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 [18] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year due to margin pressures [22] - Gross profit declined 15.8% to $109.9 million, primarily driven by elevated inflationary costs [19] - Net income was $25.3 million, a decline of 34% compared to the previous year [22] - Diluted earnings per share decreased to $0.26 from $0.38 in the year-ago period [22] Business Line Data and Key Metrics Changes - Quest brand net sales grew nearly 10%, driven by robust consumption growth of 12% [18] - Atkins consumption declined 19%, largely due to lost distribution at key retailers [12] - OWYN's consumption increased by 18%, benefiting from distribution-led growth [15] - The salty snacks business saw a 40% increase in consumption, reflecting distribution gains and velocity growth [9] Market Data and Key Metrics Changes - The nutritional snacking category grew by 10% in Q1, supporting overall company growth [4] - Household penetration for Quest reached nearly 20%, up 200 basis points year-over-year [8] - OWYN's household penetration increased to 4.5%, up 100 basis points [15] Company Strategy and Development Direction - The company is focused on driving top-line growth through expanded distribution and marketing initiatives [4] - A robust productivity program initiated 18 months ago is expected to yield results in the second half of the fiscal year [5] - The company plans to continue investing in marketing and innovation to support growth, particularly for Quest and OWYN [17] 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 [4] - The second half of the fiscal year is expected to show stronger performance, with anticipated improvements in gross margins and profitability [27] - Management acknowledged risks related to pricing elasticities and lingering product quality issues impacting OWYN [16] 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 [6][7] - The board authorized a $200 million increase to the existing share repurchase program, reflecting confidence in long-term growth [25] 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 productivity [32][34] Question: What needs to be done on the legacy bar business? - Management acknowledged the need for a multi-pronged plan to re-accelerate the bar business, including innovation and improved merchandising [36][37] Question: How should we judge the step-up in marketing investment for OWYN? - Management emphasized the importance of increasing marketing, innovation, and distribution to drive household penetration for OWYN [39][40] Question: What is the current status of the Atkins business? - Management noted that two-thirds of Atkins' declines are due to lost distribution, but there is optimism about flowback and improving velocity in the future [52][53] Question: When will tariff relief be seen? - Management expects tariff benefits to start flowing in during the second half of the year, alongside cocoa cost benefits [55]

Financial Performance - Net sales for the thirteen weeks ended November 29, 2025, were $340.2 million, a decrease of $1.1 million or 0.3% compared to $341.3 million for the same period in 2024, driven by declines in Atkins and OWYN, partially offset by growth in Quest[96]. - Gross profit decreased by $20.6 million or 15.8% to $109.9 million, with a gross profit margin of 32.3%, down 590 basis points from 38.2% in the prior year[98]. - Net income for the thirteen weeks ended November 29, 2025, was $25.3 million, a decrease of $12.9 million compared to $38.1 million for the same period in 2024[104]. - Adjusted EBITDA was $55.6 million, representing 16.4% of net sales, compared to $70.1 million or 20.5% in the prior year[96]. - Adjusted EBITDA decreased by $14.4 million, or 20.6%, to $55.6 million for the thirteen weeks ended November 29, 2025, compared to $70.1 million for the same period in 2024[105][108]. Cost and Expenses - Cost of goods sold increased by $19.5 million or 9.3% to $230.3 million for the thirteen weeks ended November 29, 2025, primarily due to higher ingredient and packaging costs[97]. - Operating expenses decreased by $3.5 million or 4.7% to $72.3 million, with selling and marketing expenses down by $3.3 million or 10.1%[99]. - Interest expense decreased by $3.6 million to $4.3 million, primarily due to principal payments reducing the outstanding balance of the Term Facility[102]. - Cash paid for interest decreased by $3.4 million to $4.1 million for the thirteen weeks ended November 29, 2025, compared to $7.5 million in the prior year[129]. - Depreciation and amortization expense increased to $6.2 million for the thirteen weeks ended November 29, 2025, from $5.0 million in the prior year[108]. Liquidity and Cash Flow - Net cash provided by operating activities increased by $18.1 million to $50.1 million for the thirteen weeks ended November 29, 2025, compared to $32.0 million for the same period in 2024[129]. - The Company believes its sources of liquidity and capital will be sufficient to finance operations and growth strategy for at least the next twelve months[110]. - The Company had $194.1 million in cash as of November 29, 2025[110]. - Net cash used in investing activities was $2.1 million for the thirteen weeks ended November 29, 2025, compared to $0.7 million for the same period in 2024[130]. - Net cash provided by financing activities was $47.6 million for the thirteen weeks ended November 29, 2025, compared to $42.3 million used in financing activities for the same period in 2024[131]. Shareholder Actions - The Company repurchased 4,983,514 shares of common stock at an average price of $19.99 per share during the thirteen weeks ended November 29, 2025, with $71.0 million remaining available for repurchases under the $300.0 million program[125][126]. - Common stock repurchases totaled $99.6 million for the thirteen weeks ended November 29, 2025[131]. Market and Operational Challenges - The company is facing pressure on gross margins due to higher commodity expenses and tariffs, with expectations for improvement as pricing actions and productivity initiatives take effect[87]. - The company continues to monitor macroeconomic trends, including inflation and supply chain challenges, which may adversely affect net sales and profitability[88]. - The company is focused on bolstering high-performing Atkins products while replacing lower-performing items with higher-performing Quest and OWYN products[86]. - There were no material changes in market risk exposure during the thirteen-week period ended November 29, 2025[134].

