EBITDA Growth Guidance
Q: Is EBITDA growth expected to accelerate after 2025?
A: Yes, we expect 2025 to look similar to 2024 in terms of EBITDA growth, and then we plan to exit 2026 with an expanded EBITDA margin of approximately 14%, up from 9%, reflecting 500 basis points of margin expansion.

Market Share Trends
Q: How do you plan to address market share losses?
A: We're focusing on maintaining a stable top line while expanding margins. Most of our core brands held or gained share, but Special K underperformed. We believe Special K will have a better year in 2025 as we enhance our commercial plan to resonate more with consumers.

Supply Chain Modernization
Q: Can you detail the $200 million supply chain investment for 2025?
A: The $200 million cash outlay in 2025 is part of our $500 million supply chain modernization plan, with over 90% allocated to CapEx. We're executing eight distinct initiatives without interfering with our commercial agenda, aiming for 500 basis points of margin expansion by 2026.

Price Mix Improvement
Q: What are your plans to improve price mix?
A: We see positive price mix through our completed PPA (Price Pack Architecture) activity. In the first half of next year, volume is expected to decline at a higher rate than dollars, but by the back half of the year, we expect volume, units, and dollars to converge, stabilizing price mix.

Sales Growth Amid Category Decline
Q: How will you drive sales growth with the category declining?
A: We expect the category to behave like pre-COVID, down 1-2%, which supports our financial commitments. We're investing in innovation, focusing on underpenetrated areas, and leveraging our core brands to stabilize and potentially grow sales.

Innovation Impact on Sales
Q: Will innovation drive improved trends in Q2–Q4?
A: Yes, our 2025 innovation plan is larger and more broad-based than in 2024. We're investing in brands like Kashi and Bear Naked, targeting natural and organic segments, which we believe will be tailwinds throughout the year.

Promotional Activity
Q: Do you expect elevated promotional levels in 2025?
A: We focus on delivering value through multiple levers, including promotion as one component. Our spend in Q4 was generally the same as before, and we feel good about our commercial plan for 2025, aiming to balance value delivery and returns.

Plant Closures and Execution Risk
Q: Does the timing of plant closures reduce execution risk?
A: Yes, the planned closures in Omaha and Memphis are part of our strategic supply chain modernization. Taking time allows us to plan and execute properly without disrupting our commercial activities, ensuring smooth transitions.

Special K Brand Performance
Q: What are you doing to improve Special K's performance?
A: We're not satisfied with Special K's underperformance in 2024. As our second-largest brand, it has a significant impact. We're enhancing our commercial plan for Special K in 2025 to better resonate with consumers and expect improved results.

Easter Timing Impact
Q: How will Easter timing affect Q1 sales?
A: The shift of Easter impacts inventory flows. In Q1, we expect net sales to be slightly below scanner data due to this timing shift. However, this will normalize over the year, and net sales should align more closely with scanner data in subsequent quarters.

Reconciliation of Scanner Data
Q: How should we reconcile scanner data with your sales?
A: Differences arise from non-measured channels like Canada and the Caribbean, and inventory builds due to innovation shipments. While scanner data is important, it doesn't capture the full picture. We expect net sales and scanner data to align more closely as the year progresses.

Gross Margin and Volume Impact
Q: How did volume declines impact gross margin expansion?
A: Despite a nearly 6% volume decline in Q4, our gross margin expansion was in line with expectations. Our execution of PPA contributed to price dynamics offsetting volume deleverage, and we anticipate volumes to normalize as we lap PPA activities next year.

Tariffs and Supply Chain
Q: Can you quantify the impact of tariffs on sourcing?
A: The situation is fluid, making it difficult to provide reliable estimates. Our modern supply chain naturally moves inputs across borders. We are continuing to execute our supply chain modernization plan, investing significantly in the U.S., Canada, and Mexico to optimize our network for the long term.

Innovation Beyond Cereal
Q: Are there plans to innovate beyond cereal?
A: Currently, we're focused on optimizing cereal, which offers significant value. However, we're developing scalable infrastructure that could allow us to leverage our brands beyond cereal in the future. Our brands have potential to travel, and we see real opportunities ahead.