FLOWERS FOODS, INC. REPORTS THIRD QUARTER 2026 RESULTS

Rhea-AI Summary

Flowers Foods (NYSE: FLO) reported third-quarter net sales of $1.169 billion, down 4.7% year over year, and lowered its fiscal 2026 outlook. For the 12 weeks ended October 10, 2026, volume declined 7.0%, outweighing a 2.3% pricing/mix increase. Net income fell 63.6% to $14.4 million, and diluted earnings per share fell to $0.07 from $0.19. Adjusted EBITDA fell 33.2% to $78.9 million.

The company now expects fiscal 2026 sales of approximately $5.016 billion to $5.063 billion, adjusted EBITDA of approximately $415 million to $430 million, and adjusted diluted EPS of approximately $0.63 to $0.68. All three ranges were reduced. Branded Retail sales fell 5.1%; Other sales fell 4.0%. Year-to-date operating cash flow decreased $0.9 million to $319.9 million, while dividends paid decreased $49.4 million to $107.6 million. Quarter-end cash was $72.2 million.

11 points · 0 major

NegativeiHow this balance works

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1 major · 22 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter operating cash flow rose to $78.347 million from $54.360 million a year earlier.
• Moderate pointDebt, including its current portion, fell to $1,675.228 million from $1,755.132 million at January 3, 2026.
• Moderate pointCash increased to $72.246 million from $12.100 million at January 3, 2026.
• Minor pointThird-quarter pricing/mix increased 2.3%, partially offsetting lower volume.
• Minor pointBranded Retail pricing/mix rose 3.5% in the third quarter.

6 minor points

• Minor pointOther pricing/mix increased 0.9%, with foodservice sales growth supporting results.
• Minor pointLower ingredient costs and incentive compensation partially offset third-quarter earnings pressures.
• Minor pointLower distributor distribution fees partially offset higher selling, distribution, and administrative expense pressures.
• Minor pointThird-quarter net interest expense decreased approximately $1.0 million, reflecting lower debt and increased interest income.
• Minor pointYear-to-date capital expenditures decreased $15.8 million to $64.5 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Flowers is accelerating customer execution and innovation initiatives to better align its portfolio with consumer preferences.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted EBITDA guidance cut to approximately $415 million–$430 million, from $453 million–$481 million.
• Moderate pointThird-quarter sales fell 4.7% to $1.169 billion, with volume down 7.0% year over year.
• Moderate pointThird-quarter net income fell 63.6% to $14.4 million; net margin declined 200 basis points to 1.2%.
• Moderate pointThird-quarter adjusted net income fell 56.0% to $21.4 million.
• Moderate pointThird-quarter adjusted EBITDA fell 33.2% to $78.9 million; margin declined 280 basis points to 6.8%.

17 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 sales guidance cut to approximately $5.016 billion–$5.063 billion, from approximately $5.070 billion–$5.142 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 adjusted diluted EPS guidance cut to approximately $0.63–$0.68, from $0.75–$0.85.
• Minor pointThird-quarter diluted EPS fell $0.12 to $0.07.
• Minor pointThird-quarter adjusted diluted EPS fell $0.13 to $0.10.
• Minor pointBranded Retail sales fell 5.1% to $772.1 million, with third-quarter volume down 8.6%.
• Minor pointOther sales fell 4.0% to $397.0 million; volume declined 4.9%, partly reflecting discontinued business.
• Minor pointProduction costs reached 53.3% of third-quarter sales, up 120 basis points, reflecting volume pressure and outside purchases.
• Minor pointSelling, distribution, and administrative expenses reached 40.2% of third-quarter sales, up 140 basis points amid marketing and logistics costs.
• Minor pointRestructuring, impairment, and ingredient recovery totaled $5.4 million net, approximately flat with prior-year restructuring charges of $5.5 million.
• Minor pointYear-to-date sales declined 2.2% to $3,933.569 million from $4,023.619 million.
• Minor pointYear-to-date Branded Retail sales declined 1.5% to $2,612.306 million.
• Minor pointYear-to-date Other sales declined 3.8% to $1,321.263 million.
• Minor pointYear-to-date net income declined to $97.089 million from $150.897 million; diluted EPS fell to $0.46 from $0.71.
• Minor pointYear-to-date operating cash flow decreased $0.9 million to $319.9 million.
• Minor pointYear-to-date dividends paid decreased $49.4 million to $107.6 million.
• Minor pointNature's Own improvement is slower than anticipated, primarily in loaf, the company said.
• Minor point. Forward-looking: it has not happened yet and may not happen.Flowers expects the operating environment to remain challenging in the near term.

