Overall restaurant traffic in the US was resilient by holding steady at around 90% of pre-pandemic levels for much of the quarter.
Traffic at full service restaurants was 70% to 80% of the prior year levels for much of the quarter.
Traffic and demand at non-commercial customers, which includes lodging, hospitality, healthcare, schools and universities, sports and entertainment, and workplace environment was fairly steady at around 50% of prior year levels for the entire quarter.
In retail, consumer demand continued to be strong with weekly category volume growth between 15% and 20% versus the prior year.
In Europe, which is served by our Lamb Weston Meijer joint venture, fry demand during much of the quarter was similar to last year, but softened the 75% to 85% of prior year levels during the latter part of the quarter as governments reimposed social restriction and as the weather turn colder.
As you may recall, unlike in the US, QSRs in Europe generally have only limited drive-through capabilities.
For the quarter, net sales declined 12% to $896 million.
Sales volume was down 14% largely due to fry demand at restaurants and foodservice being negatively impacted following government imposed restrictions to contain the spread of COVID, as well as colder weather beginning to limit outdoor dining across many of our markets.
Overall, as Tom described earlier, restaurant traffic and our sales volumes in the US stabilized at approximately 90% of pre-pandemic levels, although performance varied widely by sales channel.
Price mix increased 2% driven by improved price in our Foodservice and Retail segments as well as favorable mix in retail.
Gross profit declined $62 million as lower sales and higher manufacturing costs more than offset the benefit of favorable price mix and productivity savings.
Since we typically carry upwards of 60 days of finished goods inventory, we realize the impact of these costs in our second quarter income statement as we sold that inventory.
We expect to continue to incur COVID-related costs through at least the remainder of fiscal 2021.
SG&A declined by nearly $8 million in the quarter, largely due to lower incentive compensation expense accruals and a $3.5 million reduction in advertising and promotional expense.
The decline was partially offset by investments to improve our operations and IT infrastructure, which included about $5 million of non-recurring consulting and training expenses associated with implementing Phase 1 of our new ERP system.
Equity method earnings were $19 million, which is up $4 million versus last year.
Excluding the impact of unrealized mark-to-market adjustments equity earnings increased about $2 million due to better performance by our European joint venture.
EBITDA, including joint ventures was $213 million which is down $48 million.
Diluted earnings per share in the quarter was $0.66, down $0.29 largely due to lower income from operations.
Sales for our Global segment, which generally includes sales for the top 100 North American based QSR and full service restaurant chains, as well as all sales outside of North America were down 12% in the quarter.
Volume was down 11% due to softer demand for fries outside the home, especially in our international markets.
Shipments to large chain restaurant customers in the US of which approximately 85% are to QSRs approach prior year levels as QSRs leveraged drive-through and delivery formats.
International sales, which historically comprised about 40% of segment sales, we're at about 80% of prior year levels in the aggregate, but vary by market.
Price mix declined 1% as a result of negative mix.
Global's product contribution margin, which is gross profit less A&P expense declined 28% to $93 million.
Sales for our Foodservice segment, which services North American foodservice distributors and restaurant chains generally outside the top 100 North American restaurant customers, declined 21% in the quarter.
Segments to smaller chain and independent full service and quick service restaurants tracked around 70% to 80% of prior year levels through much of October, but slowed to 60% to 70% in November, following government's reimposing, social restrictions and as colder weather tempered restaurant traffic in some of our markets.
Shipments to non-commercial customers improved modestly since summer but remain at around 50% of prior year levels, with strength in healthcare more than offset by continued weakness in the other channels.
Price mix increased 4% behind the carryover benefit of pricing actions taken in the latter half of fiscal 2020.
Foodservices product contribution margin declined 21% to $88 million.
Sales for our Retail segment increased 7% in the quarter.
Price mix increased 7%, primarily reflecting favorable mix benefit of selling more of our higher margin branded portfolio of Alexia, Grown in Idaho and licensed restaurant trademarks.
Sales of our branded products were up about 30% which is well above category growth rates, which ranged between 15% and 20%.
Retail's product contribution margin increased 6% to $30 million.
In the first half, we generated nearly $320 million of cash from operations, which is down about $25 million versus last year, due to lower sales and earnings.
We spent $54 million in capex, including expenditures for our new ERP system.
We paid $67 million in dividends and a few weeks ago, announced a 2% increase in our quarterly dividend.
As we discussed in our previous earnings call, in September, we amended our credit agreement to put in place a new three-year $750 million revolver.
At the same time, using a portion of the more than $1 billion of cash on hand, we prepaid the approximately $270 million outstanding balance on the term loan that was due in November of 2021.
At the end of the second quarter, we had more than $760 million of cash on hand and our new revolver was undrawn.
Our total debt was $2.75 billion and our net debt to EBITDA ratio was 3.1 times.
Specifically, US shipments in the four weeks ending December 27, were approximately 85% of prior year levels.
In our Global segments, shipments to our large QSR and full-service chain customers in the US, were more than 95% of prior year levels.
In our Foodservice segment, shipments to our full service restaurants regional and small QSRs and non-commercial customers in aggregate were 60% to 65% of prior year levels.
Shipments to non-commercial customers, which have historically comprised about 25% of the segment's volume were roughly half of prior year levels and will likely remain soft for the remainder of the quarter.
In Europe, shipments by our Lamb Weston Meijer joint venture were approximately 85% of prior year levels, continuing the softer demand that we realized during the latter part of the second quarter.
With respect to contract pricing, after completing discussions for contracts that were up for renewal, we expect pricing across our domestic large chain restaurant portfolio in aggregate to be flat versus prior year.
We believe that the restaurant traffic will gradually recover to pre-pandemic levels by the end of calendar 2021.

Summary:
As you may recall, unlike in the US, QSRs in Europe generally have only limited drive-through capabilities.
For the quarter, net sales declined 12% to $896 million.
Sales volume was down 14% largely due to fry demand at restaurants and foodservice being negatively impacted following government imposed restrictions to contain the spread of COVID, as well as colder weather beginning to limit outdoor dining across many of our markets.
Price mix increased 2% driven by improved price in our Foodservice and Retail segments as well as favorable mix in retail.
We expect to continue to incur COVID-related costs through at least the remainder of fiscal 2021.
Excluding the impact of unrealized mark-to-market adjustments equity earnings increased about $2 million due to better performance by our European joint venture.
Diluted earnings per share in the quarter was $0.66, down $0.29 largely due to lower income from operations.
We paid $67 million in dividends and a few weeks ago, announced a 2% increase in our quarterly dividend.
With respect to contract pricing, after completing discussions for contracts that were up for renewal, we expect pricing across our domestic large chain restaurant portfolio in aggregate to be flat versus prior year.
We believe that the restaurant traffic will gradually recover to pre-pandemic levels by the end of calendar 2021.