Track market-moving stories before they get noisy

Hercules Capital (HTGC) now trades at 1.2x NAV, offering a compelling entry point for income-focused investors. HTGC maintains a robust, internally managed portfolio with a 12% dividend yield, supported by stable net investment income and disciplined underwriting. Recent valuation compression reflects market concerns over AI-driven disruption in software, but only a third of HTGC's portfolio is exposed.

We take a look at the action in business development companies through the third week of May and highlight some of the key themes we are watching. BDCs were lower on the week, with PSEC hit by a dividend cut and OTF rebounding after prior software loan-driven losses. Q1 BDC results show no significant systemic deterioration; average total NAV return was flat, but dispersion remains wide across names.

Kayne Anderson BDC (KBDC) offers a near 10% yield and trades at a 9% discount to NAV, yet I maintain a Hold rating. KBDC's fundamentals remain resilient, with high first-lien exposure and solid dividend coverage, but deal flow and investment activity have declined sharply. Rising non-accruals, increased payment-in-kind income, and persistent inflation signal potential credit quality deterioration and macro risks for KBDC.

Kayne Anderson BDC is rated Hold, balancing solid dividend coverage and portfolio resilience against rising non-accruals and watchlist exposure. KBDC maintains a defensive portfolio: 93% first-lien, low software exposure, high diversification, and stable leverage at 1.05x, supporting dividend stability. Non-accruals and watchlist percentages have increased, but management expects improvement as certain troubled assets are resolved in coming quarters.

Artificial intelligence stocks have taken off in 2026 as their fundamentals get stronger, but it's getting harder to find good deals. Even so, Google owner Alphabet (GOOG +0.33%) (GOOGL +0.65%) still looks like a smart pick for those who believe in AI stocks. Brady Corporation (BRC +0.81%), which focuses on printing, labeling, and product identification, and Belden (BDC +2.61%), which makes data and networking products, also offer solid value. With both companies increasing their involvement in AI data center spending, they look like attractive buys.

Alphabet's valuation The IT giant's capital spending is soaring as it builds out the AI infrastructure necessary to service future AI growth. Consequently, its annual free cash flow (FCF) is declining. What will its FCF look like after the big ramp-up in capital spending is over?

Today's Change

(

0.65

%) $

2.31

Current Price

$

360.08

According to PwC, total spending on data centers will begin to decline significantly in the 2030, and by the end of the year, digital network spending (inference using AI) will exceed data center infrastructure spending (building and training AI).

As such, investors should look for Alphabet's capital spending to moderate and fall as a share of revenue over time, while FCF increases as a share of revenue. That's what the Wall Street consensus is calling for, according to data from S&P Global Market Intelligence.

Data source: S&P Global Market Intelligence. Capex is capital expenditures.

If Wall Street's predictions are correct, Alphabet could reach steady 30% FCF margins and just over $1 trillion in revenue by the 2030s. That would mean about $333 billion in FCF. Using a cautious FCF multiple of 20, Alphabet's value could reach $6.7 trillion in five years, up from $4.66 trillion today.

Brady Corporation How can a printing, labeling, and product ID company be an AI play? The answer lies in the fact that data center-related growth is disproportionately contributing to its growth.

It's critical for data centers to correctly label their infrastructure to ensure operational functionality and reduce downtime. Brady's data center-related revenue comes from its wire identification products, and CEO Russell Shaller recently disclosed that the products account for 20% of its Americas and Asia revenue and 13% of its Europe and Australia revenue in its third quarter of 2026.

Today's Change

(

0.81

%) $

0.66

Current Price

$

81.83

But here's the thing: Wire identification products grew 19% and 13% in the two regional segments, respectively. Together, the figures significantly outpace the overall company's 13.8% growth in the quarter and will account for a much larger share of its overall sales in the coming years.

In addition, Brady has a long-term growth opportunity from its forthcoming acquisition of Honeywell's Productivity Solutions and Services (PSS) business.

It's an exciting deal as it combines PSS leadership in mobile and handheld scanning devices with Brady's printing and labeling expertise. In addition, Brady can probably extract better value from PSS, given that Honeywell's management has been focused on its core businesses of aerospace, automation, and materials as it continues its breakup.

Brady will start integrating PSS in fiscal 2027, and Wall Street analysts expect $6.09 in earnings per share in 2027, putting it at 14.4 times expected 2027 earnings. That's a good value for a company with data center earnings drivers and potential from the PSS acquisition.

Today's Change

(

2.61

%) $

2.93

Current Price

$

115.05

Belden Remember what I said about inference spending being higher than data center spending in the 2030s? The good news is Belden's connectivity products (including cables, connectors, switches, racks, and enclosures), a key point if you're worried about buying into a data center capital-spending play at a high valuation and walking into a spending decline in the 2030s.

The reality is that not only will Belden see growth from the massive ramp-up in data center build-out to 2030, but it will also benefit from solid growth in inference spending thereafter. Moreover, it trades at a significant discount to peers such as TE Connectivity and Amphenol, reflecting their greater exposure to data center spending.

BDC PE Ratio (Forward) data by YCharts

However, Belden's exposure is fast-growing, up double digits in its last quarter , and the $1.85 billion acquisition of RUCKUS Networks, which specializes in enterprise networking, will increase its exposure to inference spending as customers build on-site server rooms.

Pure-play AI infrastructure companies are no longer cheap, but Brady and Belden's exposure and valuations make them attractive to value investors seeking AI upside as well.

We take a look at the action in business development companies through the last week of May and highlight some of the key themes we are watching. BDCs outperformed all other income sectors last week, with historic underperformers PSEC, TCPC, and HRZN rallying despite median valuations remaining near recessionary lows. Relative valuations for holdings like BCSF, BBDC, and GBDC have improved, but yield compression after outperformance warrants reassessment of fundamental appeal and potential portfolio rotation.

On June 10, 2026, Belden Inc (BDC) shares fell 3.9%, bringing the current price to $105.83. This decline is notable within the context of the stock's 52-week ra

Belden Inc. (NYSE: BDC) (“Belden” or the “Company”), a leading global supplier of specialty networking solutions, announced today that it has successfu

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) will report its first quarter 2026 financial results on Thursday, May 21, 2026, after the market close. The company will host a live question and answer webcast at 8:30 a.m. Eastern Time the next day. Access to the webcast, press release, pre-recorded remarks by management with accompanying transcript, and supporting slide presentation will be available and archived at investors.flowersfoods.com.

About Flowers Foods

Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods in the United States with 2025 net sales of $5.3 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Dave's Killer Bread, Canyon Bakehouse, Simple Mills, Wonder, and Tastykake. Learn more at www.flowersfoods.com.

FLO-IR

SOURCE Flowers Foods, Inc.

Also from this source

Key Takeaways FLO's Q1 revenues are expected to rise 0.5% year over year to nearly $1.56 billion.Flowers Foods gains from strength in Dave's Killer Bread, Nature's Own and Simple Mills sales.FLO faces margin pressure from inflation, weak bread demand and cautious consumer spending. Flowers Foods, Inc. (FLO - Free Report) is likely to witness top-line growth when it reports first-quarter fiscal 2026 earnings on May 21, after market close. The Zacks Consensus Estimate for revenues is pegged at around $1.56 billion, indicating a 0.5% increase from the prior-year quarter’s reported figure.

