Flowers Foods Q1 Results Mixed, Stock Rises 7.78%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: seekingalpha
- Performance Overview: Flowers Foods reported Q1 adjusted EPS of $0.29, beating Wall Street estimates by $0.02, while revenue rose 1.3% year-over-year to $1.57 billion, although it missed consensus by $10 million, indicating the company's struggle to maintain profitability in a challenging macroeconomic environment.
- Stock Fluctuation: Despite a stock price increase of approximately 7.78% to $7.55, it remains down about 30.79% year-to-date, contrasting sharply with the S&P 500's gain of 8.77%, reflecting investor caution regarding the company's future performance.
- Dividend Adjustment: The company announced a quarterly dividend of $0.125 per share, marking its 95th consecutive dividend, but this represents nearly a 50% cut, indicating a strategic shift towards debt reduction and balance sheet improvement in response to current financial challenges.
- Future Outlook: Flowers Foods reaffirmed its fiscal 2026 guidance for net sales of $5.16 billion to $5.27 billion and adjusted EPS of $0.80 to $0.90, with expected adjusted EBITDA between $465 million and $495 million, demonstrating confidence in its long-term growth strategy.
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Analyst Views on FLO
Wall Street analysts forecast FLO stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 7.700
Low
12.00
Averages
12.00
High
12.00
Current: 7.700
Low
12.00
Averages
12.00
High
12.00
About FLO
Flowers Foods, Inc. is a producer and marketer of packaged bakery foods in the United States. The Company operates bakeries across the country that produce a wide range of bakery products. Its principal products include breads, buns, rolls, snack items, bagels, English muffins, and tortillas and are sold under a variety of brand names, including Nature’s Own, Dave’s Killer Bread (DKB), Wonder, Canyon Bakehouse, Tastykake, and Mrs. Freshley’s. Its brands and products are sold through various channels throughout the United States. These channels include supermarkets, drugstores, mass merchandisers, discount stores, club stores, convenience stores, thrift outlet stores, and foodservice, among others. It also supplies national and regional restaurants, institutions and foodservice distributors, and retail in-store bakeries with breads and rolls; sells packaged bakery products to wholesale distributors for ultimate sale to a wide variety of food outlets; and sells packaged snack cakes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Flowers Foods Named Among Best Dividend Stocks for June
- Stable Financial Outlook: Flowers Foods reaffirmed its full-year outlook during its Q1 2026 earnings report, despite anticipated oil and related derivative cost pressures of approximately $0.02 to $0.03, indicating the company's confidence in future performance.
- Capital Expenditure Plans: The company expects capital expenditures to range between $115 million and $125 million, with about $2 million allocated for maintenance per bakery, while the remaining funds are directed towards growth initiatives and productivity improvements, highlighting a proactive approach to business expansion.
- Cautious Volume Expectations: Although management noted that future volume comparisons should become easier, they do not foresee a significant near-term recovery, reflecting the challenges in the market environment and a conservative stance on volume forecasts.
- Competitive Industry Analysis: While Flowers Foods is recognized as a potential investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, indicating a shift in market focus towards different investment sectors.
See More
Flowers Foods (FLO) Q1 2026 Earnings Transcript
See More
Flowers Foods Relaunches Nature's Own Brand with New Recipe and Packaging
- Brand Relaunch: Flowers Foods has relaunched its flagship Nature's Own brand nationwide with a simpler, Non-GMO Project Verified recipe and refreshed packaging, aiming to attract consumers and enhance brand image through clearer labeling.
- Marketing Strategy: The company pairs the rebranding with an extensive influencer-driven marketing campaign to reposition Nature's Own, addressing long-standing consumer interest in simpler ingredients and label transparency, thereby enhancing market competitiveness.
- Dividend Reduction: For the first time in decades, Flowers Foods has cut its dividend to prioritize debt reduction and support an ongoing strategic review, indicating management's willingness to rethink long-held practices to improve the balance sheet and product portfolio.
