Shares of Simply Good Foods Company (SMPL) tumbled 7.41% in pre-market trading following the release of its fiscal fourth-quarter results and disappointing outlook for the upcoming year. The company, known for its Atkins and Quest nutrition brands, reported a net loss and missed earnings expectations, raising concerns among investors.

The nutrition food company posted a net loss of $12.4 million for the quarter, a stark contrast to the profit reported in the same period last year. Adjusted earnings per share came in at $0.46, falling short of analyst estimates of $0.47 to $0.48. While revenue slightly beat expectations at $369 million, it still represented a 1.77% decrease from the previous year. The company's performance was significantly impacted by a $60.9 million impairment charge related to the Atkins brand, reflecting challenges faced during the fiscal year and updated revenue projections.

Adding to investor concerns, Simply Good Foods provided a cautious outlook for fiscal year 2026. The company expects net sales growth to range between -2% and +2% year-over-year, with gross margins projected to decline between 100 and 150 basis points. The weak guidance, coupled with the reported quarterly loss and missed earnings estimates, appears to be driving the significant pre-market sell-off as traders reassess the company's growth prospects in the competitive nutrition food market.