The consensus mark for earnings has remained unchanged in the past 30 days at 28 cents per share, implying a decline of 20% from the figure reported in the year-ago quarter. FLO has a trailing four-quarter earnings surprise of 8.3%, on average.

Factors Likely to Influence FLO’s Upcoming ResultsFlowers Foods’ first-quarter fiscal 2026 performance is likely to have benefited from continued strength across its branded portfolio and contributions from the Simple Mills acquisition. On its last earnings call, management highlighted sustained momentum in brands such as Dave’s Killer Bread, Nature’s Own and Wonder, particularly in faster-growing segments like specialty premium loaf, breakfast and buns and rolls.

Innovation in better-for-you offerings, expanded distribution gains and favorable consumer response to newer products are expected to have supported branded retail sales trends during the quarter. Our model suggests branded retail sales growth of 1% year over year in the fiscal first quarter.

The company is also likely to have gained from continued growth in Simple Mills and pricing actions implemented late in the fiscal fourth quarter. Management noted that Simple Mills continued to outperform its categories, supported by expanded distribution, innovation and positive velocity trends. In addition, pricing increases taken across branded retail products to offset inflationary pressures are expected to have aided revenue growth in the fiscal first quarter.

However, Flowers Foods is expected to continue facing headwinds from weakness in the traditional packaged bread category and elevated cost pressures. Management noted that traditional loaf trends remained challenging, while cautious consumer spending and value-seeking behavior continued to pressure volumes. At the same time, inflationary pressures related to labor, logistics and commodity inputs, along with higher marketing and innovation investments, are likely to have weighed on margins and earnings performance in the quarter. We expect the adjusted operating margin to contract 90 basis points to 6.4% in the quarter under review.

Earnings Whispers for FLOOur proven model doesn’t conclusively predict an earnings beat for Flowers Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Flowers Foods carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Casey's upcoming quarter’s EPS is pegged at $3.44, which implies 30.8% growth year over year. The consensus estimate for the quarterly revenues is pinned at $4.33 billion, which indicates 8.4% growth from the figure reported in the prior-year quarter. CASY delivered a trailing four-quarter earnings surprise of 20%, on average.

Costco Wholesale Corporation (COST - Free Report) currently has an Earnings ESP of +0.82% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $69.36 billion, indicating a 9.7% rise from the figure reported in the prior-year quarter.

The consensus estimate for Costco’s earnings is pegged at $4.91 per share, implying 14.7% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1.1%, on average.

Target Corporation (TGT - Free Report) currently has an Earnings ESP of +4.19% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $24.37 billion, which indicates an increase of 2.2% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Target’s upcoming quarter’s earnings per share is pegged at $1.35, implying 3.9% year-over-year growth. TGT delivered a trailing four-quarter earnings surprise of negative 2%, on average.

, /PRNewswire/ -- Flowers Foods, Inc. (NYSE: FLO) today reported financial results for the company's 16-week first quarter ended April 25, 2026.

First Quarter Summary:
Compared to the prior year first quarter where applicable

Net sales(1) increased 1.1% to $1.572 billion as the Simple Mills acquisition and pricing/mix more than offset volume declines. Net income decreased 20.6% to $42.1 million, representing 2.7% of sales, a 70-basis point decrease, primarily due to a challenging consumer environment and higher interest expense, partly offset by the prior year plant closure costs and moderating ingredient costs. Adjusted net income(2) decreased 17.4% to $60.9 million. Adjusted EBITDA(2) decreased 1.8% to $159.0 million, representing 10.1% of net sales, a 30-basis point decrease. Diluted EPS decreased $0.05 to $0.20. Adjusted diluted EPS(2) decreased $0.06 to $0.29. Quarterly Cash Dividend Declared
The company today announced that its board of directors has declared a quarterly dividend of $0.1250 per share, representing the 95th consecutive quarterly dividend paid by the company and is payable on June 26, 2026, to shareholders of record on June 12, 2026.

Chairman and CEO Remarks:
"Flowers' first quarter reflects our team's disciplined cost management, helping us deliver financial performance in-line with expectations despite softer top-line results driven by ongoing challenging macroeconomic conditions impacting the category," said Ryals McMullian, chairman and CEO of Flowers Foods. "At the same time, we've made meaningful progress in strengthening our long-term position by evolving our product portfolio to better meet consumers' needs, including the relaunch of Nature's Own, now with simple ingredients and Non-GMO Project Verified certification – a mainstream category first. While we continue to approach the balance of the year with appropriate caution given the ongoing challenging external environment, we remain confident in the strength of our brands, robust supply chain and delivery network, growing presence in the better-for-you categories, and improving balance sheet. These factors give us confidence we are well positioned to navigate headwinds and drive long-term shareholder value."

"The comprehensive review of our brand portfolio, supply chain, and financial strategy announced last quarter is well underway and helping to further clarify how we allocate resources to strengthen our position and support the growth of our strongest brands," McMullian added. "As part of this effort, we reset our quarterly dividend to $0.125 per share, or $0.50 per share on an annualized basis, allowing us to prioritize meaningful debt reduction while continuing to invest behind the brands, innovation, and capabilities that we believe will drive sustainable above-category growth over time. As we move forward and execute our strategy, we expect dividends to remain an important component of our overall shareholder value proposition. With respect to our 2026 outlook, we are reaffirming guidance and our team remains focused on disciplined execution, managing the areas of the business we can directly influence and delivering against our strategic and financial objectives for the year."

For the 52-week Fiscal 2026, the Company Expects:

Net sales of approximately $5.163 billion to $5.267 billion, representing a -1.8% to 0.2% change compared to the prior year. Adjusted EBITDA(3) in the range of approximately $465 million to $495 million. Adjusted diluted EPS(2) of approximately $0.80 to $0.90. The company's outlook is based on the following assumptions:

Depreciation and amortization of approximately $165 million to $170 million. Net interest expense of approximately $65 million to $70 million. An effective tax rate of approximately 26%. Weighted average diluted share count for the year of approximately 213.5 million shares. Capital expenditures of approximately $115 million to $125 million. Matters Affecting Comparability:

Reconciliation of Earnings per Share to Adjusted Earnings per Share

For the 16-Week
Period Ended

For the 16-Week
Period Ended

April 25, 2026

April 19, 2025

Net income per diluted common share

$

0.20

$

0.25

Business process improvement costs

NM

NM

Plant closure costs and impairment of assets

—

0.03

Restructuring charges

0.01

NM

Restructuring-related implementation costs

0.03

0.02

Acquisition and integration-related costs

NM

(a)

0.05

Legal settlements and related costs

0.05

NM

Adjusted net income per diluted common share

$

0.29

$

0.35

(a) Deductible tax impact of prior period acquisition-related costs that impacted this period by $0.01 per share.

NM - not meaningful.

Certain amounts may not add due to rounding.

