Flowers Foods, Inc. (FLO) announced a dividend increase, showcasing the company's commitment to boosting shareholders' value. The board of directors declared a quarterly dividend of 24 cents per share, a hike of 4.3% from the prior quarter's dividend rate. The hiked dividend will be paid on Jun 20, 2024, to shareholders of record as of Jun 6. This marks the company's 87th consecutive quarterly dividend. The move raises Flowers Foods' annual dividend rate to 96 cents per share, up from 92 cents paid during t ...

THOMASVILLE, Ga., May 23, 2024 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today announced that its board of directors has declared a quarterly dividend of $0.24 per share, an increase of 4.3% over the same quarter last year. This is the 87th consecutive quarterly dividend paid by the company and is payable on June 20, 2024, to shareholders of record on June 6, 2024. This action increases the annualized dividend rate to $0.96 per share from $0.92 per share at this time last year. FLO-CORP FLO-IR FLO-DIV ...

Regardless, if you're a retiree, the short-term trends should not matter much. This business will continue to compound in the decades ahead, and it has a solid 3% dividend yield to top it all off. PepsiCo (NASDAQ:PEP) is by far my favorite pick when it comes to long-term dividend stocks. While it is going through some tough times right now, the stock has been very stable and consistent throughout its history. It is very hard not to be drawn into a PepsiCo product if you walk down any snack aisle. The growth ...

Core Viewpoint - Flowers Foods, Inc. reported mixed results for the first quarter of fiscal 2024, with earnings missing estimates while sales increased year over year [1][5]. Financial Performance - Adjusted earnings per share (EPS) were 38 cents, missing the Zacks Consensus Estimate of 40 cents, but in line with the previous year's figure [4]. - Sales rose by 2.8% year over year to $1,576.8 million, although this was below the consensus estimate of $1,578.4 million [5]. - Branded Retail sales increased by 3.5% to $1,014.9 million, driven by improved pricing and acquisitions [6]. Cost and Margin Analysis - Production costs decreased by 160 basis points to 50.6% of sales, aided by moderating ingredient costs and inflation-related pricing actions [7]. - Selling, distribution, and administrative expenses rose to 39.7% of sales, primarily due to higher labor and technology costs [8]. - Adjusted EBITDA grew by 5.5% to $159.4 million, with an adjusted EBITDA margin of 10.1%, expanding by 30 basis points [8]. Financial Position - As of the end of the fiscal first quarter, the company had cash and cash equivalents of $15.8 million and long-term debt of $1,043.5 million [9]. - Cash flow from operating activities was $105.1 million, with capital expenditures of $33.3 million and dividends paid amounting to $51.1 million [9]. Fiscal 2024 Guidance - The company anticipates sales between $5.091 billion and $5.172 billion, indicating flat to a 1.6% increase year over year [11]. - Adjusted EBITDA is expected to range from $524 million to $553 million, compared to $501.7 million in fiscal 2023 [11]. - Adjusted EPS is projected to be between $1.20 and $1.30, consistent with the previous year's figure [11].

