Simply Good Foods Reports Slight Decline in Net Sales and Gross Profit for Thirteen Weeks Ended November 29, 2025

The Simply Good Foods Company reported a slight decline in net sales for the thirteen weeks ended November 29, 2025, totaling $340.2 million, down 0.3% from $341.3 million in the same period last year. The decrease was attributed to distribution-related declines for the Atkins brand and modest declines for OWYN, which were partially offset by growth in the Quest brand. Gross profit also fell to $109.9 million, a decrease of 15.8% compared to the prior year, resulting in a gross profit margin of 32.3%, down 590 basis points from 38.2%. The increase in cost of goods sold, which rose by 9.3% to $230.3 million, was primarily driven by higher ingredient and packaging costs.

Operating expenses decreased by 4.7% to $72.3 million, reflecting a planned reduction in marketing spend for Atkins and lower integration expenses related to the OWYN acquisition. The company reported income from operations of $37.6 million, down from $54.6 million a year earlier, leading to a net income of $25.3 million, a decline of 32.8% from $38.1 million in the previous year. The effective tax rate increased to 25.3%, up from 20.0%, primarily due to the absence of excess tax benefits from stock option exercises recognized in the prior year.

In terms of strategic developments, Simply Good Foods has continued to focus on its core brands—Quest, Atkins, and OWYN—while integrating operations following the OWYN acquisition. The company has also been actively managing its product portfolio, working to replace lower-performing Atkins products with higher-performing Quest and OWYN offerings. The company’s stock repurchase program remains robust, with approximately $71 million available for repurchases as of November 29, 2025. During the quarter, the company repurchased nearly 5 million shares at an average price of $19.99 per share.

Operationally, Simply Good Foods reported a significant increase in cash provided by operating activities, which rose to $50.1 million from $32.0 million in the prior year, largely due to favorable changes in working capital. The company’s cash and cash equivalents stood at $194.1 million at the end of the reporting period. The company has also increased its long-term debt to $400 million following a recent amendment to its credit agreement, which extends the maturity date of its term loans to March 2030.

Looking ahead, Simply Good Foods anticipates continued pressure on margins due to rising commodity costs and tariffs, but expects to benefit from pricing actions and productivity initiatives implemented in response to these challenges. The company remains focused on enhancing its brand positions in the marketplace and is committed to investing in its growth strategy while navigating the current economic landscape.