Despite rising input costs, Flowers Foods, Inc. (FLO - Free Report) has managed to remain a delectable investment pick. This well-known baked products company has been gaining from prudent buyouts and efforts to boost operational efficiency.
We expect this Zacks Rank #2 (Buy) company’s growth plans to continue yielding in the forthcoming periods. Markedly, the stock gained 14.2% in the past three months, compared with the industry’s rise of 6.5%.
Let’s take a closer look.
Acquisitions Aid Portfolio Growth
Flowers Foods resorts to acquisitions to strengthen its product portfolio and expand in untapped markets. Notably, the company has acquired more than 100 companies since 1968 and 16 companies since 2003. In 2015, the company bought Dave’s Killer Bread (DKB) and Alpine Valley Bread company. With the acquisition of DKB, the company got access to the Pacific Northwest market.
In December 2018, the company completed the acquisition of Canyon Bakehouse, which has helped Flowers Foods foray into the growing gluten-free bakery space. Synergies from this buyout supported the company’s performance during the first quarter of 2019. In fact, management expect this buyout to boost the top-line by nearly $70-$80 million in 2019.
In addition to this, brands like DKB, Nature's Own and Wonder brands have continued to remain strong and drive market share. Notably the first quarter marks the company’s eleventh consecutive quarter of market share improvement.
Efforts to Boost Efficiency
Flowers Foods is progressing well with Project Centennial, which is an enterprise-wide multi-year initiative. The plan is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing cost, optimizing supply chain and making prudent investments. The project has propelled the company to become more brand and consumer-focused. In fact, based on the restructuring endeavors related to Project Centennial, the company has consolidated all its operations under a single segment as reflected in first-quarter results. Going ahead, the company expects the project to continue yielding profitably and support growth.
Additionally, efficient pricing strategy has also been an upside to Flowers Foods performance lately. Such measures helped the company counter inflation in the first quarter. In fact, price mix contributed nearly 3.2% to overall top-line growth in the said quarter. Management expects its base business to continue gaining from improved price/mix.
Apart from Project Centennial, the company is also executing a multi-year supply-chain optimization plan to reduce fixed costs and is also on track with refreshing key brands.
All said, Flowers Foods is expected to remain in investors good books.
Looking For More Consumer Staples Stocks? Check These
General Mills (GIS - Free Report) with long-term earnings per share (EPS) growth rate of 7%, flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Campbell Soup Company (CPB - Free Report) , with long-term earnings growth rate of 5%, carries a Zacks Rank #2 (Buy).
The Chefs' Warehouse (CHEF - Free Report) , with a Zacks Rank #2, has long-term earnings growth rate of 15%.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Despite rising input costs, Flowers Foods, Inc. (FLO - Free Report) has managed to remain a delectable investment pick. This well-known baked products company has been gaining from prudent buyouts and efforts to boost operational efficiency.
We expect this Zacks Rank #2 (Buy) company’s growth plans to continue yielding in the forthcoming periods. Markedly, the stock gained 14.2% in the past three months, compared with the industry’s rise of 6.5%.
Let’s take a closer look.
Acquisitions Aid Portfolio Growth
Flowers Foods resorts to acquisitions to strengthen its product portfolio and expand in untapped markets. Notably, the company has acquired more than 100 companies since 1968 and 16 companies since 2003. In 2015, the company bought Dave’s Killer Bread (DKB) and Alpine Valley Bread company. With the acquisition of DKB, the company got access to the Pacific Northwest market.
In December 2018, the company completed the acquisition of Canyon Bakehouse, which has helped Flowers Foods foray into the growing gluten-free bakery space. Synergies from this buyout supported the company’s performance during the first quarter of 2019. In fact, management expect this buyout to boost the top-line by nearly $70-$80 million in 2019.
In addition to this, brands like DKB, Nature's Own and Wonder brands have continued to remain strong and drive market share. Notably the first quarter marks the company’s eleventh consecutive quarter of market share improvement.
Efforts to Boost Efficiency
Flowers Foods is progressing well with Project Centennial, which is an enterprise-wide multi-year initiative. The plan is aimed at streamlining operations, fueling efficiencies, improving margins by curtailing cost, optimizing supply chain and making prudent investments. The project has propelled the company to become more brand and consumer-focused. In fact, based on the restructuring endeavors related to Project Centennial, the company has consolidated all its operations under a single segment as reflected in first-quarter results. Going ahead, the company expects the project to continue yielding profitably and support growth.
Additionally, efficient pricing strategy has also been an upside to Flowers Foods performance lately. Such measures helped the company counter inflation in the first quarter. In fact, price mix contributed nearly 3.2% to overall top-line growth in the said quarter. Management expects its base business to continue gaining from improved price/mix.
Apart from Project Centennial, the company is also executing a multi-year supply-chain optimization plan to reduce fixed costs and is also on track with refreshing key brands.
All said, Flowers Foods is expected to remain in investors good books.
Looking For More Consumer Staples Stocks? Check These
General Mills (GIS - Free Report) with long-term earnings per share (EPS) growth rate of 7%, flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Campbell Soup Company (CPB - Free Report) , with long-term earnings growth rate of 5%, carries a Zacks Rank #2 (Buy).
The Chefs' Warehouse (CHEF - Free Report) , with a Zacks Rank #2, has long-term earnings growth rate of 15%.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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