Core Viewpoint - Traeger reported quarterly earnings of $0.01 per share, matching the Zacks Consensus Estimate, and showing improvement from a loss of $0.08 per share a year ago [1] - The company achieved revenues of $168.64 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.44% and up from $163.48 million year-over-year [2] Financial Performance - Traeger has not surpassed consensus EPS estimates over the last four quarters, with the latest quarter reflecting a loss of $0.06 per share as expected [1] - The company has topped consensus revenue estimates four times in the last four quarters [2] Stock Performance - Traeger shares have declined approximately 6.3% since the beginning of the year, contrasting with the S&P 500's decline of 0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $150.24 million, and for the current fiscal year, it is $0.18 on revenues of $624.28 million [7] - The trend of estimate revisions for Traeger is mixed, which may change following the recent earnings report [6] Industry Context - The Consumer Products - Discretionary industry, to which Traeger belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially affect stock performance [5][8]

Traeger, Inc. (NYSE:COOK) Q4 2024 Earnings Conference Call March 6, 2025 4:30 PM ET Company Participants Nick Bacchus - Vice President, Investor Relations Jeremy Andrus - Chief Executive Officer Dom Blosil - Chief Financial Officer Conference Call Participants Anna Glaessgen - B. Riley Brian McNamara - Canaccord Genuity Peter Keith - Piper Sandler Megan Clapp - Morgan Stanley Operator Good afternoon. Thank you for attending the Traeger, Inc. fourth quarter and full year 2024 earnings conference call. My nam ...

"I am pleased with our solid finish to Fiscal 2024. In the fourth quarter, our grill revenues were better than expected, driven by healthy consumer demand at retail as well as load in of our new Woodridge series of wood pellet grills. We again saw significant gross margin expansion, which allowed us to exceed our Fiscal Year 2024 Adjusted EBITDA guidance. Qverall, we made a lot of progress on our key strategic initiatives in 2024. This includes increasing brand awareness and market share, investing into our ...

Revenue Performance - Total revenues increased 3.2% to $168.6 million in Q4 2024, compared to $163.5 million in Q4 2023[4] - Grill revenues surged 30.2% to $78.0 million in Q4 2024, driven by higher unit volumes[8] - Full year 2024 total revenues decreased 0.3% to $604.1 million, compared to $605.9 million in 2023[9] - North America revenues increased 11.2% in Q4 2024, while Rest of World revenues decreased 38.6%[5] - The company expects total revenue for Fiscal Year 2025 to be between $595 million and $615 million[18] Profitability Metrics - Gross margin improved to 40.9%, up 410 basis points from 36.8% in the prior year[6] - Adjusted EBITDA for Q4 2024 was $18.4 million, up from $13.0 million in Q4 2023[8] - Full year 2024 adjusted EBITDA increased 34.1% to $81.9 million from $61.1 million in 2023[12] - Gross profit for Q4 2024 increased to $68,890,000, up 14.0% from $60,137,000 in Q4 2023[23] - Adjusted EBITDA for Q4 2024 increased to $18,361,000, compared to $12,982,000 in Q4 2023, reflecting a margin improvement from 7.9% to 10.9%[32] Net Loss and Expenses - Net loss narrowed to $7.0 million in Q4 2024, compared to a net loss of $24.0 million in Q4 2023[8] - Net loss for the year ended December 31, 2024 was $34,008,000, a significant improvement compared to a net loss of $84,402,000 in 2023[25] - Total other expense for Q4 2024 was $8,705,000, a decrease from $11,582,000 in Q4 2023[23] - The company reported a comprehensive loss of $40,612,000 for the year ended December 31, 2024, compared to $96,725,000 in 2023[23] - Stock-based compensation expenses decreased to $4,837,000 in Q4 2024 from $6,023,000 in Q4 2023[32] Cash Flow and Operating Activities - Cash provided by operating activities for the year was $23,888,000, down from $64,042,000 in 2023[25] - Cash, cash equivalents, and restricted cash at the end of the period was $14,981,000, down from $29,921,000 at the end of 2023[25] Interest and Shares - The company incurred interest expense of $33,500,000 for the year ended December 31, 2024, compared to $31,275,000 in 2023[25] - Interest expense increased to $8,192,000 in Q4 2024 from $7,867,000 in Q4 2023[32] - Weighted average diluted shares outstanding increased to 129,174,440 in Q4 2024 from 125,094,571 in Q4 2023[32] Earnings Per Share - The company reported a basic and diluted net loss per share of $0.05 for Q4 2024, compared to $0.19 in Q4 2023[23] - The company reported a net loss per diluted share of $0.05 in Q4 2024, improving from a loss of $0.19 per diluted share in Q4 2023[32]

Group 1 - Traeger, Inc. (COOK) has integrated IoT technologies and new applications to enhance control over its wood pellet grills, which is expected to drive revenue growth and free cash flow (FCF) due to the anticipated expansion in the IoT kitchen system market [1] - The company is positioned to benefit from the growing trend of smart kitchen appliances, aligning with consumer preferences for convenience and technology integration in cooking [1] Group 2 - The analyst has a beneficial long position in COOK shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased perspective [2]

Core Insights - Traeger (COOK) is expected to report quarterly earnings of $0.01 per share, reflecting a significant increase of 112.5% year over year [1] - Analysts forecast revenues of $164.62 million for the quarter, indicating a modest increase of 0.7% compared to the previous year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a reevaluation of initial estimates by analysts [1] Revenue Estimates - Analysts project 'Net sales- Grills' to reach $62.12 million, representing a year-over-year increase of 3.7% [4] - The estimated 'Net sales- Consumables' is $26.97 million, indicating a year-over-year increase of 9.6% [4] - 'Net sales- Accessories' is expected to be $75.76 million, reflecting a decline of 4.1% from the prior-year quarter [4] Stock Performance - Traeger shares have decreased by 4.9% over the past month, contrasting with a 1.3% decline in the Zacks S&P 500 composite [5] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [5]

