Today I would like to introduce you to an interesting player in the food market: Simply Good Foods, a company that has successfully positioned itself in the growing trends of healthy nutrition and increased mobility. In this newsletter you will find out why the stock of Simply Good Foods deserves special attention right now.

Growth in a Dynamic Market Simply Good Foods, known for its strong brands like Atkins and Quest, is making impressive progress. On October 21, the company reported revenue growth of 5.5% to $274.16 million for the fourth quarter. This result far exceeded the consensus estimates of $262.53 million. What is behind this success? Above all, the realization of price increases, which contributed 9.5% to revenue growth and thus compensated for any sales declines.

Twelve-month chart for Simply Good Foods Co. Can the stock break through the green resistance line at 40 USD? (Source: Stock Screener)

Financial Strength and Positive Outlook Earnings per share rose an impressive 24% to $0.36. This growth does not come out of nowhere. Simply Good Foods has invested heavily in marketing and organization in recent years. Management is convinced that these investments will continue to lead to an expanding customer base, a widening of distribution and market share gains. Accordingly, the revenue forecast for the fiscal year 2023 has been revised, with expected growth slightly above the long-term forecast of 4 to 6% per year.

Stock Performance and What Investors Can Expect Interesting for investors: the ongoing share buyback program was increased by $50 million, so that a total of $71.5 million is available for share buybacks. The Simply Good Foods stock has fought multiple times with the resistance mark of 40 USD this year. If the breakthrough succeeds, the all-time high of 46 USD should be the next goal. A development that investors should follow closely.

Conclusion Simply Good Foods is a solid company in a growing market segment. With strong brands, a smart business strategy and a promising financial performance, Simply Good Foods is at a potentially decisive point. For investors, this could be an opportunity to benefit from the company’s positive development, especially if the stock breaks through the resistance at 40 USD.