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 2026. The company, known for its Atkins and Quest nutrition brands, reported a net loss and missed earnings estimates, raising concerns among investors.

Simply Good Foods posted a quarterly net loss of $12.4 million, a stark contrast to expectations. The adjusted earnings per share came in at $0.46, falling short of the analyst consensus estimate of $0.48. While the company's revenue of $369 million slightly exceeded the projected $368.9 million, it still represented a 1.77% decrease compared to the same period last year.

Adding to investor worries, 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 anticipated to decline between 100 and 150 basis points. Furthermore, a significant $60.9 million impairment charge related to the Atkins brand, attributed to a challenging fiscal year and updated revenue projections, weighed heavily on the quarterly results. These factors combined to drive the substantial pre-market decline, as traders reassessed the company's near-term growth prospects and profitability.