Overview

* Simply Good Foods ( SMPL ) Q4 revenue beats analyst expectations despite a 1.8% yr/yr decline

* Adjusted EPS for Q4 misses analyst estimates

* Company reports $12.4 mln net loss for Q4 due to Atkins brand impairment

Outlook

* Simply Good Foods ( SMPL ) expects FY 2026 net sales to range between -2% and +2% year-over-year

* Gross margins expected to decline between 100 and 150 basis points year-over-year in 2026

* Adjusted EBITDA expected to range between -4% and +1% year-over-year in 2026

Result Drivers

* ORGANIC GROWTH - Organic net sales grew 3.5%, driven by strong performance from Quest and OWYN

* INPUT COSTS - Elevated input costs contributed to a 450 basis point decline in gross margin

* ATKINS IMPAIRMENT - $60.9 mln impairment charge related to Atkins brand due to challenging fiscal year and updated revenue projections

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $369 mln $368.9

Revenue mln (11

Analysts

)

Q4 Miss $0.46 $0.48

Adjusted (10

EPS Analysts

)

Q4 Net -$12.40

Income mln

Q4 Gross 34.30%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the food processing peer group is "hold."

* Wall Street's median 12-month price target for Simply Good Foods Co ( SMPL ) is $38.50, about 33.9% above its October 21 closing price of $25.44

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)