Financial Data and Key Metrics Changes - The company reported solid first-quarter results, reflecting the effectiveness of its portfolio strategy, with branded retail volumes growing for the first time since 2020 [4][15] - The company raised its savings range from $30 million to $40 million to $40 million to $50 million, which is expected to improve SG&A [7][8] - Gross margin expansion was significant, attributed to pricing and operational improvements, with expectations for continued year-over-year growth [36][60] Business Line Data and Key Metrics Changes - Dave's Killer Bread achieved a second consecutive quarter of 10% unit growth, leading the brand portfolio [15][24] - The company noted weakness in the broader Nature's Own product line, particularly in basic varieties, but signs of recovery were observed as consumers shifted back from private label products [25][43] Market Data and Key Metrics Changes - The company observed a recovery in low-income shoppers returning to branded products, indicating a potential improvement in consumer health [43] - The away-from-home business is expected to grow above the category, driven by strategic exits from unproductive accounts and a focus on higher-margin business [52][72] Company Strategy and Development Direction - The company is transitioning to a consumer-focused, brand-oriented strategy while capturing opportunities in the away-from-home segment with limited investment [33][72] - There is an increased focus on launching new products, with a rigorous process to ensure they meet consumer, financial, and operational criteria before launch [35][57] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing economic uncertainty but maintained a positive outlook for volume improvement and growth potential throughout 2024 [5][15] - The company is optimistic about the M&A environment, noting an increase in conversations with potential targets [40] Other Important Information - The company is working on improving its cost structure, with expectations for SG&A to stabilize as a percentage of net sales [39][68] - Digital tools have significantly reduced trade spend while improving promotional effectiveness [64][78] Q&A Session Summary Question: Discussion on operating expenses and SG&A spending - Management indicated that higher labor and technology costs, along with stranded overheads, are contributing to elevated expenses, but they expect SG&A to stabilize as the year progresses [7][8] Question: Insights on branded versus private label growth - Management noted that branded products, particularly Dave's Killer Bread, are gaining share from private label, indicating a shift in consumer preferences [24][43] Question: Status of DSD network expansion - The company is adding routes in high-growth areas while converting some routes to company-operated ones to improve efficiency [26][44] Question: Volume impact from strategic exits - Management confirmed that total company volumes would have been positive without the intentional strategic exits, which were aimed at freeing capacity for higher-margin business [46][48] Question: Expectations for gross margin and promotional strategies - Management highlighted that gross margin improvements are expected to continue, driven by pricing and operational efficiencies, while promotional strategies are becoming more targeted and effective [36][64]

Company Performance - Flowers Foods reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share, with an earnings surprise of -5% [1] - The company posted revenues of $1.58 billion for the quarter ended March 2024, missing the Zacks Consensus Estimate by 0.10%, compared to year-ago revenues of $1.53 billion [2] - Over the last four quarters, Flowers Foods has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Movement and Outlook - Flowers Foods shares have increased by approximately 13.3% since the beginning of the year, outperforming the S&P 500's gain of 11.3% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the coming quarter is $0.33 on $1.25 billion in revenues, and for the current fiscal year, it is $1.25 on $5.17 billion in revenues [7] Industry Context - The Zacks Industry Rank for Food - Miscellaneous is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Flowers Foods' stock performance [5][6]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [First Quarter 2024 Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Flowers Foods, Inc. reported solid first-quarter 2024 results, with record sales and increased net income, driven by effective portfolio strategy and investments, despite challenging market conditions | Metric | Q1 2024 (16-weeks) | | :-------------------------------- | :------------------ | | Sales | $1.577 billion (+2.8%) | | Net Income | $73.0 million (+3.3%) | | Adjusted Net Income | $80.3 million (-0.8%) | | Adjusted EBITDA | $159.4 million (+5.5%) | | Diluted EPS | $0.34 (+$0.01) | | Adjusted Diluted EPS | $0.38 (consistent) | [Chairman and CEO Remarks](index=1&type=section&id=Chairman%20and%20CEO%20Remarks) Chairman and CEO Ryals McMullian highlighted