News Explained

The company lowered its fiscal 2026 adjusted EBITDA outlook, but does not reconcile that forecast to net income: it says certain required amounts cannot be quantified without unreasonable effort and the unavailable information could be material to future results.

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Market move: FLO -11.78% vs previous close. 3Q26 earnings report

$5.27 – $6.54 Day Range

$1.12B Mkt Cap at Last Price

On Nov 12, the day this news came out, the latest delayed price for FLO is 11.78% below the previous close. Our momentum scanner has recorded 45 alerts for this stock so far that day. The latest delayed price is $5.30. Relative volume is elevated at 2.3x what this stock usually trades by this time of day.

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Key Figures

Net sales: $1.169 billion Net income: $14.4 million Adjusted EBITDA: $78.9 million +5 more

Net sales

$1.169 billion

Q3 2026; decreased 4.7% year over year.

Net income

$14.4 million

Q3 2026; decreased 63.6% year over year.

Adjusted EBITDA

$78.9 million

Q3 2026; decreased 33.2% year over year.

Diluted EPS

$0.07 per share

Q3 2026; decreased $0.12 year over year.

Adjusted diluted EPS

$0.10 per share

Q3 2026; decreased $0.13 year over year.

Fiscal 2026 net sales guidance

Approximately $5.016 billion to $5.063 billion

Revised range; prior guidance was approximately $5.070 billion to $5.142 billion.

Fiscal 2026 adjusted EBITDA guidance

Approximately $415 million to $430 million

Revised range; prior guidance was $453 million to $481 million.

Fiscal 2026 adjusted diluted EPS guidance

Approximately $0.63 to $0.68 per share

Revised range; prior guidance was $0.75 to $0.85 per share.

Previous Earnings Reports

2 past events · Latest: Aug 20

Same Type 2 events

1. Aug 20

   Q2 earnings

   24h Move

   -2.1%

   Sales, net income and EBITDA declined; the company lowered fiscal 2026 guidance.

2. Nov 06

   Q3 earnings

   24h Move

   +1.9%

   Net income and adjusted EBITDA fell despite higher sales; fiscal outlook narrowed.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, diluted eps, non-gaap measures, pricing/mix

4 terms

adjusted ebitda financial

"Adjusted EBITDA(2) decreased 33.2% to $78.9 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

diluted eps financial

"Diluted EPS decreased $0.12 to $0.07."

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

non-gaap measures financial

"See reconciliations of non-GAAP measures in the financial statements"

Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.

pricing/mix technical

"Pricing/mix(4) increased 2.3% and volume(5) declined 7.0%."

The combined effect on a company’s revenue from changes in the prices it charges and from shifts in the mix of products or services sold. Companies report price/mix when higher or lower average selling prices and a different proportion of higher- or lower-priced items alter revenue even if total units sold (volume) are unchanged; analysts sometimes separate it into a “price” component (same products sold at different prices) and a “mix” component (different composition of products or customers). Price/mix measures revenue impact only and does not by itself show changes in costs, margins, or profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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THOMASVILLE, Ga., Nov. 12, 2026 /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today reported financial results for the company's 12-week third quarter ended October 10, 2026.

Third Quarter Summary:

Compared to the prior year third quarter where applicable

• Net sales⁽¹⁾ decreased 4.7% to $1.169 billion as favorable price/mix was more than offset by lower volume.
• Net income decreased 63.6% to $14.4 million, representing 1.2% of sales, a 200-basis point decrease, primarily due to lower sales volume, increased marketing investment, higher logistics costs, and greater outside purchases of product. These factors were partially offset by lower incentive compensation, lower ingredient costs, and lower distributor distribution fees. Adjusted net income⁽²⁾ decreased 56.0% to $21.4 million.
• Adjusted EBITDA⁽²⁾ decreased 33.2% to $78.9 million, representing 6.8% of net sales, a 280-basis point decrease.
• Diluted EPS decreased $0.12 to $0.07. Adjusted diluted EPS⁽²⁾ decreased $0.13 to $0.10.

