Flowers Foods

Moody’s has downgraded the rating for Flowers Foods’ senior unsecured debt from Baa3 to Ba2 and changed the outlook to stable. The move reflects slower-than-expected debt reduction following the acquisition of Simple Mills and ongoing revenue and earnings pressure in the fresh packaged bread segment. Flowers Foods reported declining sales in Q2 and an adjusted EBITDA decline of 19.2%; management cut full-year guidance and in May reduced the dividend by about 50% to support cash flow. Despite good liquidity and existing credit facilities, Moody’s still expects gross leverage to remain in the mid-3x range through 2027. » More on de.investing.com

Flowers Foods' stock fell to a 52‑week low of $6.04 after the company missed Q2 earnings and revenue (EPS $0.21 vs. $0.24 expected; revenue $1.19 billion). Shipments declined 4%, adjusted EBITDA fell 18%, and fresh‑packaged bread volume dropped 9.5%. Stephens cut its price target to $6.00, and S&P Global Ratings downgraded the rating to BB+ with a negative outlook. The stock yields 8.35% in dividends; InvestingPro sees a fair value of $9.47 and notes an oversold RSI. » More on de.investing.com

S&P Global Ratings cut Flowers Foods' rating from 'BBB-' to 'BB+' with a negative outlook, thereby removing its investment-grade status. The move was driven by declining sales and adjusted EBITDA that fell 18% in Q2 2026, and a 9.5% drop in shipment volumes in the core segment. S&P criticizes the company's focus on shrinking product categories, market share losses to competitors and higher indebtedness (adjusted leverage 3.5x). The agency expects continued earnings and margin pressure through 2027 and warns that further downgrades are possible if leverage does not fall below 3.0x. » More on de.investing.com