Simply Good Foods' Q3 revenue falls less than expected on Quest and OWYN growth

The Simply Good Foods

09/07/2026 12:11

Overview
U.S. nutritional snacking firm's Q3 revenue fell 6% but beat analyst expectations
Adjusted EPS for Q3 beat consensus despite lower yr/yr performance
Sales decline driven by Atkins distribution losses, partly offset by Quest and OWYN growth

Outlook
Simply Good Foods sees FY26 net sales between $1.345 bln and $1.355 bln, down 7%-6% y/y
Company expects FY26 gross margins to decline about 375 basis points y/y
Simply Good Foods expects Q4 net sales of $322 mln to $332 mln, down 13%-10% y/y

Result Drivers
ATKINS DECLINE - Sales drop was driven by a 24.6% decline in Atkins brand, mainly due to distribution losses and softer retail takeaway
HIGHER INPUT AND RESTRUCTURING COSTS - Gross profit and margin fell due to volume declines, higher input costs, and $6.2 mln in restructuring costs
BRAND INVESTMENT - Selling and marketing expenses rose 15.9% as company invested in selling capability and brand support for long-term growth

Company press release: ID:nGNXbf5lz6

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$357 mln
$332.66 mln (10 Analysts)
Q3 Adjusted EPS
Beat
$0.42
$0.35 (8 Analysts)
Q3 Net Income
 
-$52 mln
 
Q3 Gross Margin
 
32.5%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "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 $14.00, about 9% above its July 8 closing price of $12.84
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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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.)