Flowers Foods - Q4 2025 (Q&A)
February 13, 2026
Transcript
Operator (participant)
Good morning, and thank you for standing by. Welcome to the Flowers Foods Fourth Quarter and Full Year 2025 results conference call. Please be advised that today's event is being recorded. I would now like to hand the conference over to your opening speaker today, J.T. Rieck, Executive Vice President of Finance and Investor Relations. Please go ahead.
J.T. Rieck (EVP of Finance and Investor Relations)
Thank you, Tonya, and good morning, everyone. I hope everyone had the opportunity to review our earnings release, listen to our prepared remarks, and view the slide presentation that were all posted earlier on our investor relations website. After today's Q&A session, we will also post an audio replay of this call. Please note that in this Q&A session, we may make forward-looking statements about the company's performance. Although we believe these statements to be reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. In addition to what you hear in these remarks, important factors relating to Flowers Foods business are fully detailed in our SEC filings. We also provide non-GAAP financial measures for which disclosure and reconciliations are provided in the earnings release and at the end of the slide presentation on our website.
Joining me today are Ryals McMullian, Chairman and CEO, and Anthony Scaglione, our CFO. Ryals, I'll turn it over to you.
Ryals McMullian (Chairman and CEO)
Okay, thanks, J.T. Good morning, everybody. Welcome to the fourth quarter call. I'm pleased with the progress that we're making to transform our business, led by the strong performance of our leading brands and disciplined execution of efficiency initiatives. We produced results at the high end of our 2025 guidance range. Now, as we look to 2026, our guidance does reflect ongoing category challenges, one fewer week, inflationary pressures, but also additional investments in our leading brands. In response to the headwinds that we are facing, we're conducting a comprehensive review of our operations, including our brand portfolio, supply chain, and financial strategy, to strengthen execution and position our business to reignite top-line growth and expand margins over time. I want to thank our dedicated Flowers team for their hard work and resilience during this period of change and our shareholders for their ongoing support.
We remain focused on navigating near-term challenges while also laying the foundation for sustainable long-term growth. With that, Tonya, we are ready for questions.
Operator (participant)
Certainly. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. And our first question will be coming from the line of Steve Powers of Deutsche Bank. Your line is open.
Steve Powers (Managing Director and Senior Equity Research Analyst)
Great. Good morning, everybody. Thanks for taking my questions. Great. So, Ryals and Anthony, you both spoke to the comprehensive review that you've begun, you know, on brands, on operations, et cetera. I guess maybe just if you could, I know Anthony talked about it being the first inning of that process, but maybe talk a little bit more about how you scoped that exercise, what the project plan is, kinda what things are in or out of consideration. Just any more meat on those bones would be helpful. Anthony, if you have any estimate of how long the game lasts, that also would be helpful.
Ryals McMullian (Chairman and CEO)
Sure, Steve. I'll start and let Anthony fill in. I certainly appreciate the thirst for more details on this. We are, you know, in the early innings of the review, but at a high level, you know, we're conducting a complete review of our brand portfolio, the manner and magnitude with which we're supporting that brand portfolio. We're evaluating other areas that are in additional need of investment. I think we're all aware that, you know, by and large, the portfolio is performing very well, you know, across cake and our innovative platform and premium. The real issue for us is traditional loaf, where we underindex, and that has been, you know, underperforming the category. You know, that has downstream effects in terms of operating deleverage, et cetera.
So, you know, one of the key focus areas, Steve, is how do we reinvigorate Nature's Own? You know, reigniting growth of that brand, generating demand for that brand is gonna be a key focus area for us. In addition, taking a look at supply chain, inclusive of the distribution network, to ensure that we are squeezing as much efficiency out of our operations as possible, is another key area of focus. So as we move through the year, obviously, we will continue to provide you all more and more detail as we go through the year. We're just in the early stretches right now.
J.T. Rieck (EVP of Finance and Investor Relations)
Yeah, and I would just add, I would characterize the review as a measured approach, working with Ryals and the rest of the management team on the evaluation around the portfolio, where it makes sense to invest, and this really leads to the CapEx conversation as well, where we're gonna make those investments. It's a thoughtful and broad review. It's really not intended to be just for this year, but it's a multi-year process. I don't know when we're gonna get to the top of the seventh, but we'll, to Ryals's point, we'll continue to make progress, and provide that update along the way.
