Simply Good Foods Company NASDAQ:SMPL Price, Chart, News & Insight

NASDAQ:SMPL

Simply Good Foods (SMPL) Stock Surges 17% Premarket Despite Lower Earnings on Better-Than-Expected Results

Simply Good Foods (NASDAQ: SMPL) shares jumped 17% in premarket trading on Thursday after the nutritional snacking company reported fiscal third-quarter 2026 results that exceeded management's expectations and updated its full-year outlook, despite posting lower sales and earnings compared with a year ago.

Why Is SMPL Stock Rising Today?

The sharp rally appears to reflect investor relief that quarterly performance came in ahead of internal expectations as the company begins executing its turnaround strategy.

CEO Joe Scalzo said the company is already seeing early benefits from cost-saving initiatives announced last quarter, while emphasizing continued focus on strengthening execution, improving its business model, and investing behind its core brands to return to sustainable growth.

Simply Good Foods Continues Turnaround Efforts

Third-quarter net sales declined 6.3% year over year to $357 million, while adjusted diluted EPS fell to $0.42 from $0.51. Adjusted EBITDA decreased 22.5% to $57.2 million as higher input costs, restructuring expenses, and weaker Atkins sales weighed on results.

The company also reported a net loss of $52 million, primarily due to an $82 million non-cash impairment charge related to goodwill and the Atkins and OWYN brands, largely reflecting the decline in the company's share price rather than operating performance.

Despite ongoing challenges, Quest continued to outperform, posting sales growth of 1.1%, while OWYN sales increased 3.6%. Management said Atkins' weakness was largely driven by previously disclosed distribution losses and softer retail demand.

Fiscal 2026 Outlook Updated

Simply Good Foods updated its fiscal 2026 outlook, projecting net sales between $1.345 billion and $1.355 billion, adjusted EBITDA of $220 million to $225 million, and gross margin contraction of approximately 375 basis points.

Although the updated outlook still calls for lower sales and profitability than last year, investors appeared encouraged that management reaffirmed its turnaround strategy and indicated early operational improvements are beginning to materialize.

What Investors Are Watching Next

Investors will now focus on whether Simply Good Foods can stabilize the Atkins brand while continuing the growth momentum of Quest and OWYN. The company is also expected to continue restructuring efforts, invest in brand innovation, and support household penetration as it works to restore profitable long-term growth.

The strong premarket rally suggests investors were expecting weaker results and are responding positively to better-than-anticipated quarterly performance, improving execution, and early signs that the company's turnaround plan is gaining traction.

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The Investor 07-09-26

Simply Good Foods Reports Q2 Loss, Cuts Outlook Amid Weak Demand and Impairment Charges

The Simply Good Foods Company reported weaker fiscal second-quarter 2026 results, posting net sales of $326.0 million, down 9.4% year-over-year, as declining demand across key brands weighed on performance.

The company recorded a net loss of $159.7 million, compared to net income of $36.7 million a year earlier, largely driven by a $249 million non-cash impairment charge related to the Atkins and OWYN brands. Adjusted EBITDA fell 18.4% to $55.5 million, while adjusted EPS remained broadly stable at $0.45.

Sales declines were led by significant drops in Atkins and OWYN, only partially offset by modest growth in the Quest brand. Margins were also pressured by higher input costs, particularly cocoa and tariffs.

Reflecting ongoing challenges, Simply Good Foods lowered its full-year 2026 outlook, forecasting revenue declines of 7% to 10% and weaker profitability. Management said it is implementing turnaround measures focused on cost structure improvements, clearer strategy execution, and increased marketing investment to rebuild demand.

The company acknowledged current performance falls short of expectations but expressed confidence in long-term category fundamentals and recovery potential.
Globe Newswire

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European Investor 04-09-26

Simply Good Foods Appoints New CFO and Updates Executive Severance Plan

The Simply Good Foods Company has appointed Christopher J. Bealer as Chief Financial Officer, effective July 3, 2025. Bealer, currently SVP of Finance, joined the company in April 2025 and brings 23 years of experience, including leadership roles at Reckitt and Whirlpool. His base salary will be $500,000 with eligibility for bonuses and long-term incentives.

Also on May 23, 2025, the board amended the Executive Severance Plan, increasing severance multipliers for top executives in the event of a Change in Control. The CEO will now receive 3× and the CFO, CLO, and CHRO 2× their base salary, target bonus, and one year of COBRA cost coverage upon a qualifying termination.

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The Investor 05-29-25

Simply Good Foods Reports Strong Q2 Results and Reaffirms 2025 Outlook

The Simply Good Foods Company posted solid financial results for its fiscal second quarter ended March 1, 2025. Net sales rose 15.2% year-over-year to $359.7 million, driven primarily by the acquisition of Only What You Need (OWYN), which contributed $33.8 million to sales. Organic net sales grew 4.4%, with Quest showing strong performance, while Atkins sales declined.

Net income increased 10.9% to $36.7 million, and adjusted EBITDA grew 17.6% to $68.0 million. Adjusted diluted EPS was $0.46, up from $0.40 a year earlier. The company maintained strong cash management, repaying $100 million in term loan debt during the year-to-date period and ending the quarter with $103.7 million in cash.

For the first half of fiscal 2025, net sales totaled $700.9 million, up 12.9% from the previous year. Adjusted EBITDA rose to $138.1 million, while adjusted diluted EPS increased to $0.95 from $0.82.

The company reaffirmed its fiscal 2025 outlook, expecting net sales growth between 8.5% and 10.5% and adjusted EBITDA growth between 4% and 6%. The OWYN brand is projected to contribute $140–$150 million in sales for the year. Simply Good Foods continues to position itself as a leader in the high-protein, low-sugar, low-carb food and beverage category.

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WS News 04-10-25

Simply Good Foods Company announced that its subsidiary, Simply Good Foods USA, Inc., has entered into a Repricing Amendment to its existing Credit Agreement, originally dated July 7, 2017. The amendment, executed on January 31, 2025, primarily reduces interest rates on outstanding Initial Term Loans. Specifically, SOFR-based loans will see a rate reduction from 2.50% to 2.00%, while ABR-based loans will be reduced from 1.50% to 1.00%. Additionally, the amendment removes the credit spread adjustment previously applied to SOFR loans and resets the prepayment premium period for Repricing Transactions to six months following the amendment’s effective date.

The amendment was made in coordination with Barclays Bank PLC, acting as the administrative agent, and several participating lenders. This adjustment is expected to lower borrowing costs for the company and improve financial flexibility.

A copy of the full amendment is attached as Exhibit 10.1 to the SEC filing. The changes outlined in the amendment are also incorporated into the company’s disclosure regarding financial obligations under Item 2.03 of the report.

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The Investor 02-03-25

The Simply Good Foods Company announced that its Chief Financial Officer, Shaun P. Mara, will retire on July 3, 2025. He will be succeeded by Christopher J. Bealer, who will join as Senior Vice President of Finance on April 1, 2025. Bealer brings extensive experience from leadership roles at Reckitt Benckiser, Whirlpool, and other major companies.

At its annual meeting on January 23, 2025, the company elected 11 directors, ratified Deloitte & Touche LLP as its independent auditor for fiscal year 2025, and approved an advisory vote on executive compensation. The election results showed strong support for most board members, with Clayton C. Daley, Jr. and Romitha S. Mally receiving the highest votes.

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WS News 01-29-25

03-04-26European Investor

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