Simply Good Foods Co (SMPL)

The past six months have seen significant events impacting SMPL's stock price. In Q2 2025, the company reported a 15% increase in net sales, driven by Quest and OWYN, but Atkins faced a decline, and gross margin decreased. In Q3 2025, Simply Good Foods met revenue expectations, but sales declined, and profit missed estimates due to input costs. Q4 2025 led to a stock plunge due to a net loss, missed EPS expectations, and a decline in revenue, with an impairment charge related to Atkins. The company provided a cautious outlook for fiscal year 2026, projecting limited net sales and adjusted EBITDA growth. The Atkins brand experienced a significant decline, and the company repurchased $51 million of stock in Q4 FY25, with the Board approving a $150 million increase to its stock repurchase program.

The demand for Simply Good Foods' products exhibits some seasonality, particularly around January, when retailers increase support for nutritional products. The company plans to emphasize its Quest chips during this season. The nutritional snacking category benefits from a sustained shift towards high-protein, low-sugar, and low-carb products.

The Simply Good Foods Co. (SMPL) develops, markets, and sells snacks and meal replacements, focusing on health and wellness trends like low-carbohydrate, high-protein, and low-sugar offerings. Its product portfolio includes protein bars, shakes, snacks, and confectionery items. The company manages three major brands: Atkins, which caters to consumers following a low-carbohydrate lifestyle; Quest, which targets consumers looking for protein-rich foods and beverages that limit sugars and simple carbohydrates; and OWYN (Only What You Need), which offers plant-based, protein-rich beverages that are tested for the top nine allergens, low in sugar, and contain prebiotic fiber.

The company's primary market is North America, where it distributes its products through major retail channels including grocery stores, club stores, mass merchandisers, drug stores, and convenience stores. Simply Good Foods also has an international presence and utilizes e-commerce platforms such as questnutrition.com, atkins.com, liveowyn.com, and amazon.com. International sales constituted approximately 2% of total sales in fiscal year 2025.

Simply Good Foods has aimed to solidify its reputation as a leader in the high-protein, low-sugar, and low-carb food and beverage segment. Quest has maintained a strong reputation through innovation and marketing. The acquisition of OWYN has boosted the company's portfolio, with the brand entering the vegan protein market. The Atkins brand has faced challenges, experiencing declining consumption and distribution losses. The company faces competition from larger players, necessitating continuous innovation.

The Simply Good Foods Co. is predominantly owned by institutional investors, who hold between approximately 46.97% and 95.30% of the company's stock. Major institutional shareholders include BlackRock Inc., Fmr LLC, and Vanguard Group Inc. Insider ownership ranges from 4.94% to 18.06%. Atkins Holdings LLC is the largest individual shareholder, owning 8.80% of the company, and James M. Kilts also holds a significant individual stake. Insider trading activity in the past year indicates more selling than buying, though CEO Geoff Tanner bought shares in July 2025.