Stocks/SMPL

SMPL

The Simply Good Foods Company
Consumer Defensive·Packaged Foods
$11.52
$1.0B market cap
Claude Rating
6/10SLIGHT BUY
Revenue
$1.4B
Free Cash Flow
$146.0M
Rev Growth
-9.4%
FCF Margin
10.3%
P/FCF
7.1x
EV/FCF
9.1x
Fwd EV/EBITDA
6.4x
Fair Value
$19.50
Upside
+69.3%

The Simply Good Foods Company operates as a consumer packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, pizza, protein chips, recipes, and confectionery products, as well as licensed frozen meals under the Atkins, Atkins Endulge, and Quest brand names. The company distributes its products to various retail channels, such as m

2-Year Price History

$11.86-69.2%
$15$20$25$30$35volMay 24Sep 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2028-Q1355.062.1--37.3--51.5-3.6488.6----------
Est2027-Q4370.062.9--37.0--51.8-5.6437.2----------
Est2027-Q3380.066.5--39.9--58.9-3.8385.4----------
Est2027-Q2340.057.1--33.3--45.9-3.4326.5----------
Est2027-Q1345.056.9--32.8--44.9-3.5280.6----------
Est2026-Q4355.056.8--32.0--44.4-7.1235.7----------
Est2026-Q3365.056.6--31.0--51.1-5.5191.3----------
Est2026-Q2328.037.7--16.4--32.8-8.2140.2----------
Act2026-Q2326.049.244.9-159.78.12.6-5.5107.4396.992.320.3%8.4x13.8x
Act2026-Q1340.234.237.625.350.148.0-2.1194.1444.399.19.8%8.0x17.6x
Act2025-Q4369.0-6.949.2-12.445.427.3-18.098.5304.4101.017.3%-1.7x18.9x
Act2025-Q3381.066.864.641.169.868.1-1.798.0304.7101.617.2%13.6x15.0x
Act2025-Q2359.762.156.936.831.330.8-0.5103.7334.9101.814.8%9.8x16.8x
Act2025-Q1341.362.360.238.132.031.7-0.3121.8386.7101.516.5%7.9x15.6x
Act2024-Q4375.757.159.629.347.843.1-4.6132.5437.3101.415.5%6.1x16.2x
Act2024-Q3334.866.661.541.372.872.0-0.8208.7276.9101.318.2%13.3x14.2x
Act2024-Q2312.255.948.133.146.546.1-0.3135.9278.8101.314.8%10.0x17.1x
Act2024-Q1308.760.551.835.647.546.8-0.7121.4315.1101.115.6%10.0x15.3x
Act2023-Q4320.462.755.836.660.758.6-2.187.7327.7100.917.0%9.1x16.7x
Act2023-Q3324.861.654.235.454.446.0-8.468.8367.4100.916.5%8.1x19.3x
Act2023-Q2296.649.242.525.644.644.0-0.663.2410.9100.813.1%5.8x17.5x
Act2023-Q1300.959.252.535.98.77.6-1.254.1447.0100.716.1%8.4x16.2x
Act2022-Q4274.249.343.530.142.741.7-1.167.5454.2100.713.8%9.2x20.3x
Act2022-Q3316.574.755.538.837.636.3-0.456.7454.8102.216.5%15.3x--
Act2022-Q2296.740.546.218.537.135.5-1.751.5479.0100.413.6%7.7x--
Act2022-Q1281.346.758.121.2-7.3-11.5-2.735.5480.497.920.7%7.3x--

AI Analysis

LLM Evaluations

Claude6/10SLIGHT BUYFV: $19.50

SMPL is a deeply discounted consumer staples company trading at 8x P/FCF and under 1x P/S, reflecting legitimate concerns about Atkins' structural decline, margin compression from cocoa inflation, and CEO turnover. However, the market appears to be pricing in a permanently impaired business when in reality Quest (63% of sales, growing double-digits) remains a strong franchise in the secular protein-snacking trend, and margins should recover meaningfully in H2 FY2026 as cocoa hedges reset and pricing actions take hold. The aggressive buyback at depressed levels is shareholder-friendly if the business stabilizes. At current prices, you're essentially getting Quest at a mid-single-digit FCF multiple with Atkins and OWYN as free optionality. The key question is whether Quest's growth can continue to offset Atkins' decay and whether the $1.1B intangible asset is adequately valued — but at 0.97x sales for a business generating 12% FCF margins, significant downside appears priced in.

