The Simply Good Foods Company Reports Fiscal Fourth Quarter and Full Fiscal Year 2026 Financial Results and Provides Fiscal Year 2027 Outlook
Simply Good Foods Co (SMPL) filed an SEC Form 8-K — Results of Operations and Financial Condition. The Simply Good Foods Company Reports Fiscal Fourth Quarter and Full Fiscal Year 2026 Financial Results and Provides Fiscal Year 2027 Outlook Denver, CO, October 27, 2026 - The Simply Good Foods Company (Nasdaq: SMPL) (“Simply Good Foods,” or the “Company”), a leader in the Nutri
How this was made
The 30-second read
Why it matters
The disclosed loss and downward sales guidance suggest near‑term weakness, but the company retains cash and a strong balance sheet.
Market read
SMPL's earnings and guidance release is the primary catalyst for its stock movement today.
What to watch
Cash balance of $138.4M and low net‑debt/EBITDA ratio (0.9x) provide financial flexibility that could support a turnaround.
Fourth-quarter net sales declined 9.7% and fiscal 2026 net sales declined 6.5%; fiscal 2027 outlook calls for further net sales and Adjusted EBITDA declines.
Sales declined across the fourth quarter and full year, fiscal 2026 reported a net loss driven in part by $331.0 million of non-cash impairment charges, and fiscal 2027 guidance calls for net sales and Adjusted EBITDA to decline further.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 13-Weeks Ended August 29, 2026 net salesGAAP | $333.3M | – | decreased $35.7 million, or 9.7% |
| 13-Weeks Ended August 29, 2026 gross profitGAAP | $113.3M | – | decreased 10.5% |
| 13-Weeks Ended August 29, 2026 gross marginGAAP | 34.0% | – | a decline of 30 basis points |
| 13-Weeks Ended August 29, 2026 selling and marketing expensesGAAP | $32.4M | – | – |
| 13-Weeks Ended August 29, 2026 general and administrative expensesGAAP | $30.6M | – | decreased 24.8% |
| 13-Weeks Ended August 29, 2026 income from operationsGAAP | $45.88M | – | – |
| 13-Weeks Ended August 29, 2026 net interest expenseGAAP | $4.7M | – | a 28.7% increase |
| 13-Weeks Ended August 29, 2026 effective tax rateGAAP | 25.6% | – | – |
| 13-Weeks Ended August 29, 2026 net incomeGAAP | $30.5M | – | – |
| 13-Weeks Ended August 29, 2026 diluted earnings per shareGAAP | $0.34 | – | – |
| 13-Weeks Ended August 29, 2026 Adjusted Diluted EPSnon-GAAP | $0.44 | – | – |
| 13-Weeks Ended August 29, 2026 Adjusted EBITDAnon-GAAP | $57.5M | – | decreased 13.2% |
| 13-Weeks Ended August 29, 2026 weighted average diluted shares outstandingGAAP | 88.5M | – | declined modestly |
| 52-Weeks Ended August 29, 2026 net salesGAAP | $1.36B | – | decreased 6.5% |
| 52-Weeks Ended August 29, 2026 gross profitGAAP | $442.4M | – | decreased 15.9% |
| 52-Weeks Ended August 29, 2026 gross marginGAAP | 32.6% | – | a 360-basis point decline |
| 52-Weeks Ended August 29, 2026 selling and marketing expensesGAAP | $129.4M | – | decreased 3.6% |
| 52-Weeks Ended August 29, 2026 general and administrative expensesGAAP | $143.9M | – | decreased 7.7% |
| 52-Weeks Ended August 29, 2026 loss from operationsGAAP | −$179.7M | – | – |
| 52-Weeks Ended August 29, 2026 loss on impairmentGAAP | $331M | – | – |
| 52-Weeks Ended August 29, 2026 net interest expenseGAAP | $18.5M | – | a 10% decrease |
| 52-Weeks Ended August 29, 2026 effective tax rateGAAP | 21.3% | – | – |
| 52-Weeks Ended August 29, 2026 net lossGAAP | $155.9M | – | – |
| 52-Weeks Ended August 29, 2026 loss per diluted shareGAAP | $1.69 | – | – |
| 52-Weeks Ended August 29, 2026 Adjusted Diluted EPSnon-GAAP | $1.70 | – | – |
| 52-Weeks Ended August 29, 2026 Adjusted EBITDAnon-GAAP | $225.9M | – | decreased 18.8% |
| 52-Weeks Ended August 29, 2026 weighted average diluted shares outstandingGAAP | 92.4M | – | declined modestly |
| 52-Weeks Ended August 29, 2026 net cash provided by operating activitiesGAAP | $181.0M | – | – |
| 52-Weeks Ended August 29, 2026 purchases of property and equipmentGAAP | −$24.10M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| 13-Weeks Ended August 29, 2026 AtkinsSofter retail takeaway and velocity-related distribution pressure. | $78.04M | – | decline of 14.9% |
| 13-Weeks Ended August 29, 2026 QuestQuest retail takeaway decreased approximately 2%. | $217.7M | – | – |
| 13-Weeks Ended August 29, 2026 OWYNSofter retail takeaway and velocity-related distribution pressure. | $29.69M | – | decline of 20.6% |
| 13-Weeks Ended August 29, 2026 InternationalNo driver disclosed. | $7.91M | – | – |
| 52-Weeks Ended August 29, 2026 AtkinsDistribution-related declines were largely as expected. | $332.7M | – | decline of 20.9% |
