Flowers Foods (NYSE:FLO) shares dropped 4.2% to $6.80 in pre-market trading after the packaged bakery group reported weaker-than-expected second-quarter 2026 results following Thursday’s closing bell.
The decline adds to a difficult period for the stock, which has lost more than half its value over the past year and was trading at a fresh 52-week low.
Earnings and revenue fall short of forecasts
For the 12 weeks ended July 18, 2026, Flowers Foods reported adjusted diluted earnings of $0.21 per share, below the Wall Street consensus forecast of $0.24.
Net sales reached $1.19 billion, also missing analysts’ expectations of approximately $1.24 billion.
Adjusted EBITDA declined 19.2% year on year to $111.3 million, accompanied by a significant contraction in the company’s operating margin.
The combination of weaker earnings, revenue and EBITDA added to concerns about the underlying performance of the business.
Sales volumes deteriorate further
Volume trends were another source of pressure during the quarter. Total sales volumes declined 5.8% from the previous year, compared with a 2.4% contraction during the corresponding period a year earlier.
Branded retail products performed even more weakly, with volumes falling 7.6%.
Management acknowledged that challenges across the fresh packaged bread category had intensified in both pace and magnitude during the quarter, increasing pressure on the company’s near-term outlook.
Flowers Foods cuts 2026 guidance
In response to the weaker trading environment, Flowers Foods reduced its full-year forecasts.
The company now expects adjusted earnings per share of between $0.75 and $0.85 for 2026, while its revenue forecast has been lowered to a range of $5.07 billion to $5.14 billion.
Both forecasts came in below previous analyst expectations, reinforcing investor concerns that pressure on volumes and profitability could persist through the remainder of the year.
Investors will be looking for further details during the company’s earnings webcast, scheduled for 8:30 a.m. ET on Friday, particularly regarding the outlook for the fresh bread market and potential measures to stabilise margins and volumes.
Flowers Foods underperforms rising US market
The selloff contrasted with a broadly positive backdrop for US equities. The S&P 500 was up 0.35%, the Dow Jones gained 0.43% and the Nasdaq advanced 0.50%, making Flowers Foods’ pre-market decline particularly notable.
Analyst sentiment had already weakened before the earnings release. Jefferies reduced its price target to $7 earlier in August, while Weiss Ratings moved the shares to a lower sell category shortly before the quarterly report.
The combination of disappointing earnings, weaker-than-expected revenue, falling EBITDA and reduced guidance could now prompt further reassessments from analysts following the results.
With Flowers Foods trading around its 52-week low of $6.80, attention is likely to centre on management’s commentary regarding how long weakness in the fresh packaged bread category could persist and what actions the company intends to take to improve its performance.
Flowers Foods stock price
