The Simply Good Foods Company reported financial results for the fourth quarter and full fiscal year ended August 29, 2026, revealing a decline in sales and profitability compared to the prior year. For the fourth quarter, net sales were $333.3 million, a decrease of 9.7% from the $369.0 million reported in the comparable period. This decline was driven by softer retail takeaway and velocity-related distribution pressure, specifically impacting the Atkins and OWYN brands, which saw sales drops of 14.9% and 20.6%, respectively.
Despite the sales decline, the company reported net income of $30.5 million for the quarter, reversing a prior-year net loss of $12.4 million. Reported earnings per diluted share were $0.34, compared to a loss of $0.12 in the prior year. However, Adjusted Diluted EPS decreased to $0.44 from $0.46, and Adjusted EBITDA fell to $57.5 million from $66.2 million.
For the full fiscal year 2026, net sales totaled $1,356.5 million, a decrease of 6.5% from the previous year. The company recorded a net loss of $155.9 million, compared to net income of $103.6 million in fiscal 2025. Adjusted Diluted EPS was $1.70, down from $1.92, and Adjusted EBITDA decreased to $225.9 million from $278.2 million. The company noted that the net sales decline was driven by a 20.9% drop in Atkins sales and a 9.7% drop in OWYN sales, partially offset by 0.7% growth in Quest.
Significant non-cash impairment charges were recorded in fiscal 2026. Prior to the fourth quarter, the company recognized $331.0 million in impairment charges related to Goodwill and the intangible assets of the Atkins and OWYN brands. This action was taken as part of an evaluation of the carrying value of the brands, largely due to current performance, updated revenue projections, and a decline in stock price.
Regarding fiscal year 2027, the company provided an outlook that anticipates further declines in sales and profitability. Net sales are expected to decline between 13% and 17% year-over-year. Gross margins (GAAP) are expected to increase between 250 and 300 basis points. Adjusted EBITDA is projected to decline between 9% and 14% year-over-year. The company also expects net interest expense to range from $18 million to $20 million and capital expenditures between $15 million and $20 million.
For the first quarter of fiscal 2027, the company forecasts net sales to decline between 19% and 22%, gross margins to increase by approximately 100 basis points, and Adjusted EBITDA to decline between 28% and 33%.