Chairman and CEO Remarks:

"Our third-quarter results reflect a continued challenging operating environment, driven by pressure on household budgets, evolving consumer behavior and heightened promotional activity, as well as areas where we need to move faster with focused execution," said Ryals McMullian, chairman and CEO of Flowers Foods. "Following the second quarter, we expected our earlier pricing actions and the relaunch of Nature's Own with fewer, simpler ingredients to help stabilize performance as we worked to introduce new innovation to market. We are seeing encouraging signs for Nature's Own, including improving sequential trends and growing awareness of the relaunch, although the pace of improvement has been slower than anticipated, primarily in loaf, where category trends remain challenging. We are accelerating actions already underway to strengthen customer execution, close innovation gaps, and better align our portfolio with evolving consumer preferences."

"While it will take time for our initiatives to translate more fully into results, we believe they are putting Flowers on a stronger path forward. We expect the environment to remain challenging in the near term, but we remain confident in the long-term potential of the business. We participate in large, attractive markets across fresh packaged bread, cake, better-for-you snacking, and foodservice, and our leading brands, extensive network, and deep customer relationships provide a strong foundation to drive improved performance and long-term growth. Given our third-quarter performance and current conditions, we are adjusting our 2026 guidance."

Revised Outlook: 52-week Fiscal 2026, the Company Expects:

• Net sales of approximately $5.016 billion to $5.063 billion, representing a -4.6% to -3.7% change compared to the prior year. Prior guidance called for net sales of approximately $5.070 billion to $5.142 billion.
• Adjusted EBITDA(3) in the range of approximately $415 million to $430 million, compared to prior guidance of $453 million to $481 million. 
• Adjusted diluted EPS(2) of approximately $0.63 to $0.68 per share, compared to prior guidance of $0.75 to $0.85 per share.

The company's outlook is based on the following assumptions:

• Depreciation and amortization of approximately $165 million to $170 million.
• Net interest expense of approximately $60 million to $65 million.
• An effective tax rate of approximately 27%.
• Weighted average diluted share count for the year of approximately 213.5 million shares.
• Capital expenditures of approximately $115 million to $125 million.

Matters Affecting Comparability:

Reconciliation of Earnings per Share to Adjusted Earnings per Share
		For the 12-Week Period Ended				For the 12-Week Period Ended
		October 10, 2026				October 4, 2025
Net income per diluted common share		$	0.07			$	0.19
Business process improvement costs		NM				NM
Impairment of assets			0.01				—
Restructuring charges			0.02				0.02
Restructuring-related implementation costs		NM					0.01
Acquisition and integration-related costs			—				0.01
Legal settlements and related costs		NM					—
Recovery on inferior ingredients		NM					—
Adjusted net income per diluted common share		$	0.10			$	0.23

NM - not meaningful. Certain amounts may not add due to rounding.

Consolidated Third Quarter Operating Highlights
Compared to the prior year third quarter where applicable

• Net sales decreased 4.7% to $1.169 billion. Pricing/mix⁽⁴⁾ increased 2.3% and volume⁽⁵⁾ declined 7.0%.
• Branded Retail net sales decreased $41.1 million, or 5.1%, to $772.1 million due to volume declines partially offset by favorable pricing/mix. Pricing/mix⁽⁴⁾ rose 3.5% and volume⁽⁵⁾ decreased 8.6%.
• Other net sales decreased $16.4 million, or 4.0%, to $397.0 million due to lower sales of store branded products, partially due to discontinued business. This was partially offset by improved non-retail volume and favorable pricing/mix, largely from growth in foodservice sales. Pricing/mix⁽⁴⁾ increased 0.9% and volume⁽⁵⁾ declined 4.9%.
• Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 53.3% of net sales, a 120-basis point increase. The increase as a percentage of sales primarily reflected the impact of lower production volumes on workforce-related costs and greater outside purchases of product (sales with no associated ingredient costs), partially offset by lower ingredient costs.
• Selling, distribution, and administrative (SD&A) expenses were 40.2% of net sales, a 140-basis point increase. The increase as a percentage of net sales reflected greater marketing investments and higher logistics costs, partially offset by lower distributor distribution fees. Excluding matters affecting comparability, adjusted SD&A⁽²⁾ was 39.9% of net sales, a 160-basis point increase.
• Restructuring charges, impairment of assets, and recovery on inferior ingredients together totaled $5.4 million, approximately flat with the prior-year period restructuring charges of $5.5 million.
• Depreciation and amortization (D&A) expenses were $38.3 million or 3.3% of net sales, approximately flat with last year's third quarter as a percentage of sales.
• Net interest expense decreased approximately $1.0 million primarily due to lower debt outstanding and increased interest income.
• Net income decreased 63.6% to $14.4 million, representing 1.2% of sales, a 200-basis point decrease, and diluted EPS decreased $0.12 to $0.07. Adjusted net income⁽²⁾ decreased 56.0% to $21.4 million and adjusted diluted EPS⁽²⁾ decreased $0.13 to $0.10.
• Adjusted EBITDA⁽²⁾ decreased 33.2% to $78.9 million, representing 6.8% of net sales, a 280-basis point decrease.

