good and everyone. Tom morning Thanks
by comments hard thanking dedication. appreciate We echoing start me Tom’s Let employees. our and work your
efforts significant inflation through pricing cost to feel the ability Tom As much the am manage from environment. to and in and experiencing our volatile business that benefits I discussed to we about this actions offset been our cost we’ve of continue confident good savings
continued due offset labor to our the service that also transportation mix in segment announced execute served as fully the demand serve in our while favorable. we actions, XX% quarter, especially X% as $XXX well to market segment, inflation. shipments input, restaurant to constraints, product quarter customers each by Specifically, and our large partially increase Most factories our these are and logistics America shipments resulting our in were production lower global throughput Price of segments at decline. through offset previously of runrates in unable Sales our food cost shortages. Increased reflects and mix pricing and in international North for increased to the as business volume chain million. pricing up our from as sales was actions was X% the we manufacturing volumes our to freight declined
it points availability quarter favorable sales more of Gross in effect on and was gross variant’s and versus year along and increased increases, the tempered basis channels, lower supply than prior and pound the price labor of mix keep the margin offset and than a restaurants facilities to on XXX the with volume while million. open our However, per more freight production basis increased sequentially to impact costs the points by XXX higher chain. quarter Omicron by in Product profit on $XX restaurant on these traffic, negative expanded volumes. basis XX%. We
quarter increase double-digit accounted cost. cost in key pound costs, that for and the the in all the Looking straight essentially areas increase There increase at the our per inflation the of third drove drove four were quarter. in for
led due to and ingredients commodities also role cost played the and coatings First, batter factory for by Labor competition packaging. oils, increased biggest for edible other workers.
continued logistics the global rates persistent to climb transportation in to Second, disruption due networks.
for to meet of certain trucking use an mix service obligations cost versus rail also continued higher to customers. unfavorable We
potato the we premium potato shared prices; the volume running cost open began are Midwest expectations production of line quarter we to until the to poor in our to was quality the our lower you rates see The crop potato regions. begin in enough utilization transportation potato crop potatoes reflects we lines costs, fall in higher all that deliver purchasing with from Eastern secured market from Northwest; to and resulting for lower how last the July. to Third, to potatoes the increase we’ve increase low America our in performing forecast significant decrease speeds potatoes varieties and potato potato the cost harvested harvest primary North at contracted we accommodate with plants early utilization in shipping is in in last Pacific in potatoes. a costs and storage believe growing higher that our The at the rates, and impact
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costs other continue savings these cost effect mitigation offset winner's and cost largely As by in quarter. lower of a and see I’ll efforts including quarter from product runrates in third impact discuss we’ll to eliminating changes the production increased initiatives. fourth underperforming of was to utilization later, saving the productivity potato and The one the specifications, our SKUs, of range
that managing well led things We we good year-over-year sequential feel which poor and crop gross expansion. about inflationary we highly the how environment. short, margin the potato are to and control, can we controlling in are So those through
and the earnings $X to including million enterprise promotion release related projects Lamb mark-to-market of on currency largely primarily chain million million and expense $XX higher commodity quarter Equity due associated relates at design compensation million SG&A the Weston/Meijer improving offset $X The to commercial planning was the unrealized from next and included in a ended. and sales, derivatives adjustments of decline value The quarter, technology new with quarter commodity changes a operations information associated cost and gain experienced in significant infrastructure our Overall SG&A gas expenses volatility. system. as our expenses. partially in in to fare supply large benefits the and hedging advertising to a resource in cost have mark-to-market by those the with of gain decline declined consulting contracts. markets $XX lower method as natural cost, in Moving were
$X input U.S. the Europe million mark-to-market Excluding quarter. of in and these increased sales impact and Favorable mix earnings both prior higher equity manufacturing adjustments, volumes inflation largely higher and were the offset versus and cost distribution price by
freight of of freight. up and historically and the declined Higher were total the also as X% as well our Moving It of million. distribution price volume sales the and $XX manufacturing our due global charged more rate international container due a increased to product slower year casual in segment’s fell advertising prior large pricing negative which versus networks. renewals expenses offset QSR to associated benefit to sales quarter. prices previous domestic customer cost shipping to nearly Sales than increased but Volume reflects contribution actions X%. for to contract inflation-driven profit per price shipments, in X% limited American restaurant mix ocean higher at quarters margins, promotional volumes quarter reflecting with North traffic. segments, the impact X% escalators. on consumer have segment Global’s which customers XX% for than Price is less accounted down the about the impact gross availability disruptions International favorable and XX% Omicron’s pound, were mix. lower volumes and to and dining
