Now, here’s what I would tell you, what we try to do in the meantime is, when we see pullbacks, we try to buy opportunistically with forward agreements. And lock in some of the favorable pricing period-on-period because, what we don’t know is hey is there going to be another shoot [ph] drops a bad crop in Brazil, a bad soybean crop in the US, because weather is something else. So, what we’re trying to do with this plays out is by when there’s an advantaged opportunity to lock in favorability until we get to a point where the policy side of it works itself out.
Todd Brooks: Knowing that your ability to contract and lock going forward and strategies around that varies based on price and the ability to do so. Tom, if you’re looking at the commodity basket, second half of the year, which I would expect to have pretty good visibility into at this point. How does it compare to the 2Q reality on kind of the commodity piece of PNOC?
Tom Pigott: Yes. We’re looking at deflation at similar levels with some moderation in the fourth quarter, but there are pieces that you really can’t forward cover like the basis we pay to process the soybeans, things like eggs are more difficult. So there is just cautioned it’s like there’s some unpredictability in all of this. That’s the outlook we have.
Dave Ciesinski: Tom makes a great point. We’re all keeping our eyes on what’s happening with AVI, the avian influenza that’s out there.
Todd Brooks: Okay. Great. Thank you all. Congrats.
Dave Ciesinski: Thank you, Scott.
Operator: Thank you. One moment for our next question. And our next question comes from Robert Dickerson of Jefferies.
Robert Dickerson: Hey, guys. Sorry, just a very easy quick follow-up. Just the balance sheet, right? I mean you talked about in the script cash balance is great. CFO was good coming through the quarter. Clearly you still have no debt. And some of these ERP initiatives clearly are rolling off. So we think margins going up, I assume kind of cash flow gets back to a pretty place and you don’t have any debt. So I guess more from a managerial perspective, it doesn’t seem like you have a tremendous amount of kind of organic cash or CapEx needs outside of traditional working capital. So — and you’ve also been fairly quiet, let’s say for a number of years, for some time on the acquisition front, but there could be some cash build. So maybe just — maybe provide any incremental color that you can — how you’re thinking about that cash just outside of the standard verbiage on dividends et cetera? Thanks. That’s it.
Tom Pigott: Sure. Yeah. So I think we still see opportunity to invest in the business. We’ve made the big investment in Horse Cave which certainly helps us from a capacity standpoint. But as we look at kind of into the future, certainly, there’s automation opportunities that we want to invest in with the labor market remaining tight. And those are good return projects. So we’ll continue to invest back into the base. That’s always priority one. That’s our best return in lowest risk investments. And then when you look at M&A, our strategy is to really look at opportunities where we can lever our core competencies, really in dressings and sauces is kind of our focus area. We see sauce category continues to be a nice growing space.
And so we’re going to continue to look at opportunities in that space to really continue to grow this area of dressings and sauces where we tend to have strong culinary capabilities, nice retail sales team that’s able to execute well. And with the Horse Cave investment, we have high-speed lines and capabilities to produce at a very low cost. So that’s the focus of our M&A strategy. And certainly, now that we have the SAP project behind us as well as the Horse Cave expansion, we’re certainly more open to looking at opportunities to scale the business further.
Robert Dickerson: Perfect. Thank you.
Tom Pigott: You’re welcome. Thanks, Rob.
Operator: Thank you. If there are no further questions, we will now turn the call back to Mr. Ciesinski for concluding comments.
Dave Ciesinski: Well, thank you, everyone. We really enjoyed meeting with you today. We look forward to being with you again in May when we report our next quarter’s results. Have a good rest of the day.
Operator: This concludes today’s conference call. Thank you for participating and you may now disconnect.