Steve Powers (Managing Director and Senior Equity Research Analyst)
Okay, great. And I guess, you, as part of that, Anthony, you spoke in the prepared remarks about, the review of, of capital allocation, and some of that will be, you know, a review of the, of the capital expenditures that you just spoke to. But, maybe you could—if you could speak a little bit more broadly to capital allocation. We've spoken on this call in general about, about, you know, the, the dividend run rate of, of Flowers, and, obviously, cash flow has exceeded, you know, GAAP income. But at the same time, you know, the, the call for, for 2026 EPS is, is obviously below the, the dividend, commitment. So just how you're thinking about cap allocation more broadly inclusive of that, of that dividend. Thank you.
Anthony Scaglione (CFO)
... I appreciate the question. It's a great question. And we understand that the dividend is top of mind for our investors, and our focus has always been driving shareholder value. And we wanna convey the importance that we place on the evaluation of our capital structure and our capital allocation, and that's obviously a conversation we have with our board. I think we need to make progress on the overall strategic evaluation to determine if, what, and how much we alter that capital allocation and direction. But I'd also like to say we, you know, we remain committed, and I think we mentioned this in the prepared remarks as well, to our strong balance sheet, and we recognize the benefit of the investment grade rating.
Steve Powers (Managing Director and Senior Equity Research Analyst)
Very good. Thanks. I'll pass it on. Thank you.
Ryals McMullian (Chairman and CEO)
Thanks, Steve.
Operator (participant)
Our next question will be coming from Jim Salera of Stephens. Your line is open.
Jim Salera (Research Analyst)
Hey, Ross.
Anthony Scaglione (CFO)
Anthony, good morning. Thanks for taking our question.
Ryals McMullian (Chairman and CEO)
Hey, Jim.
Jim Salera (Research Analyst)
Ryals, I was hoping you could offer us just kind of a high-level thought, given your experience in the industry. What do you think the industry, both yourselves and other, you know, prominent players, can do to really stabilize, you know, this kind of traditional loaf piece of the category? You know, often in your remarks, you call out the pockets of growth for DKB and a lot of the specialized, you know, offerings that you have. But it seems like the traditional loaf is kind of the thorn in the side, and it's been that way for, you know, quarter after quarter. Is there a point where, you know, the marginal household is just finally washed out of the category, and we can get to a stabilization point?
Or do you see the frequency of consumption, even for households that stay in the category, continue to decline? Just you try to size up, you know, what we should be looking for to kind of get a glide path back to, you know, some semblance of kind of flat to then hopefully positive in the future.
Ryals McMullian (Chairman and CEO)
Yeah, great question, Jim. And as I said, that's the key to everything for us, really. Because we do have so much strength in the other parts of the portfolio where, you know, we've heavily invested, we've been extremely innovative in those other parts of the portfolio. We've talked a lot about, you know, not only the shift to value, you know, in this most recent conversation about affordability, but also the shift to premium differentiated. And we've been, you know, a key player there, and our efforts have certainly paid off. You can see that in the numbers and in the share data. You know, you're absolutely right, traditional loaf is the key for us. You know, it's our largest brand in Nature's Own. It's also the number one brand.
I think the soft variety will continue, or traditional loaf rather, will continue to be an important part of the category. But, you know, if the trends that we see continue, whether that's a shift to premium, whether it's a shift to value, inclusive of small loaves, because I do think, you know, a portion of the current value play, if you will, is driven by, you know, macroeconomic factors that we see all the time, in the bread category. I think the difference now, whereas traditionally you would have seen a shift to private label, you're seeing a shift to, you know, lower priced branded offerings that are priced, you know, at parity or slightly above private label. And, you know, in the same environment, private label is down.
So it's different this time around, but I think that the pure value play is cyclical. I think small loaves, however, offer something different. Not only is it value, it certainly addresses that area of the market, but it's also demographic shifts, Jim. Smaller households, people getting married later, a desire not to waste product, in addition to in the current environment, you know, it being more of a value offering. So my point in saying all this is, over time, I do think you're gonna see the shelf evolve and change overall. And so it's very important for us to be prepared to shift with that.
