By Connor Hart

Simply Good Foods said it will implement a turnaround strategy as it cut its full-year outlook, after swinging to a loss and logging lower sales in its fiscal second quarter.

Shares were down 20% to $11.53 in premarket trading.

The packaged-foods maker on Thursday said it now expects net sales for the year between $1.31 billion and $1.35 billion, or down between 10% and 7% from last year. The company had previously guided for net sales in a range between down 2% and up 2%.

The company additionally lowered its 2026 outlook for adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--to between $217 million and $225 million, or down between 22% and 19% from last year. It previously forecast a range between down 4% and up 1%.

Simply Good's new outlook came as it reported disappointing second-quarter results and said it would take action to turn around its performance. In the near term, the company will focus on improving its cost structure and margins, ensuring consistency in its strategic choices, and rebuilding brand investments to drive household penetration, Chief Executive Joe Scalzo said.

"I want to make it quite clear that we are not satisfied with our current performance," he added.

For its quarter ended Feb. 28, Simply Good swung to a loss of $159.7 million, or $1.73 a share, compared with a profit of $36.7 million, or 36 cents a share, a year earlier.

Stripping out one-time items, earnings were 45 cents a share. Analysts polled by FactSet expected adjusted earnings of 40 cents a share.

Quarterly sales fell 9.4% to $326 million, below the $345.4 million that Wall Street modeled.

For the current quarter, Simply Good forecast adjusted Ebitda of $46 million to $50 million on net sales of $329 million to $338 million. Analysts are looking for adjusted Ebitda of $77.3 million on sales of $380 million.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

April 09, 2026 07:46 ET (11:46 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.