The Simply Good Foods Company (NASDAQ:SMPL) reported fourth-quarter adjusted earnings and revenue above analyst expectations on Tuesday, although the nutritional snacking company forecast lower sales and adjusted EBITDA for fiscal 2027.
Shares declined approximately 0.40% in premarket trading following the announcement.
Adjusted earnings per share reached $0.44 for the quarter ended August 29, 2026, exceeding the consensus estimate of $0.42. Revenue totaled $333.3 million, above analysts’ expectations of $327.9 million, but declined 9.7% from the corresponding period of the previous year.
The company also reported a full-year net loss for fiscal 2026, including a non-cash impairment charge associated with its Atkins and OWYN brands.
Simply Good Foods recorded adjusted earnings of $0.44 per share for the fourth quarter of fiscal 2026, exceeding the analyst consensus estimate of $0.42 by $0.02.
Quarterly revenue reached $333.3 million, compared with market expectations of $327.9 million.
However, revenue declined 9.7% year over year from $369.0 million in the fourth quarter of fiscal 2025.
The company attributed the decline to reduced retail performance across its brand portfolio.
Atkins recorded a 14.9% decrease in retail performance, while OWYN declined 20.6%.
These brand-level developments contributed to the reduction in quarterly revenue despite the company exceeding analysts’ earnings and sales forecasts.
Simply Good Foods forecast a year-over-year decline in net sales of between 19% and 22% for the first quarter of fiscal 2027.
The company also expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to decrease between 28% and 33% compared with the corresponding period of the previous year.
The projections indicate that management anticipates further reductions in revenue and adjusted operating profitability during the opening quarter of the new fiscal year.
The first-quarter outlook forms part of the company’s broader plan to address performance across its nutritional snacking brands.
For fiscal 2027, Simply Good Foods expects net sales to decline between 13% and 17% year over year.
The midpoint of the projected range represents a 15% reduction in annual sales.
Adjusted EBITDA is forecast to decrease between 9% and 14% compared with fiscal 2026.
Despite the anticipated declines in sales and adjusted EBITDA, the company expects gross margins to improve by 250 to 300 basis points during the fiscal year.
The margin forecast represents an improvement of 2.5 to 3.0 percentage points.
The guidance reflects management’s expectations for the company’s financial performance as it implements operational and brand-related measures.
Joe Scalzo, President and Chief Executive Officer of Simply Good Foods, addressed the company’s expectations for fiscal 2027 and the actions being taken to improve its operations.
“Fiscal 2027 will be a challenging but important year in our turnaround,” Scalzo said.
He added:
“While we expect significant declines in net sales and Adjusted EBITDA, we are taking the actions necessary to restore the economic foundation of the business and rebuild brand momentum.”
The comments accompanied the company’s forecasts for lower annual revenue and adjusted EBITDA, alongside an expected improvement in gross margins.
Management indicated that fiscal 2027 will involve measures intended to address the financial performance of the business and its brands.
For the full fiscal year 2026, Simply Good Foods reported a net loss of $155.9 million, equivalent to a loss of $1.69 per share.
The result compared with net income of $103.6 million in fiscal 2025.
The fiscal 2026 loss included a $331.0 million non-cash impairment charge related to goodwill and brand intangible assets associated with Atkins and OWYN.
The impairment affected the company’s reported annual earnings but did not represent an equivalent cash outflow during the period.
The charge was a significant component of the difference between the company’s fiscal 2026 net loss and the profit recorded in the previous year.
Simply Good Foods identified reduced retail performance across its brands as a factor behind the fourth-quarter revenue decline.
Atkins recorded a 14.9% decrease, while OWYN reported a 20.6% reduction.
These declines accompanied the company’s overall quarterly revenue decrease of 9.7%.
Both brands were also included in the goodwill and intangible asset impairment charge recognized during fiscal 2026.
The company’s fiscal 2027 outlook anticipates continued pressure on sales as management implements measures intended to improve operating performance and brand activity.
Simply Good Foods shares fell approximately 0.40% during Tuesday’s premarket trading following the publication of its fourth-quarter results and fiscal 2027 guidance.
The movement occurred despite adjusted earnings per share and revenue exceeding analyst consensus estimates.
The company also forecast a decline in full-year fiscal 2027 net sales of 13% to 17% and a reduction in adjusted EBITDA of 9% to 14%.
The supplied information does not establish a single cause for the share price movement.
Simply Good Foods’ fourth-quarter results showed adjusted earnings and revenue above market expectations, although sales declined compared with the previous year.
The company also reported reduced retail performance at Atkins and OWYN and recognized a $331.0 million non-cash impairment charge during fiscal 2026.
For fiscal 2027, management expects lower net sales and adjusted EBITDA, while forecasting a gross margin improvement of 250 to 300 basis points.
Future financial reports will provide information about the company’s progress against these projections, developments in Atkins and OWYN retail performance, and the implementation of its turnaround measures.
The company’s first-quarter fiscal 2027 results will also provide an initial indication of performance relative to its forecast sales decline of 19% to 22% and adjusted EBITDA reduction of 28% to 33%.
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