Simply Good Foods Fuels Growth with OWYN Acquisition, Snacking Trends

TL;DR

**SMPL is a buy, as its strategic acquisitions and alignment with health trends position it for continued market share gains in the booming nutritious snacking category.**

AI Summary

The Simply Good Foods Company (SMPL) reported a strong fiscal year ended August 30, 2025, driven by its strategic focus on nutritious snacking. The company's revenue growth was bolstered by the successful integration of the OWYN acquisition in June 2024, expanding its plant-based protein offerings. Simply Good Foods continues to leverage its Quest, Atkins, and OWYN brands, which are aligned with consumer mega-trends like increased protein consumption and reduced carbohydrates and sugar. Key business changes include the expansion of its product portfolio through line extensions and the OWYN acquisition, enhancing its position in the protein bar, RTD protein shake, and snack categories. Risks include dependence on a global supply chain, volatile ingredient costs, and intense competition in the nutritional snacking industry. The strategic outlook emphasizes continued innovation, organic growth, and potential future acquisitions to further expand its wellness platform.

Why It Matters

Simply Good Foods' performance is crucial for investors seeking exposure to the growing health and wellness food sector, particularly in protein-rich and low-carb segments. The successful integration of OWYN demonstrates SMPL's ability to execute on its acquisition strategy, potentially driving future shareholder value. For employees, continued growth and strategic acquisitions like OWYN suggest job stability and expansion opportunities within a dynamic company. Customers benefit from an expanding range of 'better-for-you' snacking options, including plant-based choices, catering to diverse dietary needs. In the broader market, SMPL's growth highlights the sustained consumer shift towards healthier eating, putting competitive pressure on traditional snack food companies to innovate or acquire.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its dependence on a global supply chain and a limited number of third-party suppliers and contract manufacturers, as highlighted in the 'Risks Related to our Operating Model' section. Volatile ingredient and packaging costs also pose a significant financial risk, potentially impacting margins. Additionally, the 'at will' contracts with a limited number of retailers for a substantial portion of net sales create customer concentration risk.

Analyst Insight

Investors should consider initiating or increasing positions in SMPL, given its strong alignment with consumer health trends and proven acquisition strategy with OWYN. Monitor supply chain stability and ingredient cost fluctuations, as these are key operational risks that could impact future profitability.

Key Numbers

• $3.5B — Market Value of Non-Affiliate Common Stock (As of February 28, 2025, based on a closing price of $37.75 per share, indicating significant public float.)
• 99.86M — Shares Outstanding (As of October 17, 2025, representing the total number of common shares in circulation.)
• 2025-08-30 — Fiscal Year End (The period covered by this 10-K filing, providing a snapshot of the company's financial health.)
• 2024-06 — OWYN Acquisition Date (The month Simply Good Foods acquired Only What You Need, Inc., expanding its plant-based protein portfolio.)
• 2019-11 — Quest Acquisition Date (The month Simply Good Foods acquired Quest Nutrition, LLC, significantly bolstering its snacking platform.)

Key Players & Entities

• The Simply Good Foods Company (company) — registrant
• Quest Nutrition, LLC (company) — acquired by Simply Good Foods in November 2019
• Only What You Need, Inc. (company) — acquired by Simply Good Foods in June 2024
• NCP-ATK Holdings, Inc. (company) — acquired by Simply Good Foods in July 2017
• Nasdaq (regulator) — exchange where common stock is registered
• U.S. Food and Drug Administration (regulator) — regulates product compliance
• Atkins (company) — brand of Simply Good Foods
• Quest (company) — brand of Simply Good Foods
• OWYN (company) — brand of Simply Good Foods
• $3.5 billion (dollar_amount) — aggregate market value of common stock held by non-affiliates as of February 28, 2025

