The year-over-year impact of the restructuring and impairment charges was unfavorable by $0.41 per share. The net impact of the reduction in Project Ascent expenses was favorable at $0.15. With regard to capital expenditures, our full-year payments for property additions totaled $90.2 million. For fiscal 2024, we are forecasting total capital expenditures of $70 million-$80 million. This forecast reflects a decline versus the prior two years spending, with the Horse Cave expansion now substantially complete. In addition to investing in our business, we also returned funds to shareholders. Our quarterly cash dividend of $0.85 per share, paid on June 30th, represented a 6% increase from the prior year's amount. Our full-year dividend payments were $92.4 million, and our enduring streak of annual dividend increases stands at 60 years. The company was able to fund the capital investments and dividend payments through its operating cash flow generating ability. Operating cash flow totaled $226 million on the year. Our financial position remains strong, with a debt-free balance sheet and $88.5 million in cash. To wrap up my commentary, our Q4 results reflected continued investment in the company, as well as some short-term challenges we incurred as we position the company for future growth. I'll now turn it back over to Dave for his closing remarks. Thank you. Thanks, Tom. As we look ahead, Lancaster Colony will continue to leverage the combined strength of our team, our operating strategy, and our balance sheet in support of the three simple pillars of our growth plan. One, accelerate core business growth, two, simplify our supply chain to reduce our cost and grow our margins, and three, to expand our core with focused M&A and strategic licensing. In fiscal year 2024, we anticipate retail segment sales will continue to benefit from volume growth led by our licensing program, including incremental growth from new products, flavors, and sizes we introduced in fiscal year 2023. We're also very excited to share plans to add Texas Roadhouse steak sauces to our licensing program, with a spring launch date. Finally, we foresee continued positive momentum for our New York Bakery frozen garlic bread, which is a tasty complement to everyday meal occasions. In food service, we expect sales volumes to be led by growth from select QSR restaurant customers and our mix of national accounts. Suffice it to say, external factors, including US economic performance and potential changes in consumer sentiment, may impact food service segment demand. Finally, consolidated net sales will also continue to benefit from pricing actions taken in fiscal year 2023. We project the impact of inflationary costs to subside, notably in the coming year. The pricing actions we have implemented, along with our cost savings initiatives, will help to offset remaining inflationary cost. With respect to our ERP initiative, Project Ascent, we are pleased to announce that, as planned, we completed the final wave of implementation and will devote our attention to leveraging the capabilities of the new system to strengthen our execution in fiscal year 2024. Turning to our supply chain, we are very excited about the opportunities ahead under the leadership of Luis Viso, our new Chief Supply Chain Officer. Luis has built a long and successful career with nearly 40 years of experience in supply chain operations, innovation, and R&D. His extensive experience in the food and beverage industry at Kraft Foods, Coca-Cola, and Monster Beverage, as well as his strong people-oriented leadership, will benefit our organization tremendously as we continue to execute our growth strategy into fiscal year 2024 and beyond. In closing, I'd like to thank the entire Lancaster Colony team for all their hard work and ongoing commitment to our business during fiscal year 2023. I look forward to working together with everyone in the coming year as we continue our journey to be the better food company. This concludes our prepared remarks for the day, and we would be happy to answer any questions you might have. At this time, I would like to remind everyone, in order to ask a question, please press star one one on your telephone keypad. One moment for our first question. Our first question is coming from Todd Brooks of The Benchmark Company. Your line is open. Hey, thanks, and good morning to you all. Good morning, Todd. Good morning, Todd. Two quick questions, if I may, to start off. One, I think, Dave, at one point, as we were thinking about Horse Cave and the incremental unlock, that that facility may have been for the licensed branded product. I think it had been sized in the $100 million range, but that was over a couple of year period. Can we maybe either speak to what the incremental unlock was in fiscal 2023, so we can start to bake in thinking for what the incremental potential is from licensed branded products via the capacity and the product line expansions in 2024? Then maybe if we can lay over the top of it, the thinking about Texas Roadhouse, and just talk more broadly about your thoughts for growth in the licensed branded products in fiscal 2024. Sure. Todd, when we talked about what Horse Cave afforded us, we, we framed it in the context of, we thought somewhere in the range of three to five and even upwards of seven years of, of growth for both retail and food service, with five years of growth being sort of the target that we thought that it would afford us. You know, going back, so it