Steve Oakland: I’d say a couple of things. Let me step back and talk about December. For us to have the kind of fourth quarter we had in a good, solid December, December is a very much a national brand month. And like you say, it fell back to where it normally is. When people entertain for the holidays, people lean in, right? So it’s not uncommon for the month of December, specifically in November, for Thanksgiving to have stronger branded shares, right? So if you go back and look at our business over time, you see that, right? So we performed as we expected. We performed over the holidays and had a good solid fourth quarter. No, I would suggest that our volume trends, and we obviously have access to many of our retailer’s daily scanner data, right, and weekly scanner data. Our volumes are not slowing down based on price cap. So that has not impacted our demand signal yet.
Connor Rattigan: That’s great. And then just one quick follow-up on service levels also. So if I recall, service levels last quarter were around — up around 93%. And I think you guys quantified about 96% in October. So with the 100 basis point sequential increase, so was that number sequentially increasing to 94%? And so if so, it sounds like service levels worsened somewhat in November and December. Is that right?
Pat O’Donnell: Yeah. I think we had a solid month in October, and we did sort of land at about 94%. I think some of the things that Steve described earlier in terms of some of the weather events and the like are probably what dampened that a bit as we sort of exited the year.
Connor Rattigan: Okay. Perfect. Thanks for the color, guys. Appreciate it.
Steve Oakland: Thank you.
Operator: Your next question comes from the line of Rob Dickerson from Jefferies. Your line is open.
Robert Dickerson: Great. Thanks so much. Just a couple of questions. I guess first question, kind of more broadly speaking, just given kind of the macro backdrop where the consumer is and all the pricing taken, especially on the branded side. Do you — is a sense here, right? I mean the operating environment is obviously in a great spot for you on the private label side, but let’s just say we don’t really see a lot of branded deflation. Like would you say that over the next three years, just given your guiding at this point, that you believe maybe you were entering some sort of beneficial cycle that could be a little longer term, just given kind of where the price deltas are and given elevated absolute prices on the branded side? That’s the first question.
Steve Oakland: Rob, I would say we guided based on a much more historic level. I think you’re right, these are different times, right? The absolute price gap — we’re looking at percentage price gaps, but that absolute penny gap is high. So if that when things normalize, could that drive more private label adoption? We’ll see. I think — and I’ve said this a number of times, I think private label is positioned, and I had a conversation on Friday, frankly, to put one of our largest customers. And they’re convinced that their private label assortment, quality and presentations the best it’s ever been. So I think time will tell, right? I think, though, if we can get back to historic growth rates, we build a hell of a TreeHouse, right? If it gets better than that, that would be great. But I don’t think we need that to happen for us to execute the way we’ve guided.
Robert Dickerson: Okay. Fair enough. And then just on the longer-term plan, obviously, ongoing implied margin expansion year-over-year. I think, I heard you say earlier kind of ongoing productivity measures. Obviously, pricing catches up this year and then supply chain improvements. At the same time, if you’re looking forward, I guess, this is implied through at least 2026. So you definitely have some sense of conviction, right, on your ability to continue to increase those margins. Is there anything else in there? Is this — is there a mix impact? Do you kind of have visibility or maybe some of the forth-coming innovation? Because if we assume, it is mostly volume-driven kind of in the out year, then it would seem like there’s got to be some mix component and maybe some volume leverage as well. And then a quick follow-up.
Pat O’Donnell: Yeah, Rob. This is Pat. I think there’s — as we think about — Steve laid out the elements of our strategy and strategic customer partnerships and trying to grow with those customers that are growing private label. I mean that is the trucks of the strategy. And so I think as you grow with those who are growing faster in private label of that, I think that probably naturally improves your mix a little bit. But I do think a lot of that has to do with the volume growth and trying to grow overall with the stronger rates of the categories, and then trying to improve our supply chain with the investments that we’ve put in place and the range of CapEx that we think is necessary to do that.
Robert Dickerson: Okay. Cool. And then just quickly, D&A, I know you guide to EBITDA, but at the same time you are investing a little bit on the capital side. Do you have a forecast for ’23 for D&A?
Pat O’Donnell: We do. I don’t think we put that — we put that out. We’ll have to probably follow up with you on the exact number.
Robert Dickerson: Cool.
Steve Oakland: Great. Thanks Rob.
