Here’s Why Simply Good Foods Company (SMPL) Sold Off in Q3

Core Insights - Madison Small Cap Fund experienced a challenging third quarter in 2025, with the fund down 1.3%, significantly underperforming benchmarks due to stock selection and a speculative market environment [1] Fund Performance - The Madison Small Cap Fund's performance was broadly affected by the small-cap index, indicating a widespread downturn in the sector [1] - The fund's underperformance was attributed to poor stock selection and a market characterized by high speculation [1] Highlighted Stocks - The Simply Good Foods Company (NASDAQ:SMPL) was mentioned as a notable stock in the fund's investor letter, with a one-month return of 0.74% and a significant decline of 48.45% over the past 52 weeks [2] - As of November 20, 2025, The Simply Good Foods Company (NASDAQ:SMPL) had a market capitalization of $2.022 billion, with shares closing at $20.11 [2] Market Context - The Simply Good Foods Company (NASDAQ:SMPL) faced downward pressure due to a broad-based sell-off in Consumer Staples stocks, as investors favored more speculative investments, particularly those related to AI [3] - The company was not among the 30 most popular stocks among hedge funds, with 32 hedge fund portfolios holding its shares at the end of Q2 2025, an increase from 28 in the previous quarter [4] Financial Performance - In the fourth quarter of fiscal 2025, The Simply Good Foods Company reported a net loss of $12.4 million, a decline from a net income of $29.3 million in the same quarter of fiscal 2024 [4] - Despite acknowledging the potential of The Simply Good Foods Company as an investment, the fund expressed that certain AI stocks present greater upside potential and lower downside risk [4]