10 Best Food Stocks To Buy Under $20

3. Flowers Foods, Inc. (NYSE:FLO)

Stock Price: $18.79

Number of Hedge Fund Holders: 25

Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery foods in the US, such as buns, breads, bagels, tortillas, English muffins, and snack items. It has an elaborate brand portfolio, including Wonder, Tastykake, Nature’s Own, Dave’s Killer Bread (DKB), and more. Its customers range from food wholesalers and restaurants to mass merchandisers, retailers, dollar stores, institutions, supermarkets, and vending companies.

The company grew its net income by 20.9% in fiscal Q4 2024 to $43.1 million, representing 3.9% of sales, a 70-basis point increase. This growth was attributed to higher operating income resulting from the optimization of its non-retail business, moderating ingredient costs, decrease in impairment of assets, and cost-saving initiatives taken by the company. Flowers Foods, Inc. (NYSE:FLO) also grew its adjusted net income by 8.7% to $46.4 million. In addition, its adjusted EBITDA rose 6.3% to $102.4 million, representing 9.2% of net sales, a 70-basis point increase.

The company’s strong execution of its portfolio strategy, investments in innovation, and solid in-store operations allowed it to improve its market standing and promote growth. Management expects continued strong execution in fiscal 2025, with first-half results anticipated to benefit from the carryover of new business wins, savings and pricing initiatives, and moderating commodity costs. For the 53-week fiscal year 2025, Flowers Foods, Inc. (NYSE:FLO) expects net sales of approximately $5.403 billion to $5.487 billion, representing 5.9% to 7.5% growth compared to the prior year.