Probably..but that's not actually what he was refering to.
Dingodile is the second boss in Crash Bandicoot: Warped. His attack is a flamethrower. In the particular scene he says this line in, is when you first warp to his level. He has cornered a penguin, and is about to roast it with said flamethrower. After you warp in, he quickly turns his attention to Crash, gets the flamethrower ready, and says "Bring out the butter, I'm making toast!" in reference to the fact that he's about to set Crash aflame.
According to bios on Crash Team Racing, it hints around that Dingodile is extremely intelligent. Possibly smarter, even, than Cortex. It also suggests that he's very indipendant, and probably wouldn't work for Cortex unless he could benifit from it somehow.(because he started a hybrid breeding program; sort of a weird pet store thing) The new games suggest otherwise..which is rather annoying. The new games also made him fatter, when a lot of his weight is likely muscle. Dingodile is really more of a hot-tempured, caffieneless smart person, rather than the evil minion do-what-you're-told guy that the newer games make him out to be. I just like to pretend that every game after Naughty Dog doesn't exist. Naughty Dog ended with CTR, and the character bios at the end contridict with the new games. So there, Sierra. NYEH.
.... My dad says that I'm quite possibly the biggest old-school Crash Bandicoot nerd that exists.