Megan Clapp • Morgan Stanley

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CFO Mark Hall confirmed that leaning towards the higher end of the hog production guidance is a fair assessment based on the current futures curve. Steven France, President of Packaged Meats, attributed the expected H2 volume growth to new product innovations, strong momentum in the foodservice business which was up 9.5% in Q2, and leveraging their diverse brand portfolio.

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CFO Thilo Wrede explained that volume accelerated as forecasted throughout the quarter and the recent price increase performed better than anticipated. He clarified that the guidance increase reflects continued volume acceleration and the pricing benefit. Promotions were always planned for the second half as supply improved, and there may be flexibility to increase them further depending on the impact of tariffs.

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CEO Darcy Horn Davenport explained that the current club channel competition is a unique, temporary situation. She emphasized that their guidance to retailers is to secure high-traffic locations with clear signage. She confirmed that expanding single-serve displays, both ambient and in coolers, is a key focus for the upcoming year, viewing a direct-store-delivery (DSD) model as a longer-term opportunity.

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CFO Paul Rode stated that dairy inputs represent about one-third to 40% of COGS, but only a portion sourced from New Zealand and the EU would be subject to tariffs. He estimated the unmitigated impact would be a low single-digit increase to total COGS. Mitigation strategies being explored include sourcing from different suppliers. No impact is expected in fiscal 2025.

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CEO Carlos Abrams-Rivera pointed to the 'brand growth system' and increased marketing as drivers for gradual improvement in North America. EVP & Global CFO Andre Maciel stated that commodity inflation peaked in Q2, but tariffs will create a ~100 bps headwind this year and a potential ~180 bps annualized impact into 2026 if they persist.

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Executive Andre Maciel explained that the wide guidance range is designed to accommodate a variety of potential scenarios stemming from the 'changing policy landscape,' which could have either positive or negative implications. CEO Carlos Abrams-Rivera added that this provides the flexibility to manage volatility while continuing to invest in the business to drive trial and capitalize on opportunities from the brand growth system.

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Chairman, President & CEO Michele Buck attributed the non-seasonal growth to strong innovation, the product's role in providing emotional comfort, and lapping softer comps. She noted Q2's growth rate may not sustain due to tougher comps ahead. SVP & CFO Steve Voskuil confirmed that based on current information, Hershey expects to deliver on-algorithm top-line and earnings growth in 2026.

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Chairman, President & CEO Michele Buck attributed the non-seasonal growth to strong innovation, the product's role in providing emotional comfort, and lapping softer comps. She also highlighted strong results from instant consumable initiatives. SVP & CFO Steve Voskuil confirmed that based on current information, Hershey sees a path to on-algorithm top-line and earnings growth for 2026.

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Chairman, President & CEO Michele Buck attributed the non-seasonal growth to strong innovation, the product's role in providing emotional comfort, and lapping softer comps, while cautioning that the growth rate may not sustain due to tougher comparisons ahead. SVP & CFO Steve Voskuil confirmed that based on current visibility, Hershey expects to deliver on-algorithm top-line and earnings growth for 2026.

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CFO Luca Zaramella clarified that 'less flexibility' refers to unpredictable events like Europe's heatwave and U.S. destocking, which reduced their guidance buffer. For the second half, he anticipates a prudent approach in Europe and continued weakness in North America. Regarding cocoa, he outlined two scenarios for 2026: if prices stay high, current pricing actions may suffice; if they fall, the company could reinvest to stimulate demand and volume.

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CFO Luca Zaramella clarified that 'less flexibility' refers to unpredictable headwinds like the European heatwave's impact on chocolate and U.S. retailer destocking. He stated that if cocoa prices remain elevated, current pricing actions should be sufficient for 2026, but if prices fall, the company would focus on reinvesting to protect demand and stimulate volume, which would ultimately benefit the P&L.

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CFO Paul Ruh explained that the two U.S. sales factors are linked and difficult to separate, but most of the impact is a timing issue. CEO Ynon Kreiz added that clearing uncertainty is helping retailers adapt. Ruh clarified the total tariff exposure for the year is now estimated at less than $100 million before mitigation, with the impact concentrated in the second half.

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CFO Anthony DiSilvestro did not quantify the Q1 decline but attributed it to a later Easter and inventory correction, confirming the historical 35% first-half, 65% second-half sales split should hold for 2025. He clarified that the investment in self-publishing digital games is an SG&A expense (OpEx), not CapEx, and that 2025 CapEx would be comparable to 2024 levels.

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CFO & COO Gina Goetter stated that while 2025 is over-delivering, the company is not changing its midterm targets yet, citing potential lumpiness and future tariff impacts. CEO Chris Cocks attributed Monopoly Go's strength to savvy partnerships and lower-than-expected user acquisition costs. Goetter guided to a monthly revenue contribution of $12-14 million for the back half of the year.

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CFO Tucker Marshall reiterated that external factors like coffee elasticity ($0.80), tariffs ($0.25), and softness in Sweet Baked Snacks, plus an internal decision to increase marketing, impacted the outlook. For Q1, he noted that while coffee and Uncrustables will show top-line momentum, the overall flat result reflects softness in pet treats and lapping a divestiture in Sweet Baked Snacks.

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CEO & Chair Rob Katz stated that competition has helped shift consumer mindset towards buying passes and that Vail will innovate its marketing to compete effectively. On Europe, he clarified that the preference remains the owner-operator model, but partnerships are an option. He stressed that any M&A will remain disciplined and targeted to add value to the network.

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President, CEO & Director Mick Beekhuizen revised the full-year growth expectation for Rao's to 'high single digits' from the previous 'slightly above 10%,' citing a softer Q3 but noting recent consumption data shows a rebound. Executive VP & CFO Carrie Anderson stated that while Q3 Snacks margins improved sequentially, the slower-than-expected recovery led to a revised full-year margin expectation of 13% for the segment, which contributed to the full-company adjusted EPS guidance moving to the low end of the range.

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CFO David McKinstray explained that improvement will be sequential, driven by staged initiatives like distribution gains, strategic investments, and the Kashi relaunch. He also noted that after lapping a price increase in Q2, price realization is expected to flatten, with volumes and net sales moving in line in the second half of the year.

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CFO Dave McKinstry stated that improvement will be sequential and not happen overnight, citing building blocks like distribution gains and the Kashi relaunch that will stage in throughout the year. He explained that after lapping a price increase in Q2, price realization is expected to flatten in the second half, with pounds and dollars moving more in line.

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CEO Colleen Keating clarified that the goal is a 'healthy, steady pace of growth' to avoid a single bumper crop year, while still aiming to reach 200 annual openings in the coming years. CFO Jay Stasz addressed CapEx, stating that while not guiding beyond 2025, the company will continue to use its balance sheet to recycle capital, such as by refranchising Spain, which could then fund expansion into another new market.

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President and CEO Chip Brewer attributed the significant decline and volatility primarily to the 3+ bay events business, which he believes is experiencing both a reversion from a post-COVID surge and a broader economic slowdown. He viewed the consumer side as more stable and declined to provide 2025 guidance, but reiterated the company is focused on returning to positive same-venue sales over the long term.

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