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    William Chappell • Truist Securities

    William Chappell's questions to Krispy Kreme Inc (DNUT) leadership

    William Chappell's questions to Krispy Kreme Inc (DNUT) leadership • Q1 2025

    Question

    William Chappell followed up on the McDonald's partnership, asking for clarification on whether the pause was a mutual decision and questioning the sudden change after recent positive commentary. He also asked if related CapEx projects are now on hold.

    Answer

    CEO Joshua Charlesworth reiterated that the pause was a joint decision with McDonald's to ensure profitability before further expansion, noting sales dropped after initial local marketing. He clarified that CapEx continues for a national network to support other scale partners like Sam's Club and Target, with 5-7 new production hubs still planned for the year.

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    William Chappell's questions to Krispy Kreme Inc (DNUT) leadership • Q4 2024

    Question

    William Chappell sought clarification on the 2025 guidance, asking for a reconciliation of the reported revenue and EBITDA figures to the organic growth targets, specifically accounting for the Insomnia Cookies divestiture and currency impacts.

    Answer

    CFO Jeremiah Ashukian clarified the guidance reconciliation. For revenue, the divestiture of Insomnia Cookies represents a headwind of approximately $70 million per quarter, while foreign exchange has a negative impact of about $40 million for the year. For EBITDA, Insomnia's absence removes about $8 million per quarter, with an additional $3 million to $5 million headwind from foreign exchange.

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    William Chappell's questions to Krispy Kreme Inc (DNUT) leadership • Q3 2024

    Question

    William Chappell of Truist Securities asked how the pull-forward of McDonald's rollout costs would impact profitability in 2025. He also inquired about the timeline for McDonald's to launch a national advertising campaign for the Krispy Kreme partnership.

    Answer

    CFO Jeremiah Ashukian confirmed they are intentionally investing ahead of revenue for the rollout, which will pressure margins in the first half of 2025, with improvement expected in the back half. CEO Joshua Charlesworth added that while McDonald's is currently supporting the launch with strong local marketing, they expect national-level support as the rollout scales to near-full national coverage by the end of 2026.

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    William Chappell's questions to Central Garden & Pet Co (CENT) leadership

    William Chappell's questions to Central Garden & Pet Co (CENT) leadership • Q2 2025

    Question

    William Chappell of Truist Securities asked for an update on pet segment trends, specifically the performance of durables versus consumables and the outlook for the summer. He also followed up on the company's tariff exposure, questioning current mitigation strategies, inventory levels, and potential pricing actions.

    Answer

    John Hanson, President of Pet Consumer Products, noted that Q2 net sales were down 6% due to order pull-forwards and SKU rationalization, but the half-year was down only 1%. He highlighted that consumables were up mid-single digits while durables were down double digits. CFO Brad Smith clarified that about half of the durables decline was due to strategic SKU cuts. Regarding tariffs, Smith stated that 13% of COGS is subject to tariffs, with mitigation plans including vendor concessions, sourcing changes, and pricing. CEO Niko Lahanas added that the company has good near-term visibility but is actively planning for FY26.

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    William Chappell's questions to Central Garden & Pet Co (CENT) leadership • Q1 2025

    Question

    William Chappell of Truist Securities questioned whether the strong Q1 results were merely a timing pull-forward, sought clarity on the unusual timing of Pet segment shipments, and asked about the tariff assumptions included in the annual guidance.

    Answer

    CEO Nicholas Lahanas explained the quarter's strength was a combination of favorable timing, good weather, and strong execution, not just a pull-forward, though some impact would be felt in Q2. John Hanson, President of Pet Consumer Products, added that some Q2 promotional activity shifted into Q1. Regarding tariffs, Lahanas stated the company has modeled potential tariffs and believes it can absorb the impact and remain within guidance.

