The Top 5 Analyst Questions From Flowers Foods’s Q2 Earnings Call

August 22, 2025 at 01:30 AM EDT

FLO Cover Image

Flowers Foods’ second quarter drew a negative market reaction, as revenue missed Wall Street estimates and margins declined year over year. Management pointed to increased competition in the bread aisle, especially from new, lower-priced entrants, as well as sustained softness in traditional loaf products. CEO Ryals McMullian described the current period as a “transition” driven by evolving consumer trends, including heightened attention to health and wellness and shifting attitudes toward processed foods. Management emphasized that, while some premium and value segments performed well, weakness in the core traditional loaf category weighed on overall performance.

Is now the time to buy FLO? Find out in our full research report (it’s free).

Flowers Foods (FLO) Q2 CY2025 Highlights:

Revenue: $1.24 billion vs analyst estimates of $1.27 billion (1.5% year-on-year growth, 2% miss)
Adjusted EPS: $0.30 vs analyst estimates of $0.29 (in line)
Adjusted EBITDA: $137.7 million vs analyst estimates of $141.3 million (11.1% margin, 2.6% miss)
The company dropped its revenue guidance for the full year to $5.27 billion at the midpoint from $5.35 billion, a 1.4% decrease
Management lowered its full-year Adjusted EPS guidance to $1.05 at the midpoint, a 4.5% decrease
EBITDA guidance for the full year is $525 million at the midpoint, below analyst estimates of $545.9 million
Operating Margin: 7.9%, in line with the same quarter last year
Organic Revenue fell 3.6% year on year vs analyst estimates of 2.1% declines (151.5 basis point miss)
Sales Volumes fell 2.4% year on year (-1.2% in the same quarter last year)
Market Capitalization: $3.27 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Flowers Foods’s Q2 Earnings Call

Stephen Powers (Deutsche Bank) asked about the impact of new lower-priced bread entrants and competitive intensity. CEO Ryals McMullian explained, “The market remains bifurcated,” with good performance at the premium and value ends but weakness in traditional loaves.
William Chappell (Truist Securities) questioned whether the industry is returning to a period of aggressive price competition. McMullian responded that a major category transition is underway, citing consumer shifts toward health-focused and less processed products.
James Salera (Stephens) inquired about Wonder’s impact on cake share and the lack of cannibalization of Tastykake. McMullian said Wonder’s launch “vastly exceeded our expectations,” and that both brands are performing well in their respective regions.
Mitchell Pinheiro (Sturdivant & Company) pressed for a timeline on the portfolio transition and margin levers. McMullian declined to specify a timeframe but described the shift as “generational,” requiring patience and ongoing innovation.
Scott Marks (Jefferies) asked about investment behind core brands and the role of small loaf products. McMullian noted increased support for differentiated offerings and growing importance of small loaves as demographics shift toward smaller households.

Catalysts in Upcoming Quarters

In upcoming quarters, the StockStory team will watch for (1) evidence that new product launches—especially in the premium and value segments—translate into improved sales volumes, (2) stabilization in traditional loaf performance as the portfolio strategy takes hold, and (3) further margin improvement from cost-saving initiatives such as bakery rationalization. Progress in retailer shelf resets and continued traction with innovation pipelines will also be key milestones.

Flowers Foods currently trades at $15.63, down from $16.58 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

About Us

About Cabling Installation & Maintenance

Contact Cabling Installation & Maintenance

Editorial

Advertising and Sponsorship Sales

Subscriptions and Memberships

Feedback/Problems

The Top 5 Analyst Questions From Flowers Foods’s Q2 Earnings Call

Flowers Foods (FLO) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From Flowers Foods’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

More News