The Simply Good Foods Company (SMPL): A Bull Case Theory

We came across a on The Simply Good Foods Company on Daniel's Deep Dive’s Substack. In this article, we will summarize the bulls’ thesis on SMPL. The Simply Good Foods Company's share was trading at $16.41 as of February 10th. SMPL’s trailing and forward P/E were 18.31 and 8.76 respectively according to Yahoo Finance.

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The Simply Good Foods Company (SMPL) is a U.S.-based packaged food company positioned at the intersection of fitness, wellness, and everyday nutrition. Rather than targeting only niche, workout-specific consumption occasions, the company focuses on making health-oriented foods easy to integrate into daily routines. This strategy allows SMPL to benefit from long-term secular trends such as weight management, protein-forward diets, and low-carbohydrate lifestyles, while maintaining relevance with a broad consumer base.

SMPL’s portfolio is anchored by two well-established brands, Quest Nutrition and Atkins, which together provide strong brand recognition and shelf presence across mass retail, grocery, and e-commerce channels. The company offers a wide range of products including protein bars, chips, snacks, shakes, ready-to-drink beverages, coffee products, and frozen meals. This breadth enables Simply Good Foods to serve both performance-driven consumers and more mainstream health-conscious shoppers, reducing dependence on any single product category or demographic.

This diversified, brand-led model has translated into consistent financial performance. Over the past five years, SMPL has delivered approximately 10% annual revenue growth, while earnings have compounded at roughly 13% per year. Despite operating in a competitive packaged food environment, margins have remained stable, reflecting disciplined cost management and pricing power derived from brand strength rather than aggressive discounting. The investment case for Simply Good Foods rests on its ability to steadily compound earnings through brand expansion, product innovation, and continued penetration of health and wellness eating habits.

As consumer preferences continue to shift away from traditional sugary and carb-heavy snacks, SMPL is well positioned to capture incremental demand without requiring dramatic changes in behavior. While not a high-margin business, the company’s predictability, brand equity, and alignment with durable nutrition trends support a constructive, long-term outlook and a compelling risk-reward profile for investors seeking steady growth in the better-for-you food segment.

Previously, we covered a 

 on The Simply Good Foods Company (SMPL) by Stock Analysis Compilation in December 2024, which highlighted the asset-light model, strategic acquisitions of Atkins, Quest, and OWYN, and expansion in healthy snacking. SMPL's stock price has depreciated by approximately 57.94% since our coverage. Daniel's Deep Dive shares a similar thesis but emphasizes on earnings compounding and brand-driven demand.

The Simply Good Foods Company is not on our list of the 

. As per our database, 35 hedge fund portfolios held SMPL at the end of the third quarter which was 32 in the previous quarter. While we acknowledge the risk and potential of SMPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SMPL and that has 10,000% upside potential, check out our report about this

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