Simply Good Foods Company reported fiscal third-quarter net sales of $357.0 million and an adjusted EBITDA of $57.2 million for the thirteen weeks ended May 30, 2026, marking declines versus the prior-year quarter. The company recorded a GAAP net loss of $52.0 million (loss per diluted share $0.58) and adjusted diluted EPS of $0.42. Management updated fiscal 2026 guidance, forecasting net sales of $1.345–$1.355 billion and adjusted EBITDA of $220–$225 million, with gross margins expected to decline ~375 basis points year-over-year.

Financial Highlights

  • Net sales: $357.0 million for the thirteen weeks ended May 30, 2026 (down from $381.0 million year-ago).
  • Gross profit: $116.1 million; gross margin 32.5% (decline of 390 basis points versus prior year).
  • Operating (loss) from operations: $(49.9) million for the quarter (includes $82.0 million impairment charge).
  • Net (loss) income: $(52.0) million; reported diluted loss per share $0.58.
  • Adjusted Diluted EPS: $0.42; Adjusted EBITDA: $57.2 million (down 22.5% versus prior-year quarter).

Business Highlights

  • Brand performance: Atkins sales declined 24.6% in the quarter driven by known distribution losses; Quest grew 1.1% and OWYN grew 3.6% versus the comparable quarter.
  • Retail takeaway: Total company retail takeaway decreased ~6.7% in the quarter, with Quest up ~1.4%, OWYN down ~1.3% and Atkins down ~23.9%.
  • Restructuring and integration: Period included restructuring actions and related costs (e.g., $6.2 million in gross restructuring costs in quarter) tied to the company’s turnaround priorities and selling capability investments.
  • Balance sheet and liquidity actions: End-of-quarter cash $123.9 million and term loan principal $400.0 million; net debt to trailing twelve-month adjusted EBITDA ratio 1.2x after borrowing $150.0 million concurrent with credit facility extension.
  • Share repurchases: Repurchased ~2.1 million shares for approximately $25 million during the quarter, contributing to a reduced weighted average diluted share count (approx. 90.0 million expected for FY26).

Original SEC Filing:

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