Simply Good Foods Revenue and EPS Beat Consensus in Fourth Quarter
Key Facts
Simply Good Foods’ fourth-quarter fiscal 2026 results topped market estimates for revenue and earnings per share, according to figures reported by MarketBeat. Revenue was $333.31 million, compared with consensus of $327.21 million. Earnings per share were $0.44, versus a consensus estimate of $0.3938. The comparison puts the quarter above analysts’ expectations compiled by MarketBeat, while the company’s official data available for the prior period showed annual sales continuing to decline through the third quarter. The company had announced that its fourth-quarter earnings call was scheduled for October 27, 2026, at 8:30 a.m. Eastern time.
In the third quarter of fiscal 2026, the company reported net sales of $357.0 million, down 6.3% year over year, according to its filing with the U.S. Securities and Exchange Commission. The three brands performed differently in the quarter: Atkins sales fell 24.6%, while Quest sales rose 1.1% and OWYN sales increased 3.6%. Quest and OWYN’s growth was limited compared with Atkins’ contraction and did not prevent an overall decline in sales. These figures provide context for the company’s performance ahead of its fourth-quarter results and show that weaker sales were not uniform across the brands. Sales growth at some brands also does not necessarily mean total sales had returned to growth.
The divergence also appeared in retail takeaway during the third quarter, a measure the company reported separately for each brand. Total takeaway fell about 6.7%, with Atkins down 23.9%. By contrast, Quest takeaway rose 1.4%, while OWYN takeaway declined 1.3%. Comparing takeaway with brand sales shows that performance trends differed from one brand to another: Quest grew on both measures, while Atkins fell sharply, and OWYN’s sales growth contrasted with a decline in takeaway. The overall decrease in takeaway was consistent with the company’s lower net sales in the same quarter.
For the first nine months of fiscal 2026, net sales were $1,023.2 million, down 5.4% from the comparable period, according to the official filing. Atkins sales fell 22.6% and OWYN sales declined 5.5%, while Quest sales rose 3.4%. Atkins’ weakness was the most prominent factor among the brand movements reported for the period, while Quest growth offset part of the decline without preventing a drop in total sales. The nine-month figures are consistent with the third-quarter sales decline, while covering a broader period that shows the contraction continued through that point in the fiscal year. This comparison alone does not provide a basis for attributing fourth-quarter performance to any one brand.
The sales decline was accompanied by pressure on gross margin in the third quarter: the margin was 32.5%, down 390 basis points year over year. The company said restructuring costs of $6.2 million contributed to a 180-basis-point reduction in the margin, alongside higher input costs. That means restructuring accounted for part of the reported decline, while the rest was linked to higher input costs, according to the company’s statement. In July 2026, the company had forecast full-year fiscal sales of between $1.345 billion and $1.355 billion, a gross margin decline of about 375 basis points, and adjusted EBITDA of between $220 million and $225 million. Those forecasts provide an earlier reference for comparing full-year results, but do not by themselves establish whether the company met every range.
Commenting on the third-quarter results, Chief Executive Joe Scalzo said the results “reflect initial steps in our transformation priorities,” adding that the company “remains in the early stages of this work.” The comment tied performance to an initial phase of executing the transformation priorities, without specifying expected numerical results or a timeline for completing the work in the quote. This comes amid clear divergence among the brands: a sharp contraction in Atkins sales, compared with growth at Quest and OWYN in the third quarter, alongside declines in total sales and retail takeaway. The nine-month data also showed sales continuing to fall, despite Quest’s growth over that period. The company is scheduled to discuss its fourth-quarter results on a call on October 27, 2026, at 8:30 a.m. Eastern time, with Scalzo and Chief Financial Officer Chris Biller participating.