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. GlobeNewswire
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.
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.
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. Investing.com
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.