Financial Performance & Outlook - Q1 2026 net sales were $340.2 million, a slight decrease of 0.3% year-over-year[33] - Q1 2026 adjusted EBITDA decreased by 20.6% year-over-year to $55.6 million[37] - The company reaffirms its fiscal year 2026 outlook for net sales, projecting a range of -2% to +2%[11] - The company reaffirms its fiscal year 2026 outlook for adjusted EBITDA, projecting a range of -4% to +1%[11] - Gross margin for fiscal year 2026 is expected to decline by -150 to -100 basis points[44] Brand Performance - Quest and OWYN accounted for 71% of the company's Q1 net sales and grew aggregate consumption by 13%[11] - Quest Q1 retail takeaway grew 12%[13] - Atkins Q1 retail takeaway declined 19%[18] - OWYN Q1 retail takeaway grew 18%[25] Capital Allocation - The company repurchased approximately 7% of its outstanding shares through January 6, 2026, totaling nearly $150 million[11] - An additional share repurchase authorization of $200 million was announced, leaving approximately $224 million available as of January 6, 2026[12]

Financial Performance - Total net sales for Q1 2026 were $340.2 million, a decrease of 0.3% compared to the same period last year, with Quest growing by 9.6% while Atkins and OWYN declined by 16.5% and 3.3%, respectively [4]. - Gross profit was $109.9 million, down 15.8% year-over-year, resulting in a gross margin of 32.3%, a decline of 590 basis points from the prior year [5]. - Net income for the quarter was $25.3 million, a decrease of 33.7% compared to the previous year, with diluted EPS at $0.26 versus $0.38 [10][12]. - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year, with an expected range for the full year between -4% and +1% [11][21]. - Adjusted EBITDA for the thirteen weeks ended November 29, 2025, was $55,624, down 20.5% from $70,068 in the same period last year [38]. - The company reported a basic earnings per share of $0.26, down from $0.38 in the same quarter of the previous year [33]. - Diluted earnings per share for the thirteen weeks ended November 29, 2025, was $0.26, compared to $0.38 for the same period in 2024, a decrease of approximately 31.6% [40]. - Adjusted diluted earnings per share for the thirteen weeks ended November 29, 2025, was $0.39, down from $0.49 for the same period in 2024, reflecting a decrease of approximately 20.4% [40]. Expenses and Costs - Operating expenses decreased by 4.7% to $72.3 million, with selling and marketing expenses down 10.1% to $29.7 million, primarily due to planned reductions for Atkins [6]. - Integration expenses for the thirteen weeks ended November 29, 2025, amounted to $0.06 per share, compared to $0.05 per share in the same period of 2024 [40]. - Stock-based compensation expense was $0.03 per share for the thirteen weeks ended November 29, 2025, slightly down from $0.04 per share in the previous year [40]. - The company incurred business transaction costs of $0.01 per share in the prior year, which were not present in the current period [40]. Cash Flow and Share Repurchase - Cash flow from operations increased to approximately $50.1 million, up from $32.0 million in the comparable year-ago period, attributed to improved working capital [14]. - The company repurchased approximately 5.0 million shares for about $100 million during the quarter, with a total of 7.4 million shares repurchased for $146.6 million year-to-date [14][15]. - The company repurchased common stock amounting to $99,638 