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Posted by
Two Blokes Jul 29 -
Filed in
Stock
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5 views
Flowers Foods faces ongoing organic growth challenges, with the Simple Mills acquisition adding leverage but only modestly improving growth prospects. The dividend payout ratio has climbed to an unsustainable 90%, limiting financial flexibility and raising concerns about long-term capital allocation priorities. Despite a tempting 6% dividend yield and low earnings multiple, elevated debt and persistent business softness keep me cautious on the stock.
