FLOWERS FOODS, INC. REPORTS THIRD QUARTER 2026 RESULTS
FLOWERS FOODS INC (FLO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FLOWERS FOODS, INC. REPORTS THIRD QUARTER 2026 RESULTS THOMASVILLE, Ga., November 12, 2026 – 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
How this was made
The 30-second read
Why it matters
The revised outlook suggests weaker demand and higher costs, likely prompting a sell‑off.
Market read
The earnings miss and guidance updated are material for the stock and the broader consumer staples sector.
What to watch
Potential upside from new product launches and improved pricing mix could mitigate the guidance downgrade.
Flowers Foods Q3 2026 net income fell 63.6% to $14.4 million on 4.7% lower net sales, and the company cut its fiscal 2026 adjusted EBITDA and adjusted EPS guidance
Net sales fell 4.7% on volume down 7.0%, GAAP net income fell 63.6%, adjusted EBITDA fell 33.2% with margin down 280 basis points, and the filing states that 2026 guidance was adjusted downward for adjusted EBITDA and adjusted diluted EPS.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (Q3 2026, 12 weeks)GAAP | $1.17B | – | decreased 4.7% |
| Pricing/mix contribution to net sales change (Q3 2026)other | 2.3% | – | – |
| Volume contribution to net sales change (Q3 2026)other | (7.0)% | – | – |
| Materials, supplies, labor and other production costs (Q3 2026, exclusive of D&A)GAAP | $623.4M | – | – |
| Materials, supplies, labor and other production costs as % of net sales (Q3 2026)GAAP | 53.3% of net sales | – | 120-basis point increase |
| Gross margin excluding depreciation and amortization (Q3 2026)non-GAAP | $545.6M | – | – |
| Gross margin (Q3 2026)GAAP | $523.5M | – | – |
| Selling, distribution, and administrative expenses (Q3 2026)GAAP | $469.6M | – | – |
| Selling, distribution, and administrative expenses as % of net sales (Q3 2026)GAAP | 40.2% of net sales | – | 140-basis point increase |
| Adjusted SD&A (Q3 2026)non-GAAP | $466.7M | – | – |
| Adjusted SD&A as % of net sales (Q3 2026)non-GAAP | 39.9% of net sales | – | 160-basis point increase |
| Restructuring charges (Q3 2026)GAAP | $4.56M | – | – |
| Plant closure costs and impairment of assets (Q3 2026)GAAP | $1.48M | – | – |
| Recovery on inferior ingredients (Q3 2026)GAAP | −$632K | – | – |
| Depreciation and amortization expense (Q3 2026)GAAP | $38.35M | – | – |
| Depreciation and amortization as % of net sales (Q3 2026)GAAP | 3.3% of net sales | – | approximately flat as a percentage of sales |
| Income from operations (Q3 2026)GAAP | $32.24M | – | – |
| Interest expense, net (Q3 2026)GAAP | $13.50M | – | decreased approximately $1.0 million |
| Income before income taxes (Q3 2026)GAAP | $18.65M | – | – |
| Income tax expense (Q3 2026)GAAP | $4.27M | – | – |
| Net income (Q3 2026)GAAP | $14.38M | – | decreased 63.6% |
| Net income as % of net sales (Q3 2026)GAAP | 1.2% of sales | – | 200-basis point decrease |
| Diluted EPS (Q3 2026)GAAP | $0.07 | – | decreased $0.12 |
| Adjusted net income (Q3 2026)non-GAAP | $21.43M | – | decreased 56.0% |
| Adjusted diluted EPS (Q3 2026)non-GAAP | $0.10 | – | decreased $0.13 |
| EBITDA (Q3 2026)non-GAAP | $70.50M | – | – |
| Adjusted EBITDA (Q3 2026)non-GAAP | $78.93M | – | decreased 33.2% |
| Adjusted EBITDA margin (Q3 2026)non-GAAP | 6.8% | – | 280-basis point decrease |
| Net sales (40-week year-to-date 2026)GAAP | $3.93B | – | (2.2)% |
| Materials, supplies, labor and other production costs (40-week year-to-date 2026)GAAP | $2.03B | – | – |
| Selling, distribution, and administrative expenses (40-week year-to-date 2026)GAAP | $1.59B | – | – |
| Gross margin excluding depreciation and amortization (40-week year-to-date 2026)non-GAAP | $1.90B | – | – |
