Simply Good Foods (NASDAQ:SMPL) Announces Earnings Results, Beats Estimates By $0.03 EPS

Simply Good Foods (NASDAQ:SMPL) released its earnings results on Thursday. The financial services provider reported $0.39 EPS for the quarter, topping the consensus estimate of $0.36 by $0.03, FiscalAI reports. The firm had revenue of $340.20 million during the quarter, compared to analysts’ expectations of $337.64 million. Simply Good Foods had a return on equity of 10.06% and a net margin of 7.14%.Simply Good Foods’s revenue for the quarter was down .3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.49 EPS.

Here are the key takeaways from Simply Good Foods’ conference call:

• Quest remained the growth engine with consumption up ~12% and net sales nearly +10%, led by salty snacks (+40%), rising household penetration (~20%), and notable distribution and merchandising gains.
• Management reaffirmed its full-year outlook for net sales and Adjusted EBITDA, cautioned Q2 will be the weakest quarter (net sales down ~3.5–4.5%) and expects a second-half inflection with Q4 as the strongest period for profit growth.
• Q1 gross margin declined roughly 540–590 basis points YoY (Adjusted EBITDA down ~20%), driven by elevated input costs (notably cocoa and whey) and ~$4M of tariffs, though pricing, productivity programs and newly secured cocoa supply are expected to help starting in Q4 and into FY27.
• OWYN showed consumption growth (+18%) but sales were held back by product-quality issues and retailer destocking; management reports improved product ratings, a formula fix, and plans higher marketing to rebuild awareness and align shipments with consumption.
• The company borrowed $150M to accelerate buybacks, repurchased >7% of shares (~$150M YTD), and the board added $200M to the repurchase program, while net debt sits near 0.8x trailing Adjusted EBITDA, reflecting aggressive capital return supported by a strong balance sheet.

Simply Good Foods Stock Performance

Shares of Simply Good Foods stock opened at $20.65 on Friday. The company has a quick ratio of 2.30, a current ratio of 3.64 and a debt-to-equity ratio of 0.14. Simply Good Foods has a 52 week low of $18.45 and a 52 week high of $40.01. The firm’s 50 day moving average is $19.56 and its two-hundred day moving average is $25.22. The firm has a market capitalization of $1.96 billion, a P/E ratio of 20.25, a P/E/G ratio of 4.86 and a beta of 0.27.

Analysts Set New Price Targets

A number of equities analysts have recently commented on SMPL shares. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $22.00 price objective on shares of Simply Good Foods in a research report on Monday, December 15th. Morgan Stanley set a $24.00 price target on shares of Simply Good Foods in a report on Monday, October 27th. Sanford C. Bernstein increased their price objective on shares of Simply Good Foods from $29.00 to $31.00 and gave the company an “outperform” rating in a research report on Friday, December 19th. Mizuho reduced their price objective on shares of Simply Good Foods from $43.00 to $35.00 and set an “outperform” rating on the stock in a report on Wednesday, November 12th. Finally, UBS Group lowered their target price on shares of Simply Good Foods from $27.00 to $23.00 and set a “neutral” rating for the company in a research note on Friday, October 24th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Simply Good Foods presently has an average rating of “Hold” and an average price target of $30.22.

Insider Activity

In related news, CFO Christopher J. Bealer purchased 9,946 shares of Simply Good Foods stock in a transaction that occurred on Thursday, November 6th. The stock was purchased at an average cost of $20.01 per share, with a total value of $199,019.46. Following the completion of the transaction, the chief financial officer directly owned 32,966 shares in the company, valued at approximately $659,649.66. The trade was a 43.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Michael L. Clawson acquired 5,000 shares of the firm’s stock in a transaction on Monday, November 17th. The stock was bought at an average price of $20.00 per share, with a total value of $100,000.00. Following the purchase, the insider directly owned 37,620 shares of the company’s stock, valued at $752,400. This represents a 15.33% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 8.76% of the company’s stock.

Institutional Trading of Simply Good Foods

Several institutional investors and hedge funds have recently made changes to their positions in SMPL. EverSource Wealth Advisors LLC boosted its position in shares of Simply Good Foods by 125.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 967 shares of the financial services provider’s stock valued at $31,000 after purchasing an additional 538 shares during the period. Johnson Financial Group Inc. acquired a new stake in shares of Simply Good Foods in the third quarter valued at approximately $36,000. State of Wyoming purchased a new position in shares of Simply Good Foods during the second quarter worth approximately $87,000. Strs Ohio acquired a new position in shares of Simply Good Foods in the 1st quarter valued at $114,000. Finally, Diversify Advisory Services LLC raised its position in Simply Good Foods by 28.1% in the 2nd quarter. Diversify Advisory Services LLC now owns 7,185 shares of the financial services provider’s stock valued at $209,000 after purchasing an additional 1,577 shares during the last quarter. 88.45% of the stock is owned by hedge funds and other institutional investors.

More Simply Good Foods News

Here are the key news stories impacting Simply Good Foods this week:

• Positive Sentiment: Adjusted earnings beat and revenue roughly in line — management highlighted adjusted diluted EPS that topped street expectations and net sales that were essentially flat versus prior year, which helped calm near‑term concerns. Simply Good Foods (SMPL) Tops Q1 Earnings Expectations, Reaffirms Outlook
• Positive Sentiment: Company reaffirmed FY2026 guidance — management maintained its fiscal‑year outlook (net sales roughly -2% to +2% y/y; adjusted EBITDA expected roughly -4% to +1%), removing uncertainty that a downside guide could have caused. Press Release: Q1 Results & Reaffirms FY26 Outlook
• Positive Sentiment: Insider buying and stronger operating cash flow — several insiders have added shares recently and cash from operations came in notably higher y/y, which investors often view as a sign of confidence and balance‑sheet strength. Quiver Quant: Q1 2026 Results & Insider Activity
• Neutral Sentiment: Analyst coverage and materials available — the company posted its slide deck and held an earnings call; analysts’ price targets remain mixed but show upside versus the current price, giving investors reference points. Earnings Presentation & Call
• Negative Sentiment: GAAP profitability declined materially — gross profit, operating profit, net income and adjusted EBITDA fell y/y (gross profit down ~15.8%, operating profit down ~31%, net income down ~34%), highlighting margin pressure and cost/headwind issues. Quiver Quant: Q1 2026 Results & Margin Declines
• Negative Sentiment: Guidance implies limited near‑term growth and margin compression — reaffirmed guidance is conservative (flat to low single‑digit sales growth and narrower gross margins), which caps upside until execution visibly improves. Press Release: Guidance Details

Simply Good Foods Company Profile

Simply Good Foods Co (NASDAQ: SMPL) is a North American consumer packaged foods company specializing in better-for-you nutrition products. The company’s portfolio centers on two well-established brands, Atkins and Quest, which offer a range of low-carbohydrate, high-protein bars, powders, shakes, and snacks. Simply Good Foods aims to support consumers’ health and wellness goals by delivering convenient, nutrient-dense options without added sugars or artificial sweeteners.

Under the Atkins brand, the company produces meal replacements, snack bars, and ready-to-drink shakes designed for low-carb dieters.