Consolidated First Quarter Operating Highlights
Compared to the prior year first quarter where applicable

Net sales increased 1.1% to $1.572 billion. Pricing/mix(4) increased 2.1%, volume(5) declined 3.3%, and the Simple Mills acquisition, which cycled on February 21, 2026, added 2.3%. Branded Retail net sales increased $34.1 million, or 3.4%, to $1.045 billion due to favorable pricing/mix and acquisition contribution, partially offset by volume declines. Pricing/mix(4) rose 4.0%, volume(5) decreased 4.2%, and the Simple Mills acquisition contributed 3.6%. Other net sales decreased $16.7 million, or 3.1%, to $526.2 million due to inflationary pressure on consumer spending and from executing margin optimization strategies. Pricing/mix(4) decreased 1.2% and volume(5) declined 1.9%. Materials, supplies, labor, and other production costs (exclusive of depreciation and amortization) were 50.6% of net sales, a 50-basis point increase. These costs increased as a percentage of net sales mostly due to an increase in outside purchases of product (sales with no associated ingredient costs) and lower production volumes. This increase was partially offset by moderating ingredient costs. Selling, distribution, and administrative (SD&A) expenses were 40.9% of net sales, a 10-basis point increase. SD&A expenses increased as a percentage of net sales due to higher workforce-related costs and greater legal settlements and restructuring implementation costs, partially offset by lower distributor distribution fees and prior year acquisition costs. Excluding matters affecting comparability, adjusted SD&A(2) was 39.3% of net sales, a 20-basis point decrease. Plant closure costs and impairment of assets decreased $7.4 million due to the closure of a bakery in the first quarter of 2025. Depreciation and amortization (D&A) expenses were $51.8 million or 3.3% of net sales, a 10-basis point increase. Net interest expense increased $5.6 million primarily due to higher interest expense from the issuance of debt to fund the Simple Mills acquisition and related fees and expenses. Net income decreased 20.6% to $42.1 million, representing 2.7% of sales, a 70-basis point decrease, and diluted EPS decreased $0.05 to $0.20. Adjusted net income(2) decreased 17.4% to $60.9 million and adjusted diluted EPS(2) decreased $0.06 to $0.29. Adjusted EBITDA(2) decreased 1.8% to $159.0 million, representing 10.1% of net sales, a 30-basis point decrease. Cash Flow, Capital Allocation, and Capital Return

In the first quarter, cash flow from operating activities decreased $27.8 million to $107.9 million, capital expenditures decreased $4.9 million to $20.6 million, and dividends paid to shareholders increased $2.1 million to $54.4 million. Cash and cash equivalents were $11.5 million at quarter end. (1) Any reference to sales refers to net sales inclusive of allowances and deductions against gross sales for variable consideration and consideration payable to customers
(2) Adjusted for items affecting comparability. See reconciliations of non-GAAP measures in the financial statements following this release. Earnings are net income. EBITDA and Adjusted EBITDA are reconciled to net income.
(3) No reconciliation of the forecasted range for adjusted EBITDA to net income for the 52-week Fiscal 2026 is included in this press release because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
(4) Calculated as (current year period units X change in price per unit) / prior year period net sales dollars
(5) Calculated as (prior year period price per unit X change in units) / prior year period net sales dollars

Pre-Recorded Management Remarks and Question and Answer Webcast
In conjunction with this release, Flowers Foods will post pre-recorded management remarks and a supporting slide presentation on the investors page of flowersfoods.com. The company will host a live question and answer webcast at 8:30 a.m. Eastern Time on May 22, 2026, which will be archived on the investors page along with the other related materials.

About Flowers Foods
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (NYSE: FLO) is one of the largest producers of packaged bakery foods in the United States with 2025 net sales of $5.3 billion. Flowers operates bakeries across the country that produce a wide range of bakery products. Among the company's top brands are Nature's Own, Dave's Killer Bread, Canyon Bakehouse, Simple Mills, Wonder, and Tastykake. Learn more at www.flowersfoods.com. 

FLO-CORP FLO-IR

Forward-Looking Statements
Statements contained in this press release and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the "company", "Flowers Foods", "Flowers", "us", "we", or "our") and its representatives that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to current expectations regarding our business and our future financial condition and results of operations and are often identified by the use of words and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "would," "is likely to," "is expected to" or "will continue," or the negative of these terms or other comparable terminology. These forward-looking statements are based upon assumptions we believe are reasonable. Forward-looking statements are based on current information and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. Certain factors that may cause actual results, performance, liquidity, and achievements to differ materially from those projected are discussed in our Annual Report on Form 10-K for the year ended January 3, 2026 (the "Form 10-K") and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission ("SEC") and may include, but are not limited to, (a) unexpected changes in any of the following: (1) general economic and business conditions; (2) the competitive setting in which we operate, including advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (3) interest rates and other terms available to us on our borrowings; (4) supply chain conditions and any related impact on energy and raw materials costs and availability and hedging counter-party risks; (5) relationships with or increased costs related to our employees and third-party service providers; (6) laws and regulations (including environmental and health-related issues and the impacts of tariffs, including retaliatory tariffs); and (7) accounting standards or tax rates in the markets in which we operate, (b) the loss or financial instability of any significant customer(s), including as a result of product recalls or safety concerns related to our products, (c) changes in consumer behavior, trends and preferences, including health and whole grain trends and consumer buying habits, the movement toward less expensive store branded products, and the continued reduction of purchases in the fresh packaged bread category, (d) the level of success we achieve in developing and introducing new products and entering new markets, (e) our ability to implement new technology and customer requirements as required, (f) our ability to operate existing, and any new, manufacturing lines according to schedule, (g) our ability to implement and achieve our corporate responsibility goals in accordance with regulatory requirements and the expectations of our stakeholders, suppliers, and customers; (h) our ability to execute our business strategies which may involve, among other things, (1) the ability to realize the intended benefits of completed, planned or contemplated acquisitions, dispositions or joint ventures, such as the acquisition of Simple Mills, (2) the deployment of new systems (e.g., our enterprise resource planning ("ERP") system), distribution channels and technology, and (3) an enhanced organizational structure (e.g., our sales and supply chain reorganization), (i) consolidation within the baking industry and related industries, (j) changes in pricing, customer and consumer reaction to pricing actions (including decreased volumes), and the pricing environment among competitors within the industry, (k) our ability to adjust pricing to offset, or partially offset, inflationary pressure or tariffs (including retaliatory tariffs) on the cost of our products, including ingredient and packaging costs; (l) disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners ("IDPs"), and changes to our direct-store-delivery distribution model in California, (m) increasing legal complexity and legal proceedings that we are or may become subject to, (n) labor shortages and turnover or increases in employee and employee-related costs, (o) the credit, business, and legal risks associated with IDPs and customers, which operate in the highly competitive retail food and foodservice industries, (p) any business disruptions due to political instability, pandemics, armed hostilities, incidents of terrorism, natural disasters, labor strikes or work stoppages, technological breakdowns, product contamination, product recalls or safety concerns related to our products, or the responses to or repercussions from any of these or similar events or conditions and our ability to insure against such events, (q) the failure of our information technology systems to perform adequately, including any interruptions, intrusions, cyber-attacks or security breaches of such systems or risks associated with the implementation of the upgrade of our ERP system; and (r) the potential impact of climate change on the company, including physical and transition risks, our availability or restriction of resources, higher regulatory and compliance costs, reputational risks, and our availability of capital on attractive terms. The foregoing list of important factors does not include all such factors, nor does it necessarily present them in order of importance. In addition, you should consult other disclosures made by the company (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by the company. Refer to Part I, Item 1A., Risk Factors, of our Form 10-K, Part II, Item 1A., Risk Factors, of the Form 10-Q for the quarter ended April 25, 2026 and subsequent filings with the SEC for additional information regarding factors that could affect the company's results of operations, financial condition and liquidity. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law. You are advised, however, to consult any further public disclosures by the company (such as in our filings with the SEC or in company press releases) on related subjects.