would be definitely north of $100 million of capacity to grow in, in retail behind bottles. We won't go into exact numbers of that, but we'd love to take you down there to show you the facility, and give you an appreciation for the, the scale and capabilities. As you think about it, you know, based on what we see and the way it's running today, it's definitely gonna give us five years of, of growth. You know, maybe a little bit longer, maybe a little bit shorter, but it definitely gives us capacity on bottles to grow. Now, how do we think about this platform going forward? If you, you know, you've been following us long enough to remember, we saw it as literally billions of dollars of addressable opportunities. If you put in, dipping sauces, marinades, barbecue sauces, things like ranch dressing and other categories, you could size it somewhere between probably $6 billion-$10 billion of addressable opportunity. You see us sort of sequentially working our way through that. First in the portable salad dressing category, which is north of, of several billion dollars in the center of the store, we're adding to that, behind Olive Garden with our new addition in Caesar, which we, we couldn't be more excited about. You, you move on to other areas, building on to the platform with new sauces behind Chick-fil-A, the barbecue and the sweet and spicy Sriracha. Also in the period, adding bigger sizes on Chick-fil-A, which we're thrilled to see how it's performing. Then finally expanding behind Buffalo Wild Wings. What Texas Roadhouse is going to give us is a solution for really the red meat occasion. If you look at the majority of our sauces right now they tend to play around chicken and things like, you know, fish, but we really haven't had a, a red meat solution. What Texas Roadhouse is going to give us is, first of all, just an iconic, a restaurant brand that's been one of, you know, consistently one of the fastest-growing restaurant brands out there, that's kind of under the radar because of the way that they advertise and the ability to go after, a couple of other entrenched competitors that are out there. We couldn't be more excited. Texas Roadhouse has been a great partner to work with, and we think this, this platform has nice, big shoulders. Hey, thanks for that, Dave. Tom, my second question, I'll jump back in queue. If we look at, it may be an assumption on my part, that there's not a lot of future pricing actions coming over the next 12 months, can you walk through what the pricing waterfall looks like for each segment as prior increases lap? Just so we can get a sense of the dynamic between volume and pricing as we go across fiscal 2024. Yeah, Todd, great question. Your assumption is correct. As we, as we look into fiscal 24, we really look at our top line primarily driven by volume. As you look at the, the, look at it by quarter, we do expect some pricing benefit to create in both businesses, but modest, and thereafter, we're really driving it by volume. Okay, great. Thanks, Tom. One moment for our next question. Our next question will be coming from Andrew Wolf of C.L. King. Your line's open. Thank you. Good morning. Wanted to ask you about- Good morning. Good morning. You know, the, your update on your retail sales, consumption was pretty positive at 4.7%. Yeah. Obviously, there's a gap there between what you shipped at 1.7, but the prior quarter, you shipped 6.1. You know, It kind of seems, and the commentary, you know, you had last quarter, it sounds like you've put a lot of new products into the channel, in the March quarter, had really good sell-through, frankly, this quarter. As we're kind of trying to model out, you know, volume into the next year, it would strike me, you know, obviously, at some point, it equates to, you know, the retail sell-through. Is that sort of how we should think about it? Is that how you're thinking about it? How would you sort of, help us to sort of think about your volume trends, you know, sort of looking forward in the next quarter or two, and through the full year? No, Andrew, first of all, good morning. Second, you're exactly right. If you look at our consumption in pounds in the quarter, they were 4.7. They accelerated over the consumption in the prior period. You're right, we overship consumption in the prior period as we were building the pipeline. You're precisely right. As we think about where this goes forward, what we're anticipating is volume growth to continue in the low to mid, that's, you know, range based on what we're seeing throughout the year. That's the target that we're laying out. You might expect that to see that even, you know, marginally stronger on the front end of that. Then as we begin to lap some of this stuff later on, you might see that soften. Across the arc of the, of the period, we're expecting to see volumetric growth for retail in the low to mid-range. If you look at it versus our peers that are out there, we think it puts us in the best-in-class area. What you can expect in terms of the drivers of that, as Tom pointed out, we don't have new pricing. We have some wraparound pricing that we're gonna see in retail for the H1 of the year, and then no pricing plan thereafter. This is really gonna be an algorithm driven by volume through the year. Got it. Thank you for that. I did wanna follow up, you know, I understand you didn't want to give a dollar amount, when Todd asked you about, you know, what Horse Cave means for kind of sales power or what have you. Can