DENVER, Jan. 23, 2026 (GLOBE NEWSWIRE) -- On January 20, 2026, The Simply Good Foods Company (NASDAQ: SMPL) (“Simply Good Foods” or the “Company”) announced that Joseph E. Scalzo joined the Company in the role of President and Chief Executive Officer, effective January 19, 2026. Pursuant to the terms of his employment agreement, on January 19, 2026 and in connection with Mr. Scalzo’s appointment, the Company granted to Mr. Scalzo an option to purchase 2,000,000 shares of the Company's common stock, with an ...

Key Architect and Longtime Former CEO and Executive Vice Chairman of Simply Good Foods Returns to Lead New Chapter of GrowthDENVER, Jan. 20, 2026 (GLOBE NEWSWIRE) -- The Simply Good Foods Company (NASDAQ: SMPL) (“Simply Good Foods” or the “Company”), a leader in the Nutritional Snacking category, today announced the return and appointment of longtime former executive Joe Scalzo as President and Chief Executive Officer. Mr. Scalzo will oversee a new chapter at Simply Good Foods focused on reigniting growth a ...

Company Overview - Simply Good Foods Company, listed on NASDAQ as SMPL, operates in the health and wellness food sector, focusing on nutritious and convenient food options to meet the demand for healthier lifestyles [1] - The company has a market capitalization of approximately $2.12 billion, competing with other health-focused food companies in a rapidly evolving market [1] Stock Performance and Analyst Outlook - Mizuho Securities has set a price target of $30 for SMPL, indicating a potential upside of 42.16% from its current trading price of around $21.10 [2][6] - The stock has experienced an 11.3% increase over the past four weeks, closing at $21.26 [2] - The current price of SMPL is $21.12, reflecting a slight increase of 0.62% [4] - The stock has fluctuated between $20.69 and $21.27 on the day, with a 52-week high of $40.01 and a low of $18.45, indicating significant volatility [4] Price Target Variability - There is a notable variability in price targets for SMPL, with a standard deviation of $6.29 among 10 short-term estimates, suggesting differing opinions among analysts [3][6] - The lowest estimate predicts an 8.2% increase to $23, while the highest anticipates an 83.4% surge to $39 [3] Earnings Estimates and Growth Potential - Despite skepticism regarding price target accuracy, the positive trend in earnings estimate revisions indicates potential for further growth for Simply Good Foods [5]

Group 1 - Simply Good Foods (NASDAQ:SMPL) is recognized as a promising mid-cap consumer staples stock priced under $100, with a recent Buy rating reaffirmed by Bernstein SocGen and a target price increase from $29 to $31, indicating a potential upside of nearly 45% [1] - Analyst Alexia Burland Howard highlighted that the consensus topline growth forecasts do not align with U.S. scanner sales data, noting weaknesses in Atkins products but positive growth in brands like Quest and OWYN, which together account for about 50% of the product portfolio and have shown growth in the high-teens over the past year [2] - Deutsche Bank analyst Stephen Powers maintained a neutral stance on Simply Good Foods, assigning a Hold rating and lowering the target price from $26 to $22, suggesting a flat growth potential in share price of approximately 3% [3] Group 2 - Simply Good Foods develops and sells a variety of packaged food, nutritional snacks, and beverages under brands such as Quest and Atkins, utilizing a robust network of retail and e-commerce platforms for distribution [4]

Core Viewpoint - Simply Good Foods (SMPL) shares have increased by 11.3% in the past four weeks, closing at $21.26, with a mean price target of $29 indicating a potential upside of 36.4% [1] Price Targets and Analyst Estimates - The mean estimate consists of 10 short-term price targets with a standard deviation of $6.29, where the lowest estimate is $23.00 (an 8.2% increase) and the highest is $39.00 (an 83.4% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Sentiment - Analysts are optimistic about SMPL's earnings prospects, as indicated by a positive trend in earnings estimate revisions, with four estimates moving higher in the last 30 days and no negative revisions [11][12] - The Zacks Consensus Estimate for the current year has increased by 2.5% [12] - SMPL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Price Targets - While the consensus price target may not be a reliable indicator of the stock's potential gain, the direction implied by these targets appears to be a useful guide for further research [14]

Core Thesis - The growth of Simply Good Foods' Quest and OWYN brands is expected to compensate for the decline of its Atkins brand [1] Company Overview - Simply Good Foods focuses on the food manufacturing sector, particularly in the health and wellness segment [1] Brand Performance - The Quest and OWYN brands are anticipated to drive growth, offsetting the weakening performance of the Atkins brand [1]

