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Atkins sales dropped 24.6%, outweighing gains of 1.1% for Quest and 3.6% for OWYN.
Fiscal 2026 net sales are now projected at $1.35 billion to $1.36 billion, down 6% to 7%.
The Simply Good Foods Company (SMPL - Free Report) reported third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics declined year over year.
SMPL’s Quarterly Performance: Key Metrics and Insights
Simply Good Foods posted adjusted earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 17.6% from 51 cents reported in the same quarter last year.
The Simply Good Foods Company Price, Consensus and EPS Surprise
The company reported net sales of $357 million, which beat the Zacks Consensus Estimate of $343 million. However, the metric decreased 6.3% from $381 million posted in the year-ago period. This decrease was caused by a 24.6% decline in Atkins, which was partially offset by growth of 1.1% for Quest and 3.6% for OWYN. Performance was largely driven by anticipated distribution-related declines for Atkins and softer retail takeaway.
Total Simply Good Foods retail takeaway decreased 6.7%, due to a 1.3% decline in OWYN and 23.9% in Atkins, which was largely in line with expectations due to known distribution losses. However, the decline was offset by 1.4% growth in Quest.
Gross profit decreased 16.2% year over year to $116.1 million. This decrease was due to lower sales volumes, higher input costs, and restructuring charges. Gross margin contracted 390 basis points to 32.5%, primarily due to $6.2 million of restructuring costs (representing a 180-basis-point headwind) and higher input costs.
Selling and marketing expenses totaled $39.2 million, an increase of 15.9% compared with the prior year, due to investments in the company's selling capabilities, increased brand-building initiatives to support long-term growth and $1.1 million of restructuring costs.
Adjusted EBITDA was $57.2 million, representing a decline of 22.5% compared with the same period last year.
SMPL Stock: Other Updates & Developments
Simply Good Foods exited the quarter with cash of $123.9 million and an outstanding principal balance of $400 million on its term loan. For the 39 weeks ended May 30, 2026, cash flow from operations totaled $102.2 million.
In the quarter, the company repurchased approximately 2.1 million shares of its common stock for a total of about $25 million.
Sneak Peek Into SMPL’s Outlook
The company has updated its fiscal-year 2026 outlook and now expects net sales of $1.35 billion to $1.36 billion, representing a 6% to 7% year-over-year decline. This compares with its previous guidance of $1.31 billion to $1.35 billion, which implied a 7% to 10% year-over-year decline.
Gross margin is now projected to decline roughly 375 basis points, compared with the previous expectation of a 300-350 basis point decrease.
Adjusted EBITDA is now expected to be between $220 million and $225 million, indicating a decline of 19% to 21% year over year. This compares with its previous guidance of $217 million and $225 million, which is a decline of 19% to 22% year over year.
For the fourth quarter of fiscal 2026, the company expects net sales to be between $322 million and $332 million, representing a year-over-year decline of 10% to 13%, and adjusted EBITDA to range from $52 million to $57 million, indicating a decline of 14% to 22%.
This Zacks Rank #3 (Hold) stock has gained 17.1% in the past three months against the industry’s decline of 10.8%.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged-goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 19.3%, on average.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 1.4% and 4.7%, respectively, from the year-ago figures.
View the Zacks #1 Rank List
Image: Bigstock
Simply Good Foods Q3 Earnings Beat Estimates, Sales Decline 6.3% Y/Y
Key Takeaways
The Simply Good Foods Company (SMPL - Free Report) reported third-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. However, both metrics declined year over year.
SMPL’s Quarterly Performance: Key Metrics and Insights
Simply Good Foods posted adjusted earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 35 cents. However, the bottom line declined 17.6% from 51 cents reported in the same quarter last year.
The Simply Good Foods Company Price, Consensus and EPS Surprise
The Simply Good Foods Company price-consensus-eps-surprise-chart | The Simply Good Foods Company Quote
The company reported net sales of $357 million, which beat the Zacks Consensus Estimate of $343 million. However, the metric decreased 6.3% from $381 million posted in the year-ago period. This decrease was caused by a 24.6% decline in Atkins, which was partially offset by growth of 1.1% for Quest and 3.6% for OWYN. Performance was largely driven by anticipated distribution-related declines for Atkins and softer retail takeaway.
Total Simply Good Foods retail takeaway decreased 6.7%, due to a 1.3% decline in OWYN and 23.9% in Atkins, which was largely in line with expectations due to known distribution losses. However, the decline was offset by 1.4% growth in Quest.
Gross profit decreased 16.2% year over year to $116.1 million. This decrease was due to lower sales volumes, higher input costs, and restructuring charges. Gross margin contracted 390 basis points to 32.5%, primarily due to $6.2 million of restructuring costs (representing a 180-basis-point headwind) and higher input costs.
Selling and marketing expenses totaled $39.2 million, an increase of 15.9% compared with the prior year, due to investments in the company's selling capabilities, increased brand-building initiatives to support long-term growth and $1.1 million of restructuring costs.
Adjusted EBITDA was $57.2 million, representing a decline of 22.5% compared with the same period last year.
SMPL Stock: Other Updates & Developments
Simply Good Foods exited the quarter with cash of $123.9 million and an outstanding principal balance of $400 million on its term loan. For the 39 weeks ended May 30, 2026, cash flow from operations totaled $102.2 million.
In the quarter, the company repurchased approximately 2.1 million shares of its common stock for a total of about $25 million.
Sneak Peek Into SMPL’s Outlook
The company has updated its fiscal-year 2026 outlook and now expects net sales of $1.35 billion to $1.36 billion, representing a 6% to 7% year-over-year decline. This compares with its previous guidance of $1.31 billion to $1.35 billion, which implied a 7% to 10% year-over-year decline.
Gross margin is now projected to decline roughly 375 basis points, compared with the previous expectation of a 300-350 basis point decrease.
Adjusted EBITDA is now expected to be between $220 million and $225 million, indicating a decline of 19% to 21% year over year. This compares with its previous guidance of $217 million and $225 million, which is a decline of 19% to 22% year over year.
For the fourth quarter of fiscal 2026, the company expects net sales to be between $322 million and $332 million, representing a year-over-year decline of 10% to 13%, and adjusted EBITDA to range from $52 million to $57 million, indicating a decline of 14% to 22%.
This Zacks Rank #3 (Hold) stock has gained 17.1% in the past three months against the industry’s decline of 10.8%.
Image Source: Zacks Investment Research
Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA holds a Zacks Rank of 2 (Buy). Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures.
Post Holdings, Inc. (POST - Free Report) operates as a consumer-packaged-goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2. Post Holdings delivered a trailing four-quarter earnings surprise of 19.3%, on average.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 1.4% and 4.7%, respectively, from the year-ago figures.