Information Regarding Non-GAAP Financial Measures
The company prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). However, from time to time, the company may present in its public statements, press releases and SEC filings, non-GAAP financial measures such as, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense, adjusted selling, distribution and administrative expenses (SD&A), and gross margin excluding depreciation and amortization. The reconciliations attached provide reconciliations of the non-GAAP measures used in this presentation or release to the most comparable GAAP financial measure. The company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

The company defines EBITDA as earnings before interest, taxes, depreciation and amortization. Earnings are net income. The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company's ability to incur and service indebtedness and generate free cash flow. The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company's operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly depending upon accounting methods and non-operating factors (such as historical cost). EBITDA is also a widely-accepted financial indicator of a company's ability to incur and service indebtedness.

EBITDA should not be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company's ability to meet its cash needs; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP.

The company defines adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense and adjusted SD&A, respectively, to exclude additional costs that the company considers important to present to investors to increase the investors' insights about the company's core operations. These costs include, but are not limited to, the costs of closing a plant or costs associated with acquisition and integration-related activities, restructuring activities, certain impairment charges, legal settlements, costs to implement an enterprise resource planning system and enhance bakery digital capabilities (business process improvement costs) to provide investors direct insight into these costs, and other costs impacting past and future comparability. The company believes that these measures, when considered together with its GAAP financial results, provide management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges. Adjusted EBITDA is used as the primary performance measure in the company's 2014 Omnibus Equity and Incentive Compensation Plan (Amended and Restated Effective May 25, 2023).

Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP. Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above.

The reconciliations attached provide reconciliations of the non-GAAP measures used in this release to the most comparable GAAP financial measure.

Flowers Foods, Inc.

Condensed Consolidated Balance Sheets

(000's omitted)

April 25, 2026

January 3, 2026

Assets

Cash and cash equivalents

$

11,519

$

12,100

Other current assets

728,985

694,753

Property, plant and equipment, net

931,774

952,725

Right-of-use leases, net

316,968

321,116

Distributor notes receivable (1)

129,263

130,723

Other assets

41,416

40,007

Cost in excess of net tangible assets, net          

2,020,705

2,032,437

Total assets

$

4,180,630

$

4,183,861

Liabilities and Stockholders' Equity

Current liabilities

$

521,627

$

502,804

Long-term debt (2)

1,723,772

1,755,132

Right-of-use lease liabilities (3)

318,902

325,075

Other liabilities

313,883

297,363

Stockholders' equity

1,302,446

1,303,487

Total liabilities and stockholders' equity

$

4,180,630

$

4,183,861

(1)  Includes current portion of $21,035 and $22,241, respectively.

(2)  Includes current portion of $399,753 and $399,575, respectively.

(3)  Includes current portion of $66,826 and $73,778, respectively.

Flowers Foods, Inc.

Consolidated Statement of Operations

 (000's omitted, except per share data)

For the 16-Week Period
Ended

For the 16-Week Period
Ended

April 25, 2026

April 19, 2025

Net sales

$

1,571,577

$

1,554,230

Materials, supplies, labor and other production costs (exclusive of
   depreciation and amortization shown separately below)

795,389

778,346

Selling, distribution, and administrative expenses

642,934

633,513

Restructuring charges

1,652

573

Plant closure costs and impairment of assets

—

7,397

Depreciation and amortization expense

51,790

49,268

Income from operations

79,812

85,133

Other pension cost (benefit)

118

(117)

Interest expense, net

19,634

14,048

Income before income taxes

60,060

71,202

Income tax expense

18,005

18,204

Net income

$

42,055

$

52,998

Net income per diluted common share

$

0.20

$

0.25

Diluted weighted average shares outstanding

212,577

212,138

Flowers Foods, Inc.

Condensed Consolidated Statement of Cash Flows

(000's omitted)

For the 16-Week Period
Ended

For the 16-Week Period
Ended

April 25, 2026

April 19, 2025

Cash flows from operating activities:

Net income

$

42,055

$

52,998

Adjustments to reconcile net income to net cash from operating
   activities:

   Total non-cash adjustments

86,488

77,135

   Changes in assets and liabilities

(20,686)

5,501

Net cash provided by operating activities

107,857

135,634

Cash flows from investing activities:

   Purchase of property, plant and equipment

(20,623)

(25,556)

   Acquisition of business, net of cash acquired

—

(791,880)

   Other

990

(18,578)

Net cash disbursed for investing activities

(19,633)

(836,014)

Cash flows from financing activities:

   Dividends paid

(54,430)

(52,323)

   Stock repurchases

(3,787)

(5,499)

   Net change in debt borrowings

(32,000)

776,580

   Payment of financing fees

(1,767)

(10,056)

   Other

3,179

(5,987)

Net cash (disbursed for) provided by financing activities

(88,805)

702,715

Net (decrease) increase in cash and cash equivalents

(581)

2,335

Cash and cash equivalents at beginning of period

12,100

5,005

Cash and cash equivalents at end of period

$

11,519

$

7,340

Flowers Foods, Inc.

Net Sales by Sales Class and Net Sales Bridge

(000's omitted)

Net Sales by Sales Class              

For the 16-Week Period
Ended

For the 16-Week Period
Ended

April 25, 2026

April 19, 2025

$ Change

% Change

Branded Retail

$

1,045,373

$

1,011,322

$

34,051

3.4

%

Other

526,204

542,908

(16,704)

(3.1)

%

Total Net Sales

$

1,571,577

$

1,554,230

$

17,347

1.1

%

Net Sales Bridge 

For the 16-week period ended April 25, 2026

Branded Retail

Other

Total

Pricing/mix^*

4.0

%

(1.2)

%

2.1

%

Volume*

(4.2)

%

(1.9)

%

(3.3)

%

Acquisition (until cycled on February 21, 2026)

3.6

%

—

2.3

%

Total percentage point change in net sales

3.4

%

(3.1)

%

1.1

%

The table above presents certain sales by category that have been reclassified from amounts previously reported to conform
to the current period presentation.

^ Includes sales reductions from variable consideration and payments to customers.

* Computations above are calculated as follows (the Total column is consolidated and is not adding the Branded Retail and
Other columns):

      Price/Mix $ = Current year period units × change in price per unit

      Price/Mix % = Price/Mix $ ÷ Prior year period Net Sales $

      Volume $ = Prior year period price per unit × change in units

      Volume % = Volume $ ÷ Prior year period Net Sales $

Flowers Foods, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(000's omitted, except per share data)

Reconciliation of Earnings per Share to Adjusted Earnings
per Share

For the 16-Week Period
Ended

For the 16-Week Period
Ended

April 25, 2026

April 19, 2025

Net income per diluted common share

$

0.20

$

0.25

Business process improvement costs

NM

NM

Plant closure costs and impairment of assets

—

0.03

Restructuring charges

0.01

NM

Restructuring-related implementation costs

0.03

0.02

Acquisition and integration-related costs

NM

(a)

0.05

Legal settlements and related costs

0.05

NM

Adjusted net income per diluted common share

$

0.29

$

0.35

NM - not meaningful.

