FLO - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Flowers Foods Fourth Quarter and Full Year 2020 Results Conference Call. At this time, all participant lines are on a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, J.T. and Finance of SVP Investor Relations. Rieck, you. Thank go sir. Please ahead

J.T. Rieck

remarks, morning. everyone earnings on had you, our and operator, opportunity our hope good and prepared to listen our Thank Investor the Relations are I to and also of website. all which presentation, available release review

also the may Please the in note Following will this of company's make replay audio Q&A Q&A today's an conclusion we forward-looking that about statements of performance. we session, session, post this call.

they reasonable, to be subject to statements these believe could results we and risks actual that differ are uncertainties Although, to cause materially.

you In addition in to important in what fully SEC Foods' our hear Flowers relating business detailed are factors to remarks, filings. these

and We financial the and for of are website. at slide also presentation disclosure on release which the measures non-GAAP our end provided provide reconciliations earnings in the

Joining McMullian, me and Q&A our CFO. and start we're Steve please. Kinsey, CEO; the today ready to Ryals Cindy, President are

Operator

first Chappell [Operator Bill Instructions] from your question And comes Securities. Truist with

Bill Chappell

morning. good Thanks,

Ryals McMullian

Bill. Hi

Bill Chappell

struck one Nature's I similar kind points? product migration there your into taking Wonder that's consumer as going brand of And and so we the EBITDA hit a guess from color how growing I first more of I mix, sales but prepared mix bread to else the Hey Is up almost kind so in around on Dave's that price fast Own Bread, and kind very to than guess, trying is anything driving I that, that year quarter think had understand, faster would little in in so be to remarks store that, than the it? of really negative just a Killer share it because growth other as and a good XXXX? year, strength go is of private the as the for sustainable label branded mean then commentary the would Wonder was price just by Bread the a you obviously more and on

Ryals McMullian

over going on which we're much Sure bun to accomplish. four, roll be talked roll Bill. we and run things is pleased growth. Actually regional years. we branded and were side, bun like Wonder get behind and with the of yes traditionally we the on that's a few had as somewhat what growth of mean, behind national we migrated because our needed national exactly with the is world, to We smattering last the programs retailers kind to brand the went bread not that that. the what aligned I to very a national about as on Sunbeams brands, of of Most to we side,

able some as has So grow the Wonder we've nicely. intentionally to businesses fallen off of retail been quite

and butter side that's most on going intentional. of to be is again, the roll So quite it

Bill Chappell

going back though, are back branded Okay, pulling you to that's continuing you kind in mean brands to more I to store are general to of terms expect helpful. of then be consumers traditional seeing do that habits? migration And up of the this or of a in seeing remain buying products their with weak,

Ryals McMullian

course the to in actually private that's goes it QX XXrd a of potential mix sort exclude big of saw in the not at in QX. It private right. yet than reverse bit one of year Not if we week but kind trends you the sequentially yet, label the for actually QX, was worse in that little back and looking questions of total, is label

growth. focus the I the is in no been mean some see you there's on obviously So trend change branded but year, of in that could our yet. later

Own, like Wonder for is them a of priority additional behind Canyon, So, support Dave's, key strategy rest brands putting and us. support, Nature's the

Bill Chappell

that when a major recipe familiar last one then goods ERP it we're not with package implementation one, I you Got success. company always and hear it, for Steve all is think

the you what is out understand that mean, to us just of systems are done? help see office and and what kind So it that of you of expect once processes can coming I where the is transformation part

Steve Kinsey

we'll Sure, any about major very years in a successful. in the we're back had in overall implementation or been historically selecting Bill, We upgrade so of on the we'll you an haven’t for when are and it's line ERP upgrades in after point we upgrade, know be our have so falling is, ERP basically know with spirit SAP into or be it's [indiscernible] the our over so of to track be with and upgrade we And system. you think middle are within guess you've an mindful like still system transformation which midst with seen decade the and I the I that and XX when, overall past that. or guess , partner Currently, as or implemented we [indiscernible], we'll these modules I XXXX, SAP of significant out, they you plan hear keep that's but we move decide initiative reality very the as true approach. most but and cautious seen office laid the

it's had. it's had we our of an So currently we're upgrade really like platform, not changing ERP what