| Gross margin (40-week year-to-date 2026)GAAP | $1.83B | – | – |
| Restructuring charges (40-week year-to-date 2026)GAAP | $6.21M | – | – |
| Plant closure costs and impairment of assets (40-week year-to-date 2026)GAAP | $1.48M | – | – |
| Depreciation and amortization expense (40-week year-to-date 2026)GAAP | $128.7M | – | – |
| Income from operations (40-week year-to-date 2026)GAAP | $180.2M | – | – |
| Interest expense, net (40-week year-to-date 2026)GAAP | $46.92M | – | – |
| Income tax expense (40-week year-to-date 2026)GAAP | $35.87M | – | – |
| Net income (40-week year-to-date 2026)GAAP | $97.09M | – | – |
| Diluted EPS (40-week year-to-date 2026)GAAP | $0.46 | – | – |
| Adjusted net income (40-week year-to-date 2026)non-GAAP | $126.4M | – | – |
| Adjusted diluted EPS (40-week year-to-date 2026)non-GAAP | $0.59 | – | – |
| EBITDA (40-week year-to-date 2026)non-GAAP | $308.6M | – | – |
| Adjusted EBITDA (40-week year-to-date 2026)non-GAAP | $349.3M | – | – |
| Adjusted EBITDA margin (40-week year-to-date 2026)non-GAAP | 8.9% | – | – |
| Pricing/mix contribution to net sales change (40-week year-to-date 2026)other | 2.1% | – | – |
| Volume contribution to net sales change (40-week year-to-date 2026)other | (5.2)% | – | – |
| Net cash provided by operating activities (40-week year-to-date 2026)GAAP | $319.9M | – | decreased $0.9 million |
| Net cash provided by operating activities (Q3 2026, 12 weeks)GAAP | $78.35M | – | – |
| Purchase of property, plant and equipment (40-week year-to-date 2026)GAAP | −$64.50M | – | decreased $15.8 million |
| Dividends paid (40-week year-to-date 2026)GAAP | −$107.6M | – | decreased $49.4 million |
| Stock repurchases (40-week year-to-date 2026)GAAP | −$3.93M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Branded RetailCompany states the decrease was due to volume declines partially offset by favorable pricing/mix. Pricing/mix rose 3.5% and volume decreased 8.6%. | $772,100 thousand (Q3 2026, $772.1 million in text) | – | decreased $41.1 million, or 5.1% (prior year $813,235 thousand) |
| OtherCompany states the decrease reflected lower sales of store branded products, partially due to discontinued business, partially offset by improved non-retail volume and favorable pricing/mix, largely from growth in foodservice sales. Pricing/mix increased 0.9% and volume declined 4.9%. | $396,957 thousand (Q3 2026, $397.0 million in text) | – | decreased $16.4 million, or 4.0% (prior year $413,319 thousand) |
52-week Fiscal 2026 (revised) outlook
- RevenueNet sales of approximately $5.016 billion to $5.063 billion, representing a -4.6% to -3.7% change compared to the prior year
- Tax rateAn effective tax rate of approximately 27%
- NoteAdjusted EBITDA in the range of approximately $415 million to $430 million
- NoteAdjusted diluted EPS of approximately $0.63 to $0.68 per share
- NoteNet income per diluted common share (guidance reconciliation) $0.51 to $0.56
- NoteDepreciation and amortization of approximately $165 million to $170 million
- NoteNet interest expense of approximately $60 million to $65 million
- NoteWeighted average diluted share count for the year of approximately 213.5 million shares
- NoteCapital expenditures of approximately $115 million to $125 million
Capital returns
- Year-to-date dividends paid were $(107,605) thousand, a decrease of $49.4 million per the filing, compared with $(157,039) thousand in the prior-year 40-week period.
- Q3 2026 dividends paid were $(26,581) thousand, against $(52,267) thousand in Q3 2025.
- Year-to-date stock repurchases were $(3,929) thousand, against $(5,499) thousand in the prior-year period. Q3 2026 stock repurchases were $(105) thousand.