Cash Flow, Capital Allocation, and Capital Return

Year-to-date, cash flow from operating activities decreased $0.9 million to $319.9 million, capital expenditures decreased $15.8 million to $64.5 million, and dividends paid to shareholders decreased $49.4 million to $107.6 million. Cash and cash equivalents were $72.2 million at quarter end.

(1)	Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales for variable consideration and consideration payable to customers
(2)	Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. Earnings are net income. EBITDA and Adjusted EBITDA are reconciled to net income.
(3)	No reconciliation of the forecasted range for adjusted EBITDA to net income for the 52-week Fiscal 2026 is included in this press release because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
(4)	Calculated as (current year period units X change in price per unit) / prior year period net sales dollars
(5)	Calculated as (prior year period price per unit X change in units) / prior year period net sales dollars

Pre-Recorded Management Remarks and Question and Answer Webcast
In conjunction with this release, Flowers Foods will post pre-recorded management remarks and a supporting slide presentation on the investors page of flowersfoods.com. The company will host a live question and answer webcast at 8:30 a.m. Eastern Time on November 13, 2026, which will be archived on the investors page along with the other related materials.

About Flowers Foods
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods in the United States with 2025 net sales of $5.3 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Dave's Killer Bread, Canyon Bakehouse, Simple Mills, Wonder, and Tastykake. Learn more at www.flowersfoods.com.  

