Simply Good Foods' Q1 revenue slightly beats estimates on Quest growth

The Simply Good Foods

08/01/2026 12:10

Overview

Nutritional snacking leader's Q1 revenue slightly beat analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company reaffirmed fiscal year 2026 outlook, anticipating stronger second half

Outlook

Simply Good Foods reaffirms fiscal 2026 net sales outlook of -2% to +2% growth

Company expects fiscal 2026 gross margins to decline by 100 to 150 basis points

Simply Good Foods anticipates adjusted EBITDA to range from -4% to +1% for fiscal 2026

Result Drivers

BRAND PERFORMANCE - Quest grew 9.6%, offset by declines in Atkins and OWYN, with OWYN affected by past product quality issues

INPUT COSTS - Gross margin fell 590 basis points due to elevated input costs and tariffs, partially offset by productivity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$340.20 mln
$339.34 mln (10 Analysts)
Q1 Adjusted EPS
Beat
$0.39
$0.36 (7 Analysts)
Q1 EPS
$0.26
Q1 Net Income
$25.30 mln
Q1 Gross Margin
32.30%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 "buy"

Wall Street's median 12-month price target for Simply Good Foods Co is $31.50, about 62.6% above its January 7 closing price of $19.37

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

Press Release: ID:nGNX4zhQgf

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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.)