and our and the review some the Then offer visibility the provide recent year. of I performance some commentary a detail results afternoon, will on provide good and financial everyone. then you, Thank begin To Dick financial more business will brief and of balance in highlights our on industry. overview Katie
the line feed QX. third established returns our realize strategy I financial positively to at earlier investments from We're provide our to improvement objectives. the continued and the quarter, our questions. positions strategy well efficiency sales began longer important for net exceed respond and made growth very we available the In ability end a to to of to Dick operational with Finally, the in financial efforts of quarter the will believe with of negotiated third pleased term We our guidance results virtuous business results very Scott Further XXXXX be the total the this manufacturing we effectiveness the answer us to we quarter year. the part your this of year deliver continued evidence cycle. an and fiscal in we've
As delivering to rate soon generate XX%. a as growth adjusted reminder XXXX EBITDA expect plus annual sales million XX% to in with margins as $XXX and XX% of we net
half pet we despite with the our the results quarter advertising add to quarter Athens third affirm franchise made parents first compared in how the QX. momentum who third the we term versus later impact the continued during is then the planned third the and the it longer net XX% Our in are the of more few and track In proved first able quarter goals. a QX we The to second sequentially investment sticky temporary invest that were smaller we retain year as continued into hurricanes. joined and half business media on to half from last our the to sales as lower deliver established
was pet where growth was was down fresh broad based, XX%. was eight refrigerated Even more consumption XX% measure up mass year X%. was than was the up speciality in consumption XX% points more in than fresh quarter. and up our versus business Nielsen where grocery than greatest The the category more growth ago up was the refrigerated Our in
business drag fresh the advertising in increases baked and in our line made As primary XXX is new on the rate for result based the the We did in the of of This advertising growth velocity the experience fridge household points year-to-date. basis continued our investment and investment XX% of be driver strength increases to refrigerated growth quarter. our in This business. largely about growth would that we've expect of we what with we the made our product resulted buying from continued core in increase the that of was placements. specialty about contributing This the XX% of in accounted simply quarter. highlights penetration behind
adjusted We be to third sales, Adjusted scale, beginning to EBITDA continue previous ago EBITDA year the at benefits the quarter increased forward. added the quarter year. of to guidance a net advertising you going we and previous strong the gave manufacturing growth and compared team the reduced our to versus exceed due we the performance of are contributor to expected the We by when higher the to period well significant positioned our the period investment. the most for believe
profit drivers lines. adjusted a gross as margin can the to the of investments. of near net where drive in expansion a yield of year manufacturing end plan we our both a was team critical a virtuous versus improvement gross $X.X gross that velocity up in improvement fuel business rate is increases drivers and were XX.X% that in of optimize improvement dollars and scale hit term for confidence performance our XXXX, point in help invest increase QX. us incremental this and adjusted part advertising and distribution increase X.X One adjusted the in increased The goal by our further margin key profit that adjusted three margin marketing gains made point support biggest growth of run will we sequential we economies the profit cycle points resulting new million by added This by can gives EBITDA of Adjusted XXX increased margin. strong our throughput of was our adjusted the gross quarter gross basis
Our the end quarter. in of the net net new at store count stores an was XX,XXX, increase XXX the quarter of
new stores During are than changes. and change quarter first premium higher open is and Freshpet in these margins Freshpet QX Leading the quarter do I with my the recognizing build fridge the mass and add remodel that rapid want retailers that. choosing part and added the of we from America. added of in Top our when XXXX to of retailers I since any to growth representing revenue XX they or for stores conversations store, critical are included we've XXXX clearly to category more retailers of grocery benefits a the profit major have make to a how fridges shifted space decide find Many brands set around offers new
However, experiencing the the recorded year bankruptcies we locations. closings or close in a closings, through experienced also underperforming more store significant we of closings this have XXX number go to are date. retailers year Year-to-date certain store in XXX prior increase store we as than
retailers. amongst would independent XX% of have of only our and in when of expect closed mass doors from grocery chains approximately per number you The were chains came losses those to smaller Independents pet closings Top XX As and stores, store. largest about sales XX% the who lowest tend
neighbouring the have for closes We're note QX. a in better that that how stores our not important we volume the store potential where but performing stores moves part in closings fridge. on year net we already is reiterating store depending target many I in experience to oftentimes does think volume stores those store when most is bought go a it to to of the away,
store are driver. closures We add advertising ability and confident increase penetration in investment our of behind stepped up business increasing to household our remain and on continue we regardless primary to our future focused stores as velocity further
to in food. premium on environment competitive the Finally, evolving pet comment I want
have engagement year Freshpet trends highly from any As brands for their there for is increasing most retailers our continued it have little distribution consumer to more. and over the from we is that proposition To-date brand. and a and our interested been competition. These will well the distinctive remain there uninterrupted the be that have mass business. been in very specialty lost reaffirm retailer distribution; not that us of and growth expect results their shifted both with you there's insulated past impact on know very grocery outlets our We've pet certain
the the category We of of increased these that that across a brands arrival also other longer term is in premiumization all our phenomenon lead to business. believe retailers for will grocery mass good
we future. In feed remain confident for brand the are we Going pleased we made and progress the quarter. with summary forward our growth a we that foreseeable strategy strategy the us winning positions in winning against the that well have
changing we strategy are retail and in further into an ability to reduce well scale strengthens can our against and competitive the Freshpet insulated confidence business ever strong strong that that demonstrated because. continued prove environment increase rapidly model with our business our This We growth, and margin a meaningful profitability. cost
discuss to results Kassar, here and the the a provide our more Financial view Now the balance Officer. detail Chief Dick is of year for in