FAQ

Risk Factors

• Supply Chain Dependence [high — operational]: The company relies on a global supply chain for its ingredients and finished goods. Disruptions due to geopolitical events, natural disasters, or pandemics could impact the availability and cost of raw materials, leading to production delays and increased expenses.
• Volatile Ingredient Costs [medium — financial]: Fluctuations in the cost of key ingredients such as whey protein, cocoa, and sweeteners can significantly impact gross margins. The company may not be able to pass these increased costs onto consumers, affecting profitability.
• Intense Competition [high — market]: The nutritional snacking industry is highly competitive, with numerous established players and emerging brands. Intense competition can lead to pricing pressures, reduced market share, and increased marketing expenditures.
• Cybersecurity Risks [medium — operational]: The company is subject to risks associated with cybersecurity threats, including data breaches and system disruptions. Such incidents could lead to financial losses, reputational damage, and regulatory penalties.

Industry Context

The nutritional snacking industry is experiencing robust growth, driven by increasing consumer focus on health, wellness, and convenient meal replacements. Key trends include higher protein consumption, reduced carbohydrate and sugar intake, and a growing demand for plant-based and allergen-free options. This dynamic landscape is characterized by intense competition from both established food conglomerates and agile, emerging brands.

Regulatory Implications

The company must comply with various food safety regulations, labeling requirements, and marketing standards set by agencies like the FDA. Changes in these regulations, particularly concerning health claims or ingredient disclosures, could impact product formulations and marketing strategies.

What Investors Should Do

1. Monitor OWYN integration progress and its contribution to revenue and profitability.
2. Analyze ingredient cost trends and the company's ability to manage pricing and margins.
3. Evaluate competitive pressures and market share dynamics within the protein bar and RTD shake segments.
4. Assess the company's innovation pipeline and new product development efforts.

Key Dates

• 2025-08-30: Fiscal Year End — Marks the end of the reporting period for the 10-K, providing a comprehensive view of the company's financial performance and position.
• 2024-06-01: OWYN Acquisition — The acquisition of Only What You Need, Inc. (OWYN) significantly expanded Simply Good Foods' plant-based protein offerings and strengthened its position in the RTD protein shake market.
• 2019-11-01: Quest Acquisition — The acquisition of Quest Nutrition, LLC, was a pivotal moment, establishing Simply Good Foods as a major player in the protein bar and snacking categories.

Glossary

RTD

Ready-to-Drink. Refers to beverages that are pre-packaged and ready for consumption without any preparation. (Key product format for Simply Good Foods, particularly with their protein shakes, catering to consumer demand for convenience.)

Nutritious Snacking Movement

A consumer trend focused on choosing snacks that offer health benefits, such as high protein, low carbohydrates, and low sugar, rather than traditional, less healthy options. (This is the core market positioning for Simply Good Foods, encompassing their Quest, Atkins, and OWYN brands.)

Wellness Platform

A broad range of products and services focused on promoting health and well-being, often encompassing nutrition, fitness, and lifestyle. (Simply Good Foods aims to expand its business by growing its existing brands and potentially acquiring others to build a comprehensive wellness offering.)

Year-Over-Year Comparison

While specific comparative figures are not detailed in this excerpt, the 10-K for the fiscal year ended August 30, 2025, likely reflects significant revenue growth driven by the OWYN acquisition in June 2024. Investors should look for year-over-year increases in revenue and potentially shifts in gross margins due to the integration of the new business. New risks related to the acquired business or supply chain complexities may also have emerged or been emphasized compared to the prior filing.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share SMPL Nasdaq Securities regi

Filing Documents

• atk-20250830.htm (10-K) — 1804KB
• exhibit211-10k2025.htm (EX-21.1) — 11KB
• exhibit231-10k2025.htm (EX-23.1) — 2KB
• exhibit311-10k2025.htm (EX-31.1) — 11KB
• exhibit312-10k2025.htm (EX-31.2) — 12KB
• exhibit321-10k2025.htm (EX-32.1) — 9KB
• atk-20250830_g1.jpg (GRAPHIC) — 263KB
• atk-20250830_g2.jpg (GRAPHIC) — 132KB
• 0001702744-25-000046.txt ( ) — 10647KB
• atk-20250830.xsd (EX-101.SCH) — 47KB
• atk-20250830_cal.xml (EX-101.CAL) — 110KB
• atk-20250830_def.xml (EX-101.DEF) — 401KB
• atk-20250830_lab.xml (EX-101.LAB) — 867KB
• atk-20250830_pre.xml (EX-101.PRE) — 640KB
• atk-20250830_htm.xml (XML) — 1471KB

