The Simply Good Foods Company (NASDAQ:SMPL) Q2 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary highlights several positive factors: EPS exceeded expectations, a strategic acquisition of OWYN, and a $50 million share repurchase program. Despite competitive pressures and supply chain challenges, the positive EPS and acquisition of OWYN, which is expected to drive future growth, are strong indicators. The Q&A reveals some concerns about Atkins' sales guidance, but the company's proactive approach to product innovation and distribution expansion for OWYN suggests optimism. Given the company's market cap, these factors collectively suggest a positive stock price movement over the next two weeks.
Key Financial Performance
Earnings Per Share (EPS) $0.46, up from $0.39 year-over-year, reflecting better-than-expected earnings performance.
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Operating Highlights
Earnings Per Share (EPS): The company reported an EPS of $0.46, exceeding expectations of $0.39.
Acquisition: The acquisition of Only What You Need, Inc. (OWYN) was completed on June 13, 2025.
CFO Retirement: CFO Shaun Mara announced his retirement this summer after a long tenure with the company.
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Risk or Challenges
Competitive Pressures: The company faces ongoing competitive pressures in the health and nutrition sector, which may impact market share and pricing strategies.
Regulatory Issues: There are potential regulatory challenges that could affect product formulations and marketing strategies, particularly in the food and beverage industry.
Supply Chain Challenges: The company may encounter supply chain disruptions that could affect product availability and operational efficiency.
Economic Factors: Economic fluctuations, including inflation and changes in consumer spending habits, could adversely impact sales and profitability.
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Guidance & Outlook
Acquisition of OWYN: The acquisition of Only What You Need, Inc. (OWYN) was completed on June 13, 2025.
Earnings Expectations: The company reported EPS of $0.46, beating expectations of $0.39.
Fiscal Year 2025 Outlook: Discussion of fiscal year 2025 outlook will be provided in the call.
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Shareholder Return Plan
Share Repurchase Program: The company announced a share repurchase program of $50 million, which is expected to be executed over the next 12 months.
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Key Q&A
Q:Can you walk through what’s driving the reduction in sales guidance for Atkins?
A:We expected accelerated declines in Q2 due to not repeating significant display space from last year. We lost a little more distribution at a key club customer than we thought, which is the extent of the change in our guidance.
Q:What prompted you to pursue the relaunch of the shakes now?
A:The previous version was a me-too product that didn’t do well. We challenged ourselves to flip the macros on a milkshake, leading to a new product with 45 grams of protein, 2 grams of sugar, and 4 grams or less of net carbs.
Q:What should we be looking for over the next 12 to 18 months from Atkins as signals of success?
A:We expect a smaller physical footprint for Atkins, but we are committed to stabilizing the brand. We will look at the underlying base velocity of the business to gauge success.
Q:What are the specific catalysts driving your confidence in an acceleration in the revenue number in the second half of the year for OWYN?
A:We see continued distribution upside, high velocities, and a strong innovation platform. We believe mid-20% growth is very doable.
Q:How do you build the awareness and household penetration for OWYN?
A:In the near-term, the focus will be on distribution. We will initially focus on building out that distribution before turning on national advertising.
Q:Review of Unclear Management Responses
A:Management appeared to avoid giving a direct answer regarding the specific impact of tariffs on future margins, stating there are many unknowns and that they are still trying to figure it out. Additionally, there was a lack of clarity on how much visibility they have on input costs moving forward.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CEO CFO
Foods expectation
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Greetings Simply
Inc OWYN
MULOC estimate
NASDAQ Transcript
OWYN takeaway
Relations Simply
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brand period
channel today
combination MULOC
discussion today
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geography brand
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period President
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SMPL Transcript
The Simply Good Foods Company (SMPL) Q1 2026 Earnings Call Transcript
Positive1-8
The earnings call reveals a mixed but generally optimistic outlook. Despite some short-term challenges, the company expects significant improvements in the second half of the year, driven by innovation and distribution gains. Share repurchases and a focus on high-growth brands like Quest and OWYN are positive indicators. The market cap suggests a moderate reaction, leading to a positive prediction.
The Simply Good Foods Company (SMPL) Q4 2025 Earnings Call Transcript
Positive10-23
The company demonstrates strong sales growth projections, particularly for OWYN and Quest, despite challenges with Atkins. Strategic initiatives in product placement and innovation are promising. However, declining gross margins and the OWYN issue are concerns. The company's balanced capital allocation and share buybacks add positive sentiment. The market cap suggests moderate stock volatility, leading to a positive forecast for the next two weeks.
The Simply Good Foods Company (SMPL) Q3 2025 Earnings Call Transcript
Unknown7-10
The earnings call presented mixed signals: OWYN's strong growth and distribution expansion are positive, but Atkins' decline and gross margin pressures offset this. The Q&A revealed uncertainties regarding guidance and fiscal '26 performance, with management's vague responses adding to investor uncertainty. The market cap suggests moderate reactions, leading to a neutral prediction.
The Simply Good Foods Company (NASDAQ:SMPL) Q2 2025 Earnings Call Transcript
Positive4-15
The earnings call summary highlights several positive factors: EPS exceeded expectations, a strategic acquisition of OWYN, and a $50 million share repurchase program. Despite competitive pressures and supply chain challenges, the positive EPS and acquisition of OWYN, which is expected to drive future growth, are strong indicators. The Q&A reveals some concerns about Atkins' sales guidance, but the company's proactive approach to product innovation and distribution expansion for OWYN suggests optimism. Given the company's market cap, these factors collectively suggest a positive stock price movement over the next two weeks.
SMPL Slides
SMPL Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