And we believe there are things that we can do, with Nature's Own, given its high loyalty rate, given its awareness, given that it's the number one brand, to, you know, bring additional attributes to consumers that they will value. So I do, I do think that there is a path there, and we're excited about the changes that we have upcoming for that segment of the portfolio. If we're successful in doing that, Jim, that goes a long way to, you know, getting us back at least to a stable state in traditional loaf, which will be very meaningful for the business, if not slight growth and recapture some of that operating leverage. It's also important, though, to say at the same time, as Anthony and I both noted, you know, our supply chain review is involved in this too.
So it's important to do both, to both address the demand for traditional loaf primarily, but also address our fixed cost base and ensure that we are operating as efficiently as possible.
Jim Salera (Research Analyst)
Thank you. I appreciate all the detail on that. Maybe tying that to 2026, we just think about the kind of interplay between the ramp and Simple Mills and then the, the legacy portfolio. Can you just give us a sense on the, the cadence on the top line? I mean, obviously, Q4 has the, the 53rd week lap, but just, should we expect a lot of the Simple Mills to kind of hit at the beginning of the year? Is it more of a gradual rollout, just kind of the cadence of the top line growth as we roll through the year?
Anthony Scaglione (CFO)
Yeah. So if you think about the guide, the range is down roughly about 180 basis points to slightly up, effectively flat. And from that, we said the category—we expect the category to be down 4% from a headwind, which is anyone's guess at this point, but we felt taking a rational approach and conservative approach, looking at that from that lens. The extra week adds about 150 basis points of pressure, and then the rest is gonna be a combination of the Simple Mills ramp, and, and the growth being from share and rate, as we plan out the year.... Okay, great. Thank you. I'll hop back in the queue.
Ryals McMullian (Chairman and CEO)
Thanks, Jim.
Operator (participant)
Our next question will be coming from Max Gumport of BNP-- I'm sorry, BNP Paribas. Your line is open.
Max Gumport (VP and Senior Equity Analyst)
Hey, thanks for the question. I wanted to come back to the dividend conversation and just get more clarity on why not cut the dividend today. You know, with your payout ratio going to well above 100% of your guidance for EPS, your leverage being in a difficult place, it looks like your current net debt represents anywhere from 3.5-3.75 times your outlook for adjusted EBITDA this year, which puts you at risk of tripping your 3.75 times covenant. And then clearly, you're in a difficult place right now in determining how to finance the business going forward, as you've come to the market with your outlook for 2026, but with no CapEx plans for the year.
Wouldn't it have been simpler just to cut the dividend now and get back to focusing on operations? Just looking for more clarity there. Thanks very much.
Anthony Scaglione (CFO)
Thank you. I'll take it and then pass it to Ryals. I think the team has stated this before, you know, dividend is a function of our discussion, clearly, with our board, our capital structure, overall allocations, and we recognize the need to address that holistically, in light of both our strategy and overall capital structure. And, you know, our intent is to plan to provide that detail in the upcoming quarters. But I wanna reiterate what Ryals just said. You know, we're in the early days of this comprehensive review. I, you know, I can't necessarily discuss the dividend in detail at this point, but it is something that we are reviewing in light of our capital structure, in light of the bank covenant.
What I would say, you know, we're in compliance with all the covenants, and we have a strong relationship with our syndicates, and we expect to refinance the upcoming maturity and also make some progress on debt pay down. So it is part of our overall review, and hopefully, that's helpful.
Max Gumport (VP and Senior Equity Analyst)
Great. And then as a follow-up, I'm just looking for a bit more clarity on a few factors with regards to what's embedded in your outlook for 2026. So really, it's on four factors. So I apologize for the long question. But the first is: what are you factoring in with regards to the reduced SNAP budgets this year? The second is: what potential impacts are you assuming from the Supreme Court case we have in March? The third would be on that debt refinancing, the $400 million in October that's coming due. Are you assuming a refinancing at higher rates occurs in your outlook for 2026? And then the fourth would just be, it seems like your guidance is embedding very large market share gains.
So you're saying the category is down 4%, but it sounds like organic is closer to just below flat. So just what's, what's behind that large market share gain assumption? Apologies for the long question, but thanks very much.