| 52-Weeks Ended August 29, 2026 QuestQuest retail takeaway growth of about 3%. | $869.7M | – | growth of 0.7% |
| 52-Weeks Ended August 29, 2026 OWYNPoor velocities, including on newly expanded distribution. | $123.8M | – | decline of 9.7% |
| 52-Weeks Ended August 29, 2026 InternationalNo driver disclosed. | $30.33M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fiscal Year 2027 and first quarter of fiscal year 2027 outlook
- RevenueFiscal Year 2027: Net sales expected to decline between 13% and 17% year-over-year; first quarter of fiscal year 2027: net sales expected to decline between 19% and 22% year-over-year
- Gross marginFiscal Year 2027: Gross margins (GAAP) expected to increase between 250 and 300 basis points year-over-year; first quarter of fiscal year 2027: Gross margins (GAAP) expected to increase by approximately 100 basis points year-over-year
- NoteFiscal Year 2027: Adjusted EBITDA expected to decline between 9% and 14% year-over-year
- NoteFiscal Year 2027: net interest expense in the range of $18 to $20 million
- NoteFiscal Year 2027: capital expenditures in the range of $15 to $20 million
- NoteFirst quarter of fiscal year 2027: Adjusted EBITDA expected to decline between 28% and 33% year-over-year
Capital returns
- Repurchase of common stock: $ (213,308) for the 52-Weeks Ended August 29, 2026, versus $ (50,886) for the 52-Weeks Ended August 30, 2025.
- Weighted average diluted shares outstanding were 88.5 million for the 13-Weeks Ended August 29, 2026 and 92.4 million for the 52-Weeks Ended August 29, 2026; the Company said both declined modestly versus the comparable year-ago period, reflecting share repurchases.
What drove it
- Fourth-quarter net sales performance was largely driven by softer retail takeaway and velocity-related distribution pressure.
- Fourth-quarter total Simply Good Foods retail takeaway decreased about 8%, driven by declines for Atkins, OWYN, and Quest of approximately 23%, 7%, and 2%, respectively.
- Fiscal 2026 total Simply Good Foods retail takeaway decreased approximately 5%, driven by declines for Atkins of approximately 22%, partially offset by Quest and OWYN growth of about 3% and 1% respectively.
- Fourth-quarter gross profit was affected by volume declines, higher input costs, and restructuring costs.
- Fiscal 2026 gross margin was driven mainly by $6.5 million of one-time OWYN integration expenses and $5.7 million of restructuring costs.
- Fiscal 2026 selling and marketing expense declined due to planned marketing declines for Atkins, which more than offset increases to support growth for Quest and OWYN.
Concerns
- Fiscal Year 2027 net sales are expected to decline between 13% and 17% year-over-year, while Adjusted EBITDA is expected to decline between 9% and 14% year-over-year.
- First-quarter fiscal 2027 net sales are expected to decline between 19% and 22% year-over-year and Adjusted EBITDA is expected to decline between 28% and 33% year-over-year.
- The Company recognized $331.0 million non-cash impairment charges related to Goodwill and the Atkins and OWYN brand intangible assets before the fourth quarter of fiscal year 2026.
- The impairment was largely the result of current fiscal year performance, updated projections of future revenue, and declines in stock price.
- Higher input costs pressured fourth-quarter gross margin, while net interest expense increased 28.7% due to a higher debt balance.
What to watch
- Whether marketing investments and new marketing strategies improve consumer connection and underlying brand health.
- Whether the expected easing in the volume impact of pricing and more favorable year-over-year comparisons support improvement over the course of fiscal 2027.
- Atkins distribution-related declines and OWYN velocities, including on newly expanded distribution.
- Progress toward the expected fiscal 2027 gross-margin increase of between 250 and 300 basis points year-over-year.
- Fiscal 2027 net interest expense, expected in the range of $18 to $20 million, and capital expenditures, expected in the range of $15 to $20 million.
Balance sheet and cash flow
- Cash: $ 138,425 at August 29, 2026, versus $ 98,468 at August 30, 2025.
- Outstanding principal balance on its term loan: $350.0 million at the end of fiscal year 2026.
- Long-term debt, less current maturities: $ 347,219 at August 29, 2026, versus $ 249,066 at August 30, 2025.
- Net Debt as of August 29, 2026: $ 211,575; Net Debt to Adjusted EBITDA: 0.9 x.
- Net cash provided by operating activities: $ 181,049 for the 52-Weeks Ended August 29, 2026, versus $ 178,457 for the 52-Weeks Ended August 30, 2025.
