Core Viewpoint - Simply Good Foods (SMPL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Simply Good Foods suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for Simply Good Foods - Simply Good Foods is projected to earn $1.95 per share for the fiscal year ending August 2026, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for Simply Good Foods has increased by 2.5% [8].

Core Viewpoint - Simply Good Foods (SMPL) has shown a downtrend recently, losing 7.4% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which could lead to a bullish trend for the stock [2][5]. - A hammer pattern forms when there is a small difference between opening and closing prices, with a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for SMPL, with a 2.5% increase in the consensus EPS estimate over the last 30 days, indicating analysts expect better earnings than previously predicted [7][8]. - A Zacks Rank of 1 (Strong Buy) for SMPL places it in the top 5% of over 4,000 ranked stocks, suggesting strong potential for outperformance in the market [9][10].

Company Announcement - The Simply Good Foods Company announced the appointment of Joseph E. Scalzo as President and Chief Executive Officer, effective January 19, 2026 [1] - Mr. Scalzo was granted an option to purchase 2,000,000 shares of the Company's common stock at fair market value on the date of grant, with an 8-year term and a vesting schedule over three years [1][2] Stock Option Details - The stock option grant is an inducement material to Mr. Scalzo's employment, in compliance with Nasdaq Listing Rule 5635(c)(4) [2] Company Overview - The Simply Good Foods Company, headquartered in Denver, Colorado, focuses on consumer-packaged food and beverage products, aiming to innovate in nutritious snacking [3] - The company offers a variety of brands, including Quest™, Atkins™, and OWYN™, featuring high protein snacks, ready-to-drink shakes, and low sugar products [3] - The company is positioned as a leader in the nutritious snacking movement, with plans for organic growth and external investment opportunities [3]

Core Insights - Simply Good Foods Company has appointed Joe Scalzo as President and CEO to lead a new growth phase focused on profitability and innovation [1][2] - Scalzo previously served as CEO until July 2023 and brings extensive experience and familiarity with the company and its brands [2] - The company aims to maintain its leadership in the nutritional snacking category through innovation and quality execution [3] Leadership Transition - Joe Scalzo succeeds Geoff Tanner as CEO, effective immediately, and will join the Board of Directors on January 28, 2026 [2] - The Board Chairman, James Kilts, praised Scalzo as a visionary and key architect of the business over the last decade [3] - The company expressed gratitude for Tanner's contributions during a dynamic operating environment [3] Company Outlook - Simply Good Foods reaffirmed its Fiscal Year 2026 outlook, which remains unchanged following its Fiscal First Quarter 2026 financial results [3] - The company is positioned for growth through its portfolio of trusted brands, including Quest™, Atkins™, and OWYN™, offering a variety of nutritional snacks and beverages [4]

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]