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    William Chappell's questions to Central Garden & Pet Co (CENT) leadership • Q4 2024

    Question

    William Chappell asked about the current state of the Pet business, questioning if the post-pandemic hangover is lasting longer than expected and if the category has bottomed out. He also inquired about plans for price increases in fiscal 2025 for both the Pet and Garden segments.

    Answer

    John Hanson, President of Pet Consumer Products, confirmed that while consumables POS is positive, the overall Pet category is being pulled down by continued double-digit declines in durables. He projected low-to-mid-single-digit growth for consumables and a mid-single-digit decline for durables in the upcoming year. CEO Nicholas Lahanas added that obtaining price increases in fiscal 2025 will be very difficult, with the company planning for a net negative pricing environment due to moderating commodity costs.

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    William Chappell's questions to Edgewell Personal Care Co (EPC) leadership

    William Chappell's questions to Edgewell Personal Care Co (EPC) leadership • Q2 2025

    Question

    William Chappell followed up on tariff mitigation, asking specifically about the company's ability and plans to use price increases. He also questioned the rationale for the diminished outlook for the Sun Care category, asking if it was due to trade-down or other factors.

    Answer

    COO Daniel Sullivan confirmed that pricing is a potential lever to offset tariffs, but nothing incremental is planned for the current fiscal year. CEO Rod Little addressed the Sun Care outlook, explaining that while they remain bullish, they moderated growth expectations due to signs of a potential slowdown in consumer travel and leisure spending, which could impact occasion-based purchases. Sullivan quantified this as shifting from a mid-single-digit to a low-single-digit category consumption growth forecast for the second half.

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    William Chappell's questions to Edgewell Personal Care Co (EPC) leadership • Q4 2024

    Question

    William Chappell of Truist Securities inquired about the Sun Care business, questioning the significant Q4 sales miss and expressing skepticism about the 2025 outlook, given similar unfulfilled optimism last year. He also asked about the category's overall health and the risk of consumer trade-down.

    Answer

    COO and CFO Daniel Sullivan clarified that Q4 represents a third of the Sun Care category's consumption and the miss was driven by a 6% decline in consumption versus a 6% growth expectation, which curtailed retailer replenishment. He noted the category is fundamentally healthy with a 2-4% growth profile. CEO Rod Little added that consumer trends favor the category, and contrary to concerns, consumers are trading up, not down, with minimal private label pressure. He highlighted Edgewell's strong innovation pipeline and market leadership as reasons for optimism.

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    William Chappell's questions to Energizer Holdings Inc (ENR) leadership

    William Chappell's questions to Energizer Holdings Inc (ENR) leadership • Q2 2025

    Question

    William Chappell from Truist Securities inquired about the potential impact of tariffs on the device market that uses batteries and how that might affect consumer demand. He also asked if the historical trend of Auto Care benefiting from economic slowdowns is expected to hold true.

    Answer

    Executive Mark LaVigne acknowledged that tariffs would likely make devices more expensive, potentially impacting replenishment rates, which is factored into their cautious outlook. Regarding Auto Care, LaVigne noted both headwinds (discretionary spending cuts) and tailwinds (consumers shifting to DIY from DIFM and holding cars longer). Executive John Drabik added that they still expect low single-digit growth for Auto Care in Q3, supported by the Podium launch and shifted refrigerant sales. The lowered top-line guidance is driven more by batteries than auto.

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    William Chappell's questions to Energizer Holdings Inc (ENR) leadership • Q1 2025

    Question

    William Chappell inquired about the potential impact of tariffs on Energizer's battery and auto care businesses, particularly regarding its competitive position against private label competitors who manufacture overseas. He also asked for a characterization of the holiday season's performance.

    Answer

    John Drabik, EVP and CFO, stated that Energizer's exposure is minimal, with only about 5% of COGS for U.S. consumption sourced from China, and less than 1% from Canada and Mexico combined. He affirmed the company would mitigate tariffs through sourcing optimization and pricing actions. Mark LaVigne, President and CEO, added that the competitive impact depends on the specific details of any tariffs. Regarding the holidays, LaVigne described the season as solid, noting a strong December after a less robust November, which contributed to the confidence to raise the full-year sales outlook.

