Core Viewpoint - Simply Good Foods (NASDAQ: SMPL) has experienced a 48% decline year-to-date, primarily due to the Atkins brand losing distribution, which has led to a 15% decrease in sales and ongoing challenges expected in FY26 [1] Group 1: Company Performance - The Atkins brand's sales are 75% healthy and growing despite the overall decline [1] - The company is viewed as having strong fundamentals that are currently undervalued due to short-term challenges [1] Group 2: Investment Perspective - The market is perceived to be overly focused on short-term issues, creating mispricing opportunities for long-term investors [1] - The strategy involves identifying these short-term mispricings to unlock long-term value [1]

Core Viewpoint - The Simply Good Foods Company (NASDAQ: SMPL) experienced a significant decline in stock price due to a net loss in Q4 FY 2025, marking an all-time low for the company [1][3]. Financial Performance - The company reported a net loss of $12.36 million in Q4 FY 2025, a stark contrast to a net income of $29.29 million in the same quarter the previous year [2]. - Net sales for Q4 FY 2025 decreased by 1.86% to $369 million from $376 million year-on-year, impacted by a 6.9% headwind from an extra week in Q4 FY 2024 [2]. - For the full fiscal year, net income was $103.6 million, down 25.6% from $139.3 million in FY 2024, while net sales increased by 11.5% to $1.45 billion from $1.33 billion year-on-year [3]. Future Outlook - The company anticipates net sales for FY 2026 to fluctuate by either a decrease or an increase of 2% year-on-year [4]. - The President and CEO, Geoff Tanner, highlighted a balanced outlook for FY 2026, considering long-term ambitions and growth expectations for brands like Quest and OWYN, while also addressing challenges such as reduced distribution for Atkins and inflation-related cost pressures [5][6].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a 9% increase in net sales, with 3% organic growth and a 3% increase in adjusted EBITDA [6][32] - In Q4, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [28][29] - Adjusted EBITDA for Q4 was $66.2 million, down 14.5% from the previous year, primarily due to inflationary pressures and the impact of the 53rd week [30][32] - The company recorded a non-cash impairment loss of $60.9 million related to the Atkins brand [31] Business Line Data and Key Metrics Changes - Quest generated nearly two-thirds of the company's net sales in Q4, with consumption growth of 11% and net sales growth of over 13% for the fiscal year [16][20] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, primarily due to distribution losses [20][21] - OWYN saw a consumption increase of 14% in Q4 and 34% for the full year, despite facing some product quality issues [22][24] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal year 2025, reflecting a strong consumer trend towards high-protein, low-sugar, and low-carb products [7][16] - The company noted that over 70% of Americans are actively seeking more protein and fewer carbs in their diets [7] Company Strategy and Development Direction - The company's vision is to be a leader in high-protein, low-sugar, and low-carb food and beverage, capitalizing on a generational shift towards these products [6][7] - The integration of OWYN has been largely completed, and the company is focusing on expanding its product offerings and marketing efforts [8][24] - The company is investing in innovation and expanding capacity to support its fast-growing salty snacks business [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses for Atkins but expressed confidence in overcoming these issues [10][14] - The company expects net sales growth for fiscal year 2026 to be in the range of -2% to +2%, with a focus on Quest and OWYN offsetting declines in Atkins [39][40] - Management anticipates gross margins to decline by 100-150 basis points in fiscal year 2026, with a stronger second half expected [39][42] Other Important Information - The company repaid $150 million of its term loan debt in fiscal year 2025 and has a strong balance sheet with low net debt levels [35][36] - A $150 million increase to the stock repurchase program was approved by the board, reflecting confidence in the business [36] Q&A Session Summary Question: Impact of OWYN product quality issues on future sales - Management acknowledged the product quality issue related to pea protein but stated that it has been rectified and is confident in OWYN's growth trajectory moving forward [46][47][50] Question: Competition in the high-protein, low-sugar market - Management noted that competition is not new and emphasized the importance of agility and innovation to stay ahead in the market [55][59] Question: Top-line guidance and expected performance of Quest and OWYN - Management confirmed that Quest is expected to grow in the high single digits, while OWYN is projected to be in the double-digit range, with Atkins facing a decline [65][66]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a 9% increase in net sales, with 3% organic growth and a 3% increase in adjusted