Flowers Foods Q1 Earnings Call Highlights

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MarketBeat

Fri, May 22, 2026 astatine 10:09 AM CDT 6 min read

Key Points

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Flowers Foods reported Q1 net up of expectations contempt softer income and continued weakness successful accepted bread, portion reaffirming its fiscal 2026 outlook. Management said its absorption remains connected marque investment, outgo controls, and equilibrium expanse improvement.
The institution is betting heavy connected a nationwide relaunch of Nature’s Own to stabilize its halfway loaf breadstuff business, which makes up astir 38% of branded retail sales. The revamped merchandise has less ingredients, is non-GMO verified, and is being supported by a large selling run featuring John Cena.
Cost unit is shifting from hedged commodities to oil-related inputs specified arsenic organisation and resin, adding an estimated $0.02 to $0.03 headwind successful the 2nd fractional of the year. Flowers Foods besides said currency from its dividend reset volition beryllium utilized chiefly to delever, with a extremity of getting beneath 3x leverage by fiscal 2027.

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Flowers Foods (NYSE:FLO) said it delivered first-quarter bottom-line results up of expectations contempt softer income trends and continued unit successful the accepted breadstuff category, arsenic absorption pointed to marque investment, outgo controls and equilibrium expanse priorities arsenic cardinal themes for the remainder of fiscal 2026.

Chairman and CEO Ryals McMullian said the institution “continued to execute against a challenging backdrop,” citing advancement connected a broad reappraisal of Flowers Foods’ marque portfolio, proviso concatenation and fiscal strategy. He said the institution is sharpening its absorption connected halfway brands, including a nationwide relaunch of Nature’s Own, portion continuing to physique its presumption successful better-for-you segments.

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“We besides saw affirmative trends successful premium breadstuff and barroom categories, helping america offset immoderate of the ongoing softness successful the accepted breadstuff category, wherever we underperformed successful the quarter,” McMullian said.

Inflation Pressures Shift Toward Oil-Related Costs

Management said Flowers Foods is mostly protected connected the commodities it hedges for the equilibrium of 2026. CFO Anthony Scaglione said the institution is “virtually afloat hedged” for the remainder of the twelvemonth connected commodities included successful its hedging program.

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However, Scaglione said the institution is present seeing unit successful areas tied to oil, including organisation and resin, which has affected packaging costs. He said packaging was not viewed arsenic a outgo interest erstwhile the twelvemonth began, but the institution is present looking astatine mitigation efforts specified arsenic packaging configuration changes, alternate materials and different productivity measures.

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