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    William Chappell's questions to Energizer Holdings Inc (ENR) leadership • Q4 2024

    Question

    William Chappell asked for more details on the improved outlook for the Battery category, including the expected pricing environment, and sought clarification on whether recent distribution gains were global or regional and if they were holiday-weighted.

    Answer

    Mark LaVigne, President and CEO, noted the Battery category has stabilized and is showing healthy mid-single-digit volume growth, expecting a 1% growth trajectory in fiscal 2025. He clarified that the distribution gains are global, occurring in both U.S. and international markets, and will be spread throughout the full fiscal year rather than being concentrated in the holiday season.

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    William Chappell's questions to Bellring Brands Inc (BRBR) leadership

    William Chappell's questions to Bellring Brands Inc (BRBR) leadership • Q2 2025

    Question

    William Chappell asked if Premier Protein needs to innovate with lower-protein shakes to capture new users, or if the brand's core 30-gram offering provides enough growth opportunity.

    Answer

    President and CEO Darcy Davenport responded that while the core 30-gram shake still has tremendous growth potential, innovation is also critical for capturing new consumers and occasions. This innovation can include different protein levels, both higher and lower, as demonstrated by their strategy with products like the Indulgence line, which aims for incrementality.

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    William Chappell's questions to Bellring Brands Inc (BRBR) leadership • Q4 2024

    Question

    William Chappell asked for the rationale behind the significant step-up in marketing for 2025 and inquired about the consumption habits of new consumers driving growth, specifically whether they are new users or existing users adopting new occasions.

    Answer

    President and CEO Darcy Davenport explained that the company had been waiting for supply to be unconstrained before deploying advertising, which she views as the most effective driver of household penetration. She confirmed that new users are the primary growth driver, often replacing unhealthy breakfasts or adding a meal they previously skipped, while new occasions are the secondary driver.

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    William Chappell's questions to Freshpet Inc (FRPT) leadership

    William Chappell's questions to Freshpet Inc (FRPT) leadership • Q1 2025

    Question

    William Chappell asked about the market's progression, questioning if growth is slowing because the 'low-hanging fruit' has been captured, and asked if the company would consider trade promotions or discounting if economic conditions worsen.

    Answer

    CEO William Cyr asserted that long-term consumer desire for premium pet food remains strong and that the current slowdown is due to near-term economic uncertainty, not market saturation. President & Co-Founder Scott Morris firmly stated the company will not engage in discounting, instead focusing on its core strategy of driving growth through advertising, targeted affordability via specific SKUs and multipacks, and expansion into value-focused retailers.

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    William Chappell's questions to MGP Ingredients Inc (MGPI) leadership

    William Chappell's questions to MGP Ingredients Inc (MGPI) leadership • Q1 2025

    Question

    William Chappell asked for quantification on several issues: the completion status of new distillate negotiations, specific actions to stabilize mid- and lower-tier branded spirits, and the reasons for optimism in the Ingredient Solutions segment despite a weak quarter. He also followed up on when the new distillate business might reach a trough.

    Answer

    Brandon Gall, Interim CEO & CFO, explained that about 75% of distillate negotiations for the year are complete and that price support is being rolled out for mid- and value brands. For Ingredients, he cited the completion of the deep well project, progress on the biofuel facility, and significant CapEx for reliability as reasons for confidence. Regarding the distillate trough, Gall noted that while the industry inventory overhang may persist into 2026, MGP's proactive actions and industry production cuts are encouraging signs, but it's too early to call a definitive bottom.

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    William Chappell's questions to MGP Ingredients Inc (MGPI) leadership • Q4 2024

    Question

    William Chappell of Truist Securities inquired about MGP's future strategy for aged whiskey, particularly how the company is derisking the business after customers walked away from commitments. He also asked for clarity on the underlying growth of the branded portfolio, excluding the impact of discontinued or deemphasized brands.