Certain amounts may not add due to rounding.

(a) Deductible tax impact of prior period acquisition-related costs that impacted this period by $0.01 per share.

Reconciliation of Gross Margin

For the 16-Week Period
Ended

For the 16-Week Period
Ended

April 25, 2026

April 19, 2025

Net sales

$

1,571,577

$

1,554,230

Materials, supplies, labor and other production costs (exclusive
   of depreciation and amortization)

795,389

778,346

Gross margin excluding depreciation and amortization

776,188

775,884

Less depreciation and amortization for production activities

28,961

27,484

Gross margin

$

747,227

$

748,400

Depreciation and amortization for production activities

$

28,961

$

27,484

Depreciation and amortization for selling, distribution, and
   administrative activities

22,829

21,784

Total depreciation and amortization

$

51,790

$

49,268

Reconciliation of Selling, Distribution, and Administrative
Expenses to Adjusted SD&A

For the 16-Week Period Ended

For the 16-Week Period Ended

April 25, 2026

April 19, 2025

Selling, distribution, and administrative expenses
   (SD&A)

$

642,934

$

633,513

Business process improvement costs

(1,241)

(891)

Restructuring-related implementation costs

(8,227)

(4,288)

Acquisition and integration-related costs

(1,897)

(13,764)

Legal settlements and related costs

(14,400)

(697)

Adjusted SD&A

$

617,169

$

613,873

Flowers Foods, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(000's omitted, except per share data)

Reconciliation of Net Income to EBITDA and Adjusted
EBITDA

For the 16-Week Period Ended

For the 16-Week Period Ended

April 25, 2026

April 19, 2025

Net income

$

42,055

$

52,998

Income tax expense

18,005

18,204

Interest expense, net

19,634

14,048

Depreciation and amortization

51,790

49,268

EBITDA

131,484

134,518

Other pension cost (benefit)

118

(117)

Business process improvement costs

1,241

891

Plant closure costs and impairment of assets

—

7,397

Restructuring charges

1,652

573

Restructuring-related implementation costs

8,227

4,288

Acquisition and integration-related costs

1,897

13,764

Legal settlements and related costs

14,400

697

Adjusted EBITDA

$

159,019

$

162,011

Net sales

$

1,571,577

$

1,554,230

Adjusted EBITDA margin

10.1

%

10.4

%

Reconciliation of Income Tax Expense to Adjusted Income Tax
Expense

For the 16-Week Period Ended

For the 16-Week Period Ended

April 25, 2026

April 19, 2025

Income tax expense

$

18,005

$

18,204

Tax impact of:

Business process improvement costs

310

223

Plant closure costs and impairment of assets

—

1,850

Restructuring charges

413

144

Restructuring-related implementation costs

2,057

1,072

Acquisition and integration-related costs

2,214

(a)

3,439

Legal settlements and related costs

3,600

174

Adjusted income tax expense

$

26,599

$

25,106

(a) Includes certain deductible tax acquisition-related costs from the prior period.

Flowers Foods, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(000's omitted, except per share data)

Reconciliation of Net Income to Adjusted Net Income

For the 16-Week
Period Ended

For the 16-Week
Period Ended

April 25, 2026

April 19, 2025

Net income

$

42,055

$

52,998

Business process improvement costs

931

668

Plant closure costs and impairment of assets

—

5,547

Restructuring charges

1,239

429

Restructuring-related implementation costs

6,170

3,216

Acquisition and integration-related costs

(317)

(a)

10,325

Legal settlements and related costs

10,800

523

Adjusted net income

$

60,878

$

73,706

(a) Includes certain deductible tax acquisition-related costs from the prior period.

Reconciliation of Earnings per Share -
Full Year Fiscal 2026 Guidance

Range Estimate

Net income per diluted common share

$

0.71

to

$

0.81

Business process improvement costs

NM

NM

Restructuring charges

0.01

0.01

Restructuring-related implementation costs

0.03

0.03

Acquisition and integration-related costs

NM

NM

Legal settlements and related costs

0.05

0.05

Adjusted net income per diluted common share

$

0.80

to

$

0.90

NM - not meaningful.

Certain amounts may not add due to rounding.

SOURCE Flowers Foods, Inc.

Flowers Foods (FLO - Free Report) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.57%. A quarter ago, it was expected that this bakery goods company would post earnings of $0.16 per share when it actually produced earnings of $0.22, delivering a surprise of +37.5%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Flowers Foods, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.57 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.58%. This compares to year-ago revenues of $1.55 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Flowers Foods shares have lost about 33.5% since the beginning of the year versus the S&P 500's gain of 8.6%.

What's Next for Flowers Foods?While Flowers Foods has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Flowers Foods was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.24 on $1.23 billion in revenues for the coming quarter and $0.86 on $5.2 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Campbell's (CPB - Free Report) , has yet to report results for the quarter ended April 2026. The results are expected to be released on June 8.

This maker of canned soup, Pepperidge Farm cookies and V8 juice is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of -35.6%. The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level.

Campbell's' revenues are expected to be $2.39 billion, down 3.4% from the year-ago quarter.

Flowers Foods, Inc. (FLO) Q1 2026 Earnings Call Transcript

3 High-Yield Bargains to Watch in 2025’s Second HalfFlowers Foods NYSE: FLO said it delivered first-quarter bottom-line results ahead of expectations despite softer sales trends and continued pressure in the traditional bread category, as management pointed to brand investment, cost controls and balance sheet priorities as key themes for the rest of fiscal 2026.

Chairman and CEO Ryals McMullian said the company “continued to execute against a challenging backdrop,” citing progress on a comprehensive review of Flowers Foods’ brand portfolio, supply chain and financial strategy. He said the company is sharpening its focus on core brands, including a nationwide relaunch of Nature’s Own, while continuing to build its position in better-for-you segments.

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“We also saw positive trends in premium bread and cake categories, helping us offset some of the ongoing softness in the traditional bread category, where we underperformed in the quarter,” McMullian said.

Inflation Pressures Shift Toward Oil-Related Costs Management said Flowers Foods is largely protected on the commodities it hedges for the balance of 2026. CFO Anthony Scaglione said the company is “virtually fully hedged” for the rest of the year on commodities included in its hedging program.

However, Scaglione said the company is now seeing pressure in areas tied to oil, including distribution and resin, which has affected packaging costs. He said packaging was not viewed as a cost concern when the year began, but the company is now looking at mitigation efforts such as packaging configuration changes, alternative materials and other productivity measures.

Scaglione said the impact of oil is twofold: it affects consumers through fuel prices and sentiment, while also creating input pressure through distribution and resin costs. He said the updated cost assumptions are already reflected in the company’s reaffirmed guidance. Asked to size the incremental pressure, he said oil and oil-derived costs represent roughly $0.02 to $0.03 of headwind in the back half of the year.

Nature’s Own Relaunch Aims to Stabilize Traditional Bread McMullian highlighted the nationwide relaunch of Nature’s Own as one of the company’s most important initiatives. He said the relaunch involved reformulating the brand’s traditional loaf bread, removing roughly another third of the ingredients and making it non-GMO verified.

