Simply Good Foods (NASDAQ:SMPL) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Simply Good Foods (NASDAQ:SMPL) posted its earnings results on Tuesday. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.04, FiscalAI reports. The business had revenue of $333.31 million for the quarter, compared to analyst estimates of $327.03 million. During the same quarter in the prior year, the firm earned $0.46 earnings per share. The company’s revenue for the quarter was down 9.7% on a year-over-year basis.

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

• Fiscal 2027 outlook remains weak: net sales are expected to decline 13%–17% and adjusted EBITDA 9%–14%, with the first quarter projected to be the most challenging as pricing, soft consumer demand, and distribution losses weigh on results.
• Management expects gross margin to improve by 250–300 basis points, helped by near-double-digit pricing, productivity initiatives, lower one-time costs, and approximately $8 million in annualized employee-cost savings.
• The company is reinvesting much of its margin improvement into marketing, raising marketing spending closer to 10% of sales and launching new campaigns for Quest, Atkins, and OWYN; management expects benefits to build gradually, with performance improving in the second half.
• Fourth-quarter retail consumption declined 8.4%, with Quest takeaway down 2.1%, Atkins down 22.6%, and OWYN down 7%; Atkins continues to suffer from household-penetration and distribution losses, while OWYN expects further non-core item reductions over the next six to nine months.
• Management highlighted financial flexibility, including $138.4 million of cash, approximately $181 million of operating cash flow, net leverage of about 0.9 times adjusted EBITDA, and $141 million remaining under the share-repurchase authorization.

Simply Good Foods Price Performance

Shares of NASDAQ SMPL opened at $9.75 on Wednesday. The firm has a fifty day moving average of $10.43 and a 200 day moving average of $13.08. Simply Good Foods has a one year low of $9.38 and a one year high of $22.00.

Key Stories Impacting Simply Good Foods

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

• Positive Sentiment: Fiscal fourth-quarter adjusted EPS was $0.44, above the $0.40 consensus estimate, while revenue of $333.3 million also topped expectations of $327.0 million. Simply Good Foods Tops Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management expects fiscal 2027 gross margin to improve by approximately 250 to 300 basis points, indicating that pricing actions and operational changes could strengthen profitability over time. Simply Good Foods Fiscal 2026 Results and Fiscal 2027 Outlook
• Neutral Sentiment: The company is resetting pricing and increasing marketing investment, with management expecting business trends to improve during the second half of fiscal 2027. The strategy could support longer-term growth but may weigh on near-term results. Simply Good Foods Fiscal 2027 Outlook
• Negative Sentiment: Simply Good Foods forecasts fiscal 2027 net sales will fall 13% to 17% year over year, while adjusted EBITDA is expected to decline 9% to 14%. The outlook overshadowed the quarterly earnings beat and suggests a difficult recovery period. Simply Good Foods Reports Q4 Earnings Above Estimates
• Negative Sentiment: Fourth-quarter revenue declined 9.7% from the prior year, adjusted EPS fell from $0.46 to $0.44, and adjusted EBITDA decreased to $57.5 million from $66.2 million. These comparisons point to weakening operating momentum despite the consensus beat. Simply Good Foods Fiscal Q4 Earnings Snapshot

Analysts Set New Price Targets

SMPL has been the subject of a number of recent research reports. UBS Group set a $15.00 price objective on Simply Good Foods in a research note on Friday, July 10th. TD Cowen lowered their price objective on Simply Good Foods from $13.00 to $11.00 and set a “hold” rating on the stock in a research report on Wednesday, August 26th. Jefferies Financial Group set a $11.00 price objective on Simply Good Foods and gave the stock a “hold” rating in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $14.00 price objective on shares of Simply Good Foods in a research note on Friday, July 10th. Finally, DA Davidson set a $12.00 target price on shares of Simply Good Foods in a report on Monday. Two research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $13.73.

About Simply Good Foods

The Simply Good Foods Company (NASDAQ: SMPL) is a consumer packaged food company focused on convenient, nutrition-focused products. Its portfolio is built around the Atkins and Quest brands, which serve consumers seeking lower-carbohydrate, higher-protein and better-for-you food options.

The company offers a variety of products, including protein bars, snack bars, shakes, cookies, chips, confectionery items, protein powders and frozen foods. Its products are sold through grocery stores, mass merchants, club stores, drugstores, convenience stores, e-commerce platforms and other retail channels.

Simply Good Foods was established in 2017 through the combination of Conyers Park Acquisition Corp.