Simply Good Foods Q4 adjusted EPS misses expectations on Atkins brand impairment

The Simply Good Foods

23/10/2025 12:10

Overview

Simply Good Foods Q4 revenue beats analyst expectations despite a 1.8% yr/yr decline

Adjusted EPS for Q4 misses analyst estimates

Company reports $12.4 mln net loss for Q4 due to Atkins brand impairment

Outlook

Simply Good Foods expects FY 2026 net sales to range between -2% and +2% year-over-year

Gross margins expected to decline between 100 and 150 basis points year-over-year in 2026

Adjusted EBITDA expected to range between -4% and +1% year-over-year in 2026

Result Drivers

ORGANIC GROWTH - Organic net sales grew 3.5%, driven by strong performance from Quest and OWYN

INPUT COSTS - Elevated input costs contributed to a 450 basis point decline in gross margin

ATKINS IMPAIRMENT - $60.9 mln impairment charge related to Atkins brand due to challenging fiscal year and updated revenue projections

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$369 mln
$368.9 mln (11 Analysts)
Q4 Adjusted EPS
Miss
$0.46
$0.48 (10 Analysts)
Q4 Net Income
-$12.40 mln
Q4 Gross Margin
34.30%


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 "hold."

Wall Street's median 12-month price target for Simply Good Foods Co is $38.50, about 33.9% above its October 21 closing price of $25.44

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX2Tp1Zq

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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.)