    Answer

    Brandon Gall, Interim President, CEO, and CFO, explained that while the aged business is in a down cycle, MGP remains committed to it long-term. He detailed a proactive strategy of reaching out to customers to align pricing and volume with current market realities, which informed the revised, more conservative outlook for the Distilling Solutions segment. For Branded Spirits, Gall noted that flattish sales are expected in the Premium Plus category due to a reduction in single barrel programs and increased price support, while the mid and value portfolio's performance is expected to improve sequentially.

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    William Chappell's questions to MGP Ingredients Inc (MGPI) leadership • Q3 2024

    Question

    William Chappell of Truist Securities asked for clarification on the primary drivers of the Q3 earnings miss, questioning whether it was confined to the Distilling Solutions segment or if Branded Spirits and Ingredients also underperformed. He also probed for the rationale behind the company's surprise at the rapid slowdown in American whiskey demand and sought confidence in the 2025 outlook, particularly regarding new distillate pricing and aged whiskey production plans.

    Answer

    CFO Brandon Gall and CEO David Bratcher confirmed the miss was predominantly driven by the brown goods business in the Distilling Solutions segment, noting the deterioration was faster than anticipated. Gall added that the Ingredient Solutions segment also saw some sales shift from Q3 to Q4, and the Branded Spirits outlook for Q4 was tempered by distributor inventory tightening. Bratcher explained that for 2025, aged whiskey put-aways for third-party sales will be reduced to nearly zero to stabilize the business, and while current new distillate contracts are holding on price, the 2025 forecast does factor in potential future price compression.

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    William Chappell's questions to Newell Brands Inc (NWL) leadership

    William Chappell's questions to Newell Brands Inc (NWL) leadership • Q1 2025

    Question

    William Chappell questioned the decision to maintain guidance given the extreme difficulty in forecasting market growth, pricing, and volume amidst significant tariff uncertainty.

    Answer

    CEO Christopher Peterson defended providing guidance, noting that over 90% of the business is not significantly impacted by the 125% China tariff and that management has an obligation to share its internal plan. He asserted that Newell is better positioned than perceived, with its advantaged U.S. manufacturing base creating a long-term benefit. CFO Mark Erceg added that improved internal reporting systems enhance their forecasting confidence.

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    William Chappell's questions to Newell Brands Inc (NWL) leadership • Q4 2024

    Question

    William Chappell questioned the drivers of the 2025 core sales growth forecast, asking about the balance between category growth and market share gains, and specifically queried if the Outdoor & Recreation segment could achieve flat performance. He also sought clarity on whether the projected increase in 2025 interest expense already accounts for the planned debt refinancing.

    Answer

    CEO Christopher Peterson explained the -2% to +1% core sales guidance assumes flat category growth and includes a 1-point headwind from discontinuing non-strategic businesses. He noted Learning & Development and International are expected to grow, while Home & Commercial should turn positive in the back half. He reiterated that Outdoor & Rec is unlikely to see positive core sales until 2026 due to the innovation cycle timing. CFO Mark Erceg confirmed the interest expense guidance already incorporates the projected mid-year refinancing.

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    William Chappell's questions to Newell Brands Inc (NWL) leadership • Q3 2024

    Question

    William Chappell of Truist Securities asked for the growth outlook for specific categories like kitchen electrics, fragrance, and baby into 2025 and 2026. He also requested more examples that support management's encouragement about the business's performance, considering seasonality.

    Answer

    CEO Christopher Peterson provided examples of growth drivers, including the end of a post-COVID normalization cycle for kitchen appliances and strong innovation in Baby (Graco SmartSense) and Writing (premium S-Gel pens). He also mentioned a planned relaunch for Yankee Candle, expressing confidence that innovation in mid- and premium-priced products can drive category growth.

