Chris Growe : Thanks so much.
Bernadette Madarieta : That’s based on pounds and not based on business or dollars.
Chris Growe : Okay, great. Thank you for that.
Operator: Our next question will come from Adam Samuelson from Goldman Sachs.
Adam Samuelson : Yes, thank you. Good morning, everyone.
Tom Werner : Good morning, Adam.
Bernadette Madarieta : Good morning.
Adam Samuelson : Good morning. So I guess first question maybe on the demand environment. Some of this was in the prepared remarks, but I’d love to just hear you expand a little bit on just maybe different parts of Global between the domestic QSRs versus international? Foodservice traffic trends? And just as your customers absorb some pretty sizable kind of price increases, just the confidence that you don’t see any changes in fry attach rates from the consumption perspective.
Tom Werner : Yeah, Adam, overall, I feel really strong about the health of the category. And we’ve purposely had to make choices across our segments to support our customer base, and we’ve really focused on product/mix management across the portfolio and the customers. So the QSR segment continues to be really healthy. As we stated in our prepared remarks, the fast casual, casual dining is experiencing some weaker traffic. Although it’s improving versus where it was in the first quarter, but we’re also making choices and in terms of customer and supporting customers based on product mix and our capacity. And there are still challenges within our network to produce and get back to the levels where we were pre-pandemic. And the team, the supply chain team is working on that.
And it’s going to take us the balance of this year to continue to focus on things to improve that. So the category is healthy. And yes, our volume is a little soft in some areas. That’s traffic driven. But over the long-term, when I look at the category and think about the next two, three, five years, and the investments we’re making, we’re going to be well positioned in a couple of years to bring on capacity and drive opportunities that right now we’re making choices that we don’t necessarily like we got to support our key customers going forward.
Bernadette Madarieta : Yeah. And just to add to that, Tom, in addition to the softness that we have in the casual dining. More of that softness though is just related to the supply chain constraints that we’ve been experiencing. But overall, absolutely, our demand has returned to the pre-pandemic levels on a run-rate basis prior to what we saw with war in Ukraine.
Adam Samuelson : Got it. And if I could maybe follow on the point on just capacity a little bit. You talked earlier about some of the product/mix impacting kind of throughput rates and kind of what you could actually produce from an end product perspective? I mean, do you think with the current product mix, if you were properly staffed and there wasn’t raw material constraint around potatoes that the current capacity with this mix could produce the same volume of finished product that you did pre-pandemic? Or does the actual mix that you’ve kind of shifted to as it stands right now actually constrain your — physically constrain your output going forward?
Tom Werner : Yeah, Adam, so I know the team is working on getting to pre-pandemic levels, but the reality is the choices and the mix that we’re now producing really oversimplifying it, we have to slow lines down when we’re making coated product. So we can’t run as fast. And so, there is some capacity disadvantages to running premium products. That’s just a fact. However, I think the mix of the portfolio bodes well going forward for the profitability of the company.