Core Insights - Simply Good Foods Company (SMPL) reported first-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates, although both metrics declined year over year [1][9] - Management maintained its full-year outlook, indicating a path toward margin improvement in the second half of the fiscal year [1][15] Quarterly Performance - Adjusted earnings were 39 cents per share, surpassing the Zacks Consensus Estimate of 36 cents, but down from 49 cents in the same quarter last year [2] - Net sales reached $340.2 million, beating the Zacks Consensus Estimate of $337 million, but decreased by 0.3% from $341.3 million year-over-year [3] - North America revenues were $331.8 million, reflecting a modest decline of 0.2% year-over-year, while international sales were $8.4 million, down 5.7% [4] Brand Performance - Quest brand grew by 9.6%, while Atkins and OWYN experienced declines of 16.5% and 3.3%, respectively, with OWYN's performance affected by product quality issues and high retailer inventory levels [3][4] Margins and Expenses - Gross profit was $109.9 million, down 15.8% year-over-year, with a gross margin of 32.3%, a decrease of 590 basis points [5] - Operating expenses decreased by 4.7% to $72.3 million, with selling and marketing expenses down 10.1% to $29.7 million [6] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year, with an adjusted EBITDA margin of 16.4%, a decline of 410 basis points [7] Financial Position - At the end of Q1, the company reported cash of $194.1 million and a term loan balance of $400 million, resulting in a net debt to adjusted EBITDA ratio of 0.8x [8] - Operating cash flow improved to $50.1 million from $32 million last year, driven by working capital improvements [8] Future Expectations - The second quarter is expected to be the weakest for fiscal 2026, with net sales anticipated to decline between 3.5% and 4.5% year-over-year [11] - Gross margin for Q2 is expected to decline approximately 300 basis points year-over-year, with adjusted EBITDA anticipated to decline by double digits [12] - For the full fiscal year 2026, net sales growth is projected to range from negative 2% to positive 2%, with expectations for margin recovery in the second half [15][17]

Core Insights - Simply Good Foods reported a decline in profitability due to higher costs, with adjusted EBITDA at $55.6 million, down 20.6% year-over-year, and net income at $25.3 million compared to $38 million a year ago [1][2][4] Financial Performance - Net sales for the quarter ended November 29, 2025, were $340.2 million, essentially flat compared to the prior year [3][7] - Gross profit was $109.9 million, down 15.8%, with a gross margin of 32.3%, down 590 basis points [2][7] - Adjusted diluted EPS was $0.39, compared to $0.49 in the prior-year quarter [1] Brand Performance - Quest brand drove growth with nearly 10% net sales growth and 12% consumption growth, representing 71% of net sales [3][6][8] - OWYN saw 18% consumption growth but faced challenges with net sales due to product quality issues and retailer inventory levels [11] - Atkins experienced a 19% decline in consumption, primarily due to lost distribution at key retailers [10] Cost and Margin Pressures - The decline in gross margin was attributed to inflationary input costs, particularly cocoa, and the impact of tariffs totaling about $4 million [2][12] - Management emphasized actions to rebuild gross margin, with recent pricing actions expected to provide limited benefits in the near term [12][14] Capital Allocation - The company accelerated share buybacks, borrowing an additional $150 million to repurchase shares, totaling over 7% of shares outstanding [5][19] - An additional $200 million was added to the share repurchase authorization, with approximately $224 million remaining under the current program [20] Outlook - Simply Good Foods reaffirmed its fiscal 2026 guidance, expecting Q2 to be the weakest quarter, with net sales projected to decline 3.5% to 4.5% year-over-year [16][17] - Management anticipates a stronger second half, with net sales growth moving toward the higher end of the full-year range [17][18]