Catalyst H2 FY2026 margin recovery as favorable cocoa contracts kick in, demonstrating the cost headwinds were transitory; successful Quest innovation launches (Overload bar) driving distribution gains; potential Atkins stabilization via GLP-1 repositioning; continued aggressive buybacks at depressed valuations reducing share count 10%+ annually.
Risk Quest growth deceleration as the protein bar/snack category commoditizes and private-label penetration increases, combined with a potential $200-400M impairment charge on Atkins intangibles that would destroy book value and potentially trigger covenant issues on the newly expanded credit facility.
Trend
DETERIORATING
Mgmt
5/10
Quarter
3/10
Exp. Move
-5.0%

Latest Earnings Call

Transcript Summary

Simply Good Foods reported flat Q1 2026 net sales of $340.2 million, as strong performance from Quest and OWYN was offset by a 19% consumption decline at Atkins. Quest Salty Snacks surged 40%, while OWYN saw 18% consumption growth despite shipment lags from inventory adjustments. Gross margins were squeezed by 590 basis points due to cocoa inflation and tariffs, leading to a 20.6% drop in adjusted EBITDA to $55.6 million. Management reaffirmed full-year guidance, projecting a second-half recovery driven by new innovation, distribution gains, and easing input costs. A notable strategic development is a clinical study showing Atkins helps GLP-1 users retain muscle mass, which will anchor new marketing efforts. Demonstrating confidence in their long-term trajectory, the company repurchased 7% of its shares in Q1 and increased its buyback authorization by $200 million. While Q2 is expected to remain soft due to pricing elasticities and promotional shifts, the company anticipates double-digit profit growth by Q4 as productivity gains and lower-cost cocoa contracts begin to flow through the financial statements.

Valuation & Metrics

Market Stats

Price$11.52
Market Cap$1.0B
Enterprise Value$1.3B
P/S Ratio0.7x
P/FCF7.1x
EV/FCF9.1x
FCF Margin (TTM)10.3%
FCF Yield14.0%
Dividend Yield (TTM)--
Annual Dilution-9.3%
CurrencyUSD

TTM Financial Snapshot

Revenue$1.4B
Net Income$-105.7M
Free Cash Flow$146.0M

Revenue Growth (YoY)-9.4%
EBITDA Margin10.1%
Net Margin-7.5%
FCF Margin10.3%
CapEx % of Revenue1.9%
SBC % of Revenue0.5%
ROIC16.1%
WC Change % Rev-0.1%
Interest Coverage7.5x

DCF Fair Value Estimate

$18.86
+63.7% upside
Fair Enterprise Value$2.0B
− Net Debt$289M
= Fair Equity$1.7B
Revenue Growth3.7% → 2.5%
FCF Margin10.3% → 14.0%
Discount Rate14.0%
Terminal EV/FCF12.0x

Forward Outlook & Risk

Short Interest

Short % of Float6.1%
Short Shares5.0M
Days to Cover1.7
Change (vs Prior)+20.0%
Short % Float History
6.10%-0.40pp
4.0%5.0%6.0%7.0%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)56%
Put IV (ATM)55%
ATM Spread0.84%
Call $OI (near money)$112K
Put $OI (near money)$259K
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$12.5
Major Expirations3
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$2.50$7.50/$10.601--/$0.750
$5.00$6.00/$8.900--/$0.750
$7.50$3.70/$5.700--/$0.200
$10.00$0.95/$3.800$0.30/$0.45750
$12.50$0.75/$0.856$1.25/$1.450
$15.00--/$0.350$2.80/$4.200
$17.50--/$1.750$5.10/$6.700
$20.00--/$0.950$7.60/$9.300
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-1.6%
Forward FCF Margin12.4%
Forward EBITDA Margin14.9%
Forward P/FCF6.0x
Forward EV/FCF7.7x
Forward Int. Coverage9.5x
Model Risk Score6/10
Bankruptcy Odds3%
Est. Borrow Rate6.5%
Terminal EV/FCF12.0x
LT Growth2.5%
LT FCF Margin14.0%

Employees

Headcount316
Revenue / Employee$4,481,671
Gross Profit / Employee$1,472,013
2022: 260 → 2023: 271 → 2024: 316 → 2025: 328 (8% CAGR)

Institutional Ownership

Headline & net flow

NET BUYING

In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 22.3% of float, sold 13.7%. 8 filers moved >1% of shares (5 buying, 3 selling).