EBITDA [6][32] - In Q4, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [28][29] - Adjusted EBITDA for Q4 was $66.2 million, down 14.5% from the previous year, primarily due to inflationary pressures and the impact of a 53rd week in the prior year [30][32] Business Line Data and Key Metrics Changes - Quest generated nearly two-thirds of the company's net sales in Q4, with a year-over-year consumption growth of 11% and net sales growth of over 13% for the full year [16][20] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, largely due to distribution losses [20][21] - OWYN saw a consumption growth of 14% in Q4 and 34% for the full year, with household penetration increasing to 4.2% [22][24] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal year 2025, reflecting a strong consumer trend towards high protein and low sugar products [7][16] - The company noted that over 70% of Americans are actively seeking more protein and fewer carbs in their diets, indicating a favorable market environment [7] Company Strategy and Development Direction - The company aims to be a leader in high protein, low sugar, and low carb food and beverage, capitalizing on a generational shift in consumer preferences [6][7] - Investments in innovation and marketing have increased, with a focus on expanding distribution and enhancing product offerings [8][9] - The company is proactively managing the Atkins brand to align shelf space with sales and support the growth of Quest and OWYN [13][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses for Atkins but expressed confidence in overcoming these hurdles [10][14] - The company expects net sales growth for fiscal year 2026 to be in the range of -2% to +2%, with a stronger second half anticipated [39][40] - Management emphasized the importance of innovation and marketing investments to drive growth and improve margins in the future [39][42] Other Important Information - The company repaid $150 million of its term loan debt in fiscal year 2025 and repurchased nearly 1.6 million shares [35][36] - A non-cash impairment loss of $60.9 million was recorded related to the Atkins brand, reflecting updated revenue projections [31] Q&A Session Summary Question: Impact of OWYN product quality issues on future sales - Management confirmed that the product quality issue related to pea protein has been addressed and expressed confidence in OWYN's growth trajectory moving forward [46][47][50] Question: Competition in the high protein, low sugar market - Management acknowledged the competitive landscape but emphasized the company's agility and robust supply chain as key advantages [55][59] Question: Top-line guidance and expected growth rates - Management indicated that Quest and OWYN are expected to grow in the high single digits and double digits respectively, while Atkins is projected to decline by about 20% [65][66]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a 9% increase in net sales, with 3% organic growth and a 3% increase in adjusted EBITDA [6][34] - In Q4, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [31] - Adjusted EBITDA for Q4 was $66.2 million, down 14.5% from the previous year, primarily due to an impairment charge related to the Atkins brand [33][34] Business Line Data and Key Metrics Changes - Quest brand represented nearly two-thirds of net sales in Q4, with consumption growth of 11% and net sales growth of 13% for the fiscal year [17][34] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, largely due to distribution losses [22][34] - Owen brand saw a 14% consumption growth in Q4 and 34% for the full year, despite recent product quality issues [25][34] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal year 2025, reflecting a generational shift towards high protein, low sugar, and low carb products [7][16] - Quest's salty snacks portfolio outperformed with consumption growth of 31% in Q4 and 34% for the full year [18] - The company noted that approximately 70% of Americans are actively seeking more protein and fewer carbs in their diets [7] Company Strategy and Development Direction - The company aims to be a leader in high protein, low sugar, and low carb food and beverage, focusing on innovation and expanding distribution [7][10] - There is a strategic shift to enhance the presence of Quest and Owen while reshaping Atkins to focus on core assortments [14][23] - The company is investing in R&D and marketing to support growth and improve productivity to combat inflation [10][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses affecting Atkins, but expressed confidence in overcoming these issues [12][15] - The company expects fiscal year 2026 net sales growth to range from -2% to +2%, with a stronger second half anticipated [41][42] - Management emphasized the importance of agility and speed in responding to competition and market trends [66][68] Other Important Information - The company repaid $150 million of its term loan debt in fiscal year 2025 and repurchased approximately $51 million of its shares [37][38] - An impairment charge of $60.9 million was recorded for the