you give us a sense, maybe in terms of capacity utilization? You know, you've built, put a lot of capital into the business, and now sort of the payoff phase, you know, how much of, you know, where's the capacity at? You know, it's always a nice time to own certain stocks when the capacity utilization is going up. Yeah. You know, as you might imagine we took a, a building, a facility that was 225,000 sq ft, essentially added on another 225,000 sq ft. We doubled the size of it. The plan there was to build a facility that would allow us to run for, you know, like I shared with Todd on the front end five years, call it plus minus. The utilization overall in the factories is, is definitely north of 50%, approaching 60%. Bear in mind, you know, when you build something that big, what you do is the box is there. In some cases, you have the kitchens that are there, but you don't necessarily have lines started up and stuff like that. I don't know if, if I would necessarily say that's the right way to look at it, just because it's not like that capacity is available to run now, just because we haven't staffed it with labor. I think the more, maybe the way we're looking at this thing is we have something that's laid out that's gonna allow us to, to incrementally step up, adding more labor to the lines, more staffing, adding more shifts as we run through the period, and, and allow us to grow for that five years. And that's both retail and food service, because as you think about it, in food service, Chick-fil-A remains our biggest customer. If you-- when you guys get a chance to dig into the K, you're gonna see that, you know, they represent north of, of 40% of the business today in food service. Their, their business in terms of sales, continues to grow in double digits. If you look at them in terms of traffic, which I know you track, that space as well, they're continuing to grow in the high single digits in terms of traffic, in mid to high. Okay, thank you. Just, I guess my last question is, just on the macro, which you alluded to, you know, more in reference to food service, and obviously, you just highlighted, you know, Chick-fil-A, which is a great relationship in many ways, but certainly commercially. You know, it seems like the rest of the portfolio, therefore, you know, was a drag on the business. We don't have to point to any one of them, but just as a group, and that's not surprising, as you mentioned, given the traffic issues in restaurants. Would it be fair to, for us on the outside to think, you know, the, the food service side, as you look at the year, may be a little more subdued, compared to, in the volume side, compared to, what you expect in, in retail, given, you know, the innovation pipeline, that's in retail? No, I think you're exactly right. What we expect is, first of all, the retail business to grow faster than the food service business for the reasons that you described. I think if you look at now the macros, take us out of the equation, look at the macros, I think you're gonna see, you know, food service overall, this is quick service restaurant, full service restaurants, everything across the board, probably to be, you know, somewhere between flat and down a couple of points in terms of traffic. I think you're gonna see the, the pricing benefit that's been floating these concepts begin to subside. I think you're gonna see their sales begin to trail off, again, to that same sort of a, a reason, same sort of area. The, the folks that are gonna grow are gonna be doing it behind traffic. If you bring it in, that's the macro, and you look at our mix of business, I think what you're gonna see is, given the size of Chick-fil-A, as long as Chick-fil-A continues to grow, and as long as some of our other QSR partners continue to grow, we expect to be outperforming the rest of the broader food service group by probably several hundred, 300 basis points. I think our business is probably, in terms of volume, closer to flat, to maybe marginally up, just based on the strength of Chick-fil-A. And that's where we are. Things change with the consumer. We'll see what happens. If, you know, the outlook gets stronger, we may see that improve. If there's more pressure on the consumer, we could see that soften. Again, relative to the peer group, we feel like from a volume perspective in food service, we're in a position to outperform. The other thing that I would share, just on food service, maybe a couple of notables. We had the chance several weeks ago to invite the Chick-fil-A leadership team to our facility at Horse Cave, and they had a chance to see it end-to-end in full operations. It was an important milestone for all of us. Parenthetically, when we were starting the project, Dan Cathy was the CEO, and he had a chance to walk through the plants with us, now Andrew Cathy has assumed the role as the CEO, he had a chance to see it up and running. That continues to be a very important partnership, obviously, we look forward to hosting other partners there in the weeks ahead. We have other, similar sort of visits that are planned. Maybe the one thing that, that you guys haven't asked yet, and I wanna get into in terms of how we think about Horse Cave, is if you look at that plant, it continues to be our most cost-advantaged plant to continue to operate. What have, we haven't said outside of our commentary, is we had a rough quarter, particularly at Horse Cave, behind that startup and behind SAP. Both of those conversions happened pretty