during the period [35]. Assets and Liabilities - Total current assets increased to $513,839, up 13.2% from $453,684 as of August 30, 2025 [31]. - Total liabilities rose to $716,511, an increase of 21.6% from $589,212 in the prior period [31]. - Cash and cash equivalents at the end of the period were $194,051, a significant increase from $121,759 at the end of the previous year [35]. - Net debt as of November 29, 2025, was $205,949,000, calculated from total debt of $400,000,000 minus cash and cash equivalents of $194,051,000 [42]. - The Net Debt to Adjusted EBITDA ratio is 0.8x, indicating a manageable level of debt relative to earnings [42]. Outlook and Guidance - The company reaffirmed its fiscal year 2026 outlook, expecting net sales to range between -2% and +2% year-over-year and gross margins to decline by 100 to 150 basis points [8][21]. - The company expects net interest expense to be in the range of $19 to $21 million for the fiscal year, reflecting an increase in the term loan balance [19]. Taxation - The effective tax rate for the quarter was 25.3% [9]. - The company’s overall assumed statutory tax rate for the periods analyzed was 25% [40]. - The tax effect of adjustments for the thirteen weeks ended November 29, 2025, was $(0.05) per share, compared to $(0.04) per share in the same period of 2024 [40].

Core Viewpoint - Simply Good Foods Company reported modestly better-than-expected financial performance for the first quarter of fiscal year 2026, reaffirming its full-year outlook and emphasizing its leadership in the nutritional snacking category, particularly with brands Quest and OWYN [2][3]. Financial Performance - Net sales for the first quarter were $340.2 million, a decrease of 0.3% compared to the same period last year, with Quest growing by 9.6% while Atkins and OWYN saw declines of 16.5% and 3.3% respectively [3][8]. - Gross profit was $109.9 million, down 15.8% year-over-year, with a gross margin of 32.3%, reflecting a 590 basis point decline due to elevated input costs [5][8]. - Operating expenses decreased by 4.7% to $72.3 million, with selling and marketing expenses down 10.1% [6][8]. - Net income was $25.3 million, a decrease of 33.7% from the previous year, with diluted earnings per share at $0.26 compared to $0.38 [7][9]. Market Trends and Brand Performance - Total retail takeaway for Simply Good Foods increased by approximately 1.8%, driven by Quest and OWYN's growth of 12.0% and 17.8% respectively, while Atkins declined by 19.3% [4]. - The company is focused on long-term growth, particularly for Quest and OWYN, and plans to increase marketing spending to support these brands [13][14]. Outlook and Strategic Initiatives - The company expects stronger performance in the second half of the fiscal year, with anticipated margin expansion and Adjusted EBITDA growth beginning in the third quarter [15][16]. - The company has increased its share repurchase program by $200 million, with approximately $224 million available under the revised program as of January 6, 2026 [12][11]. Balance Sheet and Cash Flow - As of the end of the first quarter, the company had cash of $194.1 million and a term loan balance of $400.0 million, resulting in a Net Debt to Adjusted EBITDA ratio of 0.8x [10][47]. - Cash flow from operations was approximately $50.1 million, an increase from $32.0 million in the comparable year-ago period, primarily due to improved working capital [10][36].

