Flowers Foods, Inc. (NYSE:FLO)

m1chaelb (70.12) Submitted: 8/15/2007 2:33:11 AM : Start Price: $11.86 FLO Score: +78.91

no matter what the economy does people will still purchase baked goods and bread in particular This is a great company and with the solid profits and steady dividends

z28barnes (76.56) Submitted: 7/15/2007 10:53:09 AM : Start Price: $13.35 FLO Score: +66.93

recent split & sound company

dav767 (36.98) Submitted: 6/18/2007 10:50:31 AM : Start Price: $13.32 FLO Score: +66.08

Excellent chart takeover candidate.

AGAPE1646 (< 20) Submitted: 6/12/2007 11:35:14 PM : Start Price: $12.95 FLO Score: +68.63

Solid defensive stock, great BS, excellent Y/Y growth, attractive PE.

boogydog (34.08) Submitted: 3/1/2007 6:33:48 AM : Start Price: $11.24 FLO Score: +85.35

GOOD STOCK

NetscribeConsGds (95.87) Submitted: 1/12/2007 1:14:19 AM : Start Price: $10.49 FLO Score: +100.69

Flowers Foods produces and markets bakery products in the United States. It operates in two segments namely Flowers Bakeries and Flowers Specialty. The Flowers Bakeries segment offers fresh and frozen packaged bread and rolls whereas the specialty segment produces snack cakes for sale to co-pack, retail and vending customers, as well as frozen bread, rolls and buns for sale to retail and foodservice customers.

The bakery industry is facing cost pressures from rising wheat and energy prices. Management forecasts flour costs to inflate by 15% to 17% in 2007. But effective hedging program could enable them to manage future risk. To control their costs, company has capital expenditure plan of around $65 million for 2007 to build their capacities and become efficient low-cost producers.

Also, Flowers Foods has been able to deliver good financial performance with over 8% rise in sales in the third quarter. Bakeries, which contribute 81% to the revenues, grew by almost 10%. Despite raising the prices to offset the cost pressures, sales were not affected due to the brand prowess of Flower Foods’ products. Nature’s Own is the best selling brand by volume of soft variety bread in the United States. To cash in on the opportunity, the company has introduced 6 new Nature’s Own Specialty bread, which could drive revenues ahead.

Continuing with their philosophy to acquire small bakery companies, they have acquired Derst Baking Company, producers of breads and rolls. Moreover, Flowers Foods plans to start the Newton bread line in the first quarter of the next fiscal. The company has also expanded in Northern Kentucky and made inroads in Maryland. Further, revenue growth has been rising since the past several years. Buoyed by the past performance, management expects about over 16% earnings growth in 2007. In the light of all these factors, Flower Foods is set to blossom.