Welbilt, Inc. (NYSE:WBT) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 10:00 am ET
Thank you. [Operator Instructions] Your first question comes from Tim Thein of Citigroup. Your line is open.
Thank you, and good morning. Maybe one for Josef or Bill. And just with regards to the Americas, we're essentially looking at, call it, flat year-to-date organic and given some pricing, I assume, it implies slightly down volumes, it just -- as we came into the year and there was a bit more optimism, just across the space with regards to the prospect for 2019. So, maybe just update us in terms of some of those discussions you've had that you've call out large chains a number of quarters and I don't know if that's just a general pause you think or is it just kind of ongoing friction of between some of the franchisees or all the above.
And then as it relates to looking further out the targets for outgrowth of 1% to 2% on an organic basis, do you still feel good about that? Thanks a lot.
Yeah. So, lots in that question. I would say that we felt pretty good about the -- we feel pretty good about the general market, the general market has kind of performed the way we thought it would perform. And up and through kind of July even, I would say, the QSRs were on track. And then we saw a shift in the latter half of the quarter in the QSRs and more shifting out of the quarter and out of the year. I think the weakness that we see in the Americas, certainly, comes from that piece of the business. The general market -- in general performed exactly how we thought it would perform through the quarter.
As we look, going into the fourth quarter, what we've modeled, there is probably some pre-buy activity getting in front of our price increase in January that we've modeled in a little bit. But I would say that's the color on the Americas.
Yeah, Bill. And looking forward, maybe a couple of more data points here, the project topper is still pretty active in the QSR segment and in the general market. So, we're not looking at this is a detrimental back to here [Phonetic] versus just some project being delayed. Our new innovations have been performing extremely well in the market and we are in the test period with quite a few franchisees and including the general market. So, overall, I still feel pretty good where we are and where we're going.
But with that said, there certainly is softness in the market that overall, when you combine the two segments together and we -- that softness has continued.
Your next question comes from Jeff Hammond from KeyBanc. Your line is open.
Hi, good morning guys.
Can you just talk about, I guess, I'm trying to parse out this manufacturer kind of what's disruption and what's kind of deleveraging from the lower volumes, because it seems like some of