Why Flower Foods Stock Dropped Today
Shares of the nation's second-largest bakery, Flower Foods (NYSE: FLO), dropped on Friday after the company reported financial results for the third quarter of 2023. And painfully for shareholders, the stock is now down from where it was 10 years ago. As of 11:20 a.m. ET, Flower Foods stock was down 8%.
It's likely that everyone reading this has experienced higher prices at the grocery store. Because of these price increases, Flower Foods has noticed that consumers are trading down from brand-name baked goods to less expensive options. Overall, the company's volume of products sold dropped 4.1% year over year in Q3.
Flower Foods did still generate record Q3 sales of $1.199 billion, which was up 3.5% from the prior-year period. But this was due to raising its prices and it can't be relied upon every quarter to deliver gains.
Source Fool.com
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