Flowers Foods cuts 2026 outlook after Q2 sales, adjusted EPS miss estimates

Flowers Foods

20/08/2026 21:14

Overview
U.S. packaged bakery foods maker's Q2 sales fell 4%, missing analyst expectations
Adjusted EPS for Q2 declined and missed analyst expectations
Company cut full-year sales and earnings outlook amid continued category headwinds

Outlook
Flowers Foods lowers 2026 net sales outlook to $5.070 bln-$5.142 bln from $5.163 bln-$5.267 bln
Company now sees 2026 adjusted EBITDA at $453 mln-$481 mln, down from $465 mln-$495 mln
Flowers Foods expects 2026 adjusted diluted EPS of $0.75-$0.85, down from $0.80-$0.90

Result Drivers
LOWER VOLUMES - Co said net sales fell as favorable price/mix was more than offset by lower volume, with branded retail volume down 7.6% and overall volume down 5.8%
HIGHER COSTS - Co attributed lower net income to increased marketing, labor, and freight costs, partly offset by moderating ingredient costs
CATEGORY HEADWINDS - Co said macroeconomic pressures, evolving consumer purchasing behavior, and sustained competitive activity created a more difficult operating environment

Company press release: ID:nPnXbcMXa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$1.19 bln
$1.23 bln (5 Analysts)
Q2 Adjusted EPS
Miss
$0.21
$0.22 (5 Analysts)
Q2 EPS
 
$0.19
 
Q2 Adjusted Net Income
 
$44.10 mln
 
Q2 Net Income
 
$40.70 mln
 
Q2 Adjusted EBITDA
 
$111.30 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Flowers Foods Inc is $8.00, about 7.2% above its August 19 closing price of $7.46
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

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Aug 20 - Walmart's Q2 US same-store sales rise less than expected; FY outlook raised

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)