- Financial Risks: While the relaunch of Nature's Own may bolster the resilience of the core bread business, risks such as high debt and a decline in net margin to 1.4% could negatively impact the company's cash flow and future profitability.
See More
Flowers Foods Q1 2026 Earnings Beat Expectations
- Revenue Growth: Flowers Foods reported Q1 revenue of $1.57 billion, reflecting a 1.1% year-on-year increase that met Wall Street expectations, indicating the company's ability to maintain stable sales performance in a competitive market.
- Earnings Beat: The company posted an adjusted EPS of $0.29, surpassing analyst estimates of $0.27 by 8.2%, showcasing effective cost management and enhanced supply chain efficiencies that contributed to bottom-line performance.
- Optimistic Full-Year Guidance: Flowers Foods reaffirmed its full-year revenue guidance at $5.22 billion, exceeding analyst expectations, with an EBITDA forecast of $480 million, demonstrating management's confidence in future performance.
- Brand Relaunch Strategy: The relaunch of the Nature’s Own brand, coupled with a high-profile marketing campaign, aims to stabilize volumes in the traditional bread segment, which management views as crucial for future growth, particularly amid rising consumer demand for healthier and premium products.
See More
Flowers Foods Exceeds Expectations in Earnings Release
- Earnings Beat: Flowers Foods Inc (NYSE:FLO) delivered bottom line results that exceeded expectations despite softer revenue trends, demonstrating the company's resilience and adaptability in a challenging environment.
- Brand Relaunch Strategy: The nationwide relaunch of the Nature's Own brand focuses on core brands and strengthens the company's position in the better-for-you segment, which is expected to drive future sales growth.
- Supply Chain Efficiency Gains: By implementing supply chain efficiency initiatives, the company is enhancing its financial flexibility; although the traditional loaf category underperformed, the overall strategy aims for more sustainable growth.
- Cost Pressure Mitigation: In response to rising commodity costs, particularly oil and resin impacting packaging expenses, the company plans to mitigate these pressures through productivity improvements and optimized packaging configurations to ensure future profitability.
See More
Flowers Foods Q1 2026 Earnings Call Insights
- Brand Relaunch Progress: Flowers Foods executed a nationwide relaunch of Nature's Own, which, despite ongoing softness in the traditional loaf category, has shown positive trends in premium bread and cake segments, indicating a strategic shift in brand portfolio optimization.
- Cost Pressure Management: CFO Diego Scaglione noted that while rising oil prices have pressured packaging costs, the company is virtually fully hedged for commodity costs for the year, with expected back-half cost pressures of about $0.02 to $0.03 per share, demonstrating management's focus on cost control.
- Guidance Reaffirmation: Despite new cost headwinds, Flowers Foods reaffirmed its full-year guidance, emphasizing brand relaunch and new product expansions as strategies to navigate market pressures, reflecting the company's confidence in future growth.
- Dividend Reset Strategy: Management linked the dividend reset to deleveraging goals, with the CFO stating a target to reduce leverage below 3x by the end of fiscal 2027, showcasing a long-term financial management strategy.
See More
Flowers Foods Named Among Best Dividend Stocks for June
- Stable Financial Outlook: Flowers Foods reaffirmed its full-year outlook during its Q1 2026 earnings report, despite anticipated oil and related derivative cost pressures of approximately $0.02 to $0.03, indicating the company's confidence in future performance.
- Capital Expenditure Plans: The company expects capital expenditures to range between $115 million and $125 million, with about $2 million allocated for maintenance per bakery, while the remaining funds are directed towards growth initiatives and productivity improvements, highlighting a proactive approach to business expansion.
- Cautious Volume Expectations: Although management noted that future volume comparisons should become easier, they do not foresee a significant near-term recovery, reflecting the challenges in the market environment and a conservative stance on volume forecasts.
- Competitive Industry Analysis: While Flowers Foods is recognized as a potential investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, indicating a shift in market focus towards different investment sectors.
