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President and CFO Matteo Tarditi explained that the $31.8 billion midpoint for 2026 sales is roughly flat year-over-year, reflecting profitable revenue focus, organic growth led by natural business, and offsets from network/retail optimization. He noted higher revenues in Q2 due to holidays and typical Q1 cash usage for inventory build. CEO Sandy Douglas categorized services into legacy (e.g., merchandising, store design) and value-adding elective services (e.g., credit card processing, digital solutions like Unified Retail Media Network). He sees significant opportunity in digital services to help suppliers and customers accelerate growth, improve competitiveness, and enhance efficiency, contributing to both top-line and margin benefits.

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President and CFO Matteo Tarditi stated that the $31.8 billion midpoint for 2026 sales is roughly flat year-over-year, reflecting a focus on profitable revenue. This includes organic sales growth led by the natural business, offset by distribution center network and retail optimization. He expects natural to grow steadily and conventional to focus on portfolio optimization. Seasonality dictates higher revenues in Q2 due to holidays. CEO Sandy Douglas categorized services into those that flow with sales (retail merchandising, store design) and value-adding elective services (credit card processing, digital solutions like Unified Retail Media Network). He sees steady growth in basic services and significant opportunity in digital services to help suppliers and customers accelerate growth and efficiency.

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CEO Sandy Douglas explained that UNFI's strategy targets a $90 billion addressable market of differentiation-focused retailers, and the Key Food exit was a unique, profitability-driven decision. President & CFO Giorgio Matteo Tarditi detailed that the 7.5% sales growth was driven by 400 bps from volume, 150 bps from inflation, and 200 bps from positive category mix, noting strong underlying momentum in the natural business.

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President & CFO Matteo Tarditi stated the guidance balances strong natural customer trends against modest conventional declines and DC optimization impacts. CEO Sandy Douglas added that growth is coming from differentiated retailers, particularly those with a multicultural focus, and from categories like fresh, natural, and professional and digital services.

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President & CFO Matteo Tarditi noted that benefits from shrink reduction are expected to be balanced by customer mix pressure, with promotions not yet at pre-pandemic levels. CEO Sandy Douglas added that higher-margin digital and professional services provide a tailwind and that a new strategy is being implemented to improve retail performance.

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Dana McNabb, Group President of North America Retail and North America Pet, noted that core pet business results were in line with the prior year, with Blue Buffalo Life Protection Formula and cat feeding businesses performing well. She acknowledged the need for improvement in Wilderness and the pet specialty channel, with plans for protein news and the launch of Edgar and Cooper. Jeff Harmening, Chairman and CEO, addressed the scale vs. complexity question, emphasizing consumer focus and leveraging scale for capabilities like digital technology and cross-category offerings.

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Dana McNabb, Group President of North America Retail and North America Pet, noted that core Blue pet business held pound share, with Blue Life Protection Formula and cat feeding performing well. She identified Wilderness and the pet specialty channel as areas needing improvement, with plans for protein news and the launch of Edgar & Cooper. Kofi Bruce, CFO, emphasized focusing on consumer needs and leveraging scale for capabilities like digital technology and cross-category bundling, while avoiding scale for its own sake.

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Group President Dana McNabb reported that the core Blue Pet business held pound share, with Blue Life Protection Formula and cat feeding businesses performing well, and treats showing positive volume growth. She acknowledged Wilderness needs improvement with new products and marketing. Chairman & CEO Jeffrey Harmening emphasized focusing on consumer needs, noting scale advantages in capabilities and consumer understanding, but not for scale's sake.

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CEO Jeffrey Harmening stated the Q3 Cereal performance was largely expected due to an inventory reduction and a tough competitor comparison. He expressed confidence in a Q4 improvement driven by increased media spend and strong merchandising. For the long term, he believes growth will come from meeting consumer demand for benefits like protein and for beloved tastes like Cinnamon Toast Crunch.