Net flow · Q1 2026still filing
+8.6% of float (net)
Bought 22.3% · Sold 13.7%
272 filers reported (last quarter: 274)

Ownership composition

Active
76.6%(-124.1% YoY)
255 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
31.0%(-84.1% YoY)
6 filers
Vanguard, iShares, SPDR
Market makers
1.2%(-0.3% YoY)
6 filers
Citadel, Susquehanna
Insiders
7.7%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
BlackRock, Inc.Passive$188M$34.39−$10.6M−$9.1M-0.2%$5.69T
BTIM Corp.$52.2M$32.54+$4.7M+$9.1M-0.5%$12.16B
STATE STREET CORPPassive$48.3M$36.99−$2.4M−$3.8M-0.2%$2.89T
DIMENSIONAL FUND ADVISORS LPPassive$43.1M$34.02−$13.9M−$10.9M-0.4%$480.92B
River Road Asset Management, LLC$43.0M$17.38+$20.3M+$43.0M-0.6%$8.82B
FMR LLC$40.5M$36.69−$38.4M−$115M+0.3%$1.89T
SILVERCREST ASSET MANAGEMENT GROUP LLC$32.3M$29.11+$5.8M+$5.3M-0.3%$13.84B
GEODE CAPITAL MANAGEMENT, LLCPassive$31.6M$35.72−$1.8M−$727K+2.3%$1.61T
LSV ASSET MANAGEMENT$29.5M$14.35+$29.5M+$29.5M+0.0%$46.40B
FULLER & THALER ASSET MANAGEMENT, INC.$27.5M$36.25+$77K−$14.2M-0.0%$29.55B
WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC$27.4M$28.70−$3.1M+$27.4M-0.4%$30.11B
T. Rowe Price Investment Management, Inc.$23.8M$34.36−$3.4M−$50.7M-1.3%$145.22B
MORGAN STANLEY$22.4M$27.90−$5.6M+$11.7M-0.3%$1.65T
WELLINGTON MANAGEMENT GROUP LLP$21.8M$33.43+$5.6M−$38.4M+0.1%$533.98B
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$21.1M$20.85+$13.6M+$20.9M+0.1%$184.72B
AMERIPRISE FINANCIAL INC$18.1M$22.89+$5.9M+$13.2M-0.1%$430.96B
CHARLES SCHWAB INVESTMENT MANAGEMENT INC$17.4M$30.90+$664K+$2.5M+1.0%$645.81B
BROWN ADVISORY INC$16.6M$17.47+$16.4M+$16.6M-0.5%$60.79B
OAKTREE CAPITAL MANAGEMENT LP$16.2M$14.35+$16.2M+$16.2M+1.1%$4.31B
BANK OF AMERICA CORP /DE/$14.9M$27.10+$2.8M+$5.7M-0.1%$1.36T
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
-0.29%
avg per quarter
Holders (ex-self)
-0.28%
excl. this stock
Buyers (this Q)
+0.03%
105 buyers · $0.20B in
Sellers (this Q)
-0.28%
97 sellers · $0.51B out
alpha coverage: 100% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-19.9%
how holders react when this stock falls
On quiet Qs
-9.0%
−10% to +10% baseline
On rallies (+10%+)
-28.4%
how they react when this stock rises
Holders' portfolio flow this Q
+1.4%
inflows — adds are organic
Sellers' portfolio flow this Q
-1.0%
Sellers' overall flow ~ flat.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-4.2%
Holder mid (any stock)
-4.2%
Holder rally (any stock)
-7.4%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

07.7M15.3M23.0M30.7M$14$21$27$33$402021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
FMR LLC2.8MCapital World InvestorsChamplain Investment Partners, LLCT. Rowe Price Investment Management, Inc.1.7MWELLINGTON MANAGEMENT GROUP LLP1.5MFULLER & THALER ASSET MANAGEMENT, INC.1.9MInvesco Ltd.486KBTIM Corp.3.6MJANUS HENDERSON GROUP PLC40KPRICE T ROWE ASSOCIATES INC /MD/964K