FLO-CORP FLO-IR

Forward-Looking Statements

Statements contained in this press release and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the "company", "Flowers Foods", "Flowers", "us", "we", or "our") and its representatives that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to current expectations regarding our business and our future financial condition and results of operations and are often identified by the use of words and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "would," "is likely to," "is expected to" or "will continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based upon assumptions we believe are reasonable. Forward-looking statements are based on current information and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. Certain factors that may cause actual results, performance, liquidity, and achievements to differ materially from those projected are discussed in our Annual Report on Form 10-K for the year ended January 3, 2026 (the "Form 10-K") and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and may include, but are not limited to, (a) unexpected changes in any of the following: (1) general economic and business conditions; (2) the competitive setting in which we operate, including advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (3) interest rates and other terms available to us on our borrowings; (4) supply chain conditions and any related impact on energy and raw materials costs and availability and hedging counter-party risks; (5) relationships with or increased costs related to our employees and third-party service providers; (6) laws and regulations (including environmental and health-related issues and the impacts of tariffs, including retaliatory tariffs); and (7) accounting standards or tax rates in the markets in which we operate,  (b) the loss or financial instability of any significant customer(s), including as a result of product recalls or safety concerns related to our products, (c) changes in consumer behavior, trends and preferences, including health and whole grain trends and consumer buying habits, the movement toward less expensive store branded products, and the continued reduction of purchases in the fresh packaged bread category, (d) the level of success we achieve in developing and introducing new products and entering new markets, (e) our ability to implement new technology and customer requirements as required, (f) our ability to operate existing, and any new, manufacturing lines according to schedule, (g) our ability to implement and achieve our corporate responsibility goals in accordance with regulatory requirements and the expectations of our stakeholders, suppliers, and customers; (h) our ability to execute our business strategies which may involve, among other things, (1) the ability to realize the intended benefits of completed, planned or contemplated acquisitions, dispositions or joint ventures, such as the acquisition of Simple Mills, (2) the deployment of new systems (e.g., our enterprise resource planning ("ERP") system), distribution channels and technology, and (3) an enhanced organizational structure (e.g., our sales and supply chain reorganization), (i) consolidation within the baking industry and related industries, (j) changes in pricing, customer and consumer reaction to pricing actions (including decreased volumes), and the pricing environment among competitors within the industry, (k) our ability to adjust pricing to offset, or partially offset, inflationary pressure or tariffs (including retaliatory tariffs) on the cost of our products, including ingredient and packaging costs; (l) disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners ("IDPs"), and changes to our direct-store-delivery distribution model in California, (m) increasing legal complexity and legal proceedings that we are or may become subject to, (n) labor shortages and turnover or increases in employee and employee-related costs, (o) impacts from credit rating agency downgrades and our ability to satisfy financial covenants in our credit facility and term loan facility, which could have an adverse effect on our costs and availability of capital; (p) risks related to our indebtedness and current leverage profile; (q) the credit, business, and legal risks associated with IDPs and customers, which operate in the highly competitive retail food and foodservice industries, (r) any business disruptions due to political instability, pandemics, armed hostilities, incidents of terrorism, natural disasters, labor strikes or work stoppages, technological breakdowns, product contamination, product recalls or safety concerns related to our products, or the responses to or repercussions from any of these or similar events or conditions and our ability to insure against such events, (s) the failure of our information technology systems to perform adequately, including any interruptions, intrusions, cyber-attacks or security breaches of such systems or risks associated with the implementation of the upgrade of our ERP system; and (t) the potential impact of climate change on the company, including physical and transition risks, our availability or restriction of resources, higher regulatory and compliance costs, reputational risks, and our availability of capital on attractive terms. The foregoing list of important factors does not include all such factors, nor does it necessarily present them in order of importance. In addition, you should consult other disclosures made by the company (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by the company. Refer to Part I, Item 1A., Risk Factors, of our Form 10-K, Part II, Item 1A., Risk Factors, of the Form 10-Q for the quarter ended October 10, 2026 and subsequent filings with the SEC for additional information regarding factors that could affect the company's results of operations, financial condition and liquidity. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law. You are advised, however, to consult any further public disclosures by the company (such as in our filings with the SEC or in company press releases) on related subjects.

Information Regarding Non-GAAP Financial Measures

The company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). However, from time to time, the company may present in its public statements, press releases and SEC filings, non-GAAP financial measures such as, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense, adjusted selling, distribution and administrative expenses (SD&A), and gross margin excluding depreciation and amortization. The company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Earnings are net income. The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company's ability to incur and service indebtedness and generate free cash flow. The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company's operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly depending upon accounting methods and non-operating factors (such as historical cost). EBITDA is also a widely-accepted financial indicator of a company's ability to incur and service indebtedness.

EBITDA should not be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company's ability to meet its cash needs; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP.

The company defines adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense and adjusted SD&A, respectively, to exclude additional costs that the company considers important to present to investors to increase the investors' insights about the company's core operations. These costs include, but are not limited to, the costs of closing a plant or costs associated with acquisition and integration-related activities, restructuring activities, certain impairment charges, legal settlements, costs to implement an enterprise resource planning system and enhance bakery digital capabilities (business process improvement costs) to provide investors direct insight into these costs, and other costs impacting past and future comparability. The company believes that these measures, when considered together with its GAAP financial results, provide management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges. Adjusted EBITDA is used as a performance measure in the company's incentive compensation program.

Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above.

The reconciliations attached provide reconciliations of the non-GAAP measures used in this release to the most comparable GAAP financial measure.