What drove it
- Company states the Q3 net income decline was primarily due to lower sales volume, increased marketing investment, higher logistics costs, and greater outside purchases of product.
- Company states the decline was partially offset by lower incentive compensation, lower ingredient costs, and lower distributor distribution fees.
- Company states the increase in materials, supplies, labor and other production costs as a percentage of sales primarily reflected lower production volumes affecting workforce-related costs and greater outside purchases of product, partially offset by lower ingredient costs.
- Company states the increase in SD&A as a percentage of net sales reflected greater marketing investments and higher logistics costs, partially offset by lower distributor distribution fees.
- Company states Branded Retail sales declined on volume, partially offset by favorable pricing/mix, and Other sales declined on lower store branded products, partially due to discontinued business.
- Company states Nature's Own relaunch and earlier pricing actions were expected to help stabilize performance, and that improving sequential trends and growing awareness of the relaunch were seen, though the pace of improvement was slower than anticipated, primarily in loaf.
- Net interest expense decreased approximately $1.0 million, which the company attributes primarily to lower debt outstanding and increased interest income.
Concerns
- Pricing/mix contributed +2.3% but volume declined 7.0%, so net sales fell 4.7% in Q3 2026.
- Adjusted EBITDA margin fell to 6.8% from 9.6%, a 280-basis point decrease.
- Materials, supplies, labor and other production costs rose to 53.3% of net sales, a 120-basis point increase, and SD&A rose to 40.2% of net sales, a 140-basis point increase.
- The company states the pace of Nature's Own improvement has been slower than anticipated, primarily in loaf, where category trends remain challenging.
- The company states it expects the environment to remain challenging in the near term.
- The filing states the company is adjusting its 2026 guidance. The revised ranges are printed alongside prior guidance ranges in the release: net sales from approximately $5.070 billion to $5.142 billion to approximately $5.016 billion to $5.063 billion, adjusted EBITDA from $453 million to $481 million to $415 million to $430 million, and adjusted diluted EPS from $0.75 to $0.85 to $0.63 to $0.68.
- Fiscal 2026 guidance reconciliation includes a $0.05 per share legal settlements and related costs estimate, per the filing.
What to watch
- Volume trends in Branded Retail and Other, which declined 8.6% and 4.9% respectively in Q3 2026.
- Whether Nature's Own sequential trends improve, particularly in loaf, as the company states.
- Progress on the company's stated actions to strengthen customer execution, close innovation gaps, and align the portfolio with consumer preferences.
- Whether SD&A and production cost ratios recover, given the company's cited marketing investment, logistics costs and lower production volumes.
- Delivery against revised fiscal 2026 guidance, including the implied fourth quarter (the filing does not print a fourth-quarter figure).
- The live question and answer webcast at 8:30 a.m. Eastern Time on November 13, 2026, and the pre-recorded management remarks posted on the investors page.
Balance sheet and cash flow
- Cash and cash equivalents were $72,246 thousand at October 10, 2026, against $12,100 thousand at January 3, 2026 (balance sheet).
- Total assets were $4,201,295 thousand at October 10, 2026, against $4,183,861 thousand at January 3, 2026.
- Long-term debt was $1,675,228 thousand at October 10, 2026, against $1,755,132 thousand at January 3, 2026. The current portion of long-term debt was $0 at October 10, 2026, against $399,575 thousand at January 3, 2026.
- Stockholders' equity was $1,314,204 thousand at October 10, 2026, against $1,303,487 thousand at January 3, 2026.
- Year-to-date net cash used for investing activities was $(68,348) thousand, against $(895,394) thousand in the prior-year 40-week period, which included an acquisition of business of $(791,928) thousand.
- Year-to-date net change in debt borrowings was $(80,000) thousand, against $764,880 thousand in the prior-year period.
- Cash flow from operating activities in the year-to-date period decreased $0.9 million to $319.9 million, per the company's commentary.
Analysis
Flowers Foods reported a 12-week third quarter 2026 with net sales of $1,169,057 thousand, down 4.7% from $1,226,554 thousand. Pricing/mix added 2.3 percentage points while volume subtracted 7.0 points, so the filing shows demand, rather than price, as the main pressure on the top line. Branded Retail sales fell 5.1% to $772,100 thousand on volume down 8.6%, and Other fell 4.0% to $396,957 thousand, with the company citing lower store branded products and discontinued business, partly offset by foodservice growth.
