FLO

THOMASVILLE, Ga., Aug. 28, 2026 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced that its board of directors has declared a quarterly dividend of $0.1250 per share, representing the 96th consecutive quarterly dividend paid by the company, which is payable on September 25, 2026, to shareholders of record on September 11, 2026. About Flowers Foods Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods in the United States with 2025 sales of $5.3 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Dave's Killer Bread, Canyon Bakehouse, Simple Mills, Wonder, and Tastykake. Learn more at www.flowersfoods.com. FLO-CORP FLO-IR Forward-Looking Statements Statements contained in this press release and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the "company", "Flowers Foods", "Flowers", "us", "we", or "our") and its representatives that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to current expectations regarding our business and our future financial condition and results of operations and are often identified by the use of words and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "would," "is likely to," "is expected to" or "will continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based upon assumptions we believe are reasonable. Forward-looking statements are based on current information and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. Certain factors that may cause actual results, performance, liquidity, and achievements to differ materially from those projected are discussed in our Annual Report on Form 10-K for the year ended January 3, 2026 (the "Form 10-K") and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and may include, but are not limited to, (a) unexpected changes in any of the following: (1) general economic and business conditions; (2) the competitive setting in which we operate, including advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (3) interest rates and other terms available to us on our borrowings; (4) supply chain conditions and any related impact on energy and raw materials costs and availability and hedging counter-party risks; (5) relationships with or increased costs related to our employees and third-party service providers; (6) laws and regulations (including environmental and health-related issues and the impacts of tariffs, including retaliatory tariffs); and (7) accounting standards or tax rates in the markets in which we operate, (b) the loss or financial instability of any significant customer(s), including as a result of product recalls or safety concerns related to our products, (c) changes in consumer behavior, trends and preferences, including health and whole grain trends and consumer buying habits, the movement toward less expensive store branded products, and the continued reduction of purchases in the fresh packaged bread category, (d) the level of success we achieve in developing and introducing new products and entering new markets, (e) our ability to implement new technology and customer requirements as required, (f) our ability to operate existing, and any new, manufacturing lines according to schedule, (g) our ability to implement and achieve our corporate responsibility goals in accordance with regulatory requirements and the expectations of our stakeholders, suppliers, and customers; (h) our ability to execute our business strategies which may involve, among other things, (1) the ability to realize the intended benefits of completed, planned or contemplated acquisitions, dispositions or joint ventures, such as the acquisition of Simple Mills, (2) the deployment of new systems (e.g., our enterprise resource planning ("ERP") system), distribution channels and technology, and (3) an enhanced organizational structure (e.g., our sales and supply chain reorganization), (i) consolidation within the baking industry and related industries, (j) changes in pricing, customer and consumer reaction to pricing actions (including decreased volumes), and the pricing environment among competitors within the industry, (k) our ability to adjust pricing to offset, or partially offset, inflationary pressure or tariffs (including retaliatory tariffs) on the cost of our products, including ingredient and packaging costs; (l) disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners ("IDPs"), and changes to our direct-store-delivery distribution model in California, (m) increasing legal complexity and legal proceedings that we are or may become subject to, (n) labor shortages and turnover or increases in employee and employee-related costs, (o) the credit, business, and legal risks associated with IDPs and customers, which operate in the highly competitive retail food and foodservice industries, (p) any business disruptions due to political instability, pandemics, armed hostilities, incidents of terrorism, natural disasters, labor strikes or work stoppages, technological breakdowns, product contamination, product recalls or safety concerns related to our products, or the responses to or repercussions from any of these or similar events or conditions and our ability to insure against such events, (q) the failure of our information technology systems to perform adequately, including any interruptions, intrusions, cyber-attacks or security breaches of such systems or risks associated with the implementation of the upgrade of our ERP system; and (r) the potential impact of climate change on the company, including physical and transition risks, our availability or restriction of resources, higher regulatory and compliance costs, reputational risks, and our availability of capital on attractive terms. The foregoing list of important factors does not include all such factors, nor does it necessarily present them in order of importance. In addition, you should consult other disclosures made by the company (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by the company. Refer to Part I, Item 1A., Risk Factors, of our Form 10-K, Part II, Item 1A., Risk Factors, of the Form 10-Q for the quarter ended July 18, 2026 and subsequent filings with the SEC for additional information regarding factors that could affect the company's results of operations, financial condition and liquidity. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law. You are advised, however, to consult any further public disclosures by the company (such as in our filings with the SEC or in company press releases) on related subjects. View original content to download multimedia:https://www.prnewswire.com/news-releases/flowers-foods-declares-quarterly-dividend-302862791.html