Product Launch - Traeger Inc launches the all-new Woodridge Series, featuring three models: Woodridge, Woodridge Pro, and Woodridge Elite, combining cutting-edge technology, elevated flavor, and unmatched versatility at approachable price points [1] - The Woodridge Series celebrates 40 years of Traeger's leadership in wood-fire cooking and redefines the capabilities of its grills [1][2] - The series aims to bring quality and innovation to price points accessible for every outdoor cook, marking the most important product platform since the first wood pellet grill was introduced 40 years ago [4] Product Features - The Woodridge Pro offers 970 square inches of cooking capacity, Flavor Optimization, Effortless Cleanup, WiFIRE Technology, Generous Cooking Space, Innovative Design, and Endless Customization [5] - The Woodridge Elite introduces insulated construction for superior heat retention, a 1100-watt infrared side burner, and an enclosed cabinet for secure storage, building on the features of the Woodridge Pro [7] - The Woodridge series transforms outdoor grilling into an art form with new features, advancements, and upgrades [4] Pricing and Availability - The Woodridge series is priced at $799 (Woodridge), $999 (Woodridge Pro), and $1,599 (Woodridge Elite), offering greater accessibility in Traeger's premium product line [8] - All three models will be available at www.Traeger.com and key retailers across the US and Canada [8] Company Background - Traeger Grills, headquartered in Salt Lake City, is the creator and category leader of the wood pellet grill, with 35 years of experience in outdoor cooking [10] - The company's grills are versatile and easy to use, empowering cooks of all skill sets to create delicious meals with unique flavor [10]

Group 1 - Traeger, Inc. (NYSE: COOK) focuses on producing and selling grills and cooking equipment [1] - The company was revisited in early January of this year, indicating a renewed interest in its performance and market position [1] Group 2 - Crude Value Insights offers an investing service and community centered on oil and natural gas [1] - The focus is on cash flow and identifying companies that generate it, which leads to value and growth prospects [1]

Core Points - Ken Cook has been appointed as Chief Financial Officer of Wendy's, effective December 2, 2024, succeeding Gunther Plosch who has held the position since 2016 [1][2] - Cook brings 20 years of experience in finance, having previously served as Head of Financial Planning and Analysis at UPS and CFO for the U.S. Domestic segment [2][3] - The company aims to drive operational performance and improve restaurant profitability as part of its growth strategy, with Cook expected to play a key role in these initiatives [3] Company Overview - Wendy's was founded in 1969 and is known for its made-to-order square hamburgers and commitment to quality [5] - The company operates over 7,000 restaurants worldwide and employs hundreds of thousands of people [5] - Wendy's is dedicated to making a positive difference through initiatives like the Dave Thomas Foundation for Adoption [5]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 4% in Q3 2024, reaching $122 million, with a significant increase in grill revenues by 32% to $75 million compared to the previous year [8][24] - Gross margin expanded by 440 basis points to 42.3%, driven by lower supply chain costs and margin optimization efforts [28][29] - Adjusted EBITDA improved to $12 million from $5 million in the same period last year, with an adjusted EBITDA margin expansion of 610 basis points [8][32] Business Line Data and Key Metrics Changes - Grill category revenues increased by 32% to $75 million, driven by strong sell-through and successful promotional strategies [24][36] - Accessories revenues decreased by 31% to $25 million, primarily due to lower sales at MEATER and a decline in Traeger branded accessories [26][36] - Consumables revenues declined by 11% to $23 million, attributed to revenue pacing shifts, although underlying demand trends remained healthy [20][25] Market Data and Key Metrics Changes - North America revenues increased by 10%, while revenues from the Rest of the World decreased by 40%, impacted by a reduction in sales related to a European product partnership with MEATER [27] - The company noted that consumer demand remains discerning, particularly favoring grills priced below $1,000, indicating a selective spending pattern [10][11] Company Strategy and Development Direction - The company aims to accelerate brand awareness and penetration in the U.S. market, with a focus on community engagement and brand activation [13][15] - The strategy includes leveraging promotional activities to drive sales, particularly in a challenging consumer demand environment [9][10] - The company is optimistic about future growth, with plans for product innovation and a strong product pipeline expected to accelerate into 2025 [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and ability to drive growth, despite a challenging consumer backdrop [23][40] - The outlook for the grill segment has been revised to assume positive low single-digit growth for the year, reflecting strong demand [12][36] - Management acknowledged the need to remain cautious about consumer spending patterns and the overall economic environment [10][49] Other Important Information - The company is increasing its fiscal 2024 financial guidance, expecting sales of $595 million to $605 million and adjusted EBITDA of $78 million to $81 million [9][36] - The company has a healthy liquidity profile, ending Q3 with total liquidity of $177 million [33] Q&A Session Summary Question: Guidance for grills in Q4 - Management indicated that while Q3 grill growth was strong, they expect moderation in Q4, with some marginal growth anticipated [42][43] Question: Competitive landscape in pellets - Management noted that while competition exists, Traeger brand loyalty remains strong, and they continue to focus on quality and marketing [44][45] Question: MEATER's marketing transition - Management confirmed ongoing improvements in MEATER's marketing strategy, with expectations for better performance in Q4 [58] Question: Tariff exposure and mitigation - Management discussed their manufacturing diversification strategy to mitigate tariff risks, with a focus on increasing production in Vietnam and exploring other options [62][64] Question: Gross margin drivers - Management explained that Q4 gross margin is expected to be lower due to product mix and promotional activities, but long-term gross margin outlook remains positive [67][68]