Anthony Scaglione (CFO)
So, I'll start with the SNAP. We recognize the reduction in EBT purchases and the pressure on the lower-income households, which is why I think our diverse portfolio of brands and products are structured to appeal at all household demographics. We don't break that out, specifically, but we are monitoring that channel, ensuring that we are providing value at those price points as well.
Max Gumport (VP and Senior Equity Analyst)
The Supreme Court.
Operator (participant)
Thank you. Our next question will be coming from the line of-
Anthony Scaglione (CFO)
I wanted to talk about the other question. So the debt refi, as I mentioned, you know, we're working with our syndicates as well as looking at the most efficient way to refinance. We're highly confident that refinancing work would occur. Obviously, rates are gonna be, you know, slightly higher than the rate of the bond that we're taking out, but we feel confident that's going to be part of our process, as we look at the overall capital structure going forward. And then the last two questions were the market share gain. Could you repeat that question?
Operator (participant)
Sure. I'll open the line back up. One moment.
Ryals McMullian (Chairman and CEO)
Yeah, I'll take that one anyway, on the market share gains. Max, if you're still listening. You know, as we've talked about, you know, we anticipate making, you know, incremental investments in our brands. Also, the innovation that we have coming forth, you know, across the portfolio, inclusive of Simple Mills having a record year for innovation, introducing 13 new items. The DKB Snack brands coming forth with new items and then obviously further innovation in the core. We also have our, you know, increased marketing investment that we're making this year. So all of those would give us confidence that we can continue to gain share in the marketplace. As for the Supreme Court ruling, there's nothing embedded in guidance, so I don't think we would. That's more of an operating issue.
We wouldn't expect any material financial impact from the decision one way or the other.
Operator (participant)
Our next question will be coming from Mitchell Pinheiro of Sturdivant & Company. Your line is open.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Hey, good morning.
Ryals McMullian (Chairman and CEO)
Good morning.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Hey, so as it relates to the supply chain review, is... I mean, as you look at the traditional [loaf] market, and obviously that's getting, you know, a little smaller, are we... should we anticipate perhaps some either bakery consolidation or... is that part of the review?
Ryals McMullian (Chairman and CEO)
Yeah, Mitch, that's part of the review, but I would say, yeah, that's an ongoing process. I mean, you know, you're aware, you know, we've closed several bakeries over the last few years, most recently a bakery in Atlanta, one in Louisiana, one out in Arizona. So, you know, this has been sort of normal course for us as we, you know, continually review operations. I think, you know, when we talk about supply chain reinvention in terms of this review, it's a bit more global in terms of, you know, how can we better leverage digital, AI, automation, in addition to network optimization. So it's more fully encompassing and looking at the whole picture and inclusive of the distribution network as well, you know, how we get to market, where we place our DCs, et cetera.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Okay. And, you know, I saw that you, you're moving your, your DSD, you know, the P&L responsibility to a regional, back to the regional level. And this, you know, obviously, is a return, I guess, to the past a little bit. Is that—where do you see, and how do you see that benefiting, Flowers going forward?
Ryals McMullian (Chairman and CEO)
Yeah, so it's not really a return to the past. I mean, maybe, as you said, a little bit. But, you know, as we took a look at our operations and how we're operating our business, I mean, there, you know, there are regional differences, you know, in terms of consumer preferences, you know, things like that. We also, you know, felt that there was a need for greater accountability closer to the individual markets. And, you know, by moving... And this is for DSD, you know, which is 85% of the business, doesn't really apply to the balance of the business.
But for DSD, you know, having that higher degree of P&L accountability a bit closer to the market, and, you know, in some cases, having more local decisions, we thought was a prudent move to make in the current environment we're operating. I mean, obviously, you know, this is a very challenging time for the company and for the industry, and so making sure we have accountability in the right place, the right people in the right places, is of paramount importance.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Okay, and then I guess this last question: is, and there's also this optimizing your brand portfolio, does that mean potentially selling brands?
Ryals McMullian (Chairman and CEO)
I mean, we're looking at everything. I mean, I certainly can't comment specifically on any, you know, contemplated divestitures, but it really is focused on, you know, optimizing the portfolio in a way that sets us up best for success. So, you know, that can mean anything from, you know, additional investment in brands to SKU rationalization to, yes, potential divestitures, but there's nothing, you know, concrete on the table at the moment.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Okay. All right, thank you.