the increasing effectiveness of the company's portfolio strategy and investments, leading to market share gains and the first quarterly branded retail volume growth since 2020. Profitability in away-from-home and private label businesses also significantly expanded - Brands gained market share, outperforming the fresh packaged bread category[3](index=3&type=chunk) - Grew quarterly branded retail volumes for the first time since 2020[3](index=3&type=chunk) - Initiatives improved profitability and expanded margins in away-from-home and private label businesses[3](index=3&type=chunk) [Fiscal Year 2024 Outlook](index=1&type=section&id=Fiscal%20Year%202024%20Outlook) The company maintained its 2024 outlook, anticipating continued volume improvement, benefits from expanded savings initiatives and new business wins, while acknowledging ongoing economic uncertainty | Metric | Fiscal 2024 Outlook Range | | :-------------------------------- | :-------------------------------- | | Sales | $5.091 billion to $5.172 billion (0.0% to 1.6% growth) | | Adjusted EBITDA | $524 million to $553 million | | Adjusted Diluted EPS | $1.20 to $1.30 | | Depreciation and Amortization | $160 million to $165 million | | Net Interest Expense | $22 million to $26 million | | Effective Tax Rate | Approximately 25% | | Weighted Average Diluted Share Count | Approximately 213 million shares | | Capital Expenditures | $145 million to $155 million (including $3 million to $6 million for ERP upgrade) | [Consolidated First Quarter Operating Highlights](index=3&type=section&id=Consolidated%20First%20Quarter%20Operating%20Highlights) [Sales Performance](index=3&type=section&id=Sales%20Performance) Total sales increased by 2.8% to a first-quarter record of $1.577 billion, primarily driven by pricing/mix and acquisition contributions, with branded retail volumes showing positive growth | Sales Class | Q1 2024 Sales ($ thousands) | % Change YoY | | :---------------- | :-------------- | :----------- | | Branded Retail | $1,014,901 | 3.5% | | Other | $561,917 | 1.4% | | **Total Sales** | **$1,576,818** | **2.8%** | | Sales Driver | Branded Retail | Other | Total | | :------------- | :------------- | :---- | :---- | | Pricing/mix | 2.6% | 3.3% | 3.1% | | Volume | 0.3% | (2.2)% | (0.8)% | | Acquisition | 0.6% | 0.3% | 0.5% | | **Total % Change** | **3.5%** | **1.4%** | **2.8%** | [Cost and Expense Analysis](index=3&type=section&id=Cost%20and%20Expense%20Analysis) The company experienced a decrease in materials, supplies, labor, and other production costs as a percentage of sales due to prior year pricing actions and moderating ingredient costs, while selling, distribution, and administrative (SD&A) expenses increased - Materials, supplies, labor, and other production costs decreased by **160 basis points** to **50.6% of sales**, primarily due to prior year pricing actions and moderating ingredient/packaging costs, partly offset by higher labor costs[10](index=10&type=chunk) - Selling, distribution, and administrative (SD&A) expenses increased by **110 basis points** to **39.7% of sales**, driven by higher labor and technology expenses[10](index=10&type=chunk) | Expense Category | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | Change ($ thousands) | | :-------------------------------------------------------------------------------- | :-------------- | :-------------- | :----- | | Restructuring charges | $598 | $4,195 | -$3,597 | | Impairment of assets | $4,000 | — | +$4,000 | | Depreciation and amortization expense | $48,235 | $43,735 | +$4,500 | | Net interest expense | $5,611 | $3,886 | +$1,725 | [Profitability Metrics](index=1&type=section&id=Profitability%20Metrics) Net income increased by 3.3%, while adjusted net income saw a slight decrease. Adjusted EBITDA grew by 5.5%, improving the adjusted EBITDA margin by 30 basis points | Metric | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | % Change YoY | | :------------------ | :-------------- | :-------------- | :----------- | | Net Income | $73,043 | $70,710 | +3.3% | | Adjusted Net Income | $80,261 | $80,937 | -0.8% | | Adjusted EBITDA | $159,408 | $151,140 | +5.5% | | Adjusted EBITDA Margin | 10.1% | 9.8% | +0.3 percentage points | [Cash Flow and Capital Allocation](index=3&type=section&id=Cash%20Flow%20and%20Capital%20Allocation) Cash flow from operating activities significantly increased, while capital expenditures slightly decreased. Dividends paid to shareholders also increased | Metric | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | Change ($ thousands) | | :-------------------------------- | :-------------- | :-------------- | :----- | | Cash flow from operating activities | $105,149 | $57,952 | +$47,197 | | Capital expenditures | $33,332 | $33,958 | -$626 | | Dividends paid | $51,106 | $49,100 | +$2,006 | | Cash and cash equivalents (period end) | $15,818 | $27,720 | -$11,902 | [Company Information](index=5&type=section&id=Company%20Information) [About Flowers Foods](index=5&type=section&id=About%20Flowers%20Foods) Flowers Foods, Inc. is a leading producer of packaged