5 Insightful Analyst Questions From Simply Good Foods's Q1 Earnings Call

Simply Good Foods delivered a first quarter that exceeded Wall Street's expectations, fueled by strong performances from its Quest and OWYN brands. CEO Geoff Tanner attributed robust growth at Quest to “broad-based demand, especially in Salty Snacks,” while OWYN continued to benefit from expanding distribution and high velocities. Management noted that these brands, now comprising roughly 70% of company sales, more than compensated for ongoing declines in Atkins, which faced reduced merchandising support and distribution losses. Tanner emphasized, “We are executing well, adding new doors, winning with innovation, and driving brand awareness.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Simply Good Foods’s Q1 Earnings Call

• John Baumgartner (Mizuho Securities) asked about the drivers behind the reduced sales guidance for Atkins. CEO Geoff Tanner cited additional distribution losses at a key club customer, while CFO Shaun Mara explained that shifting shelf space to Quest improves contribution margins.
• Megan Clapp (Morgan Stanley) inquired about gross margin guidance and the impact of tariffs. Mara emphasized significant uncertainty around tariffs but estimated a $5–10 million headwind, noting most inflation is already covered for the year.
• Brian Holland (D.A. Davidson) questioned OWYN’s expected revenue acceleration in the second half. Tanner pointed to new distribution wins, ongoing velocity gains, and a low awareness base as key catalysts.
• Matt Smith (Stifel) asked whether the margin gap between Atkins and Quest could narrow. Mara responded that improvement is possible but unlikely in the near term due to differing investment and inflation pressures.
• Steve Powers (Deutsche Bank) probed the company’s ability to mitigate tariff impacts through alternative sourcing or shifting production. Mara stated that while some flexibility exists, changes are constrained by contracts and will take time to implement.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of distribution and innovation gains for both Quest and OWYN, (2) the company’s ability to manage margin pressures amid rising input costs and the evolving tariff landscape, and (3) early signs of stabilization or improvement in Atkins’ base business. Execution on productivity initiatives and successful product launches will also be important markers of progress.

Simply Good Foods currently trades at $30.32, down from $33.20 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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