Profitability weakened more than sales. GAAP net income fell 63.6% to $14,378 thousand and GAAP diluted EPS fell to $0.07 from $0.19. Adjusted EBITDA fell 33.2% to $78,934 thousand, and its margin dropped to 6.8% from 9.6%. Materials, supplies, labor and other production costs rose to 53.3% of net sales, a 120-basis point increase, and SD&A rose to 40.2% of net sales, a 140-basis point increase. The company attributes these ratio increases to lower production volumes, outside purchases of product, marketing investment and logistics costs, with lower ingredient costs as a partial offset. Income from operations was $32,238 thousand against $66,516 thousand.
The year-to-date figures show the same pattern over 40 weeks. Net sales were $3,933,569 thousand, down 2.2%, and GAAP net income was $97,089 thousand against $150,897 thousand. Adjusted EBITDA was $349,253 thousand against $417,809 thousand, with an 8.9% margin against 10.4%. Operating cash flow was $319,892 thousand, roughly flat, while capital expenditures and dividends paid both declined, with dividends paid at $107,605 thousand against $157,039 thousand.
The balance sheet shows cash of $72,246 thousand at October 10, 2026, up from $12,100 thousand at January 3, 2026, and long-term debt of $1,675,228 thousand, down from $1,755,132 thousand, with the current portion reported at $0 against $399,575 thousand at year-end. Total assets were $4,201,295 thousand and stockholders' equity $1,314,204 thousand.
The filing states the company is adjusting 2026 guidance. Its release prints both the prior and revised ranges: adjusted EBITDA is now approximately $415 million to $430 million against prior $453 million to $481 million, and adjusted diluted EPS is approximately $0.63 to $0.68 against prior $0.75 to $0.85. Net sales guidance is approximately $5.016 billion to $5.063 billion against prior $5.070 billion to $5.142 billion. Management states it expects the environment to remain challenging in the near term. The prior-period outlook was not supplied to this analysis, so the vs_prior_guidance comparison is left empty.
Management, verbatim
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
Ryals McMullian, Chairman and CEO
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.
Ryals McMullian, Chairman and CEO
Given our third-quarter performance and current conditions, we are adjusting our 2026 guidance.
Ryals McMullian, Chairman and CEO
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so vs_prior_guidance is empty. The release prints prior guidance ranges, which are recorded in the concerns and analysis text.
- Prior-year and prior-quarter comparisons for the Q3 percentage-of-sales lines (materials, SD&A, adjusted SD&A, D&A) beyond those printed in the text are not available.
- Prior-year Q3 effective tax rate and quarter-over-quarter comparisons (no prior-quarter figures were provided in the filing).
- Income from operations, income before taxes, income tax expense and gross margin lines carry no printed yoy change.
- Quarterly figures for the prior quarter (Q2 2026) are not printed in the filing.
- Guidance lines for gross margin, operating expenses and effective tax rate beyond the stated 27% are not printed.
- Share price reaction and analyst consensus are not in the filing.
- Free cash flow is not printed as a figure in the filing; not computed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Flowers Foods (NYSE:FLO) reported a 4.7% decline in net sales and a 33% drop in adjusted EBITDA for Q3 2026, and subsequently lowered its FY 2026 sales and EBITDA outlook.
Ticker impact
Flowers Foods disclosed Q3 2026 results and revised FY guidance, updating sales and EBITDA outlook.
downward pressure as investors price in lower sales and EBITDA guidance
Guidance was revised lower than prior expectations, with net sales and adjusted EBITDA guidance updated, which typically triggers sell‑offs in the short term.
Market effects
Bread and bakery sector may face broader margin pressure as consumer demand softens.
U.S. consumer staples index could see slight downside.
Limited to U.S. market; no immediate global ripple.
Counterpoint
If the company can accelerate innovation and cost cuts, the stock may rebound despite short‑term guidance cuts.
Key entities
- companyFlowers Foods, Inc.
U.S. bakery products manufacturer reporting Q3 results and guidance revision.