Ryals McMullian

[indiscernible] add early selected. mean [indiscernible] we're the to just so in just Bill we to pretty getting that, the are process, we're I and Yes,

early in is broader of is digital part days, that it's IT it's this remember a this and and So the project, strategy to not think important the way that solely a support you but also the prepared but see the best are remarks I going to the key to strategic enablers be particularly strategy brand it and optimization really network broader execution grades. about of plan, whether or our digital plan that's upgrade ERP think rest the should you that, or of is

is frank, an competitors. Flowers and peer from its quite be to its digital overall know group frankly You standpoint, behind

time earnings, strong investment. the a flows, great So, of strong this is do Obviously that to for great cash to make very something year, we've very while. coming was this needed a off quite yeah,

Bill Chappell

would this benefits we or and some efforts? year next year in see of more terms that's the of these No,

Ryals McMullian

this will the the specific follow And this that come Yes, XXXX business little, as clearer The into about later comes more year. will year beyond. in year, very, the very be we'll and focus. immaterial benefits investments case benefit in

Bill Chappell

so much. thanks Great,

Operator

Holland comes from Davidson. question from next Your Brian D.A.

Brian Holland

Thanks. Good everyone. morning

Ryals McMullian

Good morning.

Brian Holland

I So the wanted XXXX. to ask about guide for

base. targets line think you your as guidance reference in make I in prepared you XXXX Ryals with is your the remarks use long if that the targets, the with term

saying backdrop, coming that or thinking So, XXXX or XXXX opposed mix digital which year? offsets cetera, above to for still I hugely favorable the have with here, that about else is a guess, we're you're this as months but are XXXX, obviously should to as something be would with or mean mean favorable, be least going that the here was use two backdrop or as in investments be going kind past think if so XXXX, start maybe obviously to to way inflation more net would I immunity it trajectory, in even you reversion home. herd that months. of at quarter we algorithm of keep it more to simple us in in another out the the et seen we what to be commodity be And less we've going back, will there forecasting would year It then, the a from have algorithm towards this line I the revert the several is are work progression in if and of still we as

Ryals McMullian

would is on. say only maybe a no, think is, much thing slightly I be correction I pretty would the bottom algorithm. spot No, guidance you're The you're the below very I of think slight end

also it to year you've on considered, does is to of a algorithm for factor the would digital Now to be estimated But, bottom but making [indiscernible]. say we're that but got that slightly I'm that be the When the settled remember, that, adjusting I'll nickel an above term, investment again, below. that be dollar first. longer us within investments enable over end making or this

for commodities list. of that not I of think all those got the would top that I the you've the factors think at put right, year sure I that

will from mix through of top back mix let's to happen, revert and But Right? year of extent two normal that's happen? be me stable. retain category start New think XXXX do does ultimately I to the the we gains the fall number all Right it quarter where range, think Number I and your say think, you promotional will the don't When to weeks in after would the and call but things. the now some, I reverted that remain does back, the to into Year. back mind there the things be as go XXXX. five what way the it it personally towards, to How promote same more timing impact that would levels? I is what move in of extent does environment. reversion the would deep one. fourth the two, things that

Brian Holland

inflation don't buying, I for about Flowers much think Ryals. a the so disproportionate is up the you for been if appreciate last think use follow because I number has when logic net just the point, as practice. backdrop who I Foods, compete positive don't bakers, on and historically color hedging that this a Flowers for sophisticated maybe have independent could about of intuitively, against category a And I

realize the maybe weak gives costs later. spread, higher then the to have either or given take kind continue maybe which little inflation that and to So going responsive a flexibility of higher to to you're be and time hedging to your right manage see pricing bit away, maybe you

share, well XX on then a way I start is through the that about you it relevant inverse how margins? so not, is it's that little bit over guess would as next on I and maybe it's outdated more are getting the be do prices to focus bit, think the see two two, the when be you one still could would things, the flowing little favorable a promotional and You either setup, then a volume and an would be if pertains months, sort as we managing so is true focus that or guess the to you take of more but logic, position. deflation, if to through in

