The Simply Good Foods Company (SMPL) SEC Filings & Earnings Calls

Sustained brand impairment risk

“As a result of the sustained decline in the Company's share price and declines in the Company's market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of the goodwill reporting unit was less than its carrying amount.” · word for word

Atkins distribution erosion

“The Atkins brand has had, and continues to have, a large retail presence on-shelf, which is being reduced in the current fiscal year and could be reduced in future periods.” · word for word

OWYN brand viability

“In fiscal year 2026, OWYN experienced poor velocities, including on newly expanded distribution, which has resulted in distribution-related declines in the current fiscal year and could continue to be reduced in future periods.” · word for word

Input cost and tariff pressure

“We continue to monitor macroeconomic trends and uncertainties such as consumer and economic uncertainty, key ingredient inflation, supply chain challenges, and the effects of tariffs, which may have adverse effects on net sales and profitability.” · word for word

Atkins brand decline accelerating: -24.6% sales decline due to distribution losses and softer retail takeaway, with no near-term recovery visibility.

“Atkins decline of 24.6%; Atkins distribution related declines were largely as expected; Atkins declined 23.9%, which was largely as expected for the brand due to known distribution losses.”

Significant margin compression: gross margin down 390bps, adjusted EBITDA down 22.5%, with further margin decline guided for FY.

“Gross margin was 32.5%, a decline of 390 basis points; Adjusted EBITDA of $57.2 million decreased 22.5%; Gross margins expected to decline approximately 375 basis points year-over-year.”

Impairment risk: $82M impairment in quarter, $331M YTD, driven by stock price decline and updated projections, indicating potential further write-downs.

“Recognized an aggregate $82.0 million non-cash, impairment charge; Recognized an aggregate $331.0 million non-cash, impairment charge; The impairment is largely the result of declines in stock price.”

Potential disruption in human resources leadership during corporate realignment.

“announced several corporate realignment initiatives. As noted in this announcement, Ms. Amy Held... will depart the Company”

Input cost inflation from cocoa and tariffs pressuring margins.

“driven by inflationary costs, most notably cocoa, and tariffs.” · word for word

Brand impairment risk due to declining revenue projections.

“recognized an aggregate $249.0 million non-cash, impairment charge related to the Atkins brand and OWYN brand intangible assets.” · word for word

Consumer demand slowdown across key brands.

“Net sales of $326.0 million decreased 9.4% versus the comparable year ago period, driven by declines for Atkins and OWYN of 26.6% and 16.8%, respectively.” · word for word

Brand impairment risk

“The Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts.” · word for word

Distribution loss risk

“The Atkins brand has had, and continues to have, a large retail presence on-shelf, which is being reduced in the current fiscal year and could be reduced in future periods.” · word for word

Tariff and commodity cost risk

“The Company’s gross margin was affected by the unfavorable effects of higher commodity expenses and tariffs compared to the prior year.” · word for word

Leadership transition may introduce execution risk.

“Departure of Geoff E. Tanner and appointment of Joseph E. Scalzo.”

Leadership transition risk despite returning CEO

“CEO departure and appointment of former CEO; company reaffirms FY2026 outlook”

Gross margin pressure from commodity inflation and tariffs

“Gross profit margin was 32.3% of net sales for the thirteen weeks ended November 29, 2025, a decrease of 590 basis points from 38.2% of net sales for the thirteen weeks ended November 30, 2024. The decrease in gross profit margin was primarily driven by unfavorable commodity expenses compared to the prior year period and lower gross profit margins of the OWY” · word for word

Atkins brand distribution decline

“During the thirteen weeks ended November 29, 2025, our results of operations were primarily driven by continued distribution-related declines for Atkins and modest declines for OWYN, which were partially offset by Quest volume-driven growth.” · word for word

Tariff and macroeconomic uncertainty

“Economic pressures on customers and consumers, including the challenges of high inflation and the effects of tariffs, may negatively affect our net sales and profitability in the future.” · word for word

Input cost inflation and tariff expenses pressuring gross margins; expected to persist.

“Gross margin down 590 bps; tariff expenses; input inflation.”

Atkins brand decline of 16.5% signals potential brand weakness.

“Atkins net sales declined 16.5%.”

Input Cost Inflation

“Gross margin was therefore 36.2%, a 220 basis point decrease compared to last year, reflecting inflation and dilution from OWYN.” · word for word

Atkins Brand Decline

“while Atkins declined about 10%.” · word for word

Integration Risk

“By the end of fiscal year 2025, the Company had largely completed the successful integration of the OWYN brand” · word for word

Increased debt could raise leverage, but extended maturities reduce refinancing risk.

“incremental term facility ... to fund working capital and general corporate purposes, including reinvestment, growth capital expenditures and repurchases”

Customer concentration risk

“Sales to our largest retailer customer, Walmart Inc., represented approximately 31% of consolidated sales in fiscal year 2025.” · word for word

Tariff-induced cost inflation

“Recently, the United States announced tariffs on imports from a broad range of countries... which we anticipate will cause inflationary pressures and higher costs on certain of our ingredients and packaging.” · word for word

Atkins shelf space reduction

“During fiscal year 2025, Walmart reduced the number of Atkins products it carries in its stores.” · word for word

Dependence on limited number of contract manufacturers

“We rely on a limited number of contract manufacturers to manufacture our products.” · word for word