Group 1 - The Simply Good Foods Company has re-appointed Joe Scalzo as CEO, effective immediately, to focus on growth and profitability [1][2] - In the fiscal year ending August, the company reported net sales of $1.45 billion, a 9% increase year-over-year, but net income decreased to $103.6 million from $139.3 million [2] - The company experienced a 0.3% decline in first-quarter net sales to $340.2 million, with net income falling over a third to $25.3 million [3] Group 2 - Chairman James Kilts praised Scalzo as a visionary and key architect of the business, expressing confidence in his leadership to drive growth and create value for shareholders [4] - The company forecasts a potential 2% increase in net sales for the current financial year, but also warns of a possible 2% decline [4] - Annual adjusted EBITDA is projected to increase by 1% at best or decrease by 4% at worst [5] Group 3 - Scalzo expressed enthusiasm about returning to Simply Good Foods, emphasizing a mission to secure leadership in innovation and product quality [6]

Core Insights - Simply Good Foods Company has appointed Joe Scalzo as President and CEO to lead a new growth phase focused on profitability and innovation [1][2] - Scalzo previously served as CEO until July 2023 and brings extensive experience and familiarity with the company and its brands [2] - The company aims to maintain its leadership in the nutritional snacking category through innovation and quality execution [3] Leadership Transition - Joe Scalzo succeeds Geoff Tanner as CEO, effective immediately, and will join the Board of Directors on January 28, 2026 [2] - The Board Chairman, James Kilts, praised Scalzo as a visionary and key architect of the business over the last decade [3] - The company expressed gratitude for Tanner's contributions during a dynamic operating environment [3] Company Outlook - Simply Good Foods reaffirmed its Fiscal Year 2026 outlook, which remains unchanged following its Fiscal First Quarter 2026 financial results [3] - The company is positioned for growth through its portfolio of trusted brands, including Quest™, Atkins™, and OWYN™, offering a variety of nutritional snacks and beverages [4]

Core Insights - Simply Good Foods reported a decline in profitability due to higher costs, with adjusted EBITDA at $55.6 million, down 20.6% year-over-year, and net income at $25.3 million compared to $38 million a year ago [1][2][4] Financial Performance - Net sales for the quarter ended November 29, 2025, were $340.2 million, essentially flat compared to the prior year [3][7] - Gross profit was $109.9 million, down 15.8%, with a gross margin of 32.3%, down 590 basis points [2][7] - Adjusted diluted EPS was $0.39, compared to $0.49 in the prior-year quarter [1] Brand Performance - Quest brand drove growth with nearly 10% net sales growth and 12% consumption growth, representing 71% of net sales [3][6][8] - OWYN saw 18% consumption growth but faced challenges with net sales due to product quality issues and retailer inventory levels [11] - Atkins experienced a 19% decline in consumption, primarily due to lost distribution at key retailers [10] Cost and Margin Pressures - The decline in gross margin was attributed to inflationary input costs, particularly cocoa, and the impact of tariffs totaling about $4 million [2][12] - Management emphasized actions to rebuild gross margin, with recent pricing actions expected to provide limited benefits in the near term [12][14] Capital Allocation - The company accelerated share buybacks, borrowing an additional $150 million to repurchase shares, totaling over 7% of shares outstanding [5][19] - An additional $200 million was added to the share repurchase authorization, with approximately $224 million remaining under the current program [20] Outlook - Simply Good Foods reaffirmed its fiscal 2026 guidance, expecting Q2 to be the weakest quarter, with net sales projected to decline 3.5% to 4.5% year-over-year [16][17] - Management anticipates a stronger second half, with net sales growth moving toward the higher end of the full-year range [17][18]

