Simply Good Foods misses Q2 revenue estimates, posts loss on impairment charge

Simply Good Foods Co

09/04/2026 12:10

Overview

U.S. nutritional snacks maker's Q2 revenue fell 9.4% yr/yr, missing analyst expectations

Company posted net loss on $249 mln impairment charge on Atkins and OWYN brands

Adjusted EPS beat analyst expectations

Outlook

Simply Good Foods sees FY 2026 net sales between $1.31 bln and $1.35 bln, down 10%-7% y/y

Company expects FY 2026 gross margins to decline 300-350 basis points y/y

Simply Good Foods guides FY 2026 adjusted EBITDA between $217 mln and $225 mln, down 22%-19% y/y

Result Drivers

BRAND SALES DECLINES - Q2 net sales fell due to 26.6% declines for Atkins and 16.8% drop for OWYN, with Quest up only 0.3%; company cited poor retail takeaway and slower product velocities, especially in chips and bars

HIGHER INPUT COSTS - Gross margin declined 460 basis points to 31.6%, mainly due to inflationary costs, especially cocoa, and tariffs, as well as one-time costs to address OWYN product quality issues

IMPAIRMENT CHARGE - Company recorded $249 mln non-cash impairment charge on Atkins and OWYN brand intangible assets, citing a challenging fiscal year and updated projections of future revenue

Company press release: ID:nGNX8B6vGS

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$326 mln
$345.59 mln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.45
$0.39 (8 Analysts)
Q2 Net Income
-$159.70 mln
Q2 Gross Margin
31.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food processing peer group is "buy"

Wall Street's median 12-month price target for Simply Good Foods Co is $24.00, about 66.6% above its April 8 closing price of $14.41

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)