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CEO Jeffrey Harmening stated the Q3 Cereal performance was largely in line with expectations, impacted by a prior-quarter inventory build, a competitor being off-shelf in the prior year, and lower media spend. He expressed confidence in a Q4 improvement driven by increased media, normalized inventory, and strong merchandising. Long-term, he believes growth comes from meeting consumer needs, from protein innovation to beloved indulgent brands.

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Ronald Sargent, Interim CEO & Chairman, explained that stores are already heavily used for e-commerce, with delivery recently surpassing pickup sales, indicating customer preference for speed. He noted the strategic review is nearing completion, emphasizing e-commerce's importance and the path to profitability, with minimal store rework needed for asset-light, rapid delivery. Regarding pricing, Mr. Sargent stated the competitive backdrop remains rational, focusing on simplifying strategy, lowering prices on everyday items, absorbing costs, and reducing price spreads while maintaining competitive promotional pricing. David Kennerley, EVP & CFO, added that price investments are made responsibly, balancing them with cost-saving initiatives to maintain margins.

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EVP & CFO David Kennerly stated that while CPG partners remain cautious with spending, the retail media business continues to grow at a healthy rate, driven by a strong product suite and differentiated 'closed-loop measurement' capabilities. On shrink, Mr. Kennerly attributed the continued improvement to investments in AI-enabled technology and new processes. Interim CEO & Chairman Ronald Sargent added that higher sales and more store hours also contributed to better shrink results.

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EVP & CFO David Kennerly noted that while CPGs remain cautious with spending, Kroger's retail media business continues to grow at a healthy rate, aided by its 'closed-loop measurement' capabilities. On shrink, he attributed progress to investments in AI-enabled technology and new processes. Interim CEO & Chairman Ronald Sargent added that higher sales and more store hours also contribute to lower shrink.

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Interim CFO Todd Foley highlighted that Q4 delivered the best digital profit improvement to date, driven by progress in both pickup and delivery. He stated that while they are not yet at their target, the trajectory is positive. He also noted that value creation from levers like alternative profits, Our Brands, and productivity initiatives provides the necessary funds to continue investing in competitive pricing and associate wages.

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Interim CFO Todd Foley indicated that while it's early, they expect inflation to remain relatively stable, possibly with a slight expansion, but nothing meaningfully different from the current rate. Chairman and CEO Rodney McMullen added that CPGs are offering more trade dollars. On RFID, McMullen described it as a promising test with positive early results for freshness and in-stock levels, but noted it's too early to quantify the lift and that tag costs need to come down before a broader rollout.

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CEO Rodney McMullen reported that Fresh trends outpaced the center store. While stating they feel 'okay' about their current position, he noted they are not satisfied. He emphasized that strong growth in total and loyal households is a positive leading indicator for future market share gains.

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President John Ghingo explained that retail pricing has a longer lag time and requires balancing costs, consumer response, and brand health. He noted the Jennie-O pricing was successful due to brand strength. Recently announced targeted pricing will benefit late Q4 and into 2026, and the company's measured approach has allowed consumption for flagship brands to continue growing over 3%.

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President and CEO Jason Potter and CFO Chris Miller addressed the question. Potter pointed to future opportunities from optimizing systems post-stabilization, which will simplify processes and reduce costs. Miller added that the company is pleased with its cost reduction progress and is looking at all areas, including supply chain and freight. While some savings will be reinvested, he expects a meaningful net contribution to leverage in 2026.

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CEO Jason Potter described his approach as having 'one foot on the gas and one foot on the brake.' The strategy is to improve the cost base to create optionality for reinvestment. He views current initiatives as 'no regret moves' that will drive sales and stated that comp growth is the #1 metric, indicating a willingness to balance margin for sales.

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An unnamed executive stated that they do not feel the competitive environment has fundamentally changed, noting that the promotional landscape remains rational and at pre-COVID levels. They expressed confidence in their value proposition and the flexibility of their model, asserting that competition is not the reason for the current comp guidance.

