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].

Core Viewpoint - The Simply Good Foods Company reported solid financial results for fiscal year 2025, with net sales increasing by 9% and a focus on integrating the OWYN acquisition while navigating inflationary pressures and evolving consumer habits [2][11][12]. Financial Performance - For the fourth quarter of fiscal year 2025, net sales were $369.0 million, a decrease of 1.8% year-over-year, primarily due to a 6.9% headwind from lapping an extra week in the previous year [3][6]. - Organic net sales growth was 3.5%, with the OWYN acquisition contributing $5.6 million, or 1.5%, to reported net sales growth [3][11]. - Gross profit for the fourth quarter was $126.6 million, down 13.3% from the previous year, with a gross margin of 34.3%, reflecting a 450 basis point decrease due to elevated input costs [5][12]. Operating Expenses - Operating expenses increased to $138.4 million, up $40.3 million year-over-year, with selling and marketing expenses decreasing by $8.4 million due to planned reductions for the Atkins brand [7][13]. - General and administrative expenses were $40.6 million, slightly down from the previous year, with a notable decrease in costs excluding integration expenses [7][13]. Net Income and Earnings - The company reported a net loss of $12.4 million for the fourth quarter, compared to a net income of $29.3 million in the prior year, resulting in a loss per diluted share of $0.12 [6][9]. - Adjusted EBITDA for the fourth quarter was $66.2 million, a decrease of 14.5% from $77.5 million in the previous year [9][10]. Fiscal Year 2025 Summary - For the full fiscal year 2025, net sales reached $1,450.9 million, a 9% increase driven by a 7.9% contribution from the OWYN acquisition and 3.0% organic growth [11][15]. - Gross profit for the year was $525.7 million, up 2.8% year-over-year, with a gross margin of 36.2%, reflecting a decrease of 220 basis points due to inflationary pressures [12][15]. Balance Sheet and Cash Flow - At the end of fiscal year 2025, the company had cash of $98.5 million and a term loan balance of $250.0 million, having repaid over $200.0 million of its debt during the year [18][19]. - Cash flow from operations was approximately $178.5 million, down from $215.7 million in the previous year, primarily due to higher working capital needs [19]. Outlook for Fiscal Year 2026 - The company anticipates a balanced outlook for fiscal year 2026, with expectations for net sales growth between -2% and +2% year-over-year and a decline in gross margins by 100 to 150 basis points [24][21]. - Increased marketing spending is planned for Quest and OWYN, with expectations for stronger performance in the second half of the fiscal year [21][22].

Company Overview - Quest Nutrition has launched its first-ever donuts, the Quest™ Bake Shop Chocolate Frosted Donuts, which contain 14 grams of protein and less than 1 gram of sugar per serving [1][5] - The Simply Good Foods Company, headquartered in Denver, Colorado, is focused on nutritious snacking and aims to lead the healthy lifestyle movement through innovation and investment opportunities in the snacking space [3] Product Details - The Chocolate Frosted Donuts are designed to satisfy cravings while maintaining nutritional goals, featuring a vanilla flavored cake center topped with chocolatey frosting and rainbow sprinkles [5] - The product is available in 4-count and 9-count packs, starting at a price of $10.99 [5] Market Positioning - Stuart Heflin, SVP and General Manager at Quest Nutrition, emphasized that the launch represents a significant milestone as the company expands into new snacking moments, combining flavor and texture with protein-focused nutrition [2][4] - Quest Nutrition aims to revolutionize snacking by offering products that are high in protein, low in sugar, and enjoyable in taste, with a diverse product line that includes bars, snacks, and shakes [4]

Core Insights - Simply Good Foods Company will report its financial results for Q4 and Fiscal Year 2025 on October 23, 2025, with a live conference call scheduled for 6:30 a.m. Mountain Time [1] - The call will feature Geoff Tanner, President and CEO, and Chris Bealer, CFO [1] Company Overview - Simply Good Foods Company, headquartered in Denver, Colorado, is a leader in the Nutritional Snacking category, offering a range of products including high protein chips, bars, ready-to-drink shakes, and low sugar sweets [4] - The company aims to expand its healthy lifestyle platform through innovation-driven organic growth and external investment opportunities [4]