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 [20] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year due to margin pressures [23] - Gross profit declined 15.8% to $109.9 million, primarily driven by elevated inflationary costs [21] - Net income was $25.3 million, a decline of 34% compared to the previous year [23] - Diluted earnings per share decreased to $0.26 from $0.38 in the year-ago period [23] Business Line Data and Key Metrics Changes - Quest brand net sales grew nearly 10%, driven by robust consumption growth of 12% [20] - Atkins consumption declined 19%, largely due to lost distribution at key retailers [13] - OWYN's consumption increased by 18%, benefiting from distribution-led growth [16] Market Data and Key Metrics Changes - The nutritional snacking category grew by 10%, with Quest and OWYN contributing significantly to this growth [5] - Household penetration for Quest reached nearly 20%, up 200 basis points year-over-year [9] - OWYN's household penetration increased to 4.5%, up 100 basis points [16] Company Strategy and Development Direction - The company is focused on driving top-line growth through expanded distribution and marketing initiatives [5] - A robust productivity program initiated 18 months ago is expected to yield results in the second half of the fiscal year [7] - The company plans to continue investing in marketing and innovation to support growth, particularly for Quest and OWYN [18] 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 [5] - The company expects Q2 to be the weakest quarter for consumption and net sales growth, with a projected decline of 3.5%-4.5% [29] - Management anticipates stronger performance in the second half of the fiscal year, driven by distribution gains and new product launches [30] 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 [8] - The board authorized a $200 million increase to the existing share repurchase program, reflecting confidence in long-term growth [26] Q&A Session Summary Question: Can you elaborate on the confidence in the back half inflection and key risks? - Management indicated that the plan anticipated first-half headwinds and second-half tailwinds, with confidence in new distribution and merchandising gains [36][38] Question: What needs to be done on the legacy bar business? - Management acknowledged that flat performance is unacceptable and outlined a multi-pronged plan to re-accelerate the bar business through innovation and improved merchandising [44][46] Question: How should we judge the step-up in marketing investment for OWYN? - Management emphasized the relationship between household penetration and brand awareness, indicating significant upside potential for OWYN [50][51] Question: What is the current status of the Atkins business? - Management noted that two-thirds of declines in Atkins were due to lost distribution, with plans to optimize the assortment by replacing underperforming SKUs [82][84] Question: When will tariff relief be seen? - Management expects tariff benefits to start flowing in the second half of the year, alongside cocoa cost benefits [90] Question: What is the company's view on M&A and capital allocation? - Management remains open to M&A opportunities but currently sees share repurchases as the best use of cash due to undervalued stock [93]

Financial Data and Key Metrics Changes - The company reported net sales of $340.2 million for Q1, which was essentially flat compared to the previous year [20] - Adjusted EBITDA was $55.6 million, down 20.6% year-over-year due to margin pressures [23] - Gross profit declined 15.8% to $109.9 million, primarily driven by elevated inflationary costs [21] - Net income was $25.3 million, a decline of 34% compared to last year [23] - Diluted earnings per share decreased to $0.26 from $0.38 in the year-ago period [23] Business Line Data and Key Metrics Changes - Quest brand net sales grew nearly 10%, driven by robust consumption growth of 12% [20] - Atkins consumption declined 19%, primarily due to lost distribution at key retailers [13] - OWYN's consumption increased by 18%, benefiting from distribution-led growth [16] Market Data and Key Metrics Changes - The nutritional snacking category grew 10%, with Quest and OWYN contributing significantly to this growth [5] - Household penetration for Quest reached nearly 20%, up 200 basis points year-over-year [9] - OWYN's household penetration increased to 4.5%, up 100 basis points [16] Company Strategy and Development Direction - The company is focused on driving top-line growth through expanded distribution and marketing, particularly for Quest and OWYN [5] - A robust productivity program initiated 18 months ago is expected to yield results in the second half of the fiscal year [7] - The company is strategically working with retail partners to optimize the assortment for Atkins, focusing on more productive SKUs [14] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the full-year outlook for net sales and Adjusted EBITDA despite challenges in the first half [5] - The company expects Q2 to be the weakest quarter for consumption and net sales growth, with a forecasted decline of 3.5%-4.5% [29] - Management anticipates stronger growth in the second half of the fiscal year, driven by distribution gains and new product innovations [30] Other Important Information - The company has repurchased over 7% of its common stock since the start of the fiscal year, reflecting confidence in long-term growth [8] - The board authorized a $200 million increase to the existing share repurchase program [26] - The company is investing heavily in marketing and brand building to support ongoing demand [18] 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 profit growth [38][39] Question: What needs to be done on the legacy bar business? - Management acknowledged the flat performance of Quest Bars and outlined a multi-pronged plan to re-accelerate growth, including innovation and improved merchandising [46] Question: How should we judge the step-up in marketing investment for OWYN? - Management emphasized the relationship between household penetration and brand awareness, indicating significant upside potential for OWYN [50][51] Question: What is the current status of the Atkins business? - Management noted that two-thirds of declines in Atkins are due to lost distribution, with plans to optimize the assortment by replacing underperforming SKUs [82] Question: When will tariff relief be seen? - Management expects tariff benefits to start flowing in the second half of the year, alongside cocoa cost benefits [88] Question: What is the company's view on M&A and capital allocation? - Management remains open to M&A opportunities but currently sees share repurchases as the best use of cash given the undervalued stock price [92]

