Stephens reduced its price target on Flowers Foods to $6.00 from $8.00, citing weaker-than-expected second-quarter results and a downward revision to full-year guidance.
The bakery company reported adjusted earnings per share of $0.21, below the $0.24 consensus estimate, while revenue came in at $1.19 billion versus a $1.24 billion forecast. Volume declines of 5.8% were driven by an 9.5% drop in fresh bread volumes, as price sensitivity and trade-down behavior weighed on performance. Flowers Foods owns brands including Dave’s Killer Bread, which faced consumption and market share pressure amid reduced marketing and heightened competition.
Stephens maintained its Equal Weight rating but noted Flowers Foods reduced its full-year guidance for net sales, adjusted EBITDA, and adjusted earnings per share following the quarterly shortfall. The company expects a sales acceleration in the second half of 2026, supported by new business wins and innovation, including half loaves, sourdough, and protein breads.
The stock, trading at $6.95, remains near its 52-week low of $6.80 and has fallen 52% over the past year. Margin pressures are anticipated to persist as higher ingredient costs flow through the profit and loss statement in fiscal 2027. The fresh packaged bread category continues to face structural challenges from consumer shifts, private-label competition, and heavy promotional activity.
Flowers Foods’ guidance assumes a rebound in demand later in 2026 and 2027, though near-term pressures from pricing and volume trends remain evident.
