Simply Good Foods Forecasts Sales to Fall Up to 17% in Fiscal 2027

The Simply Good Foods Company expects fiscal 2027 net sales to fall 13% to 17%, extending pressure after a weaker fourth quarter. It projects higher gross margin for the year but lower adjusted EBITDA, a non-GAAP measure of operating performance.

The company expects adjusted EBITDA to decline 9% to 14% year over year, while GAAP gross margin increases 250 to 300 basis points. Its outlook includes net interest expense of $18 million to $20 million and capital expenditures of $15 million to $20 million.

For the first quarter of fiscal 2027, Simply Good Foods projects net sales will drop 19% to 22% year over year and adjusted EBITDA will fall 28% to 33%. It expects GAAP gross margin to rise about 100 basis points compared with the same quarter a year earlier.

The forecast follows fourth-quarter net sales of $333.3 million for the 13 weeks ended Aug. 29, 2026, down 9.7% from $369 million a year earlier. Net income was $30.5 million, compared with a $12.4 million loss in the prior-year quarter. Adjusted diluted earnings per share was 44 cents, down from 46 cents, while GAAP diluted earnings per share was 34 cents, compared with a loss of 12 cents. Adjusted EBITDA declined 13.2% to $57.5 million.

Retail takeaway, a measure of consumer purchases at retail, decreased about 8% in the quarter. The company linked sales pressure largely to weaker takeaway and distribution pressure related to sales velocity. President and CEO Joe Scalzo described the year ahead as “a challenging but important year in our turnaround.”

The company expects results to improve as marketing investments take hold, the volume effect of pricing eases and year-over-year comparisons become more favorable. Its fiscal 2027 outlook assumes economic conditions, consumer purchasing behavior and tariff rates remain generally consistent through the year.

For fiscal 2026, net sales were $1,356.5 million, down from $1,450.9 million in fiscal 2025. The company posted a $155.9 million net loss, compared with $103.6 million in net income the year before. It recorded $331 million in noncash impairment charges related to goodwill and intangible assets for its Atkins and OWYN brands. Its portfolio also includes Quest.