McMullian described the product as “the cleanest label traditional loaf bread at scale in the country” and said the company is backing the relaunch with a broad marketing campaign featuring John Cena. The campaign launched shortly before the call.

The effort is aimed at addressing weakness in traditional loaf bread, which McMullian said accounts for about 38% of the company’s branded retail business. He said stabilizing volumes in that category would be the most important measure of success.

“At a minimum, getting our volume stabilized in traditional loaf will do more for the business than any other lever that we can pull,” McMullian said. He cautioned, however, that the marketing campaign may not have an immediate impact and said the company will need several months to assess its effectiveness.

Promotional Environment Remains Challenging Management also addressed a more intense promotional environment, particularly as consumers face affordability pressures. McMullian said Flowers Foods has seen similar competitive periods before and that such levels of promotion have typically not been sustainable.

He said recent pressure on consumer sentiment, including higher gas prices and weaker sentiment data, remains a concern. Still, McMullian said the company is taking a long-term approach centered on brand strength, product quality, service, innovation and differentiation rather than relying heavily on price.

McMullian noted that Flowers Foods took pricing late last year, and said price gaps have remained wider than the company would prefer in the near term. That has affected volume performance, particularly in traditional loaf bread. He added that Flowers Foods pulled back on promotions and marketing spending in the first quarter ahead of the Nature’s Own relaunch, but expects its promotional calendar to return to a more normal level as the year progresses.

In channels where price gaps have started to narrow, McMullian said the company is already seeing share improvements.

Guidance Reaffirmed as Cost Controls and Growth Initiatives Continue Flowers Foods reaffirmed its outlook for fiscal 2026. Scaglione said the guidance assumes easier volume comparisons as the year progresses, but does not assume a broad volume recovery. He cited several factors supporting management’s confidence, including the Nature’s Own relaunch, expansion of half-loaf offerings, continued growth in snack and better-for-you products, and expectations for some stabilization in pricing and promotions.

The company is also looking for cost savings. Scaglione said potential offsets to inflation could come mostly from SG&A, while packaging-related improvements could benefit cost of goods sold. McMullian said the company is not anticipating major supply chain changes this year, though broader supply chain optimization remains part of its longer-term plans.

On capital spending, Scaglione said the company’s 2026 capital expenditure outlook of $115 million to $125 million includes roughly $2 million per bakery for maintenance, with the remaining spending directed toward growth, product line extensions and productivity initiatives.

Dividend Reset Prioritizes Deleveraging Scaglione said cash freed up by the company’s dividend reset will primarily be directed toward reducing leverage. In response to an analyst’s estimate that the move could free up about $100 million in cash and reduce leverage by roughly 0.2 turns if fully applied to debt reduction, Scaglione said that was the right way to frame it.

He said the company’s first priority is to deleverage, with a goal of getting below three times leverage by the end of fiscal 2027. Flowers Foods also plans to continue investing in its brands, including initiatives such as the Nature’s Own relaunch.

In foodservice, McMullian said consumer pressure and restaurant traffic trends remain factors to watch, but noted that the business has improved recently on the top line and is more profitable than it was several years ago following prior efforts to improve returns.

About Flowers Foods NYSE: FLOFlowers Foods, Inc is one of the largest producers of packaged bakery foods in the United States, offering a variety of fresh bread, buns, rolls, snack cakes and tortillas. Headquartered in Thomasville, Georgia, the company operates an extensive network of bakeries and distribution centers that serve retail grocery chains, convenience stores, mass merchandisers and foodservice customers nationwide. Flowers Foods markets its products under well-known brands such as Nature's Own, Wonder, Dave's Killer Bread, Mrs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Flowers Foods Right Now?Before you consider Flowers Foods, you'll want to hear this.

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Flowers Foods is positioned as a turnaround play, with management focused on cost-cutting and operational simplification despite recent earnings and revenue misses. FLO's profitability remains pressured by macroeconomic headwinds and volume declines, but the stock trades at compellingly low forward multiples versus peers. Strategic initiatives include discontinuing underperforming products, a major ERP upgrade, and a relaunch of the Nature's Own brand to drive long-term margin improvement.

Image: Bigstock

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Key Takeaways FLO Q1 sales rose 1.1% to $1,572M, but comparable sales fell 1.2%, and volumes dropped 3.3%. Flowers Foods said pricing/mix and Simple Mills lifted sales; retail rose 3.4%, though volume fell 4.2%. Nature's Own relaunch strengthens FLO's wellness positioning with simpler ingredients and Non-GMO loaves. Flowers Foods, Inc. (FLO - Free Report) entered first-quarter fiscal 2026 facing persistent weakness in the fresh packaged bread category, with consumer trade-down behavior and elevated promotional activity continuing to pressure traditional loaf sales. Despite overall demand trends remaining soft, the company’s first-quarter performance highlighted how important the Nature’s Own relaunch is to its branded bread strategy.

Net sales increased 1.1% year over year to $1,572 million in the quarter, supported by pricing and mix gains, along with the contribution from the Simple Mills acquisition. However, comparable sales declined 1.2%, while total volumes fell 3.3%. The branded retail business still delivered 3.4% sales growth, though volumes in the segment decreased 4.2%, reflecting ongoing pressure in traditional loaf.

Shares of FLO have tumbled 18.2% over the past three months compared with the industry’s decline of 13.3%.

Image Source: Zacks Investment Research

Nature’s Own Takes Center Stage at FLOFlowers Foods relaunched Nature’s Own with fewer and simpler ingredients, upgraded packaging and Non-GMO Project Verified products. Nature’s Own is now positioned as the largest Non-GMO Project Verified loaf product in the market at a national scale. The refreshed lineup also includes half loaves aimed at affordability, freshness and changing household consumption patterns.

The initiative appears focused not only on refreshing shelf appeal but also on aligning the brand more closely with consumer preferences around wellness and ingredient transparency. Flowers Foods paired the relaunch with a nationwide marketing campaign to strengthen visibility and reinforce the better-for-you positioning.

The challenge remains balancing premium positioning with an increasingly price-sensitive consumer environment. Traditional loaf continues to face softer demand as shoppers migrate toward value offerings and lower-priced alternatives. Even so, the Zacks Rank #3 (Hold) company pointed to early signs of improvement in certain markets where pricing gaps have narrowed.

Nature’s Own now sits at the center of Flowers Foods’ effort to improve performance in a pressured bread market while shifting consumer perception beyond conventional packaged bread. The success of that strategy will likely depend on whether the simpler-ingredient positioning can generate sustained volume recovery in a category still dealing with cautious consumer spending and aggressive competitive pricing.

Stocks to ConsiderThe Chef's Warehouse, Inc. (CHEF - Free Report) , a specialty food distributor serving restaurants, hotels and hospitality customers, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.

B&G Foods, Inc. (BGS - Free Report) is a packaged foods company that owns a portfolio of shelf-stable and frozen food brands across categories such as spices, snacks, cereals, baking products and frozen vegetables. BGS carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for B&G Foods’ current and next fiscal-year EPS has seen upward revisions by 5.6% and 11.9%, respectively, over the past 30 days. The consensus mark for BGS’ current and next fiscal-year EPS implies growth of 11.8% and 15.8%, respectively, from the year-ago reported figures.

