Core Insights - Dave's Killer Bread is launching organic Sandwich Rolls in two varieties: 21 Whole Grains and Seeds and Sandwich Rolls Done Right, aiming to enhance the sandwich experience for consumers [1][2][3] Product Details - The new Sandwich Rolls are designed for various uses, including sub sandwiches, hot dogs, and French bread pizzas, emphasizing convenience and versatility [2] - The 21 Whole Grains and Seeds variety contains 16g of whole grains and 11g of protein (11% Daily Value) per serving, while the Sandwich Rolls Done Right offers 10g of whole grains and 11g of protein (11% Daily Value) [3] Brand Positioning - Dave's Killer Bread is recognized as America's 1 organic bread brand, with a commitment to high-quality, organic ingredients, and is certified USDA organic and Non-GMO Project Verified [4][5] - The brand is also focused on social responsibility, employing individuals with criminal backgrounds, with one in three employee-partners at its Oregon bakery having such a background [5]

Flowers Foods, Inc. ( FLO ) produces and sells bakery food products like bread and cakes in the United States. The company owns brands such as Nature’s Own, Dave’s Killer Bread, Canyon Bakehouse, Wonder, and the recentlyI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a ...

Over 100-Year-Old Brand Introduces a Deliciously Nostalgic Take on Classic TreatsTHOMASVILLE, Ga., March 17, 2025 /PRNewswire/ -- Wonder®, a household name for over a century, is making a sweet splash in the snack world with the launch of its first line of snack cakes. This exciting expansion marks a new chapter for the beloved brand, offering consumers a fresh take on classic indulgences with the same soft, fluffy texture and delicious taste they've come to expect from Wonder. WONDER EXPANDS ICONIC BRAN ...

Flowers Foods, Inc. (FLO) has concluded its acquisition of Simple Mills, a leading brand in the better-for-you snacking industry. With this acquisition, Flowers Foods strengthens its commitment to meeting the growing demand for healthier snack alternatives.Deeper Look at Flowers Foods’ Recent AcquisitionFounded in 2012, Simple Mills has rapidly grown into a leading provider of premium crackers, cookies, snack bars and baking mixes. The brand is known for its commitment to clean ingredients, nutrient-dense p ...

NEW YORK, Feb. 24, 2025 /PRNewswire/ -- Vestar Capital Partners, a leading U.S. middle-market private equity firm, announced today it has completed the sale of Simple Mills (or "the Company"), a premium brand of better-for-you crackers, cookies, snack bars, and baking mixes, to Flowers Foods, Inc. (NYSE: FLO) for a total enterprise value of $795 million. Vestar provided the first institutional investment into the brand in October 2019, and was the Company's largest shareholder. "This positive outcome valida ...

THOMASVILLE, Ga., Feb. 21, 2025 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced that it has completed the acquisition of Simple Mills, a market-leading natural brand offering premium better-for-you crackers, cookies, snack bars, and baking mixes. "The addition of Simple Mills to our brand portfolio increases our presence in better-for-you and attractive snacking segments, diversifies our category exposure, and enhances our growth and margin prospects," said Ryals McMullian, chairman and CEO ...

Sales and Revenue Growth - The company expects to grow sales by 1% to 2% annually and EBITDA by 4% to 6% annually, excluding any future acquisitions[29]. - In Fiscal 2024, branded retail sales represented 63.9% of total sales, with Nature's Own generating estimated retail sales of $1.5 billion[40][45]. - Walmart/Sam's Club accounted for 22.4% of the company's sales in Fiscal 2024, highlighting the importance of major customer relationships[47]. - Net sales for Fiscal 2024 were $5,103,487, a 0.2% increase from $5,090,830 in Fiscal 2023[220]. - The company anticipates Fiscal 2025 sales growth driven by optimization of the non-retail business and new product innovation[225]. Acquisitions and Investments - The company completed the acquisition of Papa Pita on February 17, 2023, enhancing production capacity and distribution in the western U.S.[29][30]. - The company completed the acquisition of Papa Pita for $274.8 million in cash on February 17, 2023[245][251]. - The company entered into a $795.0 million Term Loan Facility for the Simple Mills Acquisition, which was later terminated in favor of issuing new notes[259]. - The company issued $500.0 million of 5.750% Senior Notes due 2035 and $300.0 million of 6.200% Senior Notes due 2055 to fund the Simple Mills Acquisition[264]. Product Development and Innovation - The company plans to roll out new products including DKB snack bites and Wonder branded cake products in Fiscal 2025[43][44]. - The company plans to launch the national rollout of DKB snack bites in Fiscal 2025[227]. Financial Performance - Income from operations rose to $348,292, representing a 101.5% increase compared to $172,870 in the previous year[219]. - Net income increased to $248,116, up 101.0% from $123,416 in Fiscal 2023[219]. - Comprehensive income increased to $254,325, up 107.5% from $122,563 in Fiscal 2023[219]. - The effective tax rate for Fiscal 2024 was 24.6%, up from 21.4% in the prior year[237]. Cost Management and Efficiency - Materials, supplies, labor, and other production costs as a percentage of sales decreased to 50.5% from 51.7%[229]. - Selling, distribution, and administrative expenses as a percentage of sales decreased to 39.2% from 41.6%[231]. - Ingredient and packaging costs were volatile in Fiscal 2024 and 2023, but reduced volatility is expected in Fiscal 2025, excluding potential tariff impacts[58]. - The company utilizes forward purchase agreements and other financial instruments to manage raw material price volatility, which could significantly affect earnings if availability decreases[58][194]. Employee and Community Engagement - The company employs approximately 10,200 employees and 4,100 long-term leased employees, with 830 employees covered by collective bargaining agreements[67]. - The company has committed to donating $3.4 million to the USO through 2026, having already donated $2.8 million through Fiscal 2024[71]. - The company has implemented various employee development programs, including a Learning Management System and annual performance reviews to support career progression[73]. Capital Expenditures and Liquidity - Capital expenditures for Fiscal 2024 were $132.1 million, including $6.0 million for the ERP upgrade, while the company anticipates capital expenditures of $140.0 million to $150.0 million for Fiscal 2025[245][251]. - Total available liquidity as of December 28, 2024, was $569.4 million, consisting of cash on hand and available balances under credit facilities[242]. - The company incurred costs of approximately $238 million related to the ERP system upgrade project, with an expected total cost of around $350 million[243]. Debt and Shareholder Returns - Dividends paid to shareholders increased to $203.0 million in Fiscal 2024 from $195.2 million in Fiscal 2023, reflecting a growth of approximately 4.6%[245][252]. - The company repurchased $22.7 million of its common stock in Fiscal 2024, down from $45.8 million in Fiscal 2023[245][252]. - A total of 1.0 million shares were repurchased at a cost of $22.7 million during Fiscal 2024, compared to 1.9 million shares at a cost of $45.8 million in Fiscal 2023[268]. - Long-term debt and right-of-use lease obligations totaled $1,276,109,000 as of December 28, 2024, down from $1,285,039,000 on December 30, 2023[253]. Compliance and Risk Management - The company is currently in substantial compliance with all material federal, state, and local laws and regulations affecting its operations[60][61]. - The company expects to face potential risks from global economic volatility, including inflation and supply chain disruptions, which could impact future cash flows[241]. - Changes in accounts payable were primarily driven by volatility in input costs and timing of capital spending, with a net change of $(59.6) million in Fiscal 2024[247][250].