Atkins brand due to its performance and updated revenue projections [33][34] - The company plans to invest $30 million to $40 million in capital expenditures in fiscal year 2026 to support growth [46][47] Q&A Session Summary Question: Impact of Owen's product quality issues on future sales - Management confirmed that product quality issues related to pea protein have been addressed and expressed confidence in Owen's growth trajectory moving forward [52][54][56] Question: Competition in the high protein, low sugar market - Management acknowledged the competitive landscape but emphasized their strong position due to innovation and agile operations [64][66] Question: Guidance for fiscal year 2026 and expected growth rates - Management indicated that Quest is expected to grow in the high single digits, while Owen will see double-digit growth, with Atkins projected to decline [80][82]

Financial Data and Key Metrics Changes - For Q4 2025, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [26][27] - Adjusted EBITDA was $66.2 million, down 14.5% from the previous year, primarily due to inflationary pressures and the impact of lapping the 53rd week [28][30] - Gross profit was $126.6 million, a decline of 13.3%, with gross margin at 34.3%, down 450 basis points year-over-year [27][28] Business Line Data and Key Metrics Changes - Quest generated nearly two-thirds of the company's net sales in Q4, with consumption growth of 11% and net sales growth of over 13% for the full year [15][19] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, primarily due to distribution losses [19][20] - OWYN saw consumption growth of 14% in Q4 and 34% for the full year, with household penetration increasing to 4.2% [21][22] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal 2025, with a significant shift towards high-protein, low-sugar, and low-carb products [6][14] - Quest and OWYN now represent nearly three-quarters of the company's net sales, both growing at double-digit rates [6][15] - The company is expanding its presence in mainstream aisles, indicating a shift in consumer purchasing behavior [66][67] Company Strategy and Development Direction - The company aims to be a leader in high-protein, low-sugar, and low-carb food and beverage, capitalizing on a generational shift in consumer preferences [5][14] - There is a focus on innovation, with increased investment in R&D and marketing to enhance product offerings and brand awareness [8][66] - The company is proactively managing the Atkins brand to align shelf space with sales, while prioritizing growth for Quest and OWYN [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses for Atkins but expressed confidence in overcoming these headwinds [9][12] - The outlook for fiscal 2026 includes expected net sales growth in the range of -2% to +2%, with a focus on Quest and OWYN offsetting declines in Atkins [35][36] - Management emphasized the importance of maintaining long-term growth strategies despite short-term challenges [24][36] Other Important Information - The company repaid $150 million of its term loan debt in fiscal 2025 and has a strong balance sheet with low net debt levels [32][33] - A $150 million increase to the stock repurchase program was approved, reflecting management's confidence in the business [33] - The company plans to invest $30 to $40 million in capital expenditures in fiscal 2026 to support growth initiatives [40][41] Q&A Session Summary Question: Impact of OWYN's product quality issues on future sales - Management confirmed that the product quality issue related to pea protein has been addressed and expressed confidence in OWYN's growth trajectory moving forward [43][45] Question: Competition in the high-protein, low-sugar market - Management acknowledged the competitive landscape but emphasized the company's agility and robust supply chain as key advantages [50][52] Question: Top-line guidance and expected growth rates for Quest and OWYN - Management indicated that Quest is expected to grow in the high single digits, while OWYN is projected to grow in the double-digit range, with Atkins facing a decline [59][60]

分组1 - Simply Good Foods reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.48 per share, and down from $0.5 per share a year ago, representing an earnings surprise of -4.17% [1] - The company posted revenues of $369.04 million for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.83%, but down from $375.69 million year-over-year [2] - Simply Good Foods shares have lost about 36% since the beginning of the year, while the S&P 500 has gained 13.