closely to each other, which drove cost issues that, you know, were enumerated during the course of the call. We don't expect those to continue as we press forward. As you're thinking about the cost structure, one of the things that I wanted to sort of steer you from is that those cost issues that we ran into associated with the SAP cutover and operating at full speed, as well as the startup, and those two things interacting together, we expect to be one-timers that stung us in that quarter. Okay, I didn't want to, you know, hog the call, but I wanna ask a, a follow-up since you brought it up. Please. When you talk about cost advantage, I assume it's greater at Horse Cave for food service, given, you know, the, the single item pack, and if you automate that, you know, at a greater scale. Just a relative sense, is that where you get, you know, margin-wise, is that where the, you know, the margin improvement is, is on a relative basis, greater than versus retail? Or even an older production facility, you know, can still, you know, scale up pretty, you know, there's just more relative scale, even on an older facility at retail. My would I be thinking about it right, is? In other words, is Horse Cave gonna give more relative margin improvement to the food service side, than retail? It's gonna provide margin improvement on both facilities. Because if you look at it, you know, take retail, for example, most of the bottle lines that we have in other facilities are a little bit older. This facility operates at, at bottle speeds that are, in some cases, 2x or a little better than what we're running at other places. It's, it's more automated end-to-end in terms of reliance on labor. In retail, it's gonna give us an advantage because of the speed and the scale and the automation, and the same thing is gonna be true in food service. Great. Thank you. Thanks, Andrew. One moment for our next question. Our next question is coming from Alton Stump of Loop Capital. Your line is open. Great. Thanks, guys, for taking the question. Just wanted to ask you about the Texas Roadhouse, you know, deal. Obviously, you know, it's coming out in the spring, so you know, you probably can't share too much. I guess, you know, how much of, you know, a role did the new capacity that you now have online with Horse Cave play in your ability to, you know, take on new partners such as Texas Roadhouse? Well, Alton, it's a great question. It's certainly a consideration. What I would tell you is it, it didn't really factor into the discussions that we had with them. This is another one where, as we've developed a reputation in the industry or for a competency around licensing, it's just developed into conversations. This is one that came to us inbound. It was actually recommended... The way it went was Texas Roadhouse talked to a customer expressing an interest in an idea, and that customer referred them to us, and that sort of germinated into a conversation that went into, you know, that went on for a while as we explored how we thought we could go about this. The capacity availability was a consideration, but not a very big one in this case. You know, for us, it just allows us to do it far more profitably than it would have been otherwise. Understood. Then just as a follow-up to the end, you mentioned the word inbound, which I'm certainly not surprised. You know, everybody in restaurant industry, as of course you well know, is watching what Chick-fil-A is doing, and I'm sure they've all taken note of, you know, the huge growth that they've seen with you guys with the licensed business. I mean, how much of an impact has that had on the number of, you know, inbound interest calls you're getting from other major, you know, operators in, you know, in the QSR and or, you know, casual, you know, sector? Well, I think a fair amount. Alton, I would ladder back to Olive Garden, where we started this. If you looked at it in the period, their retail sales in the quarter, so scanner sales were $42 million. I think they were the original one that people started to look at. It's, it's a reflection of several things going on. The, the blurring of lines between retail and food service and food that's being consumed off-prem, right? All of a sudden, retail, these, these restaurant operators, I think, were less fixed on restaurant versus out of the restaurant. Just the size of the opportunity and how these brands play in retail, particularly after COVID, I think, you know, presented an opportunity to diversify their revenue stream and connect with their consumers in different ways. I think Olive Garden was the first of those, but Chick-fil-A was sort of the one that not only did it grow to the size, but as we talked about in the script, it was one of IRI's pacesetters, which means one of their top 10 fastest-growing items in all of food and beverage during the calendar year 2022, and it's the fastest-growing food item in 2022. I think that starts to get other restaurants' attention. You know, as we're looking at this, we continue to see this platform behind licensing, and principally restaurant licensing, as an opportunity where we can take this great capability that we have around innovation of sauces, dressings, condiments, flavor systems, and take those to the marketplace. We're not necessarily encumbered by just having a brand. It allows us to leverage a brand with strong awareness that already exists, that's out there, put that great sauce behind the brand, and then deliver it to