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:

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.

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.

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SOURCE Flowers Foods, Inc.