It has a great name for it. So — but in general, if you think of our innovation strategy on both brands, it’s all about incremental. And if that overlaps with more function and leading into function, I think that’s great. But again, our focus is being incremental to the current line.
John Baumgartner: Okay, thank you very much.
Darcy H. Davenport: Thanks.
Operator: Thank you. Our next question will come from Ben Bienvenu with Stephens. Your line is open.
Unidentified Analyst : Hi, guys. This is Jim for Ben. Congrats on a good quarter. I’d like to ask on feed mass, you guys posted really strong results there. Is that just because the in-stock rate is improving as the capacity constraints start to alleviate, can you just give us some detail on what’s going on there?
Darcy H. Davenport: I assume, Jim, you’re talking about Premier?
Unidentified Analyst : Yes, go ahead.
Darcy H. Davenport: Although both brands had a great quarter in FDM, but yes, in Premier that channel, like so FDM, those channels were most affected by our capacity constraints last year. So yes, so better in-stock rates are really driving those improvements. We’ve gotten some minor distribution gains, just really more stores that are factoring in as well, but the primary reason is just better in-stocks. I think you know this, but our biggest opportunity really is FDM. So I think that just — I think we’ll continue to see strong growth within those channels from here on out.
Unidentified Analyst : Is there a certain point that you guys said, whether it’s consistency, same stock or maybe shelf velocity that you guys can move from kind of in-aisle for the NCAP because I know sometimes in the mass channel, the shopper might not go into the aisle where the shakes are. They’re not specifically looking forward, people have more visibility on the end cap. Is there anything — metric that you need to hit to maybe start to see some of those ships in the store?
Darcy H. Davenport: Just improved in-stocks. We need to have enough product that not only are we filling out the shelves, but we have extra product that we can also fill up the NCAP. So directly related to production capacity, it will flow in. We’ve been asked by many customers, if we can do NCAP. We have held off. We actually did get some display in January, but in a couple of stores. But in general, this is the capacity — it’s a capacity thing. We just need more products, and then we can sell it to shelf.
Unidentified Analyst : Okay, great, thank you. I will pass it on.
Operator: Thank you. Our next question will come from Bryan Spillane with Bank of America. Your line is open.
Bryan Spillane: Hey, thank you operator. Good morning everyone. I just wanted to start with just a clarification first and then I had one question. I think Darcy in the prepared remarks, you mentioned that in 2024 you’d have a 20% incremental capacity or extra capacity available for Premier shakes. And I just want to make sure the 20% you’re talking about is volume, right, not revenue?
Darcy H. Davenport: Correct.
Bryan Spillane: Okay, thank you. And then I guess, this question is for both you, Darcy and Paul. And as we’re kind of thinking about modeling out beyond even next year, so kind of thinking about fiscal 2025 and kind of normalization of margins. I guess at the peak, gross margins were 36% and EBITDA margins were in the mid-20s. Obviously, there were some anomalies right, that affected gross margins that I think promotions weren’t — you weren’t promoting as much. But just I guess, if we’re trying to model the business going forward, right, and trying to balance margins, but also funding growth and given just you’ve got more co-man capacity, I think there’s some structural costs here that are higher, but you’ve priced, is a mid-30s gross margin still achievable, should it be maybe more low 30s?