Company Overview - The Simply Good Foods Company (SMPL) specializes in consumer-packaged goods, focusing on nutritional, protein-rich snacks and beverages targeting health-conscious consumers [1] Market Positioning - The company emphasizes a low-sugar and low-carb profile in its products, aligning with current health trends and consumer preferences [1] Investment Philosophy - The investment strategy involves seeking undervalued stocks with a focus on balancing risk and reward, suggesting that limited risks can lead to decent to high upside potential [1]

The Simply Good Foods Company (NASDAQ:SMPL) will release earnings results for the first quarter, before the opening bell on Thursday, Jan. 8, 2025.Analysts expect the Denver, Colorado-based company to report quarterly earnings at 36 cents per share, down from 49 cents per share in the year-ago period. The consensus estimate for Simply Good Foods' quarterly revenue is $339.33 million, up from $341.27 million a year earlier, according to data from Benzinga Pro.On Oct. 23, Simply Good Foods posted weaker-than- ...

The Simply Good Foods Company (NASDAQ:SMPL) will release earnings results for the first quarter, before the opening bell on Thursday, Jan. 8, 2025.Analysts expect the Denver, Colorado-based company to report quarterly earnings at 36 cents per share, down from 49 cents per share in the year-ago period. The consensus estimate for Simply Good Foods' quarterly revenue is $339.33 million, up from $341.27 million a year earlier, according to data from Benzinga Pro.On Oct. 23, Simply Good Foods posted weaker-than- ...

Core Insights - Quest Nutrition is enhancing its product lineup with two new flavors, Mexican Street Corn and Pizza, to maintain its leadership in high-protein snacking [1][4] - The company emphasizes its commitment to delivering high-protein, low-sugar snacks that cater to health-conscious consumers [3][4] Product Launches - Mexican Street Corn flavor will be available exclusively at Target starting January 2026, while Pizza flavor will be available nationwide at Walmart in February 2026 [1][4] - Both flavors are designed to appeal to consumers looking for tasty, protein-rich snack options [4][7] Nutritional Profile - Quest Protein Chips contain 18-20g of protein per serving, with minimal net carbs (3-4g) and approximately 140-150 calories [6][16] - The chips are baked, gluten-free, keto-friendly, and feature bold flavors, making them suitable for various dietary preferences [6][16] Market Position - Quest has been a pioneer in the protein chip category since 2014, consistently recognized for its high-quality products and innovative flavors [8][14] - The brand is trusted by top athletes and is positioned as a leading choice for consumers seeking nutritious snacks [2][9] Consumer Engagement - Feedback from consumers highlights the effectiveness of Quest products in helping them achieve their health goals, with many praising the flavor and texture [8] - The company actively engages with its community and collaborates with athletic programs, reinforcing its commitment to performance nutrition [9]

Geopolitical Developments - The U.S. launched a military strike on Venezuela, extracting President Nicolás Maduro to face criminal charges in the U.S. [2] - President Trump stated that the U.S. would "run" Venezuela until an orderly transition is possible and that U.S. oil companies would rebuild Venezuela's oil infrastructure [2][3] Market Reactions - Investors are expected to closely monitor developments in Venezuela and seek more details from the Trump administration, particularly regarding the oil market, which may experience volatility [3] Employment and Economic Data - The Bureau of Labor Statistics is set to release the December jobs report, which could influence interest rates [6] - Federal Reserve officials indicated that a weakening labor market might lead to more interest rate cuts, with upcoming reports on job openings, private sector hiring, and jobless claims providing insights into the labor market [7] Corporate Earnings Reports - Applied Digital, a data center operator, will report on the AI industry, with investors looking for signals of strong AI spending [9] - Constellation Brands, Tilray Brands, Albertsons Companies, CalMaine Foods, and Simply Good Foods are among the companies reporting earnings this week, providing insights into consumer spending levels [10][11]