TLDR: SMPL bullish as hell. They own Quest, OWYN, and Atkins brands of diet/health food. Stock is down big on a market overreaction to most recent ER. Company reported a paper loss of .12, but it’s all an accounting thing. They would have reported a profit of .45 or so, but they reassessed the value of their Atkins brand to be $60m lower than they were currently valuing it on the books. Revenue is in line, operating costs are in line mostly, marketing was a 9m savings over PY and they would have made 45m or so in profit if they didn’t assess down by 60m on the brands value for a 15m or so loss.
OK, so I’m a degenerate and I was scrolling the 52 week new lows list looking for penny stock runners (if you haven’t noticed, every 150% top daily gainer this month has hit a 52 week low a few days prior). Anyways I scroll past this stock SMPL that is new to me, trading near $20. Ok I’m intrigued. So I check the chart and it’s decent, with a big drop in the past few days. Ok, what’s that. ER miss. Ok. What do they do? HOLY SHIT ITS QUEST BARS. Ok ok slow down. Check the financials and I’m surprised to see a healthy company on fundamental levels. Good earnings, profitable, healthy debt to assets, and just one big miss this quarter. Interesting, I wonder what happened so I go to the P&L and run down it quick. Healthy revenue, healthy cost of goods, 9m in saving YOY in marketing costs, good gross profit, and a single $60m charge for impairments. Weird. So I dig deeper a bit into their latest 10k to see what that is, and it’s a paper cost for a lowered asset valuation on Atkins, so their 45m or so in profit turns to a 15m loss, because accounting stuff. Alright the market overreacted to a paper loss when the normal business is solid as hell. I’m in for $50k.
Obligatory gpt summary for folks who can read good:
🧾 Summary
Simply Good Foods (SMPL) reported a Q4 GAAP loss per share of $0.12, but this is entirely due to a one-time, non-cash impairment of about $60 million tied to re-valuing the Atkins brand and other intangible assets.
This was an accounting adjustment, not a reflection of declining revenue or rising costs. The company’s operating performance remained consistent — sales and margins were close to prior periods, and adjusted EPS came in positive at $0.46.
In plain terms:
SMPL didn’t lose $60 million — it re-marked down the book value of an older brand to reflect updated market assumptions. The underlying business still produced roughly its usual profit.
🧠 Takeaway • The $60 million impairment is a paper loss, not cash out the door. • It reflects a revaluation of the Atkins brand, not weakness in the company’s day-to-day operations. • Without that charge, SMPL would have shown a profitable quarter similar to historical norms. • The stock’s sell-off likely overreacts to an accounting headline rather than a real earnings deterioration.
Position: I’m in for $50k in shares and $1000 in options so far. Screenshots in comments. This one’s gonna be a banger. Should be worth $25-30 or more in my opinion, and OWYN brand (allergen free protein shakes and powder) is a huge growth opportunity.
Recent 10k filing: https://www.sec.gov/Archives/edgar/data/1702744/000170274425000046/atk-20250830.htm
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Hahaha I mean you can definitely flip them on eBay pretty easy if you bought some on the cheap. Or run it like an old school meat sale out the back of a van in a movie theater parking lot.
Why has the firm been dropping since '25? Price*
If you look at the insider transactions you'll notice that all the directors sold heavy amount of stock around november of last year. I assume they plan to do the same this which could definitely tank this stock even lower
I’m not sure what this means
Stock price is going down. Since the start if 2025. Why?
Because the price has become detached from the fundamentals for whatever reason, probably short selling, but possibly lack of interest.
In with some January and May calls
quest bars suck
Wow really
They have some snacks that are very good, not all sure
But their PB cup and their chili lime chips are excellent
The product itself is very good, but the costs are crazy now. 10 years ago you could get a bulk box between 7-10 dollars. Inflation doesn't account for their current cost, it has doubled.
Do I like the convenience and taste? Absolutely.. not enough to get robbed by them.
Everything is expensive now if you compare it to 10 years ago
If you find cheap alternatives, ask yourself why it’s cheap
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Best Protein bars out there. Have had a reputation for the longest time as top tier, the old Bodybuilding forums used to recommend these bars over any other. Tested to contain actual marketed protein amounts and the protein is actual whey isolates, not soy protein fillers.
I spend $100+ a month on quest. Low sugar, high protein. Quality good enough. I live their cookies. I have a subscription on Amazon monthly for a handful of their products.