Flowers Foods (FLO) Q1 2026 Earnings Transcript

Flowers Foods reaffirmed its full-year 2026 outlook despite facing significant headwinds from elevated packaging and distribution costs driven by oil price increases, ongoing softness in traditional loaf volumes, and a challenging promotional environment. The company launched a reformulated Nature's Own brand with cleaner labels and non-GMO certification, supported by a 360-degree marketing campaign featuring John Cena. Management expects to offset cost pressures through productivity initiatives, SG&A efficiencies, and a dividend reset that frees up approximately $100 million for deleveraging toward a sub-3x leverage target by end of fiscal 2027.