Ryals McMullian

as not me here don't it's it it mean So think, but outdated just I consolidation. industry is there's not Steve to I quite perhaps as right? to I too. the as great think given still their meaningful independents influence not it's in let weigh and many logic, No is also used as there I first was once as Yes, there. start may quite be, though ask

attribute short, In promote, there before. a that think goes I perhaps you on particular, strategy strong return in XXXX, think have that, as that to we we're I to that I just working great as just that. getting mean anything get more I we What a and not was promote when we're as really I Steve, it's I think capabilities helps been impactful and lift able say ago. everything smarter this base also know the a brand really too. you the want that we standpoint to that? better at that well. did we've our would don't and we as the throughout We're brands decade price. from long from was promote, is that it to And and we where add higher built way price a also I we're deal a you of with overall promotion seen said think dollar about lot that a able promote, how accurate. we've promotions to

Steve Kinsey

I true our most would to for my and work say philosophy well stay career. and strategy I we of No does us for Brian pretty mean fairly

to as crops about the that in then obviously, So somewhat for most nine part back up may we be really we months to have the works the years dependent to the out. we off. for start second good timeframe but picks how some that's see feel for you point, it, that, it on say, in the deflation that XXXX, and was and on but area take half some call years well the We'll about really six come ramp coverage Ryals quarter, coverage us, -- the we inflation the and in late in

be still So we may opportunities there, inflation expect there there. but pretty significant half, back few

Brian Holland

a in again, prepared you on. from and a have going of appreciating way and you number clearly lot you last the -- initiatives Understood, the organized your and evening which remarks

stands about that for segment performance and new but take If I enhance focus some curious tighter Cake may the with the had conversations all bit Yard a out flow we we a there walk kind and one Philadelphia Some it's leadership if on offline, you. underperforming longer, really roots think maybe the may how quickly Navy of could the little my what through, maybe or the and quicker, just Snack don't me to some with mechanics just can I'm kind through of know you we are? that, I've

Ryals McMullian

Navy and happy Yard. to starting the job particularly They've at operation there way making changes continued made the to the it that nice already we oversee really it. we're progress, to out report frankly that really I efforts, this those the year its done around. We're some end of yet, getting there I'm on see towards a year. team to have turning great saw Navy the putting Sure into mean do the I'm good but not that's we're pleased to and there David that Yard progress. we've

significant to not. targets set reason think they have I pretty and no this them they're for year achieve that will able We to have

I've said benefits before as a will be not material that Yard. company the Navy just to As whole,

robotics, I before, has upgraded plant, of some were scrap installed difficulties on packaging lines, down think to which was lot equipment a particularly in we've some and there a and helped financial that major large the we've rates that they put having. the a capital the bring the source some into automated mentioned it, issue of dollars some

we Navy on from talking improvement price there but we're [ph], on the Yard mentioned I this doing things not definitely so see also standpoint, we're specifically getting the doing the we're Now to that So We're on to We're and commercial we recovery. yet, focusing all things year. about expect sure right. required operational path we just We're to operations side, that far the also doing are return. not an promotion on but [indiscernible]. Tasty and make there have significant

improvements. it's both commercial operational effort a of combination So improvements and

Brian Holland

Thank the all color. you. Appreciate

Ryals McMullian

Sure.

Operator

Rob question next Dickerson Your comes Jefferies. with from

Ryals McMullian

Hi Rob.

Rob Dickerson

right focus would target and time, year That's at to you've you of does acquisitions, may include an organization where the and kind of been with morning, that sales best through acquisitions as fairly strategy? not you healthy here pipeline a a But given question you M&A other optimization the like some or thanks. ended year of pieces your right? think target, think you a on moving pursuing first of of you. say, going your hey, you Good a occurring the up. the a I that long So and from CapEx contained. be EBITDA you Ryals, said year, active M&A thank internally kind more same few a be you're Yes, And the the while ever, spot probably, be cash ERP potentially then relative aggressively kind I be this transition have sounds so it could just question, the the now implementing thoughts, a right just pieces, is trade seems like EPS position, great is also well leverage of and larger strategy, in in obviously to to plan run, still