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.44 on revenues of $350.59 million, and for the current fiscal year, it is $2.03 on revenues of $1.49 billion [7] - The Zacks Industry Rank for Food - Confectionery is currently in the bottom 15% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] 分组3 - Ahead of the earnings release, the estimate revisions trend for Simply Good Foods was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance in Fiscal Year 2025 - The company reported net sales growth of 9%[9], with organic net sales growth of 3%[9] - Adjusted EBITDA grew by 3%[9] - Quest's FY25 organic net sales increased by 13% year-over-year[14], reflecting nearly 20% 5-Year CAGR[14] - OWYN's full fiscal year retail takeaway grew 34%[25] - Atkins' FY25 retail takeaway declined 10%[19] - Q4 2025 reported net sales grew -1.8% year-over-year to $363.5 million[32] from $351.1 million[32] in Q4 2024 - Q4 2025 Adjusted EBITDA decreased 14.5% year-over-year to $66.2 million[34] from $77.5 million[34] in Q4 2024 - Fiscal Year 2025 net sales increased 9% year-over-year to $1,450.9 million[36] from $1,306.7 million[36] in FY24 - Fiscal Year 2025 Adjusted EBITDA increased 3.4% year-over-year to $278.2 million[38] from $269.1 million[38] in FY24 Fiscal Year 2026 Outlook - The company anticipates net sales to be between -2% to +2%[10][46] - Adjusted EBITDA is projected to be between -4% to +1%[10][46]

Financial Performance - Fiscal Year 2025 net sales reached $1,450.9 million, a 9% increase compared to the previous year, driven by a 7.9% contribution from the OWYN acquisition and 3.0% organic growth[11]. - Fourth quarter net sales were $369.0 million, a decrease of $6.6 million or 1.8% year-over-year, impacted by a 6.9% headwind from lapping an extra week in the prior year[3]. - Adjusted EBITDA for Fiscal Year 2025 was $278.2 million, reflecting a 3.4% increase from $269.1 million in the prior year[19]. - The company reported a net loss of $12.4 million in the fourth quarter, compared to a net income of $29.3 million in the same period last year[8]. - Gross profit for the fourth quarter was $126.6 million, a decrease of 13.3% year-over-year, with gross margin at 34.3%, down 450 basis points due to elevated input costs[5]. - Net sales for the 52 weeks ended August 30, 2025, were $1,450,920,000, an increase of 9% compared to $1,331,321,000 for the previous year[39]. - Gross profit for the 52 weeks ended August 30, 2025, was $525,747,000, compared to $511,566,000 for the prior year, reflecting a gross margin improvement[39]. - The company reported a net loss of $12,357,000 for the 13 weeks ended August 30, 2025, compared to a net income of $29,291,000 for the same period last year[39]. - Adjusted EBITDA for the 52 weeks ended August 30, 2025, was $278,162,000, up from $269,130,000 in the prior year, indicating a growth of about 3%[44]. - Adjusted diluted earnings per share for the 52 weeks ended August 30, 2025, was $1.92, an increase from $1.83 in the previous year[46]. Cash Flow and Debt - Cash flow from operations was approximately $178.5 million, down from $215.7 million in the previous year, primarily due to higher working capital uses[22]. - Operating cash flow for the 52 weeks ended August 30, 2025, was $178,457,000, down from $215,704,000 in the previous year[41]. - Cash at the end of the period was $98,468,000, a decrease from $132,530,000 at the beginning of the period[41]. - The company's net debt as of August 30, 2025, was $151,532,000, with a net debt to adjusted EBITDA ratio of 0.5x[48]. - Total debt outstanding under the credit agreement was $250,000,000, with cash and cash equivalents of $98,468,000[48]. - Long-term debt decreased significantly to $249,066,000 from $397,485,000 year-over-year, indicating improved financial leverage[37]. Impairment and Losses - The company recognized a $60.9 million non-cash loss on impairment related to the Atkins brand, reflecting updated projections of future revenue[7]. - The company incurred a loss on impairment of $60,928,000 during the 52 weeks ended August 30, 2025, impacting overall profitability[39]. - The company experienced a loss on impairment of $60,928,000 for the 52 weeks ended August 30, 2025[44]. - The company reported a comprehensive loss of $12,247,000 for the 13 weeks ended August 30, 2025, compared to a comprehensive income of $29,493,000 for the same period last year[39]. Sales and Market Performance - Total retail takeaway for Simply Good Foods increased approximately 5%, driven by Quest and OWYN growth of about 12% and 34%, respectively, while Atkins declined about 10%[11]. - North America net sales for the 13 weeks ended August 30, 2025, totaled $362,260,000, a slight decrease from $367,305,000 for the same period in 2024[42]. - North America sales for the Quest brand increased to $233,169,000 in the 13 weeks ended August 30, 2025, compared to $216,961,000 in the same period of 2024, representing a growth of approximately 7%[42]. - International sales for the 52 weeks ended August 30, 2025, were $29,499,000, down from $32,728,000 in the previous year, indicating a decline of about 10%[42]. Future Outlook - The company expects net sales for Fiscal Year 2026 to range between -2% and +2% year-over-year, with gross margins expected to decline by 100 to 150 basis points[29]. - The company plans to expand its healthy lifestyle platform through innovation-driven organic growth and external investment opportunities[34]. - The Board of Directors approved a $150 million increase to the existing stock repurchase program, with $171 million available under the revised authorization[23].