Flowers Foods FLO Q3 2026: EPS Misses by 34%, Guidance Cut Again

Flowers Foods reported adjusted earnings per share of $0.10 for the third quarter of 2026, missing the $0.15 consensus estimate by 34.12%. Net sales came in at $1.17 billion, trailing estimates by 1.01% and falling 4.7% compared to the same period a year ago. GAAP diluted EPS was $0.07 after restructuring charges and other items.

The core pressure came from packaged bread, where volume fell 7.0% across the company. A 2.3% gain from pricing and mix only partially offset that decline. Lower production volumes pushed up workforce-related costs and forced greater outside product purchases, while increased marketing spending and higher logistics costs added further drag. Adjusted EBITDA tumbled 33.2% to $78.90 million, with margin contracting 280 basis points to 6.8%.

This is now the second consecutive quarter in which management has cut its full-year outlook. Flowers lowered its fiscal 2026 adjusted diluted EPS guidance to $0.63 to $0.68, down from a prior range of $0.75 to $0.85. Full-year net sales guidance was also reduced to approximately $5.02 billion to $5.06 billion, and adjusted EBITDA guidance was cut to $415 million to $430 million from $453 million to $481 million.

The Nature's Own relaunch, which centered on fewer and simpler ingredients, has not yet reversed the brand's slide. CEO Ryals McMullian acknowledged that "the pace of improvement has been slower than anticipated, primarily in loaf, where category trends remain challenging," and said the company is accelerating actions to strengthen customer execution and close innovation gaps. Budget-pressured households gravitating toward store-brand alternatives and heightened promotional activity in the category remain the central headwinds.

McMullian noted the company expects "the environment to remain challenging in the near term" while expressing confidence in the business's long-term potential. The Branded Retail segment, which includes Nature's Own, Dave's Killer Bread, Wonder, and Tastykake, saw revenue fall 5.1% with volume down 8.6%. The earnings call is scheduled for November 13, 2026 at 8:30 AM ET, where investors will be looking for more detail on the execution plan and any early reads on holiday-season demand.