See More
Flowers Foods (FLO) Q1 2026 Earnings Transcript
See More
Flowers Foods Relaunches Nature's Own Brand with New Recipe and Packaging
- Brand Relaunch: Flowers Foods has relaunched its flagship Nature's Own brand nationwide with a simpler, Non-GMO Project Verified recipe and refreshed packaging, aiming to attract consumers and enhance brand image through clearer labeling.
- Marketing Strategy: The company pairs the rebranding with an extensive influencer-driven marketing campaign to reposition Nature's Own, addressing long-standing consumer interest in simpler ingredients and label transparency, thereby enhancing market competitiveness.
- Dividend Reduction: For the first time in decades, Flowers Foods has cut its dividend to prioritize debt reduction and support an ongoing strategic review, indicating management's willingness to rethink long-held practices to improve the balance sheet and product portfolio.
- Financial Risks: While the relaunch of Nature's Own may bolster the resilience of the core bread business, risks such as high debt and a decline in net margin to 1.4% could negatively impact the company's cash flow and future profitability.
See More
Flowers Foods Q1 2026 Earnings Beat Expectations
- Revenue Growth: Flowers Foods reported Q1 revenue of $1.57 billion, reflecting a 1.1% year-on-year increase that met Wall Street expectations, indicating the company's ability to maintain stable sales performance in a competitive market.
- Earnings Beat: The company posted an adjusted EPS of $0.29, surpassing analyst estimates of $0.27 by 8.2%, showcasing effective cost management and enhanced supply chain efficiencies that contributed to bottom-line performance.
- Optimistic Full-Year Guidance: Flowers Foods reaffirmed its full-year revenue guidance at $5.22 billion, exceeding analyst expectations, with an EBITDA forecast of $480 million, demonstrating management's confidence in future performance.
- Brand Relaunch Strategy: The relaunch of the Nature’s Own brand, coupled with a high-profile marketing campaign, aims to stabilize volumes in the traditional bread segment, which management views as crucial for future growth, particularly amid rising consumer demand for healthier and premium products.
See More
Flowers Foods Exceeds Expectations in Earnings Release
- Earnings Beat: Flowers Foods Inc (NYSE:FLO) delivered bottom line results that exceeded expectations despite softer revenue trends, demonstrating the company's resilience and adaptability in a challenging environment.
- Brand Relaunch Strategy: The nationwide relaunch of the Nature's Own brand focuses on core brands and strengthens the company's position in the better-for-you segment, which is expected to drive future sales growth.
- Supply Chain Efficiency Gains: By implementing supply chain efficiency initiatives, the company is enhancing its financial flexibility; although the traditional loaf category underperformed, the overall strategy aims for more sustainable growth.
- Cost Pressure Mitigation: In response to rising commodity costs, particularly oil and resin impacting packaging expenses, the company plans to mitigate these pressures through productivity improvements and optimized packaging configurations to ensure future profitability.
See More
Flowers Foods Q1 2026 Earnings Call Insights
- Brand Relaunch Progress: Flowers Foods executed a nationwide relaunch of Nature's Own, which, despite ongoing softness in the traditional loaf category, has shown positive trends in premium bread and cake segments, indicating a strategic shift in brand portfolio optimization.
- Cost Pressure Management: CFO Diego Scaglione noted that while rising oil prices have pressured packaging costs, the company is virtually fully hedged for commodity costs for the year, with expected back-half cost pressures of about $0.02 to $0.03 per share, demonstrating management's focus on cost control.
- Guidance Reaffirmation: Despite new cost headwinds, Flowers Foods reaffirmed its full-year guidance, emphasizing brand relaunch and new product expansions as strategies to navigate market pressures, reflecting the company's confidence in future growth.
- Dividend Reset Strategy: Management linked the dividend reset to deleveraging goals, with the CFO stating a target to reduce leverage below 3x by the end of fiscal 2027, showcasing a long-term financial management strategy.
See More