consumers. It allows us to overcome the barrier of awareness and trial, and repeat more rapidly and get returns instead of betting on the come on marketing spending. Got it. Thanks so much for the color. That's great. I'll hop back in the queue. Okay. Thanks, Alton. One moment for our next question. Our next question will be coming from Connor Rattigan of Consumer Edge. Your line is open. Hey, guys. Good morning. just want to make sure. Good morning. Can you hear me all right? I'm actually on the road. Okay, perfect. Yes. I'll take that as a yes. I guess, I guess it's worth mentioning, given the news, I'm taking this call from a Texas Roadhouse parking lot, so definitely very timely. That's- Guys. Exactly. For, for sure. For sure. Guys, I guess I just want to make sure. I'm not sure if I might have missed it, just circling back to the top line. You know, obviously, results came in, you know, quite a bit below, I guess, our and consensus expectations. I guess, you know, can you sort of just kind of maybe walk us through sort of how we got here and maybe what the drag was? You know, I guess, how did results come in versus your internal expectations? You know, I know you had the $25 million ERP pull forward headwind, I guess, what exactly was the real top-line headwind in the quarter? Sure. I think we're all aware of the, the pull forward that, that we had in the prior period that made planning a little bit more challenging. The second biggest item beyond that, this is targeted at retail, would have been that pipeline build that we had in Q3. that, that really elevated Q3 that we saw scan through in Q4, right? I, I think that would have been the other one. Then I think as we looked at what played out as the quarter went on, we do believe there was a bit of an Easter effect that was in Q3. Now, it only shifted about a week this year, but it seemed to have been enough to create a little bit different order pattern between Q3 and Q4 on both our, our dressings and also on, on Sister Schubert's. I think those really were the items that created the gap between what you guys were calling for and what we were calling for. I think it's also part of the reason why that as we wanna think about what the outlook is, right? You know, some of this period-on-period noise because of SAP finally is going to be behind us. We implemented our last wave, so we're done. It's really focusing now on consumption and then shipping to consumption. Got it. Okay, that, that makes total sense. Also too, just on food service as well, right? You know, I guess you guys noted a bit of a slowdown in food service traffic, but it sounds like Chick-fil-A traffic is doing quite well. I guess, I mean, the, the general slowdown in traffic kind of somewhat runs in contrast to what we've heard from peers. I mean, I guess, was this maybe more of a recent phenomenon, or was it a pretty steady slowdown throughout the quarter? I mean, I guess maybe could you comment, you know, sort of, was this more indexed to certain QSRs or maybe other channels? Yeah, it's a great question, and it's interesting. If you look at the 52-week traffic, the 12-week traffic, and the four weeks, so for June, June was a slowdown for several of our customers that were in there. Chick-fil-A, it was not. Chick-fil-A was kind of flat through the period, but we had other customers that seemed, from a traffic perspective, to slow down a little bit in June. Now, ironically, we're looking at weekly data thereafter and into July. They seem to be doing a little bit better thereafter. We think that also contributed to the gap between food service. Got it. Okay, that, that was helpful. Then I guess just one more as well, right? On the cost front, it sounds like you guys are seeing quite a bit of relief. I guess from what we've heard from other folks, too, is, you know, soybean oil and whatnot still tends to remain quite high. I mean, I guess, is your optimism on the cost environment just centered around maybe egg prices coming down? Also, you know, as we sort of think about that as it relates to gross margins in 2024, you know, with the carryover pricing you guys have and, you know, productivity in the mix as well, I mean, I guess, would it be fair to assume the expectation is, you know, a return to historical gross margin levels? Maybe I'll, I'll kind of walk through those, that range of questions and start first with just an in-inflation outlook, and then I'll turn it over to Tom, and he'll take you through more depth. You know, part of our frame of reference here is the last two years, fiscal year 2022 and 2023, we saw a 20% inflation. On a, on a relative basis, we're looking at a year, this year, where we're seeing inflation in, on a growth basis in the, in the low single digits. Really, eggs being most certainly a contributor to that, and then we're seeing an easing on some of our other commodity classes as well. Certainly not deflationary, but we're not expecting it to be nearly in the range at which it was. I think that whole piece is, is really all about being relative. Maybe with that, Tom, I'll turn it over to you if you wanna talk about some of the commodity classes. Yes. So, great question, Connor. As we look at, you know, our commodity basket for next year, we still are slightly inflationary. I think our comments are more that the level of inflation has started to go down. Sweeteners, obviously a key item for us that's up considerably year-over-year, that's mitigating or offsetting some of the favorability