Ryals McMullian

position Rob, absolutely a these I active there. to that have have protocols in that be the I short we all we're transformation I mean, can oversee we office able Sure better set to and particularly think and we strategic up, flex. think to answer with still place in that governance initiatives, the now be

things actually should our down we pause the not starting standpoint. crisis, mean to iron about even coming got about will. up plenty arise. excited M&A hot, to have post kind M&A this an something strike again I'm come you heat necessarily an year market, while a to see think to pretty I of a mean if from turn for is your of road. order you've flexibility we things rumblings lot attention opportunity to, always to would But of come in lot A I of begin are if timing to So opportunities the and that M&A to of you is have things choosing. I sort if of to moment the

good. remains pipeline the know you So

about but again. pick we opportunities approach like starting pretty up seem We how will disciplined to this, back they're remain the

Rob Dickerson

asked quickly, then yesterday, half great. in a line late, of, $XX if [indiscernible] Okay, I year. pardon seems had the that there front to of million, it loaded right there's the me are this, And kind that's in just $XX from of prepared there and somebody sates remarks more else in optimization of savings sort million kind like

you wouldn't upside could then optimization one cost is the promotional savings hopefully, be potentially this two inflation That's offset and savings from half of for just there probably kind partially there in of why and to some the if is, you, in So incremental year? Thanks. through later maybe risk the of the walk Steve, be just, back those optimization can year? overall just

Steve Kinsey

some all last all benefits the which to them the of lap and is them procurement half year. in benefits optimization and same half. all first in to portfolio year. coming of the those those that just initiatives just a savings is And second great. we continuation the it's the sounds back the Sure, the we talked there Rob, basically are majority We funded things year about in start the overhead this on are of half, It's last of back half got

Rob Dickerson

where rethink is that whatever food any didn't label kind mix Sorry, come of that some make want bad you assuming the the there if the I play mix that months. margin? to one given But for if service that real broad of Flowers, just would quick seen you private back still just Were what a would has capacity of be back, business? throughout price like we've thing want could come on seen the a all the you just past last of of where necessarily go kind kind with you've happened business one, business to XX and of some they on and have learnings

Steve Kinsey

certain powerful the think it I to that demonstrate employees, other volume again way got don't we've folks that Look, all parts no. to to we kind need we've key learning the organization, there that really as mix us there that of the of strategy the And the underperforming partners to the necessarily, portfolio, of thing were did to I if is up older of business all you mix. then of we're at was are brands like there exaggerated This the inherent think are mix those [ph]. But from talked you're, snuff was some to our power XXXX company, pieces power of way about, service matters to instead Not said, get from up the a and a future that working in organization was food and certainly thinking positive. and volume this are your XXXX everybody to our higher of mix the organically XXXX, because a really is deals. for way. me, as most emphasized M&A focusing from really get really proved around. throughout products and plants way branded long a into us to Rob in over on meaningful both that and mix we've here trying going very of that value there But the everybody in me to the if tenured lot down

Rob Dickerson

Thank you. perfect. Okay,

Operator

comes next Your with Deutsche Alwy from Faiza Bank. question

Ryals McMullian

morning. Good

Faiza Alwy

Hi, Thank morning. good you.

color is this So on portfolio? about the to and thinking branded was rest to was were while sort branded that the portfolio? up a a it rest and And relative you those continue two year? you more pieces you the see but portfolio thinking question the me this of on, scenario to there DKB about year Canyon, the longer maybe where those specifically strikes So wondering, growth I last on of follow can a how brands those of guess term Like, drivers. two just origin of wondering I how do brands the various of were of mix little more bit are grow the I