Flowers Foods reported second quarter results below Wall Street’s expectations, with management citing persistent pressure in the fresh packaged bread category. CEO Ryals McMullian highlighted that household budget constraints, evolving consumer preferences, and increased competition weighed on volumes. Management described the quarter as “challenging” and acknowledged that their innovation pipeline lagged recent shifts in demand, particularly for smaller formats and specialty breads. McMullian emphasized that, despite these setbacks, the company is accelerating efforts to address gaps in its portfolio and adapt more quickly to changing market dynamics. Is now the time to buy FLO? Find out in our full research report (it’s free). Revenue: $1.19 billion vs analyst estimates of $1.23 billion (4% year-on-year decline, 3.2% miss) Adjusted EPS: $0.21 vs analyst expectations of $0.22 (5.8% miss) Adjusted EBITDA: $111.3 million vs analyst estimates of $118.1 million (9.3% margin, 5.8% miss) The company dropped its revenue guidance for the full year to $5.11 billion at the midpoint from $5.22 billion, a 2.1% decrease Management lowered its full-year Adjusted EPS guidance to $0.80 at the midpoint, a 5.9% decrease EBITDA guidance for the full year is $467 million at the midpoint, below analyst estimates of $475.7 million Operating Margin: 6.3%, down from 7.9% in the same quarter last year Sales Volumes fell 5.8% year on year (-2.4% in the same quarter last year) Market Capitalization: $1.51 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stephen Powers (Deutsche Bank) asked about the implied improvement in the back half of the year and which initiatives would drive sequential performance gains. CEO Ryals McMullian cited new business wins, cost savings, and innovation launches as key contributors, while CFO Diego Scaglione noted expectations for volume stabilization by the fourth quarter. Scott Marks (Jefferies) inquired about pricing dynamics and competitive pressures. McMullian responded that while price is a factor in some segments, consumer preference shifts and product portfolio gaps are larger contributors to current challenges. He emphasized ongoing reviews of pricing and promotional strategies. Scott Marks (Jefferies) sought clarity on inflation expectations for 2027 and how the company plans to offset commodity and fuel cost pressures. Scaglione explained that most commodities are hedged for 2026, with ongoing productivity and cost-saving initiatives aimed at mitigating future inflation. James Salera (Stephens) questioned the flexibility of pricing as a lever given competitive dynamics and what other measures could offset inflation. Scaglione emphasized productivity improvements, price pack architecture, and new product launches as key tools beyond price increases. Mitchell Pinheiro (Sturdivant & Co.) asked how the company managed gross margins despite large volume declines. Scaglione attributed margin resilience to price/mix benefits and ongoing cost controls, while noting that fixed cost leverage remains a concern if volumes stay pressured. In the coming quarters, our analysts will be closely watching (1) the market response and sales impact of new product launches in categories like sourdough and half loaves, (2) evidence of stabilization or improvement in volumes for both retail and away-from-home channels, and (3) the effectiveness of cost-saving and productivity initiatives in supporting margins. Additionally, the ongoing Nature’s Own relaunch and shifts in competitive pricing strategies will be important to track for signs of business recovery. Flowers Foods currently trades at $7.22, up from $7.10 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, August 21, 2026 at 8:30 a.m. ET Executive Vice President of Finance and Investor Relations - J.T. Rieck Chairman and CEO - Ryals McMullian CFO - Anthony Scaglione Operator: Good day, and thank you for standing by. Welcome to the Flowers Foods Second Quarter 2026 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, J.T. Rieck, Executive Vice President of Finance and Investor Relations. Please go ahead. J. Rieck: Good morning. I hope everyone had the opportunity to review our earnings release, listen to our prepared remarks and view the slide presentation that were all posted earlier on our Investor Relations website. After today's Q&A session, we will also post an audio replay of this call. Please note that in this Q&A session, we may make forward-looking statements about the company's performance. Although we believe these statements to be reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. In addition to what you hear in these remarks, important factors relating to Flowers Foods business are fully detailed in our SEC filings. We also provide non-GAAP financial measures for which disclosure and reconciliations are provided in the earnings release and at the end of the slide presentation on our website. Joining me today are Ryals McMullian, Chairman and CEO; and Anthony Scaglione, our CFO. Ryals, I'll turn it over to you. A. McMullian: Okay. Good morning, everybody. As noted in our prepared remarks, our second quarter results did not meet our expectations. The fresh packaged bread category remained challenging, reflecting pressure on household budgets, shifting consumer preferences and sustained competitive activity. Against this backdrop, we're accelerating initiatives to better align our resources and value proposition with where the market is heading. This includes advancing innovation in smaller formats, sourdough and protein, improving our in-store execution, pursuing new business and continuing to invest behind our leading brands. As the Nature's Own relaunch, new business wins and innovation initiatives build momentum, we expect them to support greater stability and improved performance. We have work to do, but we remain confident in our strategy, our brands and the actions that we are taking. Shannon, we can go ahead and open up for questions. Operator: [Operator Instructions] Our first question comes from the line of Steve Powers with Deutsche Bank. Stephen Robert Powers: Ryals, maybe we can pick up a bit where you left off in the intro. I mean if I think about the implied performance in your updated guidance for the back half, even at the low end, it seems to imply some acceleration and some improvement certainly versus the exit rate of consumption that we saw coming out of 2Q. So maybe a bit more detail on the building blocks that you see to create that sequential improvement because it doesn't sound like you're expecting the category to improve. It sounds like you're expecting your own standing versus the category to improve. So which of the initiatives are expected to be the most impactful? And I guess, a little bit of how quickly we should expect them to manifest over the remainder of the year? A. McMullian: Okay. Thanks, Steve. A few things, and I'll let Anthony chime in here as well in terms of guidance. But I would call out 3 primary factors to address the question you asked. One is we do have some pretty significant new business wins that are coming on in the back half. In addition to that, we took additional cost savings measures that will benefit the back half. And that's in addition to the roughly $200 million we've taken out of the business over the last several years. And I'd also call out innovation, which is a particularly important factor when you think about where the category is going, the speed of the shift in consumer preferences, frankly, got a little bit ahead of our innovation pipeline. But the good news is we have those things coming to fill those gaps in our offerings, whether you're thinking about protein, half loaves, sourdough, et cetera, all that's coming in the back half and then as we move into the spring of next year. Anthony, anything you want to add? Diego Scaglione: No, I think you covered it. I would say, Steve, if you look at it for the back half, a little skewed. We expect some year-over-year declines in Q3, but then normalization for all the factors that Ryals mentioned related to the new business wins, reduced elasticities as we're lapping prior year pricing in Q4 and a bit of stabilization in Nature's Own from our marketing investments continue to take hold. Stephen Robert Powers: Great. Maybe a little bit, if you could, a little bit more color. It sounds like you expect improvement both across the branded retail business and the other segment where I would expect those new business wins to exist. So maybe a little bit more color as to where you see -- which side of the business you see more improvement? And then, yes, I'd love a little bit more color on what you're seeing with the Nature's Own relaunch and kind of reasons for optimism with that. Diego Scaglione: So Steve, I think from the way we're looking at it, it's really