Flowers Foods reported a 4% decline in revenue to $1.19 billion for the second quarter of 2026, missing Wall Street estimates of $1.24 billion by $50 million. Adjusted diluted earnings per share fell 30% year-over-year to $0.21, also below the $0.24 forecast. GAAP diluted EPS dropped to $0.19 from $0.28 in the prior-year period.
The Thomasville, Georgia-based bakery operator cited persistent pressure on household budgets, shifting consumer behavior, and intensified competition as key headwinds. Volume declined 5.8% year-over-year, with branded retail sales down 3.8% and other net sales falling 4.4%. Adjusted EBITDA decreased 19% to $111 million, representing 9.3% of net sales, while gross margin excluding depreciation and amortization contracted by 40 basis points to 48.4%.
Shares of Flowers Foods tumbled 4.83% during regular trading to $7.10, extending losses to 5.25% in after-hours trading. The decline brought the total drop to 9.79% from the prior close of $7.46, valuing the company at $1.5 billion with a trailing P/E ratio of 21.3 and a dividend yield of 6.7%.
For the full year 2026, Flowers Foods revised its guidance, projecting net sales between $5.07 billion and $5.142 billion and adjusted EBITDA of $453 million to $481 million. Adjusted EPS is now expected to range from $0.75 to $0.85 per share, down from prior outlooks. The company also announced a cost-reduction program aimed at generating $9 million in savings during the second half of 2026 and $20 million in annualized run-rate savings, though it will incur one-time costs of $6 million to $9 million.
Brand performance was mixed. Nature's Own Perfectly Crafted sales rose over 8%, driven by gains in sandwich buns and rolls, while Simple Mills reported a 13% retail sales increase, with cookies up 39% and crackers up 8%. Canyon Bakehouse gained share in the gluten-free category, and Nature's Own Keto expanded its dollar share. However, the Wonder brand's cake segment gained 60 basis points of unit share, and breakfast offerings grew nearly 100% year-over-year. Dave's Killer Bread faced pressure due to reduced marketing investments and price sensitivity among consumers.
Flowers Foods secured a new $400 million delayed-draw credit facility to manage bond maturities due in October 2026. Operating cash flow for the first half totaled $242 million, capital expenditures reached $44 million, and $81 million was returned to shareholders via dividends. The company also paid down approximately $70 million in debt year-to-date.