Ryals McMullian

it smaller to DKB Obviously, being that grow in and Canyon’s continue I XXXX. as an focus. of obviously to category. our bought at a now happy million They report, are rapid retail a Well, Faiza. a smaller Canyon rate. Sure, mean, surprise I'm a DKB big over shouldn't do in come both back and big, just we brand them lot $XXX is at beneficiaries

again, the half DKB's just been is So of household Own Nature's has growth extraordinary. I'll say penetration still. But

categories. So there's expand do gives but today, as we tremendous of we brand potentially not grow right to continue and only the to awareness, awareness a product grow that also that a portfolio we to the room portfolio with have it us product DKB grow amount even into that adjacent

in just to has on Canyon the doubled growth plenty smaller runway of to for $XXX growth too, Canyon from so that So a continue categories free them is gluten the JT similarly the piece category I retail, to of share. I million I I there's around but tremendous. bread this the Canyon share its of smaller pie, of a grow year, basically well. days a XX though gluten But was around think great for think as think is think at scale. free opportunity

of XX of look, category. and last I organic think course share DKB a has the at bread

of a on position to So upon that. significant so us incumbent strength, we're capitalize in it's

Faiza Alwy

would you what And you excited guess that brands you what maybe laid in, categories Yes. are would to would you'd, be to are one similar focus, sort to opportunities be opportunities. that excited of sort has you sort type pretty about? talk DKB, Canyon, most Can point anything, get potential know, you, is of about want of this what you certain of M&A as I most I relates seem the it excited? about out at

Ryals McMullian

and to, looking financially. numbers bearing looking growing. are can't comment but you mind. it say obviously will are brands, be fit culturally. what brands for can't specifically beyond I we that's I have we're have would strategically that that, one to things I But work, to so Sure, is, all has I mean, that that for mean, the we always Obviously, in look,

help looking good the that existing Even is not a to outset, be can grow. us for there them brands in scale for looking assets if they're for long and be, the plan business and our term to accretive. grow as overall are We margin portfolio obviously, can up we're complimentary be, and can be the and they that at they

We is have we're the no DSD, warehouse, portfolio. you it complement just DSD the limited know, that business. to it even does us. the ability a distribute the financially, though of fit so our to and about, bulk and issue really certainly not operationally, it for Warehouse does fit It's brand fit models does it are culturally does

Faiza Alwy

of savings? then question thinking Is or inflation. and to I any beyond are cost you, offsets the way sort a portfolio that And Steve, about inflation the guidance? you're what's back Great there last there little your in so in quantify, a bit we've optimization talked know embedded you're just how embedding for about half the

Steve Kinsey

would specifics, of which obviously but you've seen And historically, you've with I the our not within where wheat which what's the seeing largest some flour, cost, pricing at impacts kind had primarily mean, when most input is market, inflation. we we're inflation give when happening that's you commodities power. look

of food we that there's it of to trajectory at But and as We're maybe reality input would But able is, optimization half. even other the we be still gone then looking continues pricing. mentioned, mitigate most like -- hope mitigation would on. in the going back offsets some we if to looks now, we're that like able costs. inflation it to the now that, efforts is seeing have on hold Ryals with So, mitigate hope to on also, be to

Faiza Alwy

thank you so much. Okay,

Ryals McMullian

Thank you.

Operator

next Your with Stephens. from question Tim Perz comes

Ryals McMullian

morning, Good Tim.

Tim Perz

Good guys. morning. questions Two

mix sales So to I should line on just first, we guidance sales of wanted are price think top thinking about to guidance? just the how normal, return your trends? And and volume you cadence think contribution we the how the the of should touch then about about on to how impact

Ryals McMullian

a to so me generally So not talk seen but the forecast has Look, been the we and in cadence major I'll first what the know, quarter. what have year There fairly to let let we start thing saw we've been any it's speaking, all the with mix. as in yet. Steve hard changes similar to far

us, demand. start However, the, around as in or when to week the difficult against for initial start approach surge Tim the that's XX you so comps

real for really now And take think less things you then QX Johnson follow. broad last point would and that to their normal QX week that get one taper I in doses, you reach do which order go new So, question in you around and is, so, normal? quickly the full then, the normal? herd up to the rollout? thing question come follow emergency between Johnson at is, But quarters I the getting out what the think, do than look how the reading vaccination that's start for a is, know, that. does is What would it first when at point suggests think doses, we I get But reversion do that latest or I'm things to up a does immunity that? million what trend, it around a should reach Is like? same of XXX three kind back then which the fast pretty or you do it something much and think things quarter rolled that full is the reversion? back and that How herd fast it. is Right? how you, out what The immunity?