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]

Core Viewpoint - The Simply Good Foods Company will report its financial results for the first quarter of Fiscal Year 2026 on January 8, 2026, with a live conference call scheduled for the same day [1]. Group 1: Financial Reporting - The financial results announcement will be followed by a live conference call at 6:30 a.m. Mountain Time (8:30 a.m. Eastern Time) [1]. - The call will feature Geoff Tanner, President and CEO, and Chris Bealer, CFO [1]. Group 2: Participation Details - Investors can participate in the live call by dialing 877-407-0792 from the U.S. or 201-689-8263 from international locations [2]. - A live webcast and supplemental slide presentation will be available on the Company's website [2]. Group 3: Replay Information - A telephone replay of the call will be available approximately two hours after the conclusion and will remain accessible until January 15, 2026 [3]. - The replay can be accessed by dialing 844-512-2921 from the U.S. or 412-317-6671 from international locations, using confirmation code 13757298 [3]. Group 4: Company Overview - The Simply Good Foods Company is a consumer-packaged food and beverage company based in Denver, Colorado, focusing on nutritional snacking [4]. - The company offers a variety of products under trusted brands such as Quest™, Atkins™, and OWYN™, including high protein snacks and low sugar options [4]. - The company aims to expand its healthy lifestyle platform through innovation-driven organic growth and external investment opportunities [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]

Financial Data and Key Metrics Changes - Total net sales for Simply Good Foods in Q2 2025 reached $359.7 million, reflecting a 15.2% increase year-over-year, driven by the contribution from Owen and organic growth [44][45] - Adjusted EBITDA increased by 17.6% to $68 million, with net income growing by 10.9% to $36.7 million [48][49] - Gross margin was reported at 36.2%, a decline of 120 basis points compared to the previous year, influenced by the inclusion of Owen and inflationary pressures [46][54] Business Line Data and Key Metrics Changes - Quest's net sales grew by 16.5% in Q2, representing 60% of the company's net sales, while Atkins saw a decline of 11.5% due to lower consumption and lost distribution [44][28] - Owen experienced a retail takeaway increase of 52%, with ready-to-drink shakes growing by 53% [36][44] Market Data and Key Metrics Changes - The nutritional snacking category grew by 12% in Q2, marking the 16th consecutive quarter of growth [16] - Quest's retail takeaway increased by 13%, while Atkins faced a decline in consumption [22][28] Company Strategy and Development Direction - The company aims to lead the nutritional snacking category by focusing on innovation, expanding physical availability, and increasing brand awareness [19][20][41] - The strategy includes shifting focus from Atkins to faster-growing brands like Quest and Owen, with plans to optimize SKU distribution [30][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic and uncertain consumer environment but expressed confidence in the company's positioning within the high-protein, low-sugar market [41][42] - The outlook for fiscal year 2025 includes a projected net sales increase of 8.5% to 10.5%, with adjusted EBITDA expected to grow by 4% to 6% [54][56] Other Important Information - The company is undergoing a leadership transition with the retirement of CFO Sean Mara and the appointment of Chris Beeler as his successor [10][12] - The integration of Owen is progressing well, with expectations for synergy capture starting in fiscal 2026 [40] Q&A Session Summary Question: What is driving the reduction in sales guidance for Atkins? - Management noted that the reduction is due to lost display space and distribution at a key customer, which was anticipated [60][64] Question: What prompted the relaunch of Quest shakes? - The relaunch was driven by the need to meet consumer demand for indulgent, high-protein options, with a focus on flipping the macros of traditional shakes [71][75] Question: How does the company plan to build awareness for Owen? - The initial focus will be on expanding distribution, with marketing efforts to follow once a solid distribution footprint is established [120] Question: What are the expectations for the bar category, specifically for Quest? - Management acknowledged the need for continuous innovation in the bar category and expressed optimism about upcoming product launches [124][125]