Premium brand of better-for-you crackers, cookies, snack bars, and baking mixes expected to spur growth and diversify revenue base Enhances Flowers' growth by adding a scaled, better-for-you snacking platform that is successfully penetrating mainstream consumers and offers significant white space for future growth Diversifies category exposure, bolstering Flowers' exposure to better-for-you and attractive snacking segments through the addition of Simple Mills' market-leading products, which are meaningfully ...

Flowers Foods, Inc. (FLO) is at a crossroads amid a challenging consumer landscape. Over the past three months, the company’s shares have tumbled 11%, underperforming the industry’s decline of 10.1%. This packaged bakery food product company has also lagged the Zacks Consumer Staples sector’s drop of 7.4% and the S&P 500's growth of 4.3% in the same time frame.FLO 3-Month Price Performance vs. Industry, Sector & S&P 500Image Source: Zacks Investment ResearchTechnical indicators are also not supportive of FL ...

The company discussed in this article is only one potential investment in the sector. Members of iREIT on Alpha get access to investment ideas with upsides that I view as significantly higher/better than this one. Consider subscribing and learning more here.Analyst’s Disclosure: I/we have a beneficial long position in the shares of FLO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other th ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Developed alon ...

Flowers Foods, Inc. (FLO) reported mixed third-quarter fiscal 2024 results, as the bottom line improved year over year and beat the Zacks Consensus Estimate while the top line declined and missed the consensus mark.This performance reflects the strength of its leading brands, effective cost initiatives and a strategic portfolio approach. Despite top-line pressure from external challenges, the company achieved solid margin improvements and robust bottom-line growth. Flowers Foods outpaced the bread category, ...

Financial Data and Key Metrics Changes - The company reported growth in dollars and units in fresh packaged breads, achieving the largest share gains in the category despite a challenging environment [6][25] - The company gained 20 basis points in dollar share and 20 basis points in unit share, marking the largest among competitors in the category [25] Business Line Data and Key Metrics Changes - Strong pricing initiatives in the other segment enabled sales growth, which more than offset volume losses [6] - The company is expanding its Dave's Snack Bites and Wonder product lines, with early returns showing enthusiasm from retailers [10][12] Market Data and Key Metrics Changes - The sweet baked goods category has faced pressure, with the company performing in line with the category but taking proactive steps to inject growth [11][19] - The company noted that promotional activity has increased across the category, with their promotional intensity remaining below pre-pandemic levels [20] Company Strategy and Development Direction - The company remains focused on enhancing shareholder value and delivering results consistent with long-term financial targets, including maximizing opportunities in branded retail and executing cost savings plans [7] - The company is looking across baked goods for potential M&A opportunities to diversify its portfolio [29] Management's Comments on Operating Environment and Future Outlook - Management indicated that the current consumer pullback on discretionary spending is temporary and expects the category to normalize in 2025 [18][19] - The company is cautiously optimistic about achieving EBITDA margins in the low teens over time, driven by growth in branded business and operational efficiencies [58] Other Important Information - The company is experiencing a shift in consumer purchasing patterns towards the perimeter of the store, impacting traditional segments of the business [30][60] - The company reported that private label products are losing share, with branded products gaining traction [41] Q&A Session Summary Question: Expansion plans for Dave's Snack Bites and Wonder - Management expressed confidence in the early returns for the Wonder line and noted that the snack bites are differentiated and well-received by retailers [10][12] Question: Competitive pressures in the sweet baked goods category - Management attributed the declines to consumer spending pullbacks rather than increased competition, indicating a temporary situation [17][19] Question: Impact of hurricanes on Q3 performance - Management acknowledged that while hurricanes had a positive impact, it was not significant, and the company outperformed the category despite softness [24][25] Question: CapEx reduction explanation - The reduction was primarily due to the pace of spending on bakery projects being slower than anticipated, with some projects rolling over to 2025 [14][15] Question: Trends in the food service segment - Management indicated that mid-single digits of volume decline were due to strategic exits, but pricing improvements offset these losses [40] Question: Share gains in new geographies - Management noted that share gains are occurring in newer markets, with competitive activity being a challenge but not a barrier to growth [46][49] Question: Capacity utilization update - Management reported an overall equipment effectiveness (OEE) of 70% to 71%, indicating improvements in operational efficiency [52] Question: Long-term EBITDA margin outlook - Management believes that achieving EBITDA margins in the low teens is within reach, supported by growth strategies and operational improvements [58]

Flowers Foods (FLO) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this bakery goods company would post earnings of $0.33 per share when it actually produced earnings of $0.36, delivering a surprise of 9.09%.Over the last four quarters, the co ...

Investors interested in stocks from the Food - Miscellaneous sector have probably already heard of Flowers Foods (FLO) and Nestle SA (NSRGY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnin ...

Thomasville, GA, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Flowers Foods, Inc. (NYSE: FLO) will report its third quarter 2024 financial results on Friday, November 8, 2024, at 7:00 a.m. Eastern. The company will host a live question and answer webcast at 8:30 a.m. Eastern the same day. A link to the webcast, press release, pre-recorded remarks by management with accompanying transcript, and supporting slide presentation will be posted at investors.flowersfoods.com. A replay will be available at the same link follow ...

Flowers Foods, Inc. (FLO) has been gaining from its focus on core priorities, which include developing its team, concentrating on brands, prioritizing margins and looking out for prudent mergers and acquisitions. The company has been on track with transitioning a larger part of its sales to higher-margin branded retail products, alongside enhancing the profitability of the private label and away-from-home business. These upsides have been helping the company amid the challenges related to volatile consumer ...