THOMASVILLE, Ga. - Flowers Foods , Inc. (NYSE: NYSE:FLO), a leading producer of packaged bakery goods, has declared a quarterly dividend of $0.24 per share, marking a 4.3% increase from the dividend paid in the same quarter of the previous year. This announcement, made today, continues the company's track record of consistent shareholder returns, with this being the 88th consecutive quarterly dividend. Eligible shareholders must be on record by September 6, 2024, to receive the dividend, which is payable on September 20, 2024.
Flowers Foods, with headquarters in Thomasville, Georgia, is recognized as one of the largest producers of bakery products in the United States. The company reported sales of $5.1 billion in 2023 and operates a network of bakeries across the nation. Its portfolio includes well-known brands such as Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake.
The forward-looking statements included in the company's press release indicate that these figures are based on current expectations and are subject to a variety of risks and uncertainties that could cause actual results to differ. Factors such as changes in economic conditions, consumer demand, supply chain conditions, and regulatory environments could potentially impact future performance. The company has outlined these and other risks in its Annual Report on Form 10-K for the year ended December 30, 2023, and in subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
Today's dividend declaration is based on a press release statement from Flowers Foods and reflects the company's commitment to providing value to its shareholders. It is important to note that while the company has a history of regular dividends, investment decisions should be made considering the potential risks and uncertainties that may affect the company's financial health and market performance.
In other recent news, Flowers Foods has been the subject of several recent developments. The bakery company's Q2 adjusted EBITDA reached $143.5 million, surpassing estimates from both DA Davidson and consensus predictions. However, the company's top line did not meet expectations. Despite this, Flowers Foods saw an increase in its adjusted gross margin due to moderating costs and reduced product returns. Analysts from DA Davidson maintained a neutral rating on the company, citing the competitive landscape in fresh bread as a potential risk factor.
Simultaneously, Truist Securities held onto its rating and price target for Flowers Foods, expressing confidence in the company's full-year outlook for 2024. Truist suggested that for Flowers Foods to attract more investor attention, it might need to pursue a significant merger or acquisition. In the company's earnings call, it highlighted the successful performance of its leading brands and its effective portfolio strategy. The company also emphasized its focus on underpenetrated markets for sustainable growth and its readiness for potential mergers and acquisitions.
Furthermore, Flowers Foods is temporarily pausing the rollout of a new bakery due to distribution transitions in California, with plans to resume by the first quarter of 2022. This move is part of the company's strategic exits and new ventures, demonstrating its commitment to maintaining and accelerating growth.
InvestingPro Insights
Flowers Foods' recent dividend increase underscores its commitment to shareholder returns, a sentiment echoed by the company's performance metrics on InvestingPro. With a market capitalization of $4.86 billion, Flowers Foods is a significant player in the packaged bakery goods industry. The company's dedication to its dividend policy is evident, as it has not only maintained but also raised its dividend for 23 consecutive years, showcasing a stable financial posture that income-focused investors might find attractive.
InvestingPro Tips reveal that Flowers Foods is expected to see an increase in net income this year, which may have contributed to the decision to raise the dividend. Additionally, the company's liquid assets surpassing short-term obligations indicate a strong liquidity position, which can be crucial for sustaining dividend payments in the long term. For investors interested in further analysis and tips, InvestingPro offers 5 additional tips on Flowers Foods.
Key InvestingPro Data metrics as of Q2 2024 show a Price/Earnings (P/E) ratio of 18.42, which is lower than the previously reported 37.96, suggesting a more attractive valuation for investors. Moreover, the company has experienced a revenue growth of 2.53% in the last twelve months, indicating a steady increase in sales. Lastly, the dividend yield stands at a robust 4.16%, which is a key figure for dividend investors looking for consistent income streams.
As Flowers Foods continues to navigate the risks and uncertainties mentioned in their SEC filings, these financial health indicators and the insights from InvestingPro may offer investors a clearer picture of the company's stability and potential for continued shareholder returns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.