Flowers Foods profit falls 21% as legal costs surge; sales outlook turns negative

Filed May 21, 2026 · Period ending April 25, 2026 · Compared to 10-Q May 16, 2025 · ~2 min read

Key Changes

• high

  Net income dropped 21% to $42.1M as legal settlements jumped to $14.4M (vs. $0.7M prior year), interest expense rose 40% on Simple Mills debt, and effective tax rate climbed to 30% from 25.6%.

  MD&A: Net Income & Legal Settlements verify on EDGAR →
• high

  Company now expects Fiscal 2026 sales to decline vs. prior year, citing loss of 53rd week and persistent bread category weakness, reversing prior year's growth outlook despite Simple Mills contribution.

  MD&A: Sales Outlook verify on EDGAR →
• high

  Operating cash flow fell 20% to $107.9M from $135.6M, driven by lower earnings, elevated legal payments, and working capital changes, tightening liquidity generation amid higher debt service.

  MD&A: Cash Flow verify on EDGAR →