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Interim CFO Lindsay Gray explained that while system visibility has improved, ongoing inefficiencies are still a drag on margin, and the cautious guidance reflects this reality. Interim President and CEO Eric Lindberg added that while they are benefiting from competitor closures through stronger opportunistic buying, they are choosing to reinvest those gains back into price to restore their value proposition and drive sales momentum.

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President & CEO Donnie King stated that heifer retention has likely started, with herd rebuilding expected in earnest in 2026 and benefits seen around 2028. Group President Brady Stewart added that the company is managing the cycle through operational discipline. Regarding Prepared Foods, King acknowledged a $60 million unplanned raw material cost increase in the quarter, which was offset by strong operational execution. CFO Curt Calaway noted the guidance implies a strong Q4 performance.

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CEO Jack Sinclair explained that loyalty program sign-ups and customer scanning are exceeding expectations, with a focus on execution and a full rollout by October. CFO Curtis Valentine added that digital sales growth is balanced across all partners, with shop.sprouts.com growing fastest from a lower base, and noted basket size differences between partners like Instacart and DoorDash.

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CFO Curtis Valentine clarified that investments are focused on long-term growth drivers like loyalty, supply chain systems, and talent, similar to last year. He noted that while comps and margins will moderate, he expects continued EBIT margin expansion in Q2. CEO Jack Sinclair added that Sprouts remains focused on its health enthusiast customer within a large and growing $290 billion target market, which provides ample room for growth. He emphasized that Sprouts' differentiation comes from doubling down on specific product attributes that larger competitors do not focus on.

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CFO Curtis Valentine projected 25 to 30 basis points of gross margin expansion for the full year, driven by shrink improvements and supply chain leverage. CEO Jack Sinclair confirmed the company remains focused on disciplined new store growth, acknowledging some ongoing constraints with developers and interest rates but expressing confidence in the plan for at least 35 new stores in 2025.

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CFO Curtis Valentine noted that on a core, like-for-like SKU basis, units are now flat, with overall units growing year-over-year. CEO Jack Sinclair added that inflation has settled into a more normalized, volatile state typical for fresh categories. He also stated that while they monitor produce pricing closely, they have not seen aggressive, broad-based competitive activity that causes concern.

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CEO & Director Carlos Abrams-Rivera highlighted that 8% top-line growth in emerging markets was driven by both volume and price, giving him confidence in a double-digit exit rate for the year. EVP & Global CFO Andre Maciel quantified the timing shift's impact at 30-40 bps, attributing it to standard inventory recognition timing.

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Chairman, President & CEO Michele Buck explained the pricing is necessary to recover margins from sustained cocoa cost pressures and allows for continued brand investment. SVP & CFO Steve Voskuil detailed that the pricing will have a ~2 point impact on 2025 top-line, mostly in Q4, and a mid-teens impact in 2026, with about 80% of the profit benefit realized next year. The first season impacted will be Easter 2026.

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Chairman, President & CEO Michele Buck justified the pricing as necessary to recover margins from sustained cocoa cost pressures and to fund brand investment. SVP & CFO Steve Voskuil detailed the phasing, noting a two-point impact to the enterprise top line this year, mostly in Q4, and a mid-teens impact next year. He added that about 80% of the profit benefit will be realized in 2026, with Easter 2026 being the first season impacted.

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Chairman, President & CEO Michele Buck justified the pricing as a strategic necessity for long-term margin recovery from cocoa inflation, emphasizing the portfolio's compelling value. SVP & CFO Steve Voskuil detailed the phasing: a ~2 point impact to 2025 top-line (mostly Q4) and a mid-teens impact in 2026, with Easter 2026 being the first season affected.

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CEO Michele Buck reported that the competitive environment in key markets like Brazil has normalized, and Hershey gained share in India, Brazil, and Mexico. SVP and CFO Steve Voskuil stated that while M&A is the near-term focus, share repurchases remain a part of their long-term capital allocation strategy.

