Flowers Foods (FLO) Target Lowered by Stephens after Quarterly Results

Flowers Foods, Inc. (NYSE:FLO) is included among the 14 Value Stocks to Buy with High Dividend Yields.

On February 18, Stephens lowered its price recommendation on Flowers Foods, Inc. (NYSE:FLO) to $11 from $13. It maintained an Equal Weight rating on the shares. The firm said it updated its estimates following the company’s Q4 earnings report.

During the Q4 2025 earnings call, CEO Ryals McMullian acknowledged ongoing weakness in the traditional loaf segment. He said the company has less exposure to that category, but its performance still trailed broader market trends. This remains an area of pressure, even as the company continues to focus on other parts of its portfolio.

Management said the company’s 2026 guidance reflects several ongoing challenges. These include continued softness in the overall category, the impact of having one fewer operating week, and persistent inflation. At the same time, the company plans to increase investment in its core brands. Management also said a broader strategic review is underway, though it is still in the early stages.

CFO Diego Scaglione said the company’s 2026 outlook points to performance ranging from a decline of about 180 basis points to slightly positive growth. This suggests a relatively flat overall trend. He also said the broader category is expected to decline by about 4%, which would create additional pressure. He noted that the extra week comparison would add roughly 150 basis points of pressure to reported results.

Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery foods in the United States. The company operates bakeries nationwide and offers a wide range of bakery products.

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