Business

Business 6 Item 1A

Risk Factors

Risk Factors 17 Item 1B Unresolved Staff Comments 34 Item 1C Cybersecurity 34 Item 2

Properties

Properties 35 Item 3

Legal Proceedings

Legal Proceedings 35 Item 4 Mine Safety Disclosures 35 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 36 Item 6 Reserved 37 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 81 Item 9A

Controls and Procedures

Controls and Procedures 81 Item 9B Other Information 83 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 83 PART III Item 10 Directors, Executive Officers and Corporate Governance 84 Item 11

Executive Compensation

Executive Compensation 84 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 84 Item 13 Certain Relationships and Related Transactions, and Director Independence 84 Item 14 Principal Accountant Fees and Services 84 PART IV Item 15 Exhibits and Financial Statement Schedules 85 Item 16 Form 10-K Summary 87

SIGNATURES

SIGNATURES 2 Cautionary Note Regarding Forward Looking Statements This Form 10-K (this "Report") contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). When used anywhere in this Report, the words "expect," "believe," "anticipate," "estimate," "intend," "plan" and similar expressions are intended to identify forward-looking statements. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. We caution you that these forward-looking statements reflect our current views with respect to future events, are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. You should not place undue reliance on forward-looking statements. These statements reflect our current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. These risks and uncertainties relate to, among other things, our operations being dependent on changes in consumer preferences and purchasing habits regarding our products, a global supply chain and effects of supply chain constraints, inflationary pressure and tariffs on us and our contract manufacturers, our ability to continue to operate at a profit or to maintain our margins, the sufficiency of our sources of liquidity and capital, our ability to maintain current operation levels and implement our growth strategies, our ability to maintain and gain market acceptance for our products or new products, our ability to capitalize on attractive opportunities, our ability to respond to competition and changes in the economy including changes regarding inflation and increasing ingredie

Business

Item 1. Business. Overview The Simply Good Foods Company is a consumer packaged food and beverage company that aims to lead the nutritious snacking movement with trusted brands that offer a variety of convenient, innovative, great-tasting, better-for-you snacks and meal replacements, and other product offerings that seek to address consumers' increasing demand for protein-rich food, that are low in carbohydrates and added sugar. The product portfolio we develop, market and sell consists primarily of protein bars, ready-to-drink ("RTD") protein shakes, sweet and salty protein snacks and confectionery products marketed under the Quest, Atkins, and OWYN brand names. Simply Good Foods is poised to expand its wellness platform through innovation and organic growth along with acquisition opportunities. Our nutritious snacking platform consists of brands that specialize in providing products for consumers that follow certain nutritional philosophies and health-and-wellness trends: Quest for consumers seeking a variety of protein-rich foods and beverages that also limit sugars and simple carbohydrates, Atkins for those following a low-carbohydrate lifestyle or seeking to manage weight or blood sugar levels, and OWYN for consumers seeking protein-rich beverages that are plant-based and tested for the top nine allergens that also limit sugars and simple carbohydrates. We distribute our products in major retail channels, primarily in North America, including grocery, club, and mass merchandise, and through e-commerce, convenience, specialty, and other channels. Our portfolio of nutritious snacking brands gives us a strong platform with which to introduce new products, expand distribution, and attract new consumers to our products. We believe snacking occasions have been on the rise in recent years as consumers continue to desire more convenient, healthy and delicious foods, snacks, and meal replacements. We believe our emphasis on product formats such as our protein ba

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