Flowers Foods (NYSE:FLO) Shares Gap Down on Disappointing Earnings

Posted by Stanley Muller on Aug 21st, 2026

Flowers Foods, Inc. (NYSE:FLO – Get Free Report)’s stock price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $7.10, but opened at $6.90. Flowers Foods shares last traded at $7.22, with a volume of 3,106,009 shares changing hands.

The company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.01). The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.23 billion. Flowers Foods had a return on equity of 15.98% and a net margin of 1.38%.The company’s quarterly revenue was down 4.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.28 earnings per share. Flowers Foods has set its FY 2026 guidance at 0.750-0.850 EPS.

Flowers Foods News Roundup

Here are the key news stories impacting Flowers Foods this week:

Positive Sentiment: Pricing and mix increased 1.8% year over year, partially offsetting weaker demand. Chief Financial Officer Diego Scaglione also purchased 5,000 shares, while several institutional investors—including BlackRock and FMR—reported adding FLO shares. Flowers Foods Q2 Sales Fall 4% as Net Income Drops 30%
Neutral Sentiment: Flowers Foods reported quarterly revenue of approximately $1.19 billion, compared with $1.23 billion expected, while earnings were $0.21 per share versus consensus estimates ranging from $0.22 to $0.23. The company’s net margin was 1.38% and return on equity was 15.98%. Flowers Foods Earnings Report
Negative Sentiment: Second-quarter sales fell 4.0% year over year to $1.193 billion, and bread volumes declined 5.8%. Branded Retail sales decreased 3.8%, while Other sales fell 4.4%, indicating broad-based demand pressure. Flowers Foods Misses on Both Lines
Negative Sentiment: Profitability deteriorated sharply: net income dropped 30.3% to $40.7 million, diluted EPS declined from $0.28 to $0.19, and adjusted EBITDA fell 19.2% to $111.3 million. Flowers Foods Q2 Sales Fall 4%
Negative Sentiment: Fiscal 2026 guidance calls for adjusted EPS of $0.75–$0.85, below the roughly $0.83–$0.85 analyst outlook, and revenue of about $5.07–$5.14 billion versus expectations near $5.2 billion. The earnings miss and outlook reduction explain the selling pressure. Flowers Foods Lags Q2 Estimates
Negative Sentiment: Chairman and CEO Ryals McMullian sold 209,000 shares during the past six months, an additional sentiment concern amid the company’s weakening operating performance.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on FLO. Stephens cut their price objective on Flowers Foods from $11.00 to $8.00 and set an “equal weight” rating for the company in a report on Monday, May 18th. Zacks Research upgraded shares of Flowers Foods from a “strong sell” rating to a “hold” rating in a research note on Thursday, May 21st. Jefferies Financial Group set a $7.00 target price on shares of Flowers Foods in a report on Monday, August 3rd. Weiss Ratings cut Flowers Foods from a “sell (d+)” rating to a “sell (d)” rating in a report on Thursday, August 13th. Finally, Wall Street Zen lowered Flowers Foods from a “buy” rating to a “hold” rating in a research note on Sunday, May 3rd. Four research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $8.00.

Get Our Latest Report on Flowers Foods

Insiders Place Their Bets

In related news, CFO Diego Anthony Scaglione purchased 5,000 shares of the stock in a transaction on Monday, June 8th. The shares were purchased at an average cost of $7.51 per share, with a total value of $37,550.00. Following the acquisition, the chief financial officer directly owned 194,180 shares in the company, valued at $1,458,291.80. The trade was a 2.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 7.23% of the stock is currently owned by corporate insiders.

Institutional Trading of Flowers Foods

Hedge funds have recently added to or reduced their stakes in the company. Murphy Middleton Hinkle & Parker Inc. grew its holdings in Flowers Foods by 18.0% in the 2nd quarter. Murphy Middleton Hinkle & Parker Inc. now owns 80,034 shares of the company’s stock valued at $632,000 after buying an additional 12,219 shares in the last quarter. Sigma Planning Corp boosted its position in shares of Flowers Foods by 20.8% in the second quarter. Sigma Planning Corp now owns 15,469 shares of the company’s stock valued at $122,000 after acquiring an additional 2,668 shares during the period. Flputnam Investment Management Co. acquired a new position in shares of Flowers Foods in the second quarter valued at about $232,000. Van ECK Associates Corp grew its stake in shares of Flowers Foods by 11.1% in the second quarter. Van ECK Associates Corp now owns 52,028 shares of the company’s stock valued at $411,000 after acquiring an additional 5,182 shares in the last quarter. Finally, Kingsview Wealth Management LLC acquired a new position in shares of Flowers Foods in the second quarter valued at about $430,000. 75.45% of the stock is owned by institutional investors and hedge funds.

Flowers Foods Trading Up 2.5%

The firm has a market capitalization of $1.54 billion, a P/E ratio of 20.80 and a beta of 0.40. The business’s 50-day moving average is $7.80 and its 200 day moving average is $8.44. The company has a debt-to-equity ratio of 1.02, a current ratio of 0.77 and a quick ratio of 0.57.

Flowers Foods Company Profile

(Get Free Report)

Flowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature’s Own, Wonder, Dave’s Killer Bread, Mrs.