I have reviewed the earnings call and am not particularly concerned.
It looks like the quarter was weak across the board for most food retailers, and FLO did not lose market share. They mentioned in the call that Q1 sales already appear to be back on track.
FLO had a couple of issues integrating their recent acquisitions and some issues bringing online and converting some of their bakeries. I think these issues will resolve themselves moving forward.
There was also concern about the independent distributor lawsuit, however I'm not concerned about this.
I think the slowdown in revenue and EPS growth is temporary. I believe growth will resume when the recent acquisitions are fully integrated and as their expansion into the Midwest and West continues.
I believe shares are fairly (maybe even slightly undervalued). I plan to open a position and begin accumulating shares.
It looks like the quarter was weak across the board for most food retailers, and FLO did not lose market share. They mentioned in the call that Q1 sales already appear to be back on track.
FLO had a couple of issues integrating their recent acquisitions and some issues bringing online and converting some of their bakeries. I think these issues will resolve themselves moving forward.
There was also concern about the independent distributor lawsuit, however I'm not concerned about this.
I think the slowdown in revenue and EPS growth is temporary. I believe growth will resume when the recent acquisitions are fully integrated and as their expansion into the Midwest and West continues.
I believe shares are fairly (maybe even slightly undervalued). I plan to open a position and begin accumulating shares.