Food

Wonder bread maker looks at various measures to counter sliding profits

Tonya Costoff Medeiros

27 Feb 2026 — 2 min read

A rack full of Wonder Bread hot dog and hamburger buns. ©Image Credit: Unsplash / Hermes Rivera

When you think of a classic loaf of store-bought white bread, there's a good chance that Wonder Bread comes to mind. It's been around since 1921, making it one of the original companies to make and sell sliced bread across the country.

Unfortunately, being a classic isn't enough to shield from slumping profits, and now a review is impending.

Consumers are choosing lower-priced options

Owned by Flowers Foods, there are several brands under its umbrella. The company is enjoying success and profits in its premium offerings and cakes, but the traditional loaf business has faced some challenges. One of the major issues is that consumer are turning to lower-priced branded items in search of cheaper options.

It's a problem that many companies and industries face nationwide as the cost-of-living crisis continues to determine shopping habits.

“We will continue to focus our efforts on brands with the greatest opportunity to grow and gain share while ensuring we satisfy our customers across various price points and needs," said Diego Scaglione, Flowers Foods CFO.

The Plan to save the slices

Flowers Foods has committed to a comprehensive review of its entire supply chain, operations, and financial strategy. The goal is to find ways to reinvigorate demand for its key brands, increase profits, and ultimately, turn the ship around. The review is expected to take several years.

Some of the options on the table include better leveraging of artificial intelligence, plant closures, and potentially the sale of underperforming brands.

Some of the other brands that Flowers owns, which you may recognize are Nature's Own, Simple Mills, and Dave's Killer Bread.

A lower than expected 2025 fiscal year

The 2025 fiscal year included a lower-than-expected outlook for a handful of brands. The company had net sales of $5.3 billion, and took a $136 million noncash impairment charge. This charge was tied to its intangible assets.

"We do not expect any further impairments based on our outlook for the remaining portfolio," said Scaglione.

It's all about the competitively priced options

If you're like many others out there, the news that niche and more expensive food brands are floundering probably doesn't surprise you. It's all about finding value for your money nowadays.

Sources: Food Dive

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