bakery foods in the U.S., with 2023 sales of $5.1 billion, operating numerous bakeries and owning popular brands such as Nature's Own and Dave's Killer Bread - One of the largest producers of packaged bakery foods in the United States[13](index=13&type=chunk) - Reported **$5.1 billion** in sales for 2023[13](index=13&type=chunk) - Key brands include Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake[13](index=13&type=chunk) [Investor Relations](index=5&type=section&id=Investor%20Relations) The company will host a live question and answer webcast on May 16, 2024, following the release of pre-recorded management remarks and a supporting slide presentation - Pre-recorded management remarks and a supporting slide presentation are available on the Flowers Foods website[12](index=12&type=chunk) - A live question and answer webcast was scheduled for **5:00 p.m. (Eastern)** on **May 16, 2024**[12](index=12&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Use of Non-GAAP Measures](index=7&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) Flowers Foods uses non-GAAP financial measures such as EBITDA, adjusted EBITDA, and adjusted net income to provide investors with a more complete understanding of its core operations by excluding certain non-recurring or non-operating costs - Non-GAAP measures are supplemental to GAAP and not a substitute[15](index=15&type=chunk) - **EBITDA** is defined as earnings before interest, taxes, depreciation, and amortization, used as an indicator of operating performance and debt servicing ability[16](index=16&type=chunk) - Adjusted non-GAAP measures exclude costs like plant closures, acquisitions, restructuring, impairments, and business process improvement costs to provide insight into core operations[17](index=17&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The report provides detailed reconciliations for various non-GAAP measures, including adjusted EPS, gross margin, adjusted SD&A, EBITDA, adjusted EBITDA, adjusted income tax expense, and adjusted net income, for both the current quarter and full-year guidance Reconciliation of Earnings per Share to Adjusted Earnings per Share | Metric | Q1 2024 | Q1 2023 | | :-------------------------------- | :------ | :------ | | Net income per diluted common share | $0.34 | $0.33 | | Business process improvement costs | 0.01 | 0.02 | | Impairment of assets | 0.01 | — | | Restructuring charges | NM | 0.01 | | Acquisition-related costs | — | 0.01 | | **Adjusted net income per diluted common share** | **$0.38** | **$0.38** | Reconciliation of Gross Margin | Metric ($ thousands) | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | | :-------------------------------------------------------------------------------- | :-------------- | :-------------- | | Sales | $1,576,818 | $1,534,493 | | Materials, supplies, labor and other production costs (exclusive of D&A) | $797,186 | $800,852 | | **Gross margin excluding depreciation and amortization** | **$779,632** | **$733,641** | | Less depreciation and amortization for production activities | $26,353 | $24,448 | | **Gross margin** | **$753,279** | **$709,193** | Reconciliation of Net Income to EBITDA and Adjusted EBITDA | Metric ($ thousands) | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | | :-------------------------------- | :-------------- | :-------------- | | Net income | $73,043 | $70,710 | | Income tax expense | $23,052 | $19,255 | | Interest expense, net | $5,611 | $3,886 | | Depreciation and amortization | $48,235 | $43,735 | | **EBITDA** | **$149,941** | **$137,586** | | Other pension benefit | ($158) | ($83) | | Business process improvement costs | $3,683 | $6,219 | | Impairment of assets | $4,000 | — | | Restructuring charges | $598 | $4,195 | | Restructuring-related implementation costs | $1,344 | — | | Acquisition-related costs | — | $3,223 | | **Adjusted EBITDA** | **$159,408** | **$151,140** | [Financial Statements](index=8&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight increase in total assets and stockholders' equity from December 30, 2023, to April 20, 2024, with minor changes in current assets and liabilities | Metric ($ thousands) | April 20, 2024 | December 30, 2023 | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $15,818 | $22,527 | | Total assets | $3,429,166 | $3,426,953 | | Current liabilities | $564,631 | $611,546 | | Long-term debt | $1,043,543 | $1,048,144 | | Stockholders' equity | $1,375,880 | $1,351,782 | [Consolidated Statement of Operations](index=9&type=section&id=Consolidated%20Statement%20of%20Operations) The statement of operations for the 16-week period shows an increase in sales, income from operations, and net income compared to the prior year period | Metric ($ thousands) | Q1 2024 (16-weeks) | Q1 2023 (16-weeks) | | :-------------------------------------------------------------------------------- | :----------------- | :----------------- | | Sales | $1,576,818 | $1,534,493 | | Materials, supplies, labor and other production costs (exclusive of D&A) | $797,186 | $800,852 | | Selling, distribution, and administrative