By Elias Schisgall

Shares of Flowers Foods fell after the company launched a strategic review and said category headwinds were likely to bring down sales this year.

Shares were down 11% to $10.12 in Friday trading. The stock has gained 5.9% in the past year.

The packaged baked goods manufacturer, whose brands include Nature's Own and Dave's Killer Bread, is expecting fiscal 2026 revenue of between $5.16 billion and $5.27 billion, representing year-over-year change of between a 1.2% decline and 0.2% growth. It is projecting adjusted earnings of between 80 cents and 90 cents a share.

Chief Executive Ryals McMullian said Thursday that the outlook was largely driven by category headwinds that are continuing into 2026, as well as one fewer week of operations in the fiscal year.

"Looking ahead to 2026, we anticipate these category headwinds, combined with one fewer week of operations, will result in financial performance below 2025 levels," McMullian said. "In response, we are conducting a comprehensive review of our operations, including our brand portfolio, supply chain and financial strategy.

"We are confident it will drive category outperformance and enhance long-term value for our shareholders," he added.

For the fourth quarter, the company posted a loss of $67.1 million, or 32 cents a share. That compares to a profit of $43.1 million, or 20 cents a share, a year earlier.

The swing to a loss was largely driven by a $136 million non-cash impairment of intangible assets, the company said. Stripping out that and other one-time items, the company reported adjusted earnings of 22 cents a share, ahead of analysts' estimates of 15 cents a share, according to Factset.

Revenue grew to $1.23 billion, up from $1.11 billion a year earlier and roughly in line with analyst estimates.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

February 13, 2026 13:56 ET (18:56 GMT)

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