Ryals McMullian (Chairman and CEO)
Thanks, Mitch.
Mitchell Pinheiro (SVP and Director of Fundamental Equity Research)
Thank you.
Operator (participant)
As a reminder, if you would like to ask a question, please press star one one on your phone. Our next question is a follow-up from Max Gumport of BNP Paribas. Your line is open.
Max Gumport (VP and Senior Equity Analyst)
Hey, thanks. Just a couple of housekeeping ones. So first would be, is there a level of maintenance CapEx you could speak to, just as we're, you know, thinking through our models and the lowest level of CapEx we, you know, could potentially be putting in the model for 2026?
Ryals McMullian (Chairman and CEO)
Yeah, yeah, let me qualify that. So maintenance CapEx for us is just as you can imagine, the normalized CapEx that we look at across our bakery and real estate network, and that usually runs around $2 million ± per bakery per year. And then looking at that from a historical, you know, there's always gonna be a special project or an initiative that's gonna require CapEx, and clearly, we have the rest of the ERP project that we need to complete in 2026 and early part of 2027. So that hopefully gives you a little bit of a range of, you know, looking at it from the overall picture. There's an amount that we intend to deploy as part of that maintenance.
It's really looking at that growth CapEx and really focusing our efforts and being laser focused on that, and that's what's inhibiting us at this point from providing that range. But as I mentioned in my prepared remarks, you know, most likely that outcome is gonna be the continued prudent approach that we've had in the past.
Max Gumport (VP and Senior Equity Analyst)
Great. And then on the eight cents impact to EPS from incentive compensation, any color on the cadence in which that wind down occurred in 2025? I imagine that a large chunk came in Q4, but that partly came in Q2 and Q3 as well. So any more explicit help on cadence you could give us regard to the $0.08?
Ryals McMullian (Chairman and CEO)
Yeah, we actually adjust our, our accrual quarterly, and most of that adjustment occurred in the first three quarters of last year, just given the revised estimate. So when you look at the cadence, it's more first three quarters versus Q4.
Max Gumport (VP and Senior Equity Analyst)
Okay. And then on Simple Mills sales, it looks like in Q4, I mean, you ended the year a bit below the full year guidance, which I believe was $221-$223. You reported closer to $14. So it seems like Q4 came in a bit light of expectations. But at the same time, your commentary still sounds pretty good on Simple Mills. So anything went off that held back Simple Mills sales in Q4 2025?
Ryals McMullian (Chairman and CEO)
Yeah, Max, it's Ryals. A couple of things. One, there were some inventory deloading, related to, to one, distributor that kinda disrupted the timing of sales during that period. And they, Simple Mills also had an issue with some, some coconut sugar that came in. All the, affected inventory was in our control, so there was, you know, no recall or anything like that. But that, that, that contributed to a little bit of a disruption.... in terms of sales timing in the fourth quarter. But to your point, we still feel great about Simple Mills. We expect them to be, top line up double digits next year. Lots of innovation coming, so we're still quite bullish on the business. They're doing fine.
Max Gumport (VP and Senior Equity Analyst)
Great. And last one from me, and I'll leave it there. It's just on margins for Simple Mills. It looks like it dipped to 11% EBITDA margin in Q4 versus 16% in the first three quarters.
Ryals McMullian (Chairman and CEO)
Yeah.
Max Gumport (VP and Senior Equity Analyst)
I think also that was roughly in line with your plan. So I guess, one, is it, is it really just all about tariffs coming on and then maybe some input cost, running a bit higher, too?
Ryals McMullian (Chairman and CEO)
Yes.
Max Gumport (VP and Senior Equity Analyst)
Then could you give a bit more color on how we should think about input costs for 2026, particularly given what we're seeing with almonds and inflation there? Thanks very much.
Ryals McMullian (Chairman and CEO)
Yeah. Max, you're spot on. It's almond flour and tariffs. And, you know, in addition to, you know, additional brand investments in the brand, I think you should expect that to continue into 2026. But yeah, it's primarily the almond flour and tariff impact for Simple Mills.
Max Gumport (VP and Senior Equity Analyst)
Okay. Thanks very much. Appreciate all the questions. I'll pass it on.
Ryals McMullian (Chairman and CEO)
Okay, thanks, Max. Thank you.
