Flowers Foods, Inc. (FLO)

In the past six months, Flowers Foods' stock (FLO) has trended downwards by 25.11%. The stock price has dropped more than 50% from its all-time high in October 2023, resulting in a high dividend yield, reaching approximately 8.7% as of early February 2026. In the first quarter of 2025, Flowers Foods reported a decrease in net sales and net income, and revised its full-year 2025 net sales guidance downwards. The acquisition of Simple Mills was completed in February 2025, contributing to net sales but also a net loss in Q1 2025. Q3 2025 performance showed a decrease in adjusted EBITDA and net income per share due to a tough consumer environment and higher interest expense. Analysts have given Flowers Foods a consensus rating of "Reduce" due to concerns about margin pressure and the company's ability to recover profitability. Insiders have sold more shares than they have bought in the past three months.

The demand for Flowers Foods' products is generally stable as they are considered consumer staples. There can be some seasonality influenced by holidays and consumer behavior. The company's diverse product range helps to balance out potential seasonal shifts in specific product categories.

Flowers Foods, Inc. is the second-largest producer and marketer of packaged bakery foods in the United States, operating within the consumer packaged goods sector. The company produces a wide variety of bakery products, including fresh breads, buns, rolls, snack cakes, bagels, English muffins, and tortillas. Its major brands include Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, Tastykake, Mrs. Freshley's, and Simple Mills. The company's competitive edge is its Direct-Store-Delivery (DSD) system, which ensures product freshness and strong shelf presence.

Flowers Foods primarily operates in the United States, with its products available to approximately 85% of the U.S. population. The company has 44 bakeries located across 19 states. While it has a strong presence, there is lower penetration in the Great Lakes, Plains, and Northeast regions, indicating potential for geographic expansion. Fresh bakery foods are distributed daily through its DSD network, while frozen bakery items and snack cakes are delivered to customers' warehouses nationwide.

Flowers Foods maintains a strong brand reputation through its portfolio of well-known bakery brands. Nature's Own is recognized as America's best-selling loaf bread. Dave's Killer Bread is the top organic bread in the U.S. Canyon Bakehouse is the leading gluten-free bread brand. Wonder Bread has been a trusted brand for over 100 years, and Tastykake has been a snack favorite for more than a century. The recent acquisition of Simple Mills further aligns Flowers Foods with consumer demand for differentiated, better-for-you products. The company's brand reputation has been supported by its continued investment in on-trend innovation and targeting faster-growing categories.

Flowers Foods' ownership is primarily institutional, with institutions holding approximately 81.2% to 67.13% of the company's shares. Individual insiders own about 7.49% to 7.51%, and the general public holds around 11.3% to 40.38%. Major institutional owners include The Vanguard Group, Inc., BlackRock, Inc., Fuller & Thaler Asset Management, Inc., State Street Global Advisors, Inc. / State Street Corp., Charles Schwab Investment Management, Inc., Dimensional Fund Advisors Lp., Cooke & Bieler LP and Renaissance Technologies LLC. Individual insiders, such as CEO & Chairman A. McMullian, also hold significant shares.