I bought Flowers Foods (ticker:FLO) when it was trading at $8 dollars a share thought it was pretty cheap and offered a nice dividend.
Today it trades at $5.55, with a \~9% dividend yield. Volume issues, potential higher legal costs, and debt obligations all hitting the company at the same time.
Thesis is at this price company doesn’t need to improve from here. Stabilization alone would generate a meaningful return.
Link is to my Substack article. Free to read, financial models (EPV, SOTP, Peer Comps) is behind a paywall.
Note: the writing is editing through A.I, the thinking is my own.
Would love some feedback. What do you think of the business at this price?