split between our Away-from-Home business as well as our retail branded business. So I would say we're seeing good opportunities and realization in both those areas, the timing of which some of it is going to come in Q3 and some of it will come in Q4. So it's balanced wins across the portfolio. A. McMullian: And Steve, just to address your question on the Nature's Own relaunch. Recall, we just started this a couple of months ago. I would say it's going well. It's a little bit too early to see the actual results read through, but we're getting really good feedback from customers, social media, et cetera. So there's some early indicators that it will be a successful campaign. But I think we've got to give it -- as I said on the last call, we're going to have to give it a little bit more time for it to read through. That said, we do feel really good about the campaign and where we're headed with it. Operator: Our next question comes from the line of Scott Marks with Jefferies. Scott Marks: First thing I wanted to ask about, you noted in the prepared remarks, rising competition, rising promotional intensity. Obviously, you guys took some pricing earlier in the year with the expectation that you might see competitors follow, and it doesn't sound like that's happened quite yet. So just wondering if you can kind of give us an update on your thoughts around the pricing dynamics in the category and where you are? And any thoughts of changes to some of the actions you've taken to maintain maybe more competitiveness versus peers in traditional. A. McMullian: Sure. I'll take a stab at that first. I think it's important to remember that the dynamics in the category are about a lot more than price. I think in certain segments of the portfolio that may be a factor. And as we noted in the prepared remarks, we're taking a pretty intensive review of our pricing and promotional strategy. However, it is more than just price. And I would point more to consumer preference shifts. Certainly, there has been some amount of trade down to private label and lower-priced items. But I think the bigger factor, at least in our performance relative to the category has to do with those gaps in our portfolio, the underpenetration in half loaves, sourdough, protein fiber, some of these more functional attributes that consumers are looking for. And so that's where our primary focus is. That is not to say that we're ignoring the price equation. We are taking a hard look at that. And my initial thesis is there probably are some pockets of the portfolio where that's a factor, but I don't think it's the overall driving force of our performance. Scott Marks: Appreciate the thoughts there. And then maybe there are some comments in the prepared remarks, I think, from Anthony about 2027 seeing some inflationary costs potentially ticking up, notably from commodity and fuel exposure. So just wondering if you can give us an update on where you're seeing inflation right now, how you're thinking about the exit rate in '26? And then maybe what you're assuming at this point for '27 as well as any other color you can share about '27 to help us frame your thinking. Diego Scaglione: Sure. Sure, Scott. Let me take it in 2 parts. As we mentioned in Q1, most of our commodities for the balance of this year are fully hedged. We had some exposure, which I alluded to in oil and diesel and indirectly in resin, and that's primarily in our packaging area. So our current guide didn't change because we saw added pressure from a commodity perspective. We assume that pressure in Q1, and it hasn't really changed materially from where we were back in Q1. As I pivot to '27, we're still in the middle of our planning process for fiscal '27. So I can't provide further color on that in isolation. To Ryals point, input costs are just one of many variables that we have to factor as it relates to price mix and the architecture and new innovation. So I can't look at it in isolation. That being said, overall inflation has gone up in many of our categories from a pricing index perspective is something that we need to definitely address as we look at '27 and the exit velocity, as you mentioned, coming out of '26. It's something we're working to address going forward. And as I mentioned in my prepared remarks, more to come. But at this point, that's all we could say as it relates to '27. Operator: Our next question comes from the line of Jim Salera with Stephens. James Salera: I wanted to follow up on your commentary to Steve and Scott's questions there. If I look back to 2022, that was, I think, the last time we had kind of a significant commodity cycle. And if my model serves me correct, net price/mix across the business was up kind of mid-teens in 2022, which was a big factor in helping to offset that. Correct me if I'm wrong, but it sounds like there's maybe not as much flexibility on a go-forward basis around pricing given some of the competitive dynamics. So could you just walk us through what other levers you might have in the business to help offset that commodity inflation that we're seeing and kind of anticipating to continue to roll through in 2027? Diego Scaglione: Yes. Let me start on that, Jim. I would say, clearly, we have to look at productivity measures, which is part of our -- every annual process and throughout the year, we're looking at ways to be more efficient in the bakeries in the network, et cetera. We took action coming out of Q1 when we saw softness on the top line that will accrue from a tailwind perspective as we exit 2026 into 2027. And as we said on the prepared remarks, that's roughly around the $20 million tailwind we'll have going into 2027. The other area is going to be the price pack architecture. As Ryals mentioned, coming together with new products around small loaves, bring to market innovation in sourdough, areas where the consumer has headed and where the consumer is, we're probably underpenetrated on a portfolio basis. We have great products coming to market in the near term, but we're probably underpenetrated today. So when we look at those factors gives us confidence that, yes, price probably is not going to be the only lever to overcome the inflation. And as I mentioned earlier, a lot more work to do around that as we continue the '27 planning process. James Salera: My follow-up question is on DKB. In the prepared remarks, you guys touched on marketing pullback there. I would just love some more commentary around -- is that kind of a temporary reshift where maybe other brands need some more support? Are you guys reworking the marketing plan there? Did it shift kind of within the portfolio, maybe towards some of the innovation versus kind of the core fresh bread offering? Any thoughts there would be great. A. McMullian: Yes, Jim, it's temporary. I mean it's the way we laid out the cadence of our marketing and promo spend this year. So we focused a lot at the beginning of the year with -- you may recall the Rock Your Reset campaign that we did with DKB. And then also, to your point, also a focus on back-to-school. And so we should see more normalized levels of promo and marketing spend with DKB for the balance of the year. Operator: [Operator Instructions] Our next question comes from the line of Mitchell Pinheiro with Sturdivant & Co. Mitchell Pinheiro: I was looking at your fresh bread volume decline, which was 9.5%, and that's a big number. But I was surprised at how well the gross margin held up despite the unit volume decline in fresh bread. How can you -- how do you manage that? Diego Scaglione: Mitch, this is Anthony. I mean, clearly, price had a big contributor in the price/mix. From a volume decline. So our pricing definitely was a positive contributor as it