Flowers Foods, Inc. Condensed Consolidated Balance Sheets (000's omitted)
		October 10, 2026				January 3, 2026
Assets
Cash and cash equivalents		$	72,246			$	12,100
Other current assets			707,787				694,753
Property, plant and equipment, net			915,315				952,725
Right-of-use leases, net			329,183				321,116
Distributor notes receivable (1)			130,909				130,723
Other assets			41,008				40,007
Cost in excess of net tangible assets, net			2,004,847				2,032,437
Total assets		$	4,201,295			$	4,183,861
Liabilities and Stockholders' Equity
Current liabilities		$	555,772			$	502,804
Long-term debt (2)			1,675,228				1,755,132
Right-of-use lease liabilities (3)			335,949				325,075
Other liabilities			320,142				297,363
Stockholders' equity			1,314,204				1,303,487
Total liabilities and stockholders' equity		$	4,201,295			$	4,183,861
(1)  Includes current portion of $25,363 and $22,241, respectively.
(2)  Includes current portion of $0 and $399,575, respectively.
(3)  Includes current portion of $79,558 and $73,778, respectively.

 

Flowers Foods, Inc. Consolidated Statement of Operations (000's omitted, except per share data)
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Net sales		$	1,169,057			$	1,226,554			$	3,933,569			$	4,023,619
Materials, supplies, labor and other production costs (exclusive of    depreciation and amortization shown separately below)			623,427				638,703				2,033,821				2,053,109
Selling, distribution, and administrative expenses			469,640				475,952				1,585,759				1,583,002
Restructuring charges			4,556				5,510				6,208				6,083
Plant closure costs and impairment of assets			1,481				—				1,481				7,397
Recovery on inferior ingredients			(632)				—				(2,595)				—
Depreciation and amortization expense			38,347				39,873				128,716				128,967
Income from operations			32,238				66,516				180,179				245,061
Other pension cost (benefit)			89				(88)				295				(293)
Interest expense, net			13,503				14,453				46,924				43,537
Income before income taxes			18,646				52,151				132,960				201,817
Income tax expense			4,268				12,617				35,871				50,920
Net income		$	14,378			$	39,534			$	97,089			$	150,897
Net income per diluted common share		$	0.07			$	0.19			$	0.46			$	0.71
Diluted weighted average shares outstanding			212,672				212,107				212,646				212,089

 

Flowers Foods, Inc. Condensed Consolidated Statement of Cash Flows (000's omitted)
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Cash flows from operating activities:
Net income		$	14,378			$	39,534			$	97,089			$	150,897
Adjustments to reconcile net income to net cash from operating    activities:
Total non-cash adjustments			57,277				55,797				196,783				207,637
Changes in assets and liabilities			6,692				(40,971)				26,020				(37,711)
Net cash provided by operating activities			78,347				54,360				319,892				320,823
Cash flows from investing activities:
Purchase of property, plant and equipment			(20,026)				(23,939)				(64,502)				(80,305)
Acquisition of business, net of cash acquired			—				(48)				—				(791,928)
Other			(3,562)				(20)				(3,846)				(23,161)
Net cash disbursed for investing activities			(23,588)				(24,007)				(68,348)				(895,394)
Cash flows from financing activities:
Dividends paid			(26,581)				(52,267)				(107,605)				(157,039)
Stock repurchases			(105)				—				(3,929)				(5,499)
Net change in debt borrowings			(10,000)				30,000				(80,000)				764,880
Payment of financing fees			64				—				(1,992)				(10,120)
Other			1,343				(2,400)				2,128				(5,925)
Net cash (disbursed for) provided by financing activities			(35,279)				(24,667)				(191,398)				586,297
Net increase in cash and cash equivalents			19,480				5,686				60,146				11,726
Cash and cash equivalents at beginning of period			52,766				11,045				12,100				5,005
Cash and cash equivalents at end of period		$	72,246			$	16,731			$	72,246			$	16,731

 

Flowers Foods, Inc. Net Sales by Sales Class and Net Sales Bridge (000's omitted)
Net Sales by Sales Class
		For the 12-Week Period Ended				For the 12-Week Period Ended
		October 10, 2026				October 4, 2025				$ Change				% Change
Branded Retail		$	772,100			$	813,235			$	(41,135)				(5.1)	%
Other			396,957				413,319				(16,362)				(4.0)	%
Total Net Sales		$	1,169,057			$	1,226,554			$	(57,497)				(4.7)	%
		For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				$ Change				% Change
Branded Retail		$	2,612,306			$	2,650,787			$	(38,481)				(1.5)	%
Other			1,321,263				1,372,832				(51,569)				(3.8)	%
Total Net Sales		$	3,933,569			$	4,023,619			$	(90,050)				(2.2)	%