wish into model. to sure, an out. obviously, [indiscernible] just forecast us that's for that's but we've our shakes built it knew guidance I do. frankly what So have watch not and educated But much how pretty of none I to see

want you do So, Steve to to talk mix? the

Steve Kinsey

as basically, XXXX. mean, the mix from a Ryals strong I and perspective, mix contributor has Yes, been a reversion at said

drive somewhat the to see half, lot out, the continue again, moving in impact will consumer we eating So obviously that very confidence to then wane way continue, the you in see pre-XXXX. return cadence but really will start to but and jump overall it's the that lot dining the ball. something back back into a we kind a drive be favorable that and And that mix, as to QX that'll and more of of if mix the as happen of said, normalcy, to If margin. losing about and a very, starts begins of in-home of is, to as to guidance Ryal kind reversion

Ryals McMullian

Yes.

Tim, Just that algorithm. said, I And to one investment that, about that guidance midpoint our we're burdened by is of as midpoint more our even making the add is thing digital to year. we've this mean,

plans confident we in for obviously, year. the the have that pretty So we're

that Now of of deep the what coming mid all commodities to cautious much coming be, of reversion. just promotional a lack a bit together because in factors be guidance our the these the bottom you being -- pretty business. would perhaps continuing gate the sort we're guidance, the the the environment, end of little out mix of of get But, the the reflects visibility, wouldn't a of higher confidence mix would strategies but to bottom top end of guidance That reversion. just obviously yes, the the

Tim Perz

company you learned environment? question just I that anything think the wanted there. structural touch make that of What And lessons might think coming you've a year were helpful. on to the COVID stronger out past a that's and over Flowers do Okay, you bigger biggest there's the picture

Ryals McMullian

created I Yes, reorganized, we've new we've you we've I'll of Officer, think Steve's I Officer. Chief function hired and innovation transformation position, it. already done a Chain lot we the the and as got new question a an we've, tell we've a Supply hired now, we've a new have Brand you. mean Officer know, office interesting Procurement It's

do organizational to feel think I a we the really and of place. the have I things in team we've we that that done need good So about lot structure

all the changes As the even I the best think the in got we're we've I I industry time, think and we've say, team with made, stronger. that

last the As to I and on of focusing management can the that. broader I a, mindset our our go demonstration is mentioned of mix to the not of the for on think and long way years. that been change one team, the It's company. for portfolio over happened brands business to learning most allowed think the following that's but the company opportunity term this the things continue is build strategy the us powerful the our, that to the I in of we right organization, It's several earlier, only power do

Tim Perz

on. thanks, All it guys. I’ll right, pass

Operator

next Mitch question from with Sturdivant. Your Pinheiro comes

Ryals McMullian

Hi Mitch?

Mitchell Pinheiro

Hey, share labels does category? just or or Are the ‘XX? the good perhaps, two that the see lesson pandemic sort one questions in store have take brands question brands store this we going learned a just private reverse of during to devalues retailers

Ryals McMullian

that, is to What interesting watch in pandemic. was category it'll was least, to private decline that Mitch say Yes, would prior be in our label how at the in, unfolds. I

is. I consumer they're obviously they the They're Now, the want But, And looking what physical shelf that's on shelf, for on where are want. consumers it for the looking the the to give focus would the The trends if XXXX. looking our to for pandemic brands. shelf, and digital did prior I CEO retailers, these even accelerate were were we seeing a of that. kind of retailer,

want what I retailers again, you but our might one would was thinking, they're give know consumers speak be of I to if So them, what I asking running can't for. to the

Mitchell Pinheiro

promotional sort And the the half. out just question higher potential the back second in Okay. for the or promotional is, you of, higher environment called

a now any what out of commodity you're maybe would you seeing it typical just risk? this [indiscernible]? If the, light are for would in is higher costs, especially seen would anticipating a be be not why that haven't type you I it, -- is something calling of risk or it why it mean,

Ryals McMullian

think all through share the think of it, talk companies talk some this promotional the the of year pandemic, more heard even about certainly, I about to so plan keep watch Yes, it's more how they And the latter. a I to be game it's we've the food out. just

right. You're

to We what more do have the that we to take extent haven't yet, have normal. it's quickly Yes, retain revert should how does and much seen back we to to just in that category it a into account, get to things share participate risk very that. but that promotional overall

Mitchell Pinheiro

I that's Thank Okay, all had. you.