relates to overall. But as we look forward into the earlier comments, there's other variables that we are looking towards as we think about the balance of this year in '27 and price pack architecture, one that I mentioned earlier. But price was definitely the contributing factor to answer your question. Mitchell Pinheiro: And so sort of negative fixed asset leverage, you've been able to manage that? Or how should we think about that? Diego Scaglione: Yes. So from -- obviously, the restructuring had some cost out in COGS. We've had good productivity as it relates to the in bakery network. But clearly, that's our highest fixed cost. And while we're looking at network optimization, that is more complicated and takes much longer to execute. But we're clearly constantly looking at ways to be more efficient within the 4 walls of our bakery and our network, and that drove some benefit, but that becomes harder and harder with the volume declines. So as you can imagine, that's something that we're looking at and continue to look at as ways to optimize going forward. Mitchell Pinheiro: Okay. And then as you look at the third quarter, do you expect volume declines to moderate? Diego Scaglione: Yes, we don't break that out. As I mentioned, we expect Q3 year-on-year to be down from an overall sales perspective. So that's going to be price and volume based and then Q4 to have a little bit more stabilization as the new wins get more fully ramped. That's probably the most color I can give you in terms of the near term. Mitchell Pinheiro: Okay. And then I guess 2 more questions. One with Dave's Killer Bread. You mentioned that consumer -- shifts in consumer preferences as a reason that helped pressure the unit volume decline. What are you referring to? A. McMullian: Yes. Mitch, it's Ryals. Mostly, we think that it's the growth of sourdough. It's pretty remarkable actually. I mean that subsegment of the category has already grown to be a $1.3 billion subcategory. So it's been pretty tremendous growth. And in DKB, we only have sourdough on the West Coast currently. But as we mentioned earlier in the innovation pipeline, we have [indiscernible] for all that. I would say that is certainly one area and probably at least some amount of price sensitivity relative to Dave's. But I don't -- as I said earlier, I don't think it's all price. It's a combination of price for some consumers, but also offering and product attributes that are driving some of that decline. Mitchell Pinheiro: Okay. And then just final question is just where do we stand with the comprehensive review? Where are we in that process? Are we close to the end? Is this a continuous improvement, comprehensive review? Can you shed a little light on that? A. McMullian: Yes. Well, I think we're always in the mode of continuous improvement. But in terms of the formal initiative of the comprehensive review, yes, we're finished with that and beginning to execute on it. So a lot of the things we've talked about today, whether it's innovation or focus or better execution, all of those are folded in and are the result of that comprehensive review. Operator: And I'm currently showing no further questions at this time. I'd now like to hand the call back over to Ryals McMullian for closing remarks. A. McMullian: Okay. Great. Thank you, Shannon. I just want to thank everybody for taking time today and joining us for questions. We very much appreciate your interest and support of our company. And as always, we look forward to speaking with you again next quarter. Take care. Operator: This concludes today's conference. Thank you for your participation. You may now disconnect. Before you buy stock in Flowers Foods, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Flowers Foods wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Flowers Foods (FLO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Packaged bakery food company Flowers Foods (NYSE:FLO) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 4% year on year to $1.19 billion. The company’s full-year revenue guidance of $5.11 billion at the midpoint came in 1.2% below analysts’ estimates. Its non-GAAP profit of $0.21 per share was 5.8% below analysts’ consensus estimates. Is now the time to buy FLO? Find out in our full research report (it’s free). Revenue: $1.19 billion vs analyst estimates of $1.23 billion (4% year-on-year decline, 3.2% miss) Adjusted EPS: $0.21 vs analyst expectations of $0.22 (5.8% miss) Adjusted EBITDA: $111.3 million vs analyst estimates of $118.1 million (9.3% margin, 5.8% miss) The company dropped its revenue guidance for the full year to $5.11 billion at the midpoint from $5.22 billion, a 2.1% decrease Management lowered its full-year Adjusted EPS guidance to $0.80 at the midpoint, a 5.9% decrease EBITDA guidance for the full year is $467 million at the midpoint, below analyst estimates of $475.7 million Operating Margin: 5.7%, down from 7.9% in the same quarter last year Sales Volumes fell 5.8% year on year (-2.4% in the same quarter last year) Market Capitalization: $1.51 billion Flowers Foods reported second quarter results below Wall Street’s expectations, with management citing persistent pressure in the fresh packaged bread category. CEO Ryals McMullian highlighted that household budget constraints, evolving consumer preferences, and increased competition weighed on volumes. Management described the quarter as “challenging” and acknowledged that their innovation pipeline lagged recent shifts in demand, particularly for smaller formats and specialty breads. McMullian emphasized that, despite these setbacks, the company is accelerating efforts to address gaps in its portfolio and adapt more quickly to changing market dynamics. Looking ahead, management’s updated guidance factors in new business wins, cost savings, and a ramp-up of product innovation to stabilize performance. McMullian pointed to upcoming launches in protein breads, half loaves, and sourdough, as well as ongoing investments behind core brands like Nature’s Own. CFO Diego Scaglione cautioned that inflationary pressures, particularly in commodities and fuel, remain a concern for 2027, but said productivity initiatives and price pack architecture are expected to help offset some of these headwinds. Management views the current strategy as necessary to restore growth and margin stability. Management attributed Q2’s underperformance primarily to volume declines, driven by consumer trade-down to lower-priced or private label bread, as well as gaps in Flowers Foods’ product offerings. Category shifts hurt volumes: Shifting consumer preferences toward smaller loaves, sourdough, and protein-rich breads led to underperformance in core segments, with management admitting their innovation pipeline lagged behind these trends. Private label competition intensified: The company saw increased consumer trade-down to private label and value brands, particularly as household budgets remained pressured by inflation. This dynamic was cited as a significant driver of lost share. Nature’s Own relaunch underway: Management began a major relaunch of its flagship Nature’s Own brand, noting positive early feedback but cautioning that results will take time to materialize. Investments in marketing and product improvements are expected to support brand recovery. Cost savings and productivity measures: Flowers Foods implemented additional cost reduction initiatives and cited roughly $200 million in cumulative savings over recent years. These measures are expected to provide a tailwind as the company exits 2026 and enters 2027. Innovation focus for recovery: The company is accelerating the rollout of new products in underpenetrated categories, including half loaves and expanded