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

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

*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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