Ryals McMullian

Thank Mitch. you,

Operator

Consumer Ryan Your Edge comes from with next Research. question Bell

Ryals McMullian

Good morning, Ryan.

Ryan Bell

the everyone. year? the but could the business expectations course talk right for the focus your food Good not core the and Probably morning of recovery now, service over you about

Ryals McMullian

fast like. remains trajectory down that sit has actually. very pressure. under casual well but up? around, normalization performed back pretty largely that the back think still recovery restaurants a business business New Sure, been it's food It type What food the broad service open I fast looks occupancy that what starting low Ryan, up extent the of a like? are it's that at side I to up, depends follows question looks level. the mean, little York bit, on line, slowly really what really open

primarily, non-retail look but at that week, recovery for business other again no If food and meaningful the the foodservice, slightly yet. but includes the service you us, quarter, excluding XXrd fourth was better,

to were see down, probably or food half opposed as in service more I business be to you'd maybe tend half year, to meaningful towards some the I start you would the the the if pin back the recovery front think, I same. will think more So, to say, me of

Ryan Bell

like the innovations time So, learned, that mean? such focus half more the you of having front, retain And helpful. in is be mind to at you mean, innovation maybe some on maybe bread else time anything easier would I having it's want of that you're whole mean, that behind to any what out coming of going you're home, there emphasis I more to would a at that’s spending versus might consumers. help as if Thanks, you to the both on anything pandemic? loaf or office, justify more if have that

Ryals McMullian

amount a to too of Yes, but it's for obvious specific year. suffice to I don't say pretty we significant be that question. innovation coming this a great it have want reasons,

$XX year top contributed last some innovation to million Our line. the

hopefully the I pleased resources very, and put will restructured been we've deliver efforts think, So continue those and at and behind way we've the very that faster to forward. we've innovation going with rate a

Ryan Bell

last there's away had of helpful. that, once could think talk is should expectation, with of have about associated frontline they've think from vaccinated, that? XXXX, labor does that's workforce costs you the COVID-XX, market costs we the Okay, your about majority and one me, some been the And and the go you how I workforce the that just

Ryals McMullian

personally so time. is, safety had people XXXX, obviously, going been at had because efficiency it mean, for going because of just another the XXXX that have labor in from or we the a despite been to the out. are a number were our biggest sure in to this your way for would But contracted vaccinated, significantly think got way, in able contact and long would of being many are everyone they time. these had have would had, go down issue efficiencies the safety close side. better, we're was performance of And disrupts if and out, despite even I'm operate them the going you've of, had it road long away and us not our you that will as our that going better. plans I they were have go operations levels be are they you we COVID were some people come lower. mean, other this that protocols or protocols. capable standpoint What I either that I lot, quite to around, probably been a following it been variants there's more in help for is the though to but be one us living with a costs

I So forward to looking am that calming down.

of calm down. matter it we've As seen already a fact,

trends, down kind case Flowers Our of are experience national at everything. the the coming follows counts

are things normalize. to already beginning So

really haven't like wage been seen, resulting being out. it's the of inefficiencies but folks from more pure inflation, We

Ryan Bell

Have day. you. a Thank good Perfect.

Ryals McMullian

you. Thank

You too.

Operator

further McMullian showing to conference like closing the at this would time. I'm no remarks. turn questions back Ryals for to I now

Ryals McMullian

forward again Cindy. Thank Take wanted care. quarter. we to you for I and in interest you look to much, next very everybody Flowers thank just their speaking with

Operator

conference this conclude and gentlemen, does call. Ladies today's

and for disconnect now thank participation. your may You you

Flowers Foods (FLO) 12 Feb 212020 Q4 Earnings call transcript