Analyst Coverage

Analyst Coverage
Price Targets
Last Quarter (5 analysts)$15.803720.0%
Last Year (17 analysts)$25.2911950.0%
Current Price$11.52

Corporate

Executive Compensation (2023-2025)

Direct Pay$45.8M
Incentive & Other$18.5M
Total Compensation$64.3M
% of Revenue1.6%

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Officers & directors
Buys ($, 12mo)
$1.61M
5 txns · 5 insiders · 110,996 sh
Sells ($, 12mo)
$114K
1 txn · 1 insider · 5,859 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2026-05-14BUYDALEY CLAYTON C JRdirector10,000$11.78$118K$1.32M
2026-04-23BUYKILTS JAMES Mdirector80,000$12.39$991K$2.14M
2025-11-17BUYClawson Michael Lofficer: Chief Commercial Officer5,000$20.00$100K$752K
2025-11-11SELLMatthews Timothy Allenofficer: VP, Controller and CAO5,859$19.47$114K$352K
2025-11-06BUYBealer Christopher Jofficer: Chief Financial Officer9,946$20.01$199K$660K
2025-07-23BUYTanner Geoff Edirector, officer: President and CEO6,050$33.11$200K$3.25M

Order Flow (FINRA, ~3w lag)

18.4%retail+0.0pp
29.5%dark-1.0pp
week of 2026-04-13
10%20%30%40%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Geography (2026-Q2)
North America$319.3M-10%
International$6.7M+5%

Filing Risk Analysis

Filing Risk Scores

The Simply Good Foods Company: Debt-Fueled Buybacks and Brand Decay Disguised as a Strategic Reset

Overall Risk
7/10
Fraud
4/10
Dilution
6/10
Insolvency
4/10
Earnings Overstated
7/10
Hidden Liabilities
3/10
Legal
2/10
Audit Warnings
5/10
Hidden Upside
3/10
Contextually Acceptable
4/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In April 2026, SMPL shares plummeted over 26% following a disastrous Q2 fiscal 2026 report. The company missed revenue estimates by a wide margin ($326M vs. $345M expected) and issued a massive downward revision for FY26 revenue guidance, now forecasting a 7%–10% decline compared to previous expectations of flat-to-modest growth. This was compounded by a $249 million non-cash impairment charge on the Atkins and OWYN brands, leading to a GAAP net loss of $159.7 million (Source: MarketBeat, Simply Wall St).

🐻 Bear Case

The core bull thesis of a 'stable Atkins' funding 'growth brands' has collapsed. Atkins sales fell 26.6% YoY as the brand faces an existential threat from the rise of GLP-1 weight-loss drugs. Meanwhile, the 'growth engine' brands are stalling: Quest growth flattened to just 0.3%, and the recently acquired OWYN brand saw sales drop 16.8%. Analysts at TD Cowen and Morgan Stanley have slashed price targets to as low as $13–$14, citing structural brand decay and a lack of a clear turnaround plan (Source: Seeking Alpha, Intellectia.AI).

🚩 Red Flags

Multiple law firms, including BFA Law and Kirby McInerney LLP, have launched securities fraud investigations following the sudden 18%+ stock drop and guidance cut. Financially, gross margins compressed by 300–350 basis points, and management admitted to losing retail distribution after cutting unprofitable promotions, suggesting a loss of bargaining power with major retailers (Source: Business Wire, StockstoTrade).

⚔️ Competitive Threats

SMPL is being squeezed by intense competition in the 'healthy snacking' aisle where Quest no longer holds a unique advantage. Furthermore, the secular shift toward GLP-1 medications (like Ozempic) is fundamentally altering consumer demand for traditional 'diet' products like Atkins. The company also faces execution risks in integrating OWYN, which has struggled with operational hurdles and product quality concerns (Source: MarketBeat, Intellectia.AI).

💬 Customer Sentiment

Sentiment is deteriorating as the Atkins brand loses cultural relevance among younger, health-conscious demographics who view it as a legacy 'fad diet' brand. Additionally, the OWYN brand has suffered from reported product quality issues, which management acknowledged contributed to its 16.8% sales decline and subsequent impairment (Source: Seeking Alpha).

Full Earnings Call Transcript

Full Earnings Call Transcript — Q2 • 2026-04-09

Operator: Greetings, and welcome to The Simply Good Foods Company Second Quarter Fiscal Year 2026 Conference Call. [Operator Instructions] As a reminder, this