Financial Data and Key Metrics Changes - The company reported net sales of $340.2 million for Q1 2026, which was essentially flat compared to the previous year [20] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year due to margin pressures [23] - Gross profit declined 15.8% to $109.9 million, primarily driven by elevated inflationary costs [21] - Net income was $25.3 million, a decline of 34% compared to the previous year [23] - Diluted earnings per share decreased to $0.26 from $0.38 in the year-ago period [23] Business Line Data and Key Metrics Changes - Quest brand net sales grew nearly 10%, driven by robust consumption growth of 12% [20] - Atkins consumption declined 19%, largely due to lost distribution at key retailers [13] - OWYN's consumption increased by 18%, benefiting from distribution-led growth [16] Market Data and Key Metrics Changes - The nutritional snacking category grew by 10%, with Quest and OWYN contributing significantly to this growth [5] - Household penetration for Quest reached nearly 20%, up 200 basis points year-over-year [9] - OWYN's household penetration increased to 4.5%, up 100 basis points [16] Company Strategy and Development Direction - The company is focused on driving top-line growth through expanded distribution and marketing initiatives [5] - A robust productivity program initiated 18 months ago is expected to yield results in the second half of the fiscal year [7] - The company plans to continue investing in marketing and innovation to support growth, particularly for Quest and OWYN [18] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed confidence in the full-year outlook for net sales and Adjusted EBITDA despite challenges in the first half [5] - The company expects Q2 to be the weakest quarter for consumption and net sales growth, with a projected decline of 3.5%-4.5% [29] - Management anticipates stronger performance in the second half of the fiscal year, driven by distribution gains and new product launches [30] Other Important Information - The company borrowed an additional $150 million to accelerate its share buyback program, repurchasing over 7% of its common stock since the start of the fiscal year [8] - The board authorized a $200 million increase to the existing share repurchase program, reflecting confidence in long-term growth [26] Q&A Session Summary Question: Can you elaborate on the confidence in the back half inflection and key risks? - Management indicated that the plan anticipated first-half headwinds and second-half tailwinds, with confidence in new distribution and merchandising gains [36][38] Question: What needs to be done on the legacy bar business? - Management acknowledged that flat performance is unacceptable and outlined a multi-pronged plan to re-accelerate the bar business through innovation and improved merchandising [44][46] Question: How should we judge the step-up in marketing investment for OWYN? - Management emphasized the relationship between household penetration and brand awareness, indicating significant upside potential for OWYN [50][51] Question: What is the current status of the Atkins business? - Management noted that two-thirds of declines in Atkins were due to lost distribution, with plans to optimize the assortment by replacing underperforming SKUs [82][84] Question: When will tariff relief be seen? - Management expects tariff benefits to start flowing in the second half of the year, alongside cocoa cost benefits [90] Question: What is the company's view on M&A and capital allocation? - Management remains open to M&A opportunities but currently sees share repurchases as the best use of cash due to undervalued stock [93]

Financial Data and Key Metrics Changes - The company reported net sales of $340.2 million for Q1, which was essentially flat compared to the previous year [20] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year due to margin pressures [23] - Gross profit declined 15.8% to $109.9 million, primarily driven by elevated inflationary costs [21] - Net income was $25.3 million, a decline of 34% compared to last year [23] - Diluted earnings per share decreased to $0.26 from $0.38 in the year-ago period [23] Business Line Data and Key Metrics Changes - Quest brand net sales grew nearly 10%, driven by robust consumption growth of 12% [20] - Atkins consumption declined 19%, primarily due to lost distribution at key retailers [13] - OWYN's consumption increased by 18%, benefiting from distribution-led growth [16] Market Data and Key Metrics Changes - The nutritional snacking category grew 10%, with Quest and OWYN contributing significantly to this growth [5] - Household penetration for Quest reached nearly 20%, up 200 basis points year-over-year [9] - OWYN's household penetration increased to 4.5%, up 100 basis points [16] Company Strategy and Development Direction - The company is focused on driving top-line growth through expanded distribution and marketing, particularly for Quest and OWYN [5] - A robust productivity program initiated 18 months ago is expected to yield results in the second half of the fiscal year [7] - The company is strategically working with retail partners to optimize the assortment for Atkins, focusing on more productive SKUs [14] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the full-year outlook for net sales and Adjusted EBITDA despite challenges in the first half [5] - The company expects Q2 to be the weakest quarter for consumption and net sales growth, with a forecasted decline of 3.5%-4.5% [29] - Management anticipates stronger growth in the second half of the fiscal year, driven by distribution gains and new product innovations [30] Other Important Information - The company has repurchased over 7% of its common stock since the start of the fiscal year, reflecting confidence in long-term growth [8] - The board authorized a $200 million increase to the existing share repurchase program [26] - The company is investing heavily in marketing and brand building to support ongoing demand [18] Q&A Session Summary Question: Can you elaborate on the confidence in the back half inflection and key risks? - Management indicated that the second half is expected to benefit from new distribution and merchandising gains, with confidence in improved gross margins and profit growth [38][39] Question: What needs to be done on the legacy bar business? - Management acknowledged the flat performance of Quest Bars and outlined a multi-pronged plan to re-accelerate growth, including innovation and improved merchandising [46] Question: How should we judge the step-up in marketing investment for OWYN? - Management emphasized the relationship between household penetration and brand awareness, indicating significant upside potential for OWYN [50][51] Question: What is the current status of the Atkins business? - Management noted that two-thirds of declines in Atkins are due to lost distribution, with plans to optimize the assortment by replacing underperforming SKUs [82] Question: When will tariff relief be seen? - Management expects tariff benefits to start flowing in the second half of the year, alongside cocoa cost benefits [88] Question: What is the company's view on M&A and capital allocation? - Management remains open to M&A opportunities but currently sees share repurchases as the best use of cash given the undervalued stock price [92]