By Kit Norton
Simply Good Foods's fiscal 2026 fiscal second-quarter earnings topped Wall Street expectations before the opening bell on Thursday. However, the company missed its own revenue outlook, sending the stock sharply lower.
The food company that specializes in low-carb, low-sugar, and high-protein products announced second-quarter earnings of 45 cents per share, down slightly from 46 cents per share a year ago, while revenue declined 9.4% to $326 million.
Before the report Thursday, Wall Street forecast earnings of 40 cents per share with sales totaling $345.4 million, according to FactSet. Simply Good Foods in January predicted second-quarter revenue of $343.5 to $347.1 million.
The company on Thursday also updated its fiscal 2026 guidance and now expects net sales between $1.31 and $1.35 billion, which would represent a 7% to 10% decline compared to last fiscal year. That's well below the previous guidance for net sales to range between a 2% increase and a 2% decrease.
"I want to make it quite clear that we are not satisfied with our current performance," Simply Good Foods CEO Joe Scalzo said in the earnings release. "Our recent results have not met our expectations, and we have taken immediate and fundamental actions to turnaround both our financial performance and our in-market performance."
Scalzo warned that Simply Good Foods must improve its cost structure and margins.
Simply Good Foods stock was down about 23% in premarket trading Thursday. The stock ended Wednesday down 0.3% to $14.41.
Write to Kit Norton at kit.norton@barrons.com
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April 09, 2026 09:55 ET (13:55 GMT)
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