Ryals McMullian: Sure, Steve. I will start and let Anthony fill in. And I certainly will provide more details on this. We are in the early innings of the review. But at a high level, we are conducting a complete review of our brand portfolio, the manner and magnitude with which we are supporting that brand portfolio. We are evaluating other areas that are in additional need of investment. I think we are all aware that, by and large, the portfolio is performing very well across cake and our innovative platfo ...

Financial Data and Key Metrics Changes - The company produced results at the high end of its 2025 guidance range, but guidance for 2026 reflects ongoing category challenges and inflationary pressures [4] - The expected category decline is around 4%, with an additional 150 basis points of pressure from an extra week in the previous year [28] Business Line Data and Key Metrics Changes - The traditional loaf segment, particularly the Nature's Own brand, has been underperforming, which is a key focus area for revitalization [9][22] - The company is conducting a comprehensive review of its brand portfolio and supply chain to enhance efficiency and growth [8][10] Market Data and Key Metrics Changes - The competitive environment remains stable, with no significant changes in production capabilities among competitors [72] - Price per unit in the category increased slightly, likely due to a shift towards premium products [73] Company Strategy and Development Direction - The company is focused on navigating near-term challenges while laying the foundation for sustainable long-term growth [4] - A comprehensive review of operations, including brand portfolio and supply chain, is underway to strengthen execution and expand margins [4][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by inflation and category performance but remains optimistic about the potential for growth in the traditional loaf segment [4][25] - The company is committed to maintaining a strong balance sheet and evaluating capital allocation, including the dividend policy [12][33] Other Important Information - Maintenance CapEx is estimated at around $2 million per bakery per year, with additional investments planned for growth initiatives [56] - The company is optimistic about Simple Mills, expecting double-digit growth in the upcoming year despite some disruptions in Q4 [59] Q&A Session Summary Question: Details on the comprehensive review of brands and operations - Management is in the early stages of a thorough review, focusing on brand support and investment needs, particularly for the Nature's Own brand [8][9] Question: Capital allocation and dividend policy - The company is reviewing its capital structure and dividend policy in light of its overall strategy and financial health [12][33] Question: Stabilizing the traditional loaf market - Management believes there is potential for stabilization and growth in the traditional loaf segment through strategic investments and innovation [22][25] Question: Impact of SNAP budget reductions and debt refinancing - The company is monitoring the effects of reduced SNAP budgets and is confident in its ability to refinance upcoming debt maturities [38][40] Question: Supply chain review and potential bakery consolidation - The review includes evaluating bakery operations and leveraging technology for efficiency, with ongoing assessments of production capabilities [48] Question: Changes in competition and promotional strategies - The competitive landscape remains stable, and the company is cautious with promotional activities, focusing on trial and repurchase rather than volume gains [75]

Financial Data and Key Metrics Changes - The company produced results at the high end of its 2025 guidance range despite ongoing category challenges and inflationary pressures [4] - The guidance for 2026 reflects a downtrend in the category, with expectations of a 4% decline [28] Business Line Data and Key Metrics Changes - The traditional loaf segment, particularly the Nature's Own brand, has been underperforming, which is a key focus area for revitalization [9][22] - The company is conducting a comprehensive review of its brand portfolio and supply chain to enhance efficiency and support growth [8][10] Market Data and Key Metrics Changes - The competitive environment in the fourth quarter was normal, with no major changes in bakery consolidation reported [72] - Price per unit in the category increased slightly, likely due to a mix shift towards premium products [73] Company Strategy and Development Direction - The company is focused on navigating near-term challenges while laying the foundation for sustainable long-term growth [4] - A comprehensive review of operations, including brand portfolio and supply chain, is underway to strengthen execution and expand margins [4][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by inflation and a changing consumer landscape, particularly in the traditional loaf category [4][22] - There is optimism about the potential for growth in the Nature's Own brand, given its high loyalty and awareness [24] Other Important Information - The company remains committed to maintaining a strong balance sheet and is evaluating its capital allocation strategy, including the dividend [12][33] - Maintenance CapEx is expected to be around $2 million per bakery per year, with additional investments planned for growth initiatives [56] Q&A Session Summary Question: Details on the comprehensive review of brands and operations - Management is in the early stages of a thorough review of the brand portfolio and operational efficiency, focusing on areas needing investment [8][10] Question: Capital allocation and dividend considerations - The company is reviewing its capital structure and dividend in light of its overall strategy and financial health [33] Question: Stabilizing the traditional loaf market - Management believes there is a path to stabilize the traditional loaf segment through targeted investments and innovation [24][25] Question: Impact of SNAP budget reductions and debt refinancing - The company is monitoring the effects of reduced SNAP budgets and is confident in its ability to refinance upcoming debt maturities [38][40] Question: Simple Mills sales performance and margin impacts - Sales were affected by inventory issues and input costs, but management remains optimistic about future growth for Simple Mills [59][64] Question: Competitive landscape and promotional strategies - The competitive environment remains stable, with a focus on delivering products that meet consumer demands while managing promotional activities prudently [75][76]

Flowers Foods (NYSE:FLO) Q4 2025 Earnings call February 13, 2026 08:30 AM ET Speaker5Good morning, and thank you for standing by. Welcome to the Flowers Foods Fourth Quarter and Full Year 2025 Results Conference Call. Please be advised that today's event is being recorded. I would now like to hand the conference over to your opening speaker today, J.T. Rieck, Executive Vice President of Finance and Investor Relations. Please go ahead.Speaker1Thank you, Tonya, and good morning, everyone. I hope everyone had ...