Palm Valley Capital Management disclosed in its third-quarter 2026 investor letter that Flowers Foods was among the three positions that hurt the Palm Valley Capital Fund's quarterly performance, alongside Rayonier and Reynolds Consumer Products. The fund said Flowers Foods, a market leading producer of bread and bakery products, faces rising costs, intense competition, and a value-conscious consumer, with demand also affected by growing adoption of GLP-1 medications. During the second quarter, sales declined 4% and earnings per share fell to $0.21 from $0.30, and management lowered 2026 EPS guidance from $0.80 to $0.90 down to $0.75 to $0.85. Flowers Foods closed at $5.57 on October 02, 2026, with a $1.18 billion market capitalization, a roughly 48.81% year-to-date pullback, and a 52-week range of $5.40 to $13.13. The fund said it expects near-term trends to remain challenging but believes demand for bread will eventually stabilize, with comparisons becoming easier later this year and into 2027.
Flowers Foods IncFlowers Foods cut 2026 EPS guidance to $0.75-$0.85 and posted Q2 EPS of $0.21 vs $0.30 on a 4% sales decline.
Reynolds Consumer Products Inc
Rayonier Inc