Net Sales Bridge
For the 12-week period ended October 10, 2026		Branded Retail				Other				Total
Pricing/mix^*			3.5	%			0.9	%			2.3	%
Volume*			(8.6)	%			(4.9)	%			(7.0)	%
Total percentage point change in net sales			(5.1)	%			(4.0)	%			(4.7)	%
For the 40-week period ended October 10, 2026		Branded Retail				Other				Total
Pricing/mix^*			3.8	%			(0.5)	%			2.1	%
Volume*			(6.6)	%			(3.3)	%			(5.2)	%
Acquisition (until cycled on February 21, 2026)			1.3	%			—				0.9	%
Total percentage point change in net sales			(1.5)	%			(3.8)	%			(2.2)	%
The table above presents certain sales by category that have been reclassified from amounts previously reported to conform to the current period presentation.
^ Includes sales reductions from variable consideration and payments to customers.
* Computations above are calculated as follows (the Total column is consolidated and is not adding the Branded Retail and Other columns):
Price/Mix $ = Current year period units × change in price per unit
Price/Mix % = Price/Mix $ ÷ Prior year period Net Sales $
Volume $ = Prior year period price per unit × change in units
Volume % = Volume $ ÷ Prior year period Net Sales $

 

Flowers Foods, Inc. Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data)
		Reconciliation of Earnings per Share to Adjusted Earnings per Share
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Net income per diluted common share		$	0.07			$	0.19			$	0.46			$	0.71
Business process improvement costs		NM				NM					0.01				0.01
Plant closure costs and impairment of assets			0.01				—				0.01				0.03
Restructuring charges			0.02				0.02				0.02				0.02
Restructuring-related implementation costs		NM					0.01				0.05				0.04
Acquisition and integration-related costs			—				0.01			NM			(a)		0.07
Legal settlements and related costs		NM					—				0.05			NM
Recovery on inferior ingredients		NM					—				(0.01)				—
Adjusted net income per diluted common share		$	0.10			$	0.23			$	0.59			$	0.88
NM - not meaningful.
Certain amounts may not add due to rounding.
(a) Includes the reclassification of costs between deductible and non-deductible for income tax purposes for certain acquisition-related costs from the prior period.

		Reconciliation of Gross Margin
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Net sales		$	1,169,057			$	1,226,554			$	3,933,569			$	4,023,619
Materials, supplies, labor and other production costs (exclusive    of depreciation and amortization)			623,427				638,703				2,033,821				2,053,109
Gross margin excluding depreciation and amortization			545,630				587,851				1,899,748				1,970,510
Less depreciation and amortization for production activities			22,150				21,198				73,021				69,754
Gross margin		$	523,480			$	566,653			$	1,826,727			$	1,900,756
Depreciation and amortization for production activities		$	22,150			$	21,198			$	73,021			$	69,754
Depreciation and amortization for selling, distribution, and    administrative activities			16,197				18,675				55,695				59,213
Total depreciation and amortization		$	38,347			$	39,873			$	128,716			$	128,967

		Reconciliation of Selling, Distribution, and Administrative Expenses to Adjusted SD&A
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Selling, distribution, and administrative expenses    (SD&A)		$	469,640			$	475,952			$	1,585,759			$	1,583,002
Business process improvement costs			(906)				(949)				(3,157)				(2,311)
Restructuring-related implementation costs			(1,038)				(3,534)				(14,810)				(10,718)
Acquisition and integration-related costs			—				(1,735)				(1,897)				(16,370)
Legal settlements and related costs			(1,000)				—				(15,400)				(902)
Adjusted SD&A		$	466,696			$	469,734			$	1,550,495			$	1,552,701

 