sourdough offerings, to better meet evolving consumer demand. Management believes this strategy, alongside new business wins, will support a gradual recovery in both retail and away-from-home channels. Management’s outlook centers on stabilizing volumes and margins through new product launches, cost controls, and addressing portfolio gaps, while navigating ongoing inflation and competitive pressures. Innovation pipeline expansion: Management expects new products, particularly in smaller formats, sourdough, and protein breads, to better align with shifting consumer preferences. These launches are anticipated to drive incremental volume and improve overall portfolio mix in the coming quarters. Cost discipline and productivity: Ongoing productivity initiatives and cost reduction efforts, including network optimization and restructuring, are expected to help offset inflationary headwinds. Management highlighted a $20 million cost tailwind for 2027, but cautioned that fixed-cost leverage may remain challenging if volumes do not recover. Competitive pricing and promotional activity: The company is re-evaluating its pricing and promotional strategies in response to heightened competition and increased promotional intensity in the category. Management signaled that while price is a factor, addressing gaps in the portfolio and meeting consumer needs will be more critical for regaining share. In the coming quarters, our analysts will be closely watching (1) the market response and sales impact of new product launches in categories like sourdough and half loaves, (2) evidence of stabilization or improvement in volumes for both retail and away-from-home channels, and (3) the effectiveness of cost-saving and productivity initiatives in supporting margins. Additionally, the ongoing Nature’s Own relaunch and shifts in competitive pricing strategies will be important to track for signs of business recovery. Flowers Foods currently trades at $7.16, in line with $7.09 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Flowers Foods stock has seen a deep share price decline over the past few years, yet current valuation checks suggest the shares are now roughly in line with what the market typically pays for similar businesses. After such a prolonged slide, investors are weighing whether today’s price offers a reasonable entry point or if the risks behind that drop still dominate the story. Over the past 3 years, Flowers Foods shares have fallen 65.2%, which puts the current valuation in the context of a long and painful reset for shareholders. The recent cut to the company’s full year outlook highlights execution and operational risks. At the same time, any improvement in efficiency and cost control may support future earnings and help underpin the current share price. With a value score of 3 out of 6, Flowers Foods presents a mixed picture rather than a clear bargain or a clearly expensive stock. The issue now is whether the current share price of Flowers Foods fairly reflects those operational challenges or still leaves room for a valuation reset in either direction. Find out why Flowers Foods' -52.3% return over the last year is lagging behind its peers. The P/E ratio is a useful cross check for Flowers Foods because earnings remain a key factor in how investors assess this stock. Flowers Foods currently trades on a P/E of about 20.2x, compared with a Food industry average of roughly 17.6x and a peer group average of about 22.0x. That places the stock slightly above the sector benchmark but a touch below similar listed peers. The fair P/E ratio that reflects Flowers Foods’ profile is estimated at about 19.6x. That is close to where the stock trades today, even after the lowered full year outlook following the recent earnings miss. The current premium to the wider industry, and small discount to peers, suggest investors are already pricing in a moderate level of risk without assigning a steep penalty or a clear reward. Overall, Flowers Foods appears roughly fairly valued on its current P/E multiple. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Flowers Foods give you a clearer link between today’s valuation puzzle and the assumptions that sit behind it, by spelling out what would need to happen with Flowers Foods' future growth, margins and earnings for the stock to be worth materially more or less than it is now. Instead of stopping at a single ratio or model output, they set out the future those numbers rely on so you can monitor whether that story actually plays out over time. These Narratives sit on Simply Wall St's Community page, where you can see how Flowers Foods' investment case is framed and what would need to change to shift that view. One of the top community narratives on Flowers Foods: 57% undervalued Read one of the top narratives on Flowers Foods Do you think there's more to the story for Flowers Foods? Head over to our Community to see what others are saying! For Flowers Foods, the current valuation on earnings looks broadly in line with what the market is prepared to pay for similar businesses. That leaves less room for an easy valuation win and puts the focus squarely on whether management can steady execution and protect margins after the recent guidance cut. The crux for investors now is whether operational improvements can justify holding a roughly sector level P/E multiple, or whether further missteps could push the stock toward a cheaper, more clearly discounted bracket. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FLO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In August 2026, Flowers Foods reported second-quarter sales of US$1,192.94 million and net income of US$40.66 million, both lower than a year earlier, and cut its full-year 2026 sales and earnings guidance. Management pointed to pressured household budgets, shifting consumer purchasing patterns, and heightened competition in fresh packaged bread as key drivers of the weaker results and reduced outlook. Against this backdrop of softer quarterly performance and lowered full-year guidance, we’ll examine how Flowers Foods’ revised outlook reshapes its investment narrative. Find 48 companies with promising cash flow potential yet trading below their fair value. To own Flowers Foods today, you need to believe its core bread portfolio and premium brands can stay relevant as shoppers trade down and competition intensifies. The latest quarter, with lower sales and earnings plus a guidance cut, makes near term volume recovery the key catalyst and deep discounting the biggest risk. This news directly pressures that near term earnings story rather than changing the longer term brand thesis. The most relevant update is management’s revised 2026 guidance to net sales of US$5.070 billion to US$5.142 billion and earnings per diluted share of US$0.64 to US$0.74. This reset anchors expectations after weaker first half results and frames how much improvement the market now assumes from initiatives like product relaunches and pack size changes, against a backdrop of tougher competition and softer household spending. Yet beneath the brand story, investors should also be aware of rising competitive pressure and the risk that margin compression could... Read the full narrative on Flowers Foods (it's free!) Flowers Foods' narrative projects $5.2 billion revenue and $181.5 million earnings by 2029. This assumes fairly flat yearly revenue growth and an earnings increase of about $108.6 million from $72.9 million today. Uncover how Flowers Foods' forecasts yield a $9.00 fair value, a 29% upside to its current price. Before this setback, the most optimistic analysts were penciling in roughly US$5.4 billion of revenue and US$229 million of earnings by 2028, a far brighter path than today’s guidance suggests, so your view on Flowers may shift as you weigh that upbeat case against fresh evidence of margin and volume pressure. Explore 9 other fair value estimates on Flowers Foods - why the stock might be worth just $7.00! