Mitchell Pinheiro's questions to FLOWERS FOODS (FLO) leadership • Q2 2025
Question
Mitchell Pinheiro questioned the timeline for the company's strategic 'transition,' asking if it's a five-year process or if near-term fixes exist. He also asked about levers to protect gross margin amid lower volumes and the company's appetite for M&A given its current leverage.
Answer
Chairman & CEO A. Ryals McMullian described the shift as 'generational' and declined to set a specific timeline, emphasizing patience is needed. He noted that levers to protect margins include bakery optimizations, improving path-to-market efficiencies, and shifting the portfolio to higher-margin business, such as in foodservice. On M&A, he stated the current focus is on debt paydown, suggesting acquisitions are more likely 'over time,' but mentioned that non-cash deals could be an option.