Despite a weak performance from its Atkins brand, The Simply Good Foods Company (SGF) expressed confidence in its ability to lead the “generational shift” toward high-protein, low-sugar, low-carb food and beverage products with OWYN and Quest in its FY 2025 earnings report today.
In fiscal 2025, net sales climbed 9% year-over-year to $1.5 billion, driven by SGF’s acquisition of OWYN and organic growth. Gross profit increased 2.8% to $525.7 million, primarily driven by Quest and OWYN and partially offset by inflationary headwinds.
“We have challenged ourselves to reduce lead times on innovation and marketing, embrace agility in our supply chain and evolve our marketing playbook to incorporate an insurgent mindset to compete against brands large and small,” said Geoff Tanner, CEO of SGF, during prepared remarks.
Consumption of OWYN – which SGF acquired for $280 million in 2024 – grew 14% in the fourth quarter of 2025 and 34% for the full year. According to Tanner, there was a relative slowdown in consumption in recent months due to a product quality issue stemming from a raw material sourcing decision for pea protein made before the acquisition closed.
“I want to be clear that it was 100% safe and met all of our allergen testing protocols. However, the product experience was poor and showed up in ratings and reviews. Therefore, as we ran distribution and trial coming into Q4, consumer response was not as robust as we would have liked,” said Tanner, adding that SGF has begun “aggressive” programming and trade marketing aimed at reaccelerating trial and growth rates.
Citing recently completed research, SGF says OWYN has leading equities in clean, plant-based nutrition, with “significant headroom” in ACV for shakes and powders. SGF is “only scratching the surface of what the brand can be,” according to Tanner.
Quest – which accounts for roughly 60% of SGF’s sales – grew its bars 2% in fiscal 2025, fueled by its Hero line and the recently-launched Overload Bar platform. Tanner pointed out that the brand has built “an impressive pipeline of new bar forms” over the past 18 months, with even more flavors and textures slated to hit the market. He also highlighted Quest’s newest Bake Shop innovation: protein donut, which will hit store shelves in Q1 2026.
“Quest is our largest and highest-margin brand and the innovation leader in the category. As we rapidly evolve our organization, Quest will be at the forefront, continuing to deliver strong growth,” said Tanner.
Meanwhile, Atkins is still a pain point for SGF. The brand has continued to lose shelf space in the “highly competitive” nutritional snacking aisle over the past several years as overall sales in the category have doubled, according to Tanner.
SGF has launched several new marketing initiatives that reorient Atkins “from a more general lifestyle brand back toward weight management,” including modernized packaging and an updated website.
“Our strategy acknowledges the need to right-size the outcome space, rather than trying to prop up our underperforming tail,” said Tanner. “A key component of this approach is proactively working with senior teams at our key retailers to manage our assortment and flow back to support the continued expansion and prioritization of Quest and OWYN.”
Looking ahead, SGF expects net sales in the range of -2% and 2% and adjusted EBITDA between -4% and +1%. The company will remain under pressure in the first half of fiscal 2026 due to historically high cocoa prices and tariffs, but it expects gross margins to modestly recover in Q3.
“We operate in an on-trend, high-growth category, benefiting from a generational shift toward higher-protein, low-carb, low-sugar products. We will lead this shift and create value for our shareholders by accelerating innovation and expanding physical availability of our products,” said Tanner.