Simply Good Foods persists with Atkins as downbeat outlook hits shares

Core Viewpoint - The decline in Simply Good Foods' shares is primarily attributed to a below-consensus outlook for the upcoming year rather than ongoing challenges with the Atkins brand [1] Company Strategy - Simply Good Foods is in the process of revitalizing the Atkins brand by trimming underperforming SKUs while focusing on innovation in high-protein, low-sugar snack bars and shakes [1][2] - The company has not indicated any plans to dispose of the Atkins brand, with management reaffirming commitment despite recent impairment charges and lowered revenue expectations [3] Market Trends - The increasing use of GLP-1 weight-loss drugs in the US is expected to support Atkins, as users will require protein- and fiber-rich foods [4] - A broader trend towards protein consumption is also noted, with other companies like Supreme acquiring weight-loss brands to capitalize on this shift [4] Financial Outlook - The outlook for fiscal year 2026 reflects a balance between long-term ambitions, growth expectations for Quest and OWYN, and challenges such as reduced distribution for Atkins and inflation-related cost pressures [6] - Bernstein analyst Alexia Howard noted that the recent decline in Simply Good Foods' share price appears oversold, given the company's alignment with consumer interest in high-protein and low-sugar products [6] Brand Performance - Despite the challenges, 75% of Atkins brand sales, which now account for only 25% of total company sales, are reportedly growing healthily with solid margins [7]