- Purchases of property and equipment: $ (24,102) for the 52-Weeks Ended August 29, 2026.
- Principal payments of long-term debt: $ (50,000); proceeds from issuance of long-term debt: $ 150,000.
- Total assets: $ 2,036,744 at August 29, 2026, versus $ 2,396,045 at August 30, 2025.
Analysis
Simply Good Foods closed fiscal 2026 with declining demand across its core brands. Fourth-quarter net sales were $333.3 million, down 9.7%, as Atkins and OWYN declined 14.9% and 20.6%, respectively. The Company attributed the sales result largely to softer retail takeaway and velocity-related distribution pressure. Total fourth-quarter retail takeaway decreased about 8%, including approximate declines of 23% for Atkins, 7% for OWYN, and 2% for Quest.
The full-year result remained weak despite modest Quest growth. Fiscal 2026 net sales declined 6.5% to $1,356.5 million. Atkins declined 20.9%, OWYN declined 9.7%, and Quest grew 0.7%. The Company cited largely expected distribution-related declines at Atkins, while OWYN's decline reflected poor velocities, including on newly expanded distribution. Retail takeaway data showed Atkins down approximately 22%, while Quest and OWYN grew about 3% and 1%, respectively.
Margins and earnings were pressured by lower volume, input costs, and costs associated with restructuring and OWYN. Fourth-quarter gross margin was 34.0%, down 30 basis points, while full-year gross margin was 32.6%, down 360 basis points. The Company reported a fiscal 2026 net loss of $155.9 million after recognizing $331.0 million of non-cash impairment charges related to Goodwill and Atkins and OWYN brand intangible assets. Excluding specified adjustments, Adjusted EBITDA declined 18.8% to $225.9 million and Adjusted Diluted EPS declined to $1.70 from $1.92.
Cash generation remained a relative support. Net cash provided by operating activities was $181,049, compared with $178,457 in the prior year, and cash was $138,425 at August 29, 2026. The Company repurchased $213,308 of common stock, made $50,000 of principal payments of long-term debt, and received $150,000 from the issuance of long-term debt. It reported Net Debt to Adjusted EBITDA of 0.9 x.
The fiscal 2027 outlook frames the reset as continuing before an expected improvement later in the year. Management expects fiscal-year net sales to decline between 13% and 17% and Adjusted EBITDA to decline between 9% and 14%, with first-quarter declines expected to be steeper. Gross margins are expected to increase between 250 and 300 basis points for the fiscal year as the Company reinvests a portion of margin recovery behind marketing strategies for Quest, Atkins, and OWYN. The key operating question is whether those investments, easing pricing-related volume pressure, and more favorable comparisons produce the expected improvement over the course of the year.
Management, verbatim
Fiscal 2026 was a year of decisive action. We recognized that our performance was not where it needed to be and moved quickly to reset the business. We aligned the organization around a focused set of priorities, accelerated work to improve our cost structure, strengthened our financial flexibility, and overhauled our marketing approach across Quest, Atkins, and OWYN. We delivered on the modest financial commitments we made following our second quarter reset, continued to generate significant cash flow despite lower net sales, and completed much of the foundational work necessary to improve the long-term trajectory of the business.
Joe Scalzo, President and Chief Executive Officer
Fiscal 2027 will be a challenging but important year in our turnaround. While we expect significant declines in net sales and Adjusted EBITDA, we are taking the actions necessary to restore the economic foundation of the business and rebuild brand momentum.
Joe Scalzo, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of reported results with prior guidance is unavailable.
- Free cash flow was not reported.
- Dividend amount and dividend declaration were not reported.
- Fiscal 2027 operating-expense guidance was not reported.
- Fiscal 2027 tax-rate guidance was not reported.
- Prior-year gross-margin percentages were not printed for the fourth quarter or full fiscal year.
- Prior-year gross-profit dollar amounts were not stated in the narrative summaries.
- Prior-year general and administrative expense dollar amount was not stated in the narrative summaries.
- Prior-year net interest expense dollar amounts were not stated in the narrative summaries.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Simply Good Foods (SMPL) filed a Form 8‑K reporting FY 2026 financials and FY 2027 outlook.
Ticker impact
The company disclosed FY 2026 results and FY 2027 outlook, showing a net loss of $155.9M and guidance for sales to decline 13‑17% YoY.
likely downward pressure as investors price in weaker sales and EBITDA outlook
Guidance shows a significant sales decline and EBITDA contraction, which typically triggers sell‑offs in small‑cap stocks.
Market effects
Signals softness in the nutritional snacking sector, potentially affecting peers.
Limited to U.S. small‑cap market; no broader regional effect.
Minimal global impact beyond sector peers.
Counterpoint
If the company successfully executes its marketing investments, the sales decline may be temporary, offering a buying opportunity at lower valuations.
Key entities
- ExecutiveJoe Scalzo
President and CEO who provided the outlook.
