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SEC filingMixed Q3: Retail volume declines pressured revenue, but gross margin improved on cost savings, while operating income fell on higher SG&A from the Bachan's acquisition.
Net cash provided by operating activities was $228.7 million, up from $173.3 million in the prior-year period, reflecting improved working capital management. Capital expenditures were $54.6 million, resulting in free cash flow of $174.1 million. The company continues to prioritize capital allocation flexibility, with a focus on returning cash to shareholders and funding strategic acquisitions like Bachan's.
Looking ahead, management expects fourth-quarter Retail sales to benefit from new product introductions and the Bachan's acquisition. Foodservice growth is anticipated from select quick-service restaurant customers. Input cost inflation is expected to be modest and offset by contractual pricing and cost savings programs. The company remains focused on margin improvement and capital allocation flexibility, with the Bachan's integration as the key near-term execution priority.