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Should Simply Good Foods’ One-Time Atkins Impairment Reshape How SMPL Investors View Its Brand Portfolio?

Simply Wall St · 2d ago
  • The Simply Good Foods Company recently recorded a one-time, non-cash impairment of about US$60 million to revalue the Atkins brand and other intangibles, resulting in a GAAP loss per share despite otherwise steady operations.
  • This accounting adjustment, which does not reflect a deterioration in the core business, has sharpened investor focus on the resilience of Simply Good Foods’ underlying brands and profitability drivers.
  • Next, we’ll examine how this one-time Atkins impairment reshapes Simply Good Foods’ investment narrative and the outlook for its brand mix.

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Simply Good Foods Investment Narrative Recap

To own Simply Good Foods, you need to believe in the long term appeal of its better-for-you snacks and meal replacements, and the company’s ability to manage a mixed brand portfolio that includes a slower Atkins franchise. The recent US$60 million non cash impairment is largely an accounting reset, so it does not materially change the near term focus on stabilizing Atkins trends or the ongoing risk around leadership transition and execution.

The most relevant recent announcement is Simply Good Foods’ Q4 FY2025 and full year FY2025 results, where the impairment pushed the quarter into a GAAP loss despite higher full year sales and positive net income. This puts the spotlight on whether management can keep growing revenues, protect margins under cost pressure, and use its brand mix to offset any continued drag from Atkins while integrating newer growth engines like OWYN.

Yet beneath the accounting noise, the real issue investors should be watching is how dependent Simply Good Foods still is on a shrinking Atkins brand and...

Read the full narrative on Simply Good Foods (it's free!)

Simply Good Foods' narrative projects $1.6 billion revenue and $204.1 million earnings by 2028. This requires 4.1% yearly revenue growth and about a $58.8 million earnings increase from $145.3 million today.

Uncover how Simply Good Foods' forecasts yield a $29.70 fair value, a 57% upside to its current price.

Exploring Other Perspectives

SMPL Community Fair Values as at Dec 2025
SMPL Community Fair Values as at Dec 2025

Three Simply Wall St Community fair value estimates for Simply Good Foods range from US$29.70 to about US$57.56, underlining how far opinions can diverge. You should weigh that spread against the recent Atkins impairment and brand concentration risk, and then explore several viewpoints before deciding how this fits into your portfolio.

Explore 3 other fair value estimates on Simply Good Foods - why the stock might be worth over 3x more than the current price!

Build Your Own Simply Good Foods Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.