THOMASVILLE, Ga., Feb. 11, 2025 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) (the "Company" or "Flowers Foods") today announced the pricing of the public offering of (i) $500 million aggregate principal amount of 5.750% Senior Notes due 2035 (the "2035 Notes") and (ii) $300 million aggregate principal amount of 6.200% Senior Notes due 2055 (the "2055 Notes" and, together with the 2035 Notes, the "Notes"). The 2035 Notes will bear interest at a rate of 5.750% per annum and will mature on March 15, 2035. T ...

Financial Data and Key Metrics Changes - The company experienced growth in both dollars and units across its branded bread portfolio, aided by innovation and strong market execution [7] - Financial guidance for 2025 is cautious due to potential tariffs, commodity volatility, and weak consumer demand [8][9] Business Line Data and Key Metrics Changes - The away-from-home business saw improved sales and margins despite some deliberate business exits [7] - Significant weakness was noted in the sweet baked goods category, impacting revenue and volume growth [8] Market Data and Key Metrics Changes - The company reported a record household penetration for Dave's Killer Bread, indicating strong consumer interest despite some consumption data showing a decline [20] - The promotional environment remains elevated, affecting overall demand and pricing strategies [41][42] Company Strategy and Development Direction - The company is focusing on innovation and expanding its portfolio to capitalize on current and long-term trends, particularly with the addition of Simple Mills [8][9] - There is a strategic shift towards more differentiated premium items, responding to changing consumer preferences away from traditional white and soft variety breads [46][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of their brands and innovation capabilities, despite a cautious outlook for the near term [9] - The company is preparing for potential impacts from GLP-1 drugs on consumer behavior, positioning its portfolio to meet new consumer demands [29][30] Other Important Information - The company is implementing a transition to a company-owned distribution model in California, which is expected to enhance control over operations and service [128] - The introduction of smaller loaves is being tested to meet consumer needs and reduce waste, with plans for potential expansion across brands [88][130] Q&A Session Summary Question: Concerns about Dave's Killer Bread consumption data - Management acknowledged challenges but emphasized strong brand performance and upcoming innovations to support growth [17][20] Question: Dynamics of first-half and second-half performance - Management indicated that the first half would benefit from new business and pricing, while the second half may see continued inflation in input costs [25][26] Question: Impact of GLP-1 drugs on consumer behavior - Management noted conflicting research but expressed confidence in their portfolio's alignment with potential consumer shifts [27][29] Question: Caution regarding category performance and pricing power - Management attributed caution to overall demand pressure and a shift away from soft variety breads, while highlighting successful innovations [35][36] Question: Expectations for legacy business growth in 2025 - Management projected modest growth driven by premium brand performance and new product launches, particularly in the second quarter [84][85] Question: Promotional landscape and competitive dynamics - Management stated that their market share performance has improved despite competitors' aggressive promotions, maintaining a focus on brand strength [138][139] Question: Rationale for expanding Wonder into sweet baked snacks - Management explained that addressing the sweet baked goods category is necessary, and they believe the Wonder brand can successfully penetrate this market [144] Question: Insights from Circana research on GLP-1 drugs - Management cautioned that the research is one data point among many, emphasizing the need to adapt to evolving consumer preferences [146][147]

Flowers Foods (FLO) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.76%. A quarter ago, it was expected that this bakery goods company would post earnings of $0.30 per share when it actually produced earnings of $0.33, delivering a surprise of 10%.Over the last four quarters, the co ...