Operator (participant)
Our next question will be coming from the line of Scott Marks of Jefferies. Your line is open, Scott.
Scott Marks (Equity Research Analyst)
Hey, good morning, all. Thanks for taking our questions. First one for me, you know, you're talking about kind of heightened reinvestment in the business and some brands for 2026, but it seems like you've also already been on this journey since the summer in terms of small loaves and some protein offerings and better for you. So just wondering if you can help us understand maybe what's changing and what's gonna be different from what you've already been enacting in the portfolio.
Ryals McMullian (Chairman and CEO)
Right. Yeah, exactly, Scott. Good question. So, you know, as I was alluding to earlier, you know, over the last several years, we have, you know, ramped up our brand investment, not just in marketing, but, but also in our innovation efforts, you know, around DKB, DKB Snacks, obviously, the addition, the addition of Simple Mills, but also Keto and protein loaves and Perfectly Crafted. Just kind of, you know, I won't go on and list, list them all, but, you know, we believe that we're, you know, one of the most innovative producers in the category. What's different this time, as I said earlier, is, you know, when you, when you look at our portfolio, when you look at our market share performance, you know, the clear issue is in traditional loaf, and that primarily means Nature's Own.
And so, you know, a lot of the additional investment and innovation that we're speaking to today is around reigniting demand for traditional loaf and for Nature's Own.
Scott Marks (Equity Research Analyst)
Understood. Thanks for the clarity on that. And then second one for me is, you know, you're talking obviously about some of the category pressures. You also spoke a bit about some heightened competition within the category. So wondering if you can just kind of share maybe, you know, how you're thinking about the competition. Have you seen competitors do anything like rationalize some of their own production capabilities? Just wondering, you know, how competitors are kind of handling the current environment.
Ryals McMullian (Chairman and CEO)
Yeah, nothing, nothing major that I would report in terms of, you know, bakery consolidation or anything like that. I think, you know, the competitive environment in the fourth quarter was, you know, pretty normal. No major uptick. In fact, for the category, for the category, price per unit was actually up a bit in the quarter. And, you know, that a lot of that is, is likely mix shift to premium products. You know, obviously, like the rest of the food industry, you know, everybody's trying to figure this out. You know, the rise of GLP-1s, the fact that it's coming out, you know, in a pill, the overall macroeconomic environment, you know, while inflation has certainly come down, prices remain elevated, and some consumers are struggling with that.
You know, so you see, you know, a lot of move to value, not just in terms of product, but also in terms of channel, you know, moving more to club stores and mass, et cetera. So, you know, I think we're gonna continue to see a pressured consumer for a bit longer, and we'll see how all that shakes out. In the meantime, you know, what's important to us is that we're delivering products to consumers that have attributes that they want, definitely with a better for you bet, but also across the price spectrum. That's how we're looking at it. You know, in terms of promotional levers, obviously, we have that at our disposal.
We tend to use that prudently and use it more for driving trial and repurchase rather than driving volume gains. You have to, you have to remember that this is a, this is a category with limited expandable consumption, and so we are very disciplined in our use of promotional activity, but where we need to do so to protect share, you know, we, we will. But we will, you know, use our enhanced TPM capabilities to guide us in that process and make sure that we are, you know, achieving the desired return on investment. Scott, as an example of that, in the fourth quarter, we pulled back strategically on promotions.
As I said, you know, that there's limited expandable consumption in this category, and typically, when we, you know, get aggressive with promotions in the fourth quarter, we don't get a good return on that investment. And so if you look at the share data, you will see that we pulled back pretty substantially in the fourth quarter, and as we move into the new year, get back to a more normalized cadence.
Scott Marks (Equity Research Analyst)
Appreciate the color. We'll leave it there.
Ryals McMullian (Chairman and CEO)
Thanks, Scott.
Operator (participant)
I'm showing no further questions. I would now like to turn the conference back to Ryals McMullian, Chairman and CEO, for closing remarks.
Ryals McMullian (Chairman and CEO)
Okay, Tonya, thank you. I just wanna thank everybody for taking time today and joining us for questions. We very much appreciate your interest in our company, and as always, we'll look forward to speaking to you again next quarter. Take care.
Operator (participant)
This concludes today's program. Thank you for participating. You may now disconnect.