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Company Overview - The Simply Good Foods Company (SMPL) operates as a "nutritious snacking platform" with three main brands: Quest, Atkins, and OWYN [2] - Atkins represents approximately 30% of net sales but is experiencing a decline, with FY 2024 sales down 6.6% [2][4] - Quest maintains brand strength but is facing moderating growth due to increased competition [3] Financial Performance - As of September 3rd, SMPL's share was trading at $28.66, with trailing and forward P/E ratios of 20.05 and 14.71, respectively [1] - The company's long-term guidance suggests 4-6% sales growth and slightly higher EBITDA growth, which is now questioned due to structural headwinds [4] - The equity shows a return on invested capital (ROIC) of 8% and lacks a dividend, with consensus earnings growth around 8% [5] Market Challenges - The Atkins segment is facing structural headwinds, leading to a persistent decline despite management's revitalization efforts [2][4] - Competitive pressures are increasing, particularly from established players and new entrants in the protein bar market, which leverage low barriers to entry [3][4] - The overall sales mix is highly concentrated in North America, with mass retailers and e-commerce channels accounting for over half of sales [4] Strategic Considerations - Management's focus on innovation is hindered by low R&D spending relative to peers, and promotional intensity has increased due to competitive pressures [4] - The potential for further deterioration in Atkins' performance or disappointing operational execution could lead to a downside of 10-15% from current levels [5] - While SMPL has a strong balance sheet that may allow for additional acquisitions, these may not address the underlying structural challenges [5]

Core Insights - Rackspace Technology and SMPL-C have formed a strategic partnership aimed at enhancing compliance automation for organizations working with federal agencies, particularly in relation to Cybersecurity Maturity Model Certification (CMMC) requirements [1][2][3] Group 1: Partnership Overview - The partnership will be facilitated through Rackspace Technology Government Solutions, focusing on secure, CMMC-authorized cloud infrastructure and compliance services [1] - The collaboration aims to simplify the compliance process by integrating SMPL-C's intelligent documentation and workflow engine with Rackspace's secure cloud infrastructure [2] Group 2: Benefits of the Partnership - The partnership seeks to create a unified ecosystem that simplifies and accelerates the CMMC compliance journey, addressing challenges faced by organizations that currently navigate compliance in silos [3] - By automating the documentation process, the collaboration aims to reduce costs associated with CMMC compliance for the defense sector [4] Group 3: Services Offered - Enterprises will benefit from automated gap assessments, documentation, and evidence tracking for CMMC certification [8] - Rackspace's CMMC-aligned environments and multicloud expertise will provide secure cloud hosting solutions [8] - The partnership offers ongoing advisory and support, ensuring continuous guidance and remediation from both Rackspace and SMPL-C [8]

Core Insights - The Atkins survey reveals that couples often unconsciously adopt each other's wellness habits, with 55% of respondents joining their partner's health journey without a conscious decision [1][3] - Nearly half (47%) of couples pursuing wellness goals together view it as the "ultimate relationship hack," with 66% noting that shared healthy habits reduce relationship stress [2][3] Survey Findings - 55% of individuals on GLP-1 medications report that their partner unintentionally lost weight, while 61% of non-GLP-1 users adopted healthier eating habits from their partners [3] - 59% of couples indicate that their partner is a significant influence on their wellness journey, and 70% of partners begin exercising more when their significant other does [4] Product and Brand Positioning - Atkins offers a variety of high-protein, low-carb products designed to support couples in their wellness journeys, including snacks and meal options [4][10] - The company aims to lead the nutritious snacking movement with innovative products that cater to health-conscious consumers [9][10] Partnership and Promotion - Atkins has partnered with reality TV couple Sean and Catherine Lowe to emphasize the importance of shared wellness journeys [5][6] - The Lowes highlight how mutual support and Atkins' product offerings facilitate maintaining healthy habits together [6] Methodology - The survey was conducted in May 2025 among 1,032 cohabitating couples in the U.S., focusing on those engaged in wellness and weight loss efforts [7]