S&P Global Ratings downgraded Flowers Foods Inc. (NYSE: FLO) to BB+ from BBB-. This action removes the company’s investment-grade status and assigns a negative outlook. The agency cited falling sales and profits driven by weak demand for traditional packaged breads.
Flowers Foods reported a 4% year-over-year sales decline for the second quarter of 2026. Adjusted EBITDA dropped 18% during the same period. Volumes in the core fresh packaged breads division fell 9.5% as the company lost market share. The company previously cut its dividend by 50% in May 2026 to prioritize debt reduction.