Highlights

  • Net sales for fiscal 2026, the 52 weeks ended August 29, 2026, were $1,356.5 million, and the net loss was $155.9 million.
  • The company recorded a loss on impairment of $331,000 thousand, including $200.0 million for OWYN and $93.0 million for Atkins.
  • Management guided fiscal 2027 net sales to decline 13% to 17% and adjusted EBITDA to decline 9% to 14%.
  • Operating cash flow was $181.0 million, and the company repurchased 11,662,234 shares of common stock during fiscal 2026.

The Simply Good Foods Company (NASDAQ: SMPL) shares were trading at USD 10.11 on October 27, 2026, up 0.17%, with a relative volume at time of 4.06. The nutritional snacking company filed its annual report on Form 10-K for the fiscal year ended August 29, 2026 on October 27, recorded impairment charges on its OWYN and Atkins brands, and gave a fiscal 2027 outlook on its earnings call.

Simply Good Foods is incorporated in Delaware and lists its principal executive offices at 1225 17th Street in Denver, Colorado. It sells protein bars, ready-to-drink protein shakes, sweet and salty protein snacks and confectionery under the Quest, Atkins and OWYN brand names, mainly in North America through grocery, club, mass merchandise, e-commerce and other channels. Fiscal 2026 covered 52 weeks ended August 29, 2026. As of that date, its workforce consisted of 282 employees globally.

Fiscal 2026 Results

For the 52 weeks ended August 29, 2026, net sales were $1,356.5 million, compared with $1,450.9 million in the prior year, a decrease of $94.4 million, or 6.5%. The company attributed the decline to velocity-related declines and related distribution declines for Atkins and OWYN, partly offset by volume growth for Quest.

Gross profit was $442,363 thousand, or 32.6% of net sales, compared with $525,747 thousand, or 36.2%. The 10-K states that gross profit margin decreased 360 basis points, primarily from higher input costs and restructuring costs. The loss on impairment was $331,000 thousand, compared with $60,928 thousand in fiscal 2025. The loss from operations was $(179,715) thousand, compared with income from operations of $156,887 thousand.

The net loss was $155.9 million, compared with net income of $103.6 million. The loss per diluted share was $(1.69), compared with earnings of $1.02. Adjusted EBITDA, a non-GAAP measure, was $225,869 thousand, which the company stated was a decrease of $52.3 million, or 18.8%, primarily reflecting lower gross profit.

Fourth Quarter and Brand Commentary

On the call, management said fourth quarter net sales were $333.3 million, a 9.7% decline, and adjusted diluted EPS was $0.44, compared with $0.46. Total retail takeaway decreased 8.4%. Quest retail takeaway declined 2.1%, Atkins declined 22.6% and OWYN declined 7%. The company said a marketing mix analysis found that its past 18 months of brand investments generated returns below industry benchmarks and its own expectations.

Balance Sheet and Capital

Cash was $138,425 thousand at August 29, 2026, compared with $98,468 thousand a year earlier. Inventories were $132,458 thousand, compared with $167,217 thousand. The company had approximately $350 million in outstanding term loan indebtedness and a $75 million revolving credit facility with nothing drawn. Net cash provided by operating activities was $181.0 million, compared with $178.5 million.

During fiscal 2026, the company repurchased 11,662,234 shares at an average price of $18.29 per share. About $157.4 million remained available under its repurchase authorization. The 10-K states the company does not expect to declare any dividends in the foreseeable future.

Fiscal 2027 Outlook

Management guided fiscal 2027 net sales to decline 13% to 17%, with a first quarter decline of 19% to 22%, citing the volume effect of price increases and distribution losses. It expects GAAP gross margin to increase 250 to 300 basis points and adjusted EBITDA to decline 9% to 14% as it reinvests in marketing. Capital expenditures are projected at $15 million to $20 million and interest expense at $18 million to $20 million.

The CEO said planned pricing actions are expected to create a near-term volume headwind and that the company is at price points it has not reached before, which makes elasticity difficult to predict. These statements are forward-looking and subject to change.