Flowers Foods, Inc. Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data)
		Reconciliation of Net Income to EBITDA and Adjusted EBITDA
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Net income		$	14,378			$	39,534			$	97,089			$	150,897
Income tax expense			4,268				12,617				35,871				50,920
Interest expense, net			13,503				14,453				46,924				43,537
Depreciation and amortization			38,347				39,873				128,716				128,967
EBITDA			70,496				106,477				308,600				374,321
Other pension cost (benefit)			89				(88)				295				(293)
Business process improvement costs			906				949				3,157				2,311
Plant closure costs and impairment of assets			1,481				—				1,481				7,397
Restructuring charges			4,556				5,510				6,208				6,083
Restructuring-related implementation costs			1,038				3,534				14,810				10,718
Acquisition and integration-related costs			—				1,735				1,897				16,370
Legal settlements and related costs			1,000				—				15,400				902
Recovery on inferior ingredients			(632)				—				(2,595)				—
Adjusted EBITDA		$	78,934			$	118,117			$	349,253			$	417,809
Net sales		$	1,169,057			$	1,226,554			$	3,933,569			$	4,023,619
Adjusted EBITDA margin			6.8	%			9.6	%			8.9	%			10.4	%

		Reconciliation of Income Tax Expense to Adjusted Income Tax Expense
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week  Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Income tax expense		$	4,268			$	12,617			$	35,871			$	50,920
Tax impact of:
Business process improvement costs			226				237				789				578
Plant closure costs and impairment of assets			(423)				—				(423)				1,850
Restructuring charges			1,140				1,377				1,553				1,521
Restructuring-related implementation costs			260				884				3,703				2,680
Acquisition and integration-related costs			—				87				2,214		(a)		2,016
Legal settlements and related costs			250				—				3,850				226
Recovery on inferior ingredients			(158)				—				(649)				—
Adjusted income tax expense		$	5,563			$	15,202			$	46,908			$	59,791
(a) Includes the reclassification of costs between deductible and non-deductible for income tax purposes for certain acquisition-related costs from the prior period.

 

Flowers Foods, Inc. Reconciliation of GAAP to Non-GAAP Measures (000's omitted, except per share data)
		Reconciliation of Net Income to Adjusted Net Income
		For the 12-Week Period Ended				For the 12-Week Period Ended				For the 40-Week Period Ended				For the 40-Week Period Ended
		October 10, 2026				October 4, 2025				October 10, 2026				October 4, 2025
Net income		$	14,378			$	39,534			$	97,089			$	150,897
Business process improvement costs			680				712				2,368				1,733
Plant closure costs and impairment of assets			1,904				—				1,904				5,547
Restructuring charges			3,416				4,133				4,655				4,562
Restructuring-related implementation costs			778				2,650				11,107				8,038
Acquisition and integration-related costs			—				1,648				(317)		(a)		14,354
Legal settlements and related costs			750				—				11,550				676
Recovery on inferior ingredients			(474)				—				(1,946)				—
Adjusted net income		$	21,432			$	48,677			$	126,410			$	185,807
(a) Includes the reclassification of costs between deductible and non-deductible for income tax purposes for certain acquisition-related costs from the prior period.

		Reconciliation of Earnings per Share - Full Year Fiscal 2026 Guidance
		Range Estimate
Net income per diluted common share		$	0.51		to	$	0.56
Business process improvement costs			0.01				0.01
Restructuring charges			0.02				0.02
Restructuring-related implementation costs			0.05				0.05
Acquisition and integration-related costs		NM				NM
Legal settlements and related costs			0.05				0.05
Recovery on inferior ingredients			(0.01)				(0.01)
Adjusted net income per diluted common share		$	0.63		to	$	0.68
NM - not meaningful.
Certain amounts may not add due to rounding.

 

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SOURCE Flowers Foods, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Flowers Foods' third-quarter 2026 earnings?

Flowers Foods earned $14.4 million, or $0.07 per diluted share, in the 12-week quarter ended October 10, 2026. Net income declined 63.6% year over year. Adjusted net income was $21.4 million, and adjusted diluted EPS was $0.10.

What is Flowers Foods' revised fiscal 2026 outlook?

Flowers Foods expects approximately $5.016 billion to $5.063 billion in sales, approximately $415 million to $430 million in adjusted EBITDA, and approximately $0.63 to $0.68 in adjusted diluted EPS. Expected sales represent a 4.6% to 3.7% decline from the prior year.

What assumptions underpin Flowers Foods' fiscal 2026 guidance?

Flowers Foods bases its outlook on approximately $115 million to $125 million in capital expenditures and approximately $60 million to $65 million in net interest expense. Other assumptions include approximately $165 million to $170 million in depreciation and amortization, an approximately 27% effective tax rate, and approximately 213.5 million weighted average diluted shares.