we're seeing in elsewhere. You know, as you look at the broader margin profile as we enter fiscal year 2024, from a PNOC standpoint, given that we're still looking at some level of inflation, we're not assuming that we're gonna be, get back some of that margin that you alluded to. We really need to get into more of a deflationary environment to assume that. The second thing is, you know, obviously, this consumer environment is something we're monitoring closely, like other companies, you know, we're concerned about the need to spend back and to reinvest in our retail business to continue to drive the, you know, the outsized volume growth that we do. Last, I would end with, we feel, you know, in terms of a tailwind, we feel like we do have a robust productivity plan put into place for next year that will help us to offset some of these potential headwinds. Okay, got it. Thorough as always, guys. Thank you so much. Thank you. Thank you. One moment for our next question. Our next question will be coming from Todd Brooks of The Benchmark Company. Todd, your line's open. Hey, thanks for taking my follow-up. Boiling down kind of the qualitative commentary, it sounds like maybe low to mid-single-digit volume growth in the combined business, pricing waning over the course of the year. Tom, I just wanted to follow up on Connor's question. You talked about needing to be back to a deflationary environment to return to historical margins, but I guess there's an intermediate place where if we are seeing less inflation, you still have a little bit of effective pricing in the H1 of next year. Do we expect to start that path back? That this is a year where we're not just kind of operating to protect gross profit dollars, but we can actually see the margin rate start to work its way back towards historical levels, at least get that process going? Yes, certainly, Todd, that is a goal of what we're trying to achieve in terms of both driving the productivity and the PNOC. Just in this environment, we're not necessarily seeing enough to really commit that to you in terms of a significant level of margin accretion as the year progresses. Certainly that is our key focus in terms of driving for improved margin%. Okay, great. A secondary question: If we go to core SG&A spend and backing out Project Ascent and the changes year over year, how, how much do you think core SG&A needs to grow, if any, in fiscal 2024 for what you're trying to accomplish? And then can we walk through what the next step down in Project Ascent expenses should be fiscal 2024 versus fiscal 2023? Thanks. Yeah, Todd, that, as we're looking at SG&A in fiscal 2024, we're excluding Ascent. We're really just looking at inflationary impacts in terms of core SG&A. Then, with Ascent, we're projecting that to be approximate $20 million tailwind in the next fiscal year as that project winds down. Okay, so 10 versus the 30 this year? Yes, roughly. That's correct. Okay. The absolute spend, about $10. Okay, perfect. As we wind things up and optimize. Yep. Thank you. One moment for our next question. Our next question will be coming from Andrew Wolf of C.L. King. Your line's open, Andrew. Thank you. I don't know if you mentioned anything regarding quantification of the three somewhat transitory or maybe fully transitory impacts to gross profit in terms of Horse Cave, both startup and I guess, ERP there, and the discontinuation of a retail brand. Could you just comment on them as a group and/or separately, how much it was, if you could quantify it, and what the state of play is? Absolutely. As we look at all three together, they combine to be about a $6 million item for us, or 130 basis points of margin impact on the quarter. I think the overall state of play is, as you look at each one of them, certainly the Horse Cave team has done a wonderful job, and we've seen, we've seen the production output increase considerably in the most recent period, we feel very good about that. In terms of the SAP inefficiencies, listen, you know, we've been, we've been working through many waves of go-lives, and we're very happy to say, we're now complete, and we don't expect that to be a driver going forward. The product discontinuation, certainly, we, we've taken, the necessary charge, and we're ready to move on from that one as well. On the S- on the, the SAP or the, the, the Ascent cost, you know, the positive swing, is that inclusive of the increased, the amortization charge? Is it net 20, or is it a little less than that when you, when you throw in the amortization charge? When we look at it, it's 20, as would be reported on the Project Ascent line in our P&L. We will incur a bit of a headwind on the amortization call charge in the next fiscal year in the core SG&A, but that's built into my comments of just inflationary. We're partially offsetting that with other items to get to that profile. Got it. Great. Thank you. Okay. Again, ladies and gentlemen, if you do have a question, please press star one one on your touchtone telephone. Again, for any questions, please press star one one. I'm showing no further questions. I'll now turn the call back to Dave Ciesinski for closing remarks. Thank you, everyone, for your participation this morning and your questions. We look forward to being back together with you in November as we take you through our Q1 results. Have a great rest of the morning. Ladies and gentlemen, this concludes today's conference call. You may now disconnect. Thank you for your participation.