Tyson Foods, Inc. (TSN - Free Report) operates as a leading protein company, producing chicken, beef, pork and prepared food products. TSN currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales calls for growth of 4.5%, while the consensus mark for earnings indicates a 0.5% increase from the year-ago reported figures. TSN delivered a trailing four-quarter earnings surprise of 18.1%, on average.

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Published in consumer-staples

Flowers Foods, Inc. is rated a Buy, with an attractive 6.7% yield post-dividend cut and a focus on sustainability. Management reset the dividend to strengthen the balance sheet, targeting net leverage below 3x EBITDA by fiscal 2027. Q1 results were broadly in line: branded segment dollar growth offset volume declines, while cost control and Simple Mills' momentum support the strategic outlook.

-

—Leading high-growth retailer specializing in hard-surface flooring brings its expansive in-stock selection and warehouse-format shopping experience to Westchester County—

ATLANTA--(BUSINESS WIRE)--Floor & Decor (NYSE: FND), the leading high-growth retailer specializing in hard-surface flooring for homeowners and professionals, today announced the grand opening of its newest warehouse store and design center in Mount Vernon, New York, located at 240 East Sandford Blvd.

The Mount Vernon store will open with a team of approximately 50 full-time and part-time associates and will be led by Sarah Chavez, the store’s Chief Executive Merchant.

Floor & Decor operates more than 270 warehouse-format stores and five design studios nationwide and offers a broad assortment of in-stock hard-surface flooring, including tile, wood, laminate, vinyl, and natural stone, along with decorative accessories and wall tile, installation materials, and related categories at everyday low prices.

“Bringing Floor & Decor to Mount Vernon is an exciting milestone for our team,” said Chavez. “For more than 25 years, we’ve focused on making quality, trend-forward hard surface flooring accessible to everyone, and we’re proud to extend that commitment to this community. We look forward to serving our new customers and helping bring their ideas to life.”

7 Days of Deals at the Mount Vernon Floor & Decor
In celebration of the new store opening, starting Thursday, April 23 through Wednesday, April 29, Floor & Decor will host its 7 Days of Deals promotion along with daily events at the Mount Vernon store, featuring giveaways, installation demonstrations from leading industry brands, and the chance to win a $1,000 Floor & Decor gift card each day throughout the promotion. Full details are available at www.flooranddecor.com/mountvernonpro.

The week-long celebration will include daily vendor demonstrations, giveaways, and exclusive promotions, including 10% off when customers buy 10 or more of the same item from participating brands during their featured day, only at the Mount Vernon location.

Thursday, April 23 — Ribbon Cutting Ceremony
Floor & Decor will host a Ribbon Cutting Ceremony on Thursday, April 23 at 10 a.m., in partnership with the Bronxville Chamber of Commerce and the Mount Vernon Chamber of Commerce. A complimentary breakfast food truck will be on site from 7 a.m. to 11 a.m., and free Floor & Decor branded buckets will be given to the first 200 customers. Friday, April 24 — Laticrete Featured Day
Laticrete will be onsite with installation demonstrations at 8 a.m., 10 a.m., and 1 p.m. Customers can receive 10% off when they buy 10 or more Laticrete products. Free hats will be given to the first 200 customers. Saturday, April 25 — Super Saturday Event
The celebration continues from 10 a.m. to 1 p.m., featuring local businesses including Project Hot Sauce and Honey Notes. Customers can participate in Floor & Decor’s Crack the Code game for a chance to win up to $100,000. Free items from participating local vendors will be available for the first 200 customers. Sunday, April 26 — Home Trend Presentation from Top Designers
Floor & Decor’s designers will present the latest home trends. Free samples will be available with a design appointment. A complimentary ice cream cart will be on site from 2 p.m. to 4 p.m. Monday, April 27 — Mapei Featured Day
Mapei will be onsite with installation demonstrations at 8 a.m., 10 a.m., and 1 p.m. Customers can receive 10% off when they buy 10 or more Mapei products. Free tumblers will be given to the first 200 customers. Tuesday, April 28 — Schluter Featured Day
Schluter will be onsite with installation demonstrations at 8 a.m., 10 a.m., and 1 p.m. Customers can receive 10% off when they buy 10 or more Schluter products. Free T-shirts will be given to the first 200 customers. Wednesday, April 29 — wedi Featured Day
wedi will be onsite with installation demonstrations at 8 a.m., 10 a.m., and 1 p.m. Customers can receive 10% off when they buy 10 or more wedi products. Free tote bags will be given to the first 200 customers. $5,000 Floor Makeover Sweepstakes
Now through May 25, 2026, customers can enter the $5,000 Floor Makeover Sweepstakes for a chance to win a flooring makeover. Entries are available online at www.floormakeovermountvernon.com.

“Supporting our community is a top priority,” said Chavez. “Their success is our success.”

Store Facts & Features

Location: 240 East Sandford Blvd, Mount Vernon, NY 10550 Store Hours: Monday–Friday 7 a.m.–8 p.m.; Saturday 8 a.m.–7 p.m.; Sunday 10 a.m.–6 p.m. Phone Number: (914) 863-1055 For more information, visit flooranddecor.com or follow Floor & Decor on Instagram at instagram.com/flooranddecor.

About Floor & Decor Holdings, Inc.
Floor & Decor is a multi-channel specialty retailer of hard surface flooring and related accessories and a commercial flooring distributor. At the end of fiscal 2025, the Company operated 270 warehouse-format stores and five design studios across 39 states. The Company offers a broad in-stock assortment of laminate and vinyl, tile, wood, and natural stone flooring, installation materials, decorative accessories, and adjacent categories at everyday low prices. Founded in 2000, Floor & Decor is headquartered in Atlanta, Georgia.

*Must be at least 18 years old to enter the $5,000 Floor Makeover Sweepstakes and Crack the Code.
*Buy 10 of the same item and receive 10% off. Offer valid only on in-store merchandise during the grand opening promotion week from 4/23/26 through 4/29/26, and for the designated brand. Discount applied at checkout. Cannot be combined with other offers.

More News From Floor & Decor Holdings, Inc.

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A Look at Floor & Decor Holdings Inc (FND) After 3.2% Decline -- GF Value $103.33 vs Price $52.84

On April 21, 2026, Floor & Decor Holdings Inc FND shares fell 3.2% today, bringing the current price to $52.84. The stock has traded in a 52-week range of $46.47 to $92.41, showing significant volatility over the past year.

GF Value™ verdict: Current price of $52.84 is 48.9% below the GF Value™ of $103.33.GF Score™ is 86/100, indicating a strong overall performance.Most notable signal: No insider transactions have been reported in the last 3 months. Is FND Overvalued or Undervalued? The current price of Floor & Decor Holdings Inc FND at $52.84 is significantly undervalued based on the GF Value™ estimate of $103.33, which reflects a margin of safety of 48.9%. This undervaluation suggests that there might be an opportunity for investors to consider the stock, especially given the GF Valuation label of "Significantly Undervalued." GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

It is important, however, to approach this opportunity with caution, as the stock has shown considerable price fluctuation and declines over various time frames, including a year-to-date decline of 13.2% and a one-year drop of 21.2%. Investors should remain mindful of market conditions and the cyclical nature of the retail industry, which can impact performance.

