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Simply Good Foods Raises Full-Year Sales Outlook Following Third-Quarter Beat

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Simply Good Foods Raises Full-Year Sales Outlook Following Third-Quarter Beat

Simply Good Foods (SMPL) lifted its full-year sales outlook on Thursday as the nutritional snacking company recorded better-than-expected fiscal third-quarter results.

The company now anticipates sales between $1.345 billion and $1.355 billion for fiscal 2026, up from its prior guidance of $1.31 billion to $1.35 billion. The current consensus on FactSet is for $1.34 billion.

For the quarter ended May 30, Simply Good Foods' sales declined 6.3% year on year to $357 million, but came in ahead of the Street's view for $333 million. The topline decrease was driven by a nearly 25% drop in the Atkins brand amid distribution-related weakness, partially offset by gains in Quest and OWYN.

Simply Good Foods markets protein bars, ready-to-drink shakes and confectionery products under the Quest, Atkins, and OWYN brands.

Adjusted earnings fell to $0.42 per share from $0.51 in the year-ago period, but topped the average analyst estimate of $0.36.

"Our third-quarter results reflect initial steps against the turnaround priorities we outlined last quarter," Chief Executive Joe Scalzo said in a statement. "While we are still in the early stages of this work, we are beginning to see some signs of improved alignment around our three key priorities."

In April, the company announced a cost-cutting plan that included the reduction of its workforce by 15%. At the time, the group said it expected the plan to generate $17 million in annual savings.

Simply Good Foods is raising prices to offset cost pressures across proteins and packaging, among other categories, Scalzo said during an earnings call, according to a FactSet transcript.

"While we remain focused on productivity initiatives and cost reduction efforts, rebuilding margins requires decisive action on pricing and we believe this increase is appropriate," the CEO told analysts.

The company expects sales between $322 million and $332 million for the ongoing three-month period, reflecting an annual decline of 10% to 13%. The Street is looking for $335.5 million.

Price: $13.51, Change: $+0.67, Percent Change: +5.18%

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