expenses | $625,251 | $591,943 | | Income from operations | $101,548 | $93,768 | | Net income | $73,043 | $70,710 | | Net income per diluted common share | $0.34 | $0.33 | [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash flows from operating activities significantly increased, while investing activities saw a much smaller disbursement compared to the prior year due to a large acquisition in 2023. Financing activities resulted in a net disbursement | Cash Flow Activity ($ thousands) | Q1 2024 (16-weeks) | Q1 2023 (16-weeks) | | :-------------------------------- | :----------------- | :----------------- | | Net cash provided by operating activities | $105,149 | $57,952 | | Net cash disbursed for investing activities | ($35,927) | ($301,207) | | Net cash (disbursed for) provided by financing activities | ($75,931) | $105,841 | | Net decrease in cash and cash equivalents | ($6,709) | ($137,414) | | Cash and cash equivalents at end of period | $15,818 | $27,720 | [Sales by Sales Class and Sales Bridge](index=11&type=section&id=Sales%20by%20Sales%20Class%20and%20Sales%20Bridge) Sales are categorized into Branded Retail and Other, with a detailed bridge illustrating the percentage point changes attributed to pricing/mix, volume, and acquisitions for each segment and total sales Sales by Sales Class | Sales Class ($ thousands) | Q1 2024 | Q1 2023 | $ Change | % Change | | :------------------ | :------ | :------ | :------- | :------- | | Branded Retail | $1,014,901 | $980,479 | $34,422 | 3.5% | | Other | $561,917 | $554,014 | $7,903 | 1.4% | | **Total Sales** | **$1,576,818** | **$1,534,493** | **$42,325** | **2.8%** | Sales Bridge (Percentage Point Change) | Sales Driver | Branded Retail | Other | Total | | :------------- | :------------- | :---- | :---- | | Pricing/mix | 2.6% | 3.3% | 3.1% | | Volume | 0.3% | (2.2)% | (0.8)% | | Acquisition | 0.6% | 0.3% | 0.5% | | **Total % Change** | **3.5%** | **1.4%** | **2.8%** | [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section serves as a disclaimer, indicating that statements regarding future expectations are forward-looking and subject to various risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are based on current expectations and are inherently uncertain[14](index=14&type=chunk) - Risks and uncertainties include general economic conditions, competitive environment, interest rates, supply chain, consumer demand, and regulatory changes[14](index=14&type=chunk) - The company undertakes no obligation to publicly revise or update such statements, except as required by law[14](index=14&type=chunk)

Core Insights - Flowers Foods, Inc. reported a solid first quarter for fiscal 2024, with net income increasing by 3.3% to $73.0 million and sales rising by 2.8% to a record $1.577 billion, driven by effective portfolio strategy and marketing investments [2][5][12] Financial Performance - Sales reached $1.577 billion, marking a 2.8% increase compared to the previous year, with branded retail sales up 3.5% to $1.015 billion [5][22] - Net income rose to $73.0 million, while adjusted net income decreased slightly by 0.8% to $80.3 million [5][12] - Adjusted EBITDA increased by 5.5% to $159.4 million, representing 10.1% of sales, a 30-basis point increase [5][12][25] Operational Highlights - The company maintained its 2024 outlook, expecting continued volume improvement despite economic uncertainties [3] - The first quarter saw branded retail volumes grow for the first time since 2020, indicating a positive trend in market share [2][3] Cost Management - Materials, supplies, labor, and other production costs accounted for 50.6% of sales, a decrease of 160 basis points, attributed to moderating ingredient costs [5][7] - Selling, distribution, and administrative expenses increased to 39.7% of sales, reflecting higher labor and technology costs [5][7] Cash Flow and Capital Allocation - Cash flow from operating activities increased by $47.2 million to $105.1 million, while capital expenditures decreased slightly to $33.3 million [8][21] - Dividends paid to shareholders rose to $51.1 million, up by $2.0 million from the previous year [8][21] Future Guidance - The company expects full-year sales in the range of approximately $5.091 billion to $5.172 billion, indicating growth of 0.0% to 1.6% compared to the prior year [6] - Adjusted diluted EPS is projected to be in the range of approximately $1.20 to $1.30 for fiscal 2024 [6][27]

The company is on track with its core strategic priorities, which are yielding. This encompasses developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. Focus on innovation and product differentiation helps Flowers Foods in capturing consumer interest and expanding market share in adjacent categories. The continuation of these trends is likely to have aided The TJX Companies' performance in the to-be-reported quarter. However, the ongoing infl ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The Style Scores are broken down into four categories: Value Score For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host ...