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As in the XX% mitigate fiscal the X% quarter and third to benefits of this the from the mix second actions pricing increase inflation accelerated in we product food continued as of that rate expected, freight build. implementing service’s to to sequentially year the began earlier price in quarter
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not shipments restaurants to returned shipments have fully channels our to levels, have our to pre-pandemic essentially yet non-commercial rebounded. While
restaurants on Omicron’s restaurant to the by availability restaurants. with volume As and in segment’s segment, in was negative large traffic our chain sales global service those our tempered labor food impact growth
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million $XX buyback shareholders million $XXX spent shares to including million construction capital in have and our $XXX $XXX the $X about and nearly and nearly China. third our of Moving of quarter, returned remaining That’s repurchasing higher the revolver. expenditures million of about liquidity earnings. cash continued to of quarters our Through under share and expansions cash primarily in in quarters operations. of million million under of the capital the down billion capacity million our dividends generated we and cash to and of with Year-to-date, just We’ve quarter $XXX million on in ended versus also $XXX three undrawn more first three repurchases. as position we authorization. flow, After $XXX million $XXX the our we’ve we lower than in year, working Idaho first year prior from the due $XXX we availability cash
let’s Now our XXXX updated to turn outlook. fiscal
previously full and and our of cost offset to the expect inflations. we expect mix We we growth year transportation our our sales quarter, above In by to long-term actions announced target be to execute digits. input low to product sales as driven pricing to fourth be continue transportation price mid-single
and supply inflation and restaurant continue demand volatility variants sales container and shortages, volumes chain as due expect our as traffic slow to factories will markets. to and shipping the challenge we be U.S. COVID the of key persistent and to due However, export availability, limited labor and consumer volumes in effect throughput international constrained pressured at remain runrates may
puts note outlook. we lapping be that provided update the XX%. This In be range to XX% margin we’ll XX% we to the in the that us addition, please the our full comparison at high XX% a gross respect in volume year. our will high With to previous end of earnings, prior for year, expect
of be to execution implementing confidence higher our and product increase at market. price the comfortable pace end are currently of range the and that of the freight that in in We because we’re
with January the the We broad our cost Since we quarter down quarter sequentially potato in the million estimate, in are third year’s levels margins It inventory cost includes and high to poor the impact incremental XX%. in margin our third clarity also as our year during progress and of and XX% have omicron-related from making these inventory, up reflects that days were in invest margin realize expect more the in The build of supply disruptions. production costs full quarter Based the is the higher as goods that fiscal be and our to finished updated initiatives. produced and and worker our expect design February we’ll hold driving based very impact million XX of quarter held resulted operations These net gross mitigation crop part delivered SG&A finished fourth gross usual fourth goods of we gross to margin from XX% and this steady factory cost That’s by in XX our ERP we behind continue $XXX on to to inefficiencies our on significantly savings during our we stabilizing in quarter. in typically inventory the step seasonality. were new $XXX associated in system. we absenteeism expenses driven to costs sold. fourth low we to that chain
remain equity higher to the of inflation in We input cost impacts manufacturing Europe and both the pressured will U.S. mark-to-market any expect and cost adjustments excluding earnings due
an the million quarter; the estimate with of to effective approximately we $XXX to continue of and the redeemed projects rate in For the approximately We’ve our expense to previous of target in million our timing second of to year, we million expect related expense tax reduced the our $XXX expansion approximately interest capacity and XX%. million expenditures expenditures amortization associated $XXX notes total depreciation and our Idaho be $XX for reflect cost capital of that to excluding from $XXX million senior China.
our So we and in our in delivered expanded mitigation actions pricing sum, the third sales solid gross and our behind growth cost margins efforts. quarter,
For of steady to chain. cost the to our supply the targeting The gross offset inflation. progress end pricing in stabilizing on our our in more margin we potato upper year, our clarity and execution we that in have now the are are previous due confidence that range making our labor we
comments. Now, here is closing Tom for some