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Flowers Foods research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision. Our free Flowers Foods research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flowers Foods' overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. The latest GPUs need a type of rare earth metal called Terbium and there are only 28 companies in the world exploring or producing it. Find the list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FLO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Flowers Foods (NYSE:FLO) shares dropped 4.2% to $6.80 in pre-market trading after the packaged bakery group reported weaker-than-expected second-quarter 2026 results following Thursday’s closing bell. The decline adds to a difficult period for the stock, which has lost more than half its value over the past year and was trading at a fresh 52-week low. For the 12 weeks ended July 18, 2026, Flowers Foods reported adjusted diluted earnings of $0.21 per share, below the Wall Street consensus forecast of $0.24. Net sales reached $1.19 billion, also missing analysts’ expectations of approximately $1.24 billion. Adjusted EBITDA declined 19.2% year on year to $111.3 million, accompanied by a significant contraction in the company’s operating margin. The combination of weaker earnings, revenue and EBITDA added to concerns about the underlying performance of the business. Volume trends were another source of pressure during the quarter. Total sales volumes declined 5.8% from the previous year, compared with a 2.4% contraction during the corresponding period a year earlier. Branded retail products performed even more weakly, with volumes falling 7.6%. Management acknowledged that challenges across the fresh packaged bread category had intensified in both pace and magnitude during the quarter, increasing pressure on the company’s near-term outlook. In response to the weaker trading environment, Flowers Foods reduced its full-year forecasts. The company now expects adjusted earnings per share of between $0.75 and $0.85 for 2026, while its revenue forecast has been lowered to a range of $5.07 billion to $5.14 billion. Both forecasts came in below previous analyst expectations, reinforcing investor concerns that pressure on volumes and profitability could persist through the remainder of the year. Investors will be looking for further details during the company’s earnings webcast, scheduled for 8:30 a.m. ET on Friday, particularly regarding the outlook for the fresh bread market and potential measures to stabilise margins and volumes. The selloff contrasted with a broadly positive backdrop for US equities. The S&P 500 was up 0.35%, the Dow Jones gained 0.43% and the Nasdaq advanced 0.50%, making Flowers Foods’ pre-market decline particularly notable. Analyst sentiment had already weakened before the earnings release. Jefferies reduced its price target to $7 earlier in August, while Weiss Ratings moved the shares to a lower sell category shortly before the quarterly report. The combination of disappointing earnings, weaker-than-expected revenue, falling EBITDA and reduced guidance could now prompt further reassessments from analysts following the results. With Flowers Foods trading around its 52-week low of $6.80, attention is likely to centre on management’s commentary regarding how long weakness in the fresh packaged bread category could persist and what actions the company intends to take to improve its performance. Flowers Foods stock price

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the second-quarter underperformance to a challenging fresh packaged bread category, driven by household budget pressures and a rapid shift in consumer preferences. A significant performance gap was identified in the innovation pipeline, specifically an underpenetration in high-growth subsegments like sourdough, protein-enriched loaves, and smaller formats. The company noted that while some trade-down to private label is occurring, the primary headwind is a mismatch between the current portfolio and evolving functional attribute demands. Operational focus has shifted toward a comprehensive review of pricing and promotional strategies to maintain competitiveness against peers who did not follow earlier price increases. Management emphasized that the 'comprehensive review' initiative is now complete, moving from the planning phase into active execution across innovation and execution pillars. Gross margin stability was maintained despite a 9.5% volume decline in fresh bread, primarily through realized price/mix benefits and ongoing productivity measures within the bakery network. The back-half outlook assumes sequential improvement driven by significant new business wins in both the Away-from-Home and retail branded segments. Guidance incorporates approximately $20 million in incremental cost-saving tailwinds entering 2027, following restructuring actions taken after first-quarter softness. Management expects year-over-year declines to persist in Q3, with normalization and stabilization projected for Q4 as marketing investments and new business fully ramp. Future margin protection will rely on a 'price pack architecture' strategy, introducing premium functional products to offset anticipated inflationary pressures in 2027. The Nature's Own relaunch is expected to contribute to volume stabilization, though management cautioned that it will take several months for social media and customer feedback to translate into hard data. Management flagged potential 2027 headwinds from rising commodity and fuel costs, while noting that current year exposures include oil, diesel, and resin for packaging. The sourdough subsegment has rapidly expanded to a $1.3 billion category, representing a structural risk to legacy brands like Dave's Killer Bread which currently lacks national sourdough distribution. Fixed asset leverage remains a challenge; while the company is exploring network optimization, management noted these structural changes are complex and take longer to execute than overhead reductions. Marketing spend for Dave's Killer Bread was temporarily pulled back in Q2 due to the cadence of annual campaigns, but is expected to return to normalized levels for the remainder of the year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Improvement is predicated on three factors: significant new business wins, additional cost-saving measures, and an accelerated innovation pipeline addressing portfolio gaps. Management expects Q4 to show the most significant stabilization as they lap prior-year pricing and elasticities reduce. Management admitted they are taking a 'hard look' at pricing as some competitors did not follow their lead on price increases. They maintained that while price is a factor in certain pockets, the lack of functional products (sourdough, protein) is the larger driver of relative underperformance. With pricing flexibility potentially limited by competition, the company will lean on productivity measures and 'price pack architecture.' The goal is to shift the mix toward higher-margin, innovative products where the consumer is currently heading. The unit volume decline for Dave's Killer Bread was attributed to the explosive growth of the sourdough subcategory ($1.3 billion) where Flowers is currently underrepresented. Management noted that Dave's Killer Bread only offers sourdough on the West Coast currently, representing a clear national expansion opportunity.

