Simply Good Foods shares fell 4% after earnings miss, weak 2026 outlook

DENVER - On Thursday, Simply Good Foods (NASDAQ:SMPL) reported fourth-quarter earnings that missed analyst expectations and provided a cautious outlook for fiscal 2026, citing challenges with its Atkins brand and inflationary pressures.

The nutritional snacking company’s shares fell 4.29% in pre-market trading after the result.

The company reported adjusted earnings of $0.46 per share for the fourth quarter, below the analyst consensus of $0.48. Revenue came in at $369 million, slightly above estimates of $368.92 million but down 1.8% from the year-ago period. The revenue decline was primarily driven by a 6.9% headwind from lapping an extra week in the prior year’s fourth quarter.

"Fiscal year 2025 finished with solid results, with net sales up 9% on a reported basis and 3% Adjusted EBITDA growth," said Geoff Tanner, President and CEO of Simply Good Foods. "We largely completed the integration of OWYN, invested meaningfully in our brands and capabilities despite inflationary pressures."

The company’s performance showed a stark contrast between its brands, with Quest and OWYN retail takeaway increasing approximately 11% and 14% respectively, while Atkins declined about 12%. This imbalance contributed to a $60.9 million non-cash impairment charge related to the Atkins brand.

For fiscal 2026, Simply Good Foods expects net sales to range between -2% and +2% YoY, with gross margins expected to decline 100 to 150 basis points and Adjusted EBITDA projected between -4% and +1%. The company anticipates stronger performance in the second half of the fiscal year as benefits from productivity and pricing initiatives take effect.

"Our outlook for fiscal year 2026 balances our long-term ambition, continued growth expectations for Quest and OWYN and the benefits from productivity, pricing and investments in our brands, against the two important challenges of reduced distribution for Atkins and cost pressures from inflation and tariffs," Tanner added.

The company’s board approved a $150 million increase to its stock repurchase program, bringing the total available for repurchases to $171 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.