Business Strategy and Outlook
| Rebecca Scheuneman, CFA |We expect Simply Good Foods to average 7% organic sales growth the next 10 years, in line with the nutritional snacks category. The firm’s lineup of nutritional bars, shakes, and treats is well aligned with consumer preferences for high protein and low sugar, on-the-go formats, and snacks. The Atkins brand (45% of fiscal 2021 sales) experienced revenue acceleration the years preceding the pandemic as the brand expanded its target market from the 8 million program dieters to the 33 million people seeking to reduce their intake of carