Flowers Foods, Inc. (NYSE:FLO)

CAPS Rating: 4 out of 5

The Company is a producer and marketer of packaged bakery foods for retail and foodservice customers. Its businesses are organized into two reportable segments: Flowers Bakeries and Flowers Specialty.


Player Avatar TMFLegendPhoenix (33.63) Submitted: 8/18/2011 8:19:43 AM : Outperform Start Price: $11.84 FLO Score: +12.12

I'm not exactly sure how it came about, but shares of Flower Foods dropped 10% in one day. Their earnings report came out yesterday and although it could have been better, it wasn't run-for-the-hills-bad. In this quarter they announced a 3-for-2 stock split and increased their annual dividend rate by 12% per share. Flowers Foods acquired Tasty Baking Company (along with Tastykake's debt) and they've had to layoff some employees due to redundant positions after the merger. Earnings per share were less than what analysts predicted due to "higher input costs across all segments," (ingredients, packaging, natural gas).
Many shareholders couldn't stand the heat so they fled the kitchen. In my opinion, the sell off was a bit overboard. Flowers' management is excellent and have shown that they can manage risks, reduce costs and make intelligent acquisitions. The company is a slow and steady grower that pays a dependable dividend.

Member Avatar cullenawilliams (< 20) Submitted: 5/26/2012 10:00:15 PM
Recs: 1

yes they are a great company to work for as I did for 24 yrs until I was injured on the job and had to retire they kept me as an employee on payroll for 4 yrs until my medicare kicked in so I would have medical insurance, yes I was in management, and miss working for them everyday since I was injured, they at no time have fought my claim thru workers comp, I broke my back in 4 places by falling out of bread truck in 1999 when I was 40 and had to retire at that time, my retirement kicks in when I am 55 and no doubt they are where most of my investment will go. They are a great company to work for, and I feel I gave them everything I had while I was working and regret my career with was cut short. All companies have to be a conservative business and know when to invest and where to invest their capital improvements and what companies best fit their goals for the future, I hope to see the day they are in every state in the USA and at that time no other bread company will be able to touch them. I wish them the best.

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