This article first appeared on GuruFocus. Revenue: Second quarter results did not meet expectations, with the fresh packaged bread category remaining challenging. Earnings: Financial performance for the quarter fell short of company expectations. Release Date: August 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Flowers Foods Inc (NYSE:FLO) is accelerating initiatives to align resources with market trends, including innovation in smaller formats, sourdough, and protein. The company has secured significant new business wins expected to contribute in the back half of the year. Additional cost savings measures have been implemented, adding to the roughly $200 million already taken out of the business over recent years. The Nature's Own relaunch is receiving positive feedback from customers and social media, with early indicators of success. The company is taking a comprehensive review of pricing and promotional strategies, with a focus on portfolio gaps in high-growth areas like sourdough and protein. Flowers Foods Inc (NYSE:FLO)'s second quarter results did not meet expectations, with the fresh packaged bread category remaining challenging. The company experienced a significant 9.5% decline in fresh bread volume, reflecting pressure on household budgets and shifting consumer preferences. Sustained competitive activity and rising promotional intensity have impacted performance, with competitors not following price increases. The company is underpenetrated in key growth segments like half loaves, sourdough, and protein, which has hurt relative performance. Inflationary costs, particularly in commodities and fuel, are expected to increase in 2027, adding pressure on margins. Warning! GuruFocus has detected 6 Warning Signs with FLO. Is FLO fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the building blocks for the sequential improvement implied in the back-half guidance, given the category is not expected to improve? Which initiatives will be most impactful and how quickly will they manifest? A: Ryals McMullian (Chairman & CEO) outlined three primary factors: significant new business wins coming online in the back half, additional cost savings measures beyond the roughly $200 million already taken out, and innovation to fill portfolio gaps in areas like protein, half loaves, and sourdough. CFO Anthony Scaglione added that the back half is skewed, with expected year-over-year declines in Q3 but normalization in Q4 due to new wins, lapping prior year pricing, and stabilization in Nature's Own. Q: Can you give an update on pricing dynamics in the category, given that competitors did not follow your earlier price increases? Are you considering changes to maintain competitiveness in traditional loaf? A: Ryals McMullian stated that the category dynamics are about more than just price, pointing to consumer preference shifts and portfolio gaps in half loaves, sourdough, and protein/fiber attributes as bigger factors. While the company is taking an intensive review of pricing and promotional strategy and acknowledges some pockets of price sensitivity, he does not believe price is the overall driving force of performance. Q: Can you provide an update on where you are seeing inflation now, the exit rate for 2026, and any assumptions for 2027? A: Anthony Scaglione noted that most commodities for the balance of 2026 are fully hedged, with some exposure to oil, diesel, and resin. The current guidance already assumes this pressure. For 2027, he stated the company is still in the planning process and cannot provide isolated color, but acknowledged that overall inflation has increased and is something they need to address as they look at exit velocity from 2026. Q: Given the commodity cycle and potential inflation in 2027, what levers do you have to offset this if pricing flexibility is limited? A: Anthony Scaglione highlighted productivity measures, including the roughly $20 million tailwind from actions taken in Q1 that will accrue into 2027. He also emphasized price pack architecture, bringing new products to market in areas like small loaves and sourdough where the company is underpenetrated, which provides confidence that price will not be the only lever to overcome inflation. Q: Can you provide commentary on the marketing pullback for Dave's Killer Bread (DKB)? Is it temporary, and are you reworking the marketing plan? A: Ryals McMullian confirmed the pullback is temporary, part of the planned cadence of marketing and promo spend for the year. The company focused heavily on the "Rock Your Reset" campaign at the beginning of the year and is now shifting focus to back-to-school, with more normalized levels of DKB marketing spend expected for the balance of the year. Q: How did the gross margin hold up so well despite the 9.5% volume decline in fresh bread? A: Anthony Scaglione explained that price was a big contributor to the price mix, positively impacting gross margin despite the volume decline. He noted that while restructuring and productivity in the bakery network have helped, negative fixed asset leverage becomes harder to manage with volume declines, and network optimization is a longer-term focus. Q: Do you expect volume declines to moderate in the third quarter? A: Anthony Scaglione stated the company does not break out volume specifically, but expects Q3 to be down year-over-year from an overall sales perspective, driven by both price and volume. Q4 is expected to see more stabilization as new business wins ramp up more fully. Q: What consumer shifts and preferences are pressuring the unit volume decline for Dave's Killer Bread? A: Ryals McMullian attributed the decline primarily to the remarkable growth of sourdough, which has become a $1.3 billion subcategory. DKB currently only has sourdough offerings on the West Coast, though innovation is planned for national expansion. He also noted some price sensitivity for certain consumers, but emphasized it's a combination of price and product attributes. Q: Where do we stand with the comprehensive review process? Is it complete or continuous? A: Ryals McMullian clarified that while the company is always in a mode of continuous improvement, the formal comprehensive review initiative is finished and the company is beginning to execute on it. The initiatives discussed today, including innovation, focus, and better execution, are all results of that review. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Flowers Foods, Inc.? Here are five stocks we like better. Flowers Foods’ second-quarter results missed expectations as fresh packaged bread demand was pressured by household budget constraints, shifting consumer preferences and persistent competition. Management expects second-half performance to benefit from significant new business wins, further cost reductions and innovation, including smaller loaves, sourdough, protein and fiber products. However, it anticipates a year-over-year decline in the third quarter before stabilization in the fourth quarter. The company is addressing portfolio gaps and operational pressures through a Nature’s Own relaunch, expanded Dave’s Killer Bread offerings, productivity initiatives and roughly $20 million in expected cost benefits entering 2027. 3 High-Yield Bargains to Watch in 2025’s Second Half Flowers Foods (NYSE:FLO) said its second-quarter results fell short of expectations as the fresh packaged bread category remained pressured by household budget constraints, changing consumer preferences and sustained competition. Chairman and Chief Executive Officer Ryals McMullian said the company is accelerating efforts to better align its product portfolio and resources with market demand. Those efforts include innovation in smaller-format loaves, sourdough and protein offerings; improved in-store execution; pursuit of new business; and continued investment in its brands. → Datavault AI Locks Down CyberCatch in $94M Security Rollup “We have work to do, but we remain confident in our strategy, our brands, and the actions that we are taking,” McMullian said during the company’s second-quarter 2026 earnings call. Responding to questions about the company’s outlook for the second half of 2026, McMullian identified three principal factors expected to support performance: significant new business wins, additional cost-saving measures and an expanding innovation pipeline. → Nasdaq’s 23-Hour Trading Push Could Turn Global Liquidity Into a Growth Engine He said the company has removed roughly $200 million in costs from the business over the past several years, with further actions expected to benefit the back half of the year. Chief Financial Officer Anthony Scaglione said the outlook is somewhat uneven by quarter, with the company expecting year-over-year declines in the third quarter before a more normalized fourth quarter. Scaglione attributed the anticipated fourth-quarter stabilization to new business wins, lower pricing elasticities as the company laps prior-year pricing, and continued benefits from marketing investments behind Nature’s Own. → Tesla's Cybercab Launch Could Reshape Margins for Uber and Lyft Management said opportunities are split between its away-from-home operations and retail branded business, with wins expected across the portfolio and with timing spread between the third and fourth quarters. Flowers recently began a Nature’s Own relaunch campaign. McMullian said the initiative had been underway for only a couple of months and was too early to assess fully, but he cited favorable customer and social-media feedback as early indicators. He said the company expects to need more time before results from the campaign are reflected in performance. McMullian said the company’s review of pricing and promotional strategy is ongoing, but he emphasized that price is not the only factor influencing demand. He pointed to consumer movement toward products with specific attributes, including half loaves, sourdough, protein and fiber. According to McMullian, Flowers has been under-penetrated in several of those segments, and the pace of changing preferences outstripped the company’s innovation pipeline. New products intended to address those gaps are expected in the second half of 2026 and into spring 2027. He also said some consumers have traded down to private-label and lower-priced products. However, he described portfolio gaps in higher-growth product formats and functional offerings as a more significant factor in the company’s performance relative to the broader category. In discussing Dave’s Killer Bread, McMullian said sourdough has become an important category trend, describing it as a $1.3 billion subcategory. Dave’s Killer Bread currently offers sourdough only on the West Coast, he said, though Flowers has products in development intended to address that gap. He added that price sensitivity may be affecting some Dave’s Killer Bread consumers, alongside the need for products that match evolving preferences. Scaglione said most of Flowers’ commodity needs for the remainder of 2026 are fully hedged. The company has exposure to oil and diesel, as well as indirect exposure to resin used in packaging, but he said commodity pressure has not changed materially from the assumptions incorporated into first-quarter guidance. For 2027, Scaglione said Flowers remains in the middle of its planning process and could not provide detailed guidance. He said inflation has increased across many categories from a pricing-index perspective, requiring the company to consider multiple factors beyond pricing, including product mix, price-pack architecture and innovation. Management also highlighted productivity efforts as an offset to cost pressure. Scaglione said actions taken after the first quarter are expected to provide about a $20 million tailwind entering 2027. The company continues to pursue efficiency improvements in its bakeries and distribution network, though he acknowledged such efforts become more difficult when volumes decline. McMullian said Flowers has completed its formal comprehensive review and has begun implementing its findings. He said the company’s focus on innovation, execution and portfolio priorities reflects the outcome of that review, while continuous improvement remains an ongoing process. Separately, McMullian said a reduction in Dave’s Killer Bread marketing support was temporary and reflected the planned timing of promotional spending. The company had emphasized the brand’s “Rock Your Reset” campaign early in the year and shifted attention toward the back-to-school period, he said. Flowers expects more normalized marketing and promotional spending for Dave’s Killer Bread during the remainder of the year. Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature's Own, Wonder, Dave's Killer Bread, Mrs. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Flowers Foods Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.