New York, Jan 8, 2026, 13:00 (ET) — Regular session.
Shares of The Simply Good Foods Company (SMPL.O) rose about 8.5% to $21.02 in early afternoon trading on Thursday after the maker of Quest and Atkins snacks reported quarterly results and expanded its stock repurchase plan. The stock touched $22 earlier in the session.
Simply Good Foods said fiscal first-quarter net sales for the 13 weeks ended Nov. 29, 2025 slipped 0.3% to $340.2 million and net income fell to $25.3 million, or 26 cents a share. Adjusted diluted earnings, which exclude some acquisition and other one-off costs, were 39 cents a share, down from 49 cents, and Quest net sales rose 9.6% while Atkins fell 16.5% and OWYN slipped 3.3%. The company reaffirmed its fiscal 2026 outlook and CEO Geoff Tanner said results were “modestly ahead of our expectations,” noting OWYN was still working through the fallout from a previously disclosed product-quality issue. 1
Margins are the sore spot. Gross margin narrowed to 32.3%, down 590 basis points (1 basis point is 0.01 of a percentage point), as input inflation and a first full quarter of tariff costs hit, the release showed. Adjusted EBITDA — earnings before interest, tax, depreciation and amortization — fell 20.6% to $55.6 million, but management again pointed to a stronger second half and said it expects margin expansion and EBITDA growth to start in the third quarter. 2
The board approved a $200 million increase to the share repurchase program, leaving about $224 million available as of Jan. 6, the company said. It bought about 5.0 million shares for roughly $100 million during the quarter. 3
Investors appeared to look through the year-on-year profit drop, with adjusted profit per share landing above forecasts. Analysts had been looking for 36 cents on revenue of $335.93 million, according to Investing.com; the company reported adjusted diluted EPS of 39 cents on $340.2 million. On the earnings call, CFO Chris Beeler called buybacks “a very attractive use of cash” and said the firm expects fiscal second-quarter net sales to fall 3.5% to 4.5%, while management also fielded questions about demand tied to GLP-1 weight-loss drugs, medicines that curb appetite. 4
But the bounce rests on timing more than one quarter. If tariff bills and other input costs stay sticky, or if price increases start to bite demand, the promised second-half turn in margins could slip. Atkins also needs to stop bleeding shelf space, and OWYN has to rebuild momentum after the quality stumble.