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    William Chappell's questions to Coca-Cola Co (KO) leadership

    William Chappell's questions to Coca-Cola Co (KO) leadership • Q1 2025

    Question

    William Chappell asked for a reminder of the size of Coca-Cola's business in Russia and Ukraine before the conflict, what it looks like today, and its potential future.

    Answer

    Chairman and CEO James Quincey stated that when the company pulled its brands from Russia, the market represented about 1-2% of total revenue and profit. He noted that Ukraine is a much smaller business that has been impacted by the war. He concluded that any speculation about the future of these markets is 'premature' at this stage.

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    William Chappell's questions to Coca-Cola Co (KO) leadership • Q4 2024

    Question

    William Chappell questioned the commentary on the 'moderating' hyperinflation environment, asking if the company was done with pricing in those markets given that inflation has not fully subsided and prior price hikes would carry through.

    Answer

    CEO James Quincey clarified that the company is not taking its foot off the pedal and will continue to pass through input costs in high-inflation environments. He explained that 'moderation' refers to the fact that monthly inflation rates have dropped markedly in key countries like Argentina and Turkey. While the impact will be greater in the first half of the year, the company will continue to price to cover costs as necessary.

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    William Chappell's questions to Coca-Cola Co (KO) leadership • Q3 2024

    Question

    William Chappell from Truist Securities asked for more details on the fairlife brand, including its current size, its impact on mix, and its prospects for continued expansion given tougher comparisons and capacity.

    Answer

    Chairman and CEO James Quincey confirmed fairlife is 'well over a $1 billion brand' and a top retail dollar growth driver in North America, alongside Trademark Coke. While it has a positive mechanical effect on mix, he stressed that the North American business ex-fairlife is also growing. He noted a new plant is under construction to support future demand.

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    William Chappell's questions to Westrock Coffee Co (WEST) leadership

    William Chappell's questions to Westrock Coffee Co (WEST) leadership • Q4 2024

    Question

    William Chappell asked for more color on how higher green coffee costs are factored into guidance, the proportional split of the guidance reduction between coffee prices versus start-up conservatism, and when the company expects to have high visibility on Conway's volumes.

    Answer

    CFO Chris Pledger clarified that potential consumer demand impact from higher coffee costs is a back-half 2025 risk and that the guidance reduction is weighted more towards conservatism around the new facility's ramp-up. CEO Scott Ford added that they expect to have high visibility into the volume step-up as they exit Q2 2025, which is why guidance was provided for the first and second halves of the year.

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    William Chappell's questions to Scotts Miracle-Gro Co (SMG) leadership

    William Chappell's questions to Scotts Miracle-Gro Co (SMG) leadership • Q1 2025

    Question

    William Chappell of Truist Securities asked about the quantifiable opportunities for top-line growth, questioning whether expanding the user base or increasing basket size holds more potential, and followed up on which product categories show the most momentum for share gains.

    Answer

    Executive James Hagedorn, Executive Nate Baxter, and Executive Mark Scheiwer responded that both growth levers are crucial. The near-term focus is on increasing purchase frequency, such as with multi-step lawn programs, while the longer-term opportunity lies in engaging new households and significantly expanding in the underpenetrated dot-com channel. Hagedorn noted that Controls and Gardens are seeing strong, high-margin growth, while the key focus for the lawn business is recovering unit volume.

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    William Chappell's questions to Church & Dwight Co Inc (CHD) leadership

    William Chappell's questions to Church & Dwight Co Inc (CHD) leadership • Q3 2024

    Question

    William Chappell sought clarity on the strategy for the struggling vitamin business, asking if the plan was to increase spending or manage for cash. He also asked for the rationale behind the timing of the large impairment charge.

    Answer

    CFO Rick Dierker explained the impairment charge was a necessary reconciliation of lower future growth and profit expectations against the asset's book value. He clarified they will not chase growth with promotions but will focus on core product improvement and innovation, such as reformulations. CEO Matthew Farrell added that while 2024 was not the expected inflection point, the focus is now squarely on the 2025 innovation pipeline to turn the business around.

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