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President & CFO Sharon McCollam clarified that e-commerce profitability is driven by volume leverage, labor efficiencies from new tools, and transportation cost management, noting its P&L is separate from the media collective. Regarding guidance, McCollam attributed the expected Q2 slowdown to tougher pharmacy growth comparisons and a strike impact, while reiterating expectations for progressive grocery unit improvement in the second half of the year.

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E-commerce profitability is improving due to volume leveraging fixed costs, operational efficiencies, and better transportation costs; the media collective P&L is separate. The guided Q2 ID sales deceleration is attributed to tougher pharmacy growth comparisons and a strike impact. The company expects to be at the low end of its guidance range for Q2, with grocery units expected to improve sequentially through the year.

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CEO-elect Susan Morris stated that consumer behavior hasn't shifted dramatically, but there's a clear move toward value. She explained that price investments are surgical, varying by market and category, and guided by new analytical tools. President and CFO Sharon McCollam clarified that the guidance assumes a ratable repurchase of the $1.9 billion authorization over three years, equating to about $0.06 of EPS accretion annually.

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The company sees opportunities for new store openings based on enhanced data analytics. They also plan to resume 'general hygiene' of the real estate portfolio, which could mean more store closures than in recent years. The retail media business, brought in-house in 2022, is growing fast and is expected to become a material contributor within the next three years, fueled by the growth of their digital platforms.

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President and CFO Sharon McCollam noted strong new store openings driven by enhanced data analytics, but also anticipated an increase in store closures for portfolio 'hygiene' over the next few years. CEO Vivek Sankaran and McCollam explained that the Albertsons Media Collective (AMC) is growing rapidly and is poised to become a material contributor, fueled by investments in their four digital platforms which create the necessary ad inventory.

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President & CEO Sean Connolly explained that Conagra's elasticity is historically slightly better than competitors, and they have assumed a standard elasticity of nearly -1 for the grocery business. He detailed a bifurcated strategy: investing margin to drive volume in the growth-oriented Frozen and Snacks businesses, while taking necessary, inflation-justified pricing in the cash-generating canned food business where cash flow is the priority over volume.

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CFO Dave Marberger stated that while cash flow remains strong and debt paydown is a priority, an update on the 3x leverage target will be provided in July. He clarified the CapEx reduction is purely a timing issue, with spending shifting into the next fiscal year. CEO Sean Connolly added that the company remains committed to its multiyear supply chain modernization investment plan.

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President of Packaged Meats Steven France addressed the questions, explaining that the Q1 volume decline was primarily due to the Easter shift into Q2, and the company still expects about 1% volume growth for the full year. He highlighted that Smithfield's diverse brand portfolio and strong private label presence allow it to retain consumers as they trade down. Regarding the competitive landscape, France stated that promotional activity is consistent with historical patterns and that Smithfield remains focused on long-term brand building rather than short-term, price-driven share gains.

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The Easter shift moved volume from Q1 to Q2, but full-year volume growth is still expected at 1%. Their diverse portfolio, including private label, helps manage consumer trade-downs and raw material costs. They maintain a consistent, long-term promotional strategy focused on brand building rather than short-term price-driven share gains.

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Steve France, President of Packaged Meats, explained the Q1 volume was impacted by the Easter shift, higher raw material costs, and consumer trade-downs, but reiterated the full-year volume growth target of 1%. He noted the company's diverse brand portfolio and strength in private label help mitigate trade-down effects. On the competitive front, France stated that their promotional strategy remains consistent and focused on long-term consumer acceptance rather than short-term share grabs via price.

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President of Packaged Meats, Steve France, noted that Smithfield is well-positioned to capture consumer shifts through its broad brand portfolio and private label offerings, which have become more strategic. President and CEO Shane Smith detailed the Hog Production optimization strategy, including converting growers to independent producers and improving owned-farm cost structures, reiterating the medium-term goal of reducing internal production to approximately 10 million hogs.

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