How Does FND's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.5x 39.3x Forward P/E 25.5x N/A Floor & Decor's current P/E ratio of 27.5x is significantly below its 5-year median P/E of 39.3x, indicating that the stock is trading well below its historical valuation levels. The forward P/E of 25.5x further supports this finding. This P/E analysis aligns with the GF Value™ verdict of being undervalued, suggesting that the market may not be accurately reflecting the company's potential growth and profitability.

What Does FND's GF Score™ Tell Us? Metric Rating GF Score™ 86 Financial Strength 6/10 Profitability 8/10 Growth 9/10 Valuation 4/10 Momentum 5/10 The GF Score™ of 86/100 indicates a strong potential for long-term returns. The strongest areas are Growth (9/10) and Profitability (8/10), reflecting the company's capacity to expand and generate earnings effectively. However, the Valuation rank of 4/10 suggests that while the stock is currently undervalued, it may not be as attractive from a valuation perspective compared to its historical standards. The Financial Strength rating of 6/10 indicates a moderate level of stability.

What Are Insiders Doing with FND Stock? In the past three months, there have been no reported insider transactions for Floor & Decor Holdings Inc FND. This lack of insider activity may suggest that current executives are not making significant moves regarding their holdings, which could indicate confidence in the company's future performance or a wait-and-see approach in light of market conditions.

What This Means for Investors Based on the GF Value™ analysis, Floor & Decor Holdings Inc FND is currently undervalued. This presents a potential opportunity for those looking to invest in a company with strong growth and profitability metrics, though caution is warranted given the volatility and recent performance trends.

For the complete analysis, visit the Floor & Decor Holdings Inc FND stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FND's GF Score™?

The GF Score™ for Floor & Decor Holdings Inc FND is 86/100, indicating a strong performance across various key financial metrics that suggest better long-term returns compared to lower-scoring stocks.

Is FND overvalued or undervalued?

FND is currently undervalued, with a GF Value™ of $103.33 compared to its current price of $52.84, presenting a significant margin of safety for potential investors.

What is FND's P/E ratio?

The P/E ratio for FND is 27.5x, which is substantially lower than its 5-year median of 39.3x, indicating that the stock is trading below its historical valuation metrics.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Wall Street expects a year-over-year decline in earnings on higher revenues when Floor & Dcor (FND - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 30. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -11.1%.

Revenues are expected to be $1.19 billion, up 2.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.92% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Floor & Dcor?For Floor & Dcor, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +3.75%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination indicates that Floor & Dcor will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Floor & Dcor would post earnings of $0.35 per share when it actually produced earnings of $0.36, delivering a surprise of +2.86%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Floor & Dcor appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

On April 29, 2026, Floor and Decor Holdings Inc (FND) shares fell 3.5% to a current price of $47.67. This decline follows a downward trend, with the stock experie

Floor & Dcor (FND - Free Report) came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -10.84%. A quarter ago, it was expected that this company would post earnings of $0.35 per share when it actually produced earnings of $0.36, delivering a surprise of +2.86%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Floor & Dcor, which belongs to the Zacks Retail - Home Furnishings industry, posted revenues of $1.15 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 2.78%. This compares to year-ago revenues of $1.16 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Floor & Dcor shares have lost about 21.7% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Floor & Dcor?While Floor & Dcor has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Floor & Dcor was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $1.27 billion in revenues for the coming quarter and $2.09 on $4.98 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Home Furnishings is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Williams-Sonoma (WSM - Free Report) , is yet to report results for the quarter ended April 2026.

This seller of cookware and home furnishings is expected to post quarterly earnings of $1.80 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has been revised 0.4% lower over the last 30 days to the current level.

Williams-Sonoma's revenues are expected to be $1.8 billion, up 4.3% from the year-ago quarter.

Floor & Decor Holdings, Inc. (FND) Q1 2026 Earnings Call Transcript

On May 13, 2026, Floor & Decor Holdings Inc FND shares fell 4.3%, bringing the current price to $45.61. The stock has experienced significant volatility, with a 52-week high of $92.41 and a low of $44.28.

GF Value™ verdict: Current price of $45.61 vs GF Value of $99.36, indicating a 54.1% upside. GF Score™: 82/100 (Strong), suggesting solid fundamentals and potential for long-term returns. Most notable signal: Insider activity shows that insiders bought $0.4M and sold $0.7M in the last 3 months. Is FND Overvalued or Undervalued? The current price of Floor & Decor Holdings Inc FND at $45.61 presents a significant opportunity based on the GF Value™ estimate of $99.36, indicating that the stock is 54.1% undervalued. This substantial margin of safety suggests that FND shares may be an attractive option for value-oriented investors. However, caution is warranted as the broader market dynamics may affect the stock's recovery. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

With the GF Valuation label indicating that FND is "Significantly Undervalued," investors may find this an opportune time to consider the stock as it trades well below its historical norms. Nonetheless, potential risks include market fluctuations and overall economic conditions that could impact the company’s performance.

How Does FND's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 24.8x 39.2x Forward P/E 23.7x N/A Currently, FND's P/E (TTM) of 24.8x is significantly below its 5-year median P/E of 39.2x and aligns closely with its forward P/E of 23.7x. This analysis agrees with the GF Value™ verdict, reinforcing the notion that the stock is undervalued relative to its historical valuation levels.

What Does FND's GF Score™ Tell Us? Metric Rating GF Score™ 82 Financial Strength 6/10 Profitability 8/10 Growth 9/10 Valuation 2/10 Momentum 5/10 The GF Score™ of 82/100 indicates a strong overall assessment of FND, with notable strengths in Growth (9/10) and Profitability (8/10). However, the Valuation score is low at 2/10, reflecting the current market perception of the stock’s worth. This disparity suggests that while the company may exhibit solid growth and profitability metrics, its valuation remains a significant concern.

What Are Insiders Doing with FND Stock? Recent insider activity for Floor & Decor Holdings Inc FND shows that insiders bought $0.4M worth of shares but also sold $0.7M. This mixed activity could indicate that while some insiders have confidence in the stock's long-term prospects, others may be taking profits or reducing exposure in light of the recent price decline. Such patterns require careful interpretation as they may signal differing views on the company’s future performance.

What This Means for Investors Based on the GF Value™ analysis, Floor & Decor Holdings Inc FND appears to be undervalued, trading significantly below its estimated intrinsic value. While this presents a potential opportunity for investors, the mixed signals from insider activities and current market conditions should be taken into account.

For the complete analysis, visit the Floor & Decor Holdings Inc FND stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is FND's GF Score™?

FND's GF Score™ is 82/100, indicating a strong assessment based on various fundamental metrics that suggest the company has the potential for long-term returns.

Is FND overvalued or undervalued?

FND is currently undervalued, with a GF Value™ of $99.36 compared to its current price of $45.61, suggesting significant upside potential.

What is FND's P/E ratio?

FND's P/E ratio is 24.8x (TTM), which is 37% below its 5-year median of 39.2x, indicating that the stock is trading at a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

ATLANTA--(BUSINESS WIRE)--Floor & Decor (NYSE: FND), the leading high-growth retailer specializing in hard-surface flooring for homeowners and professionals, today announced the grand opening of its 13th Houston-area warehouse store and design center, located at 4800 W Bellfort Ave in Meyerland. Floor & Decor first entered the Houston market in 2004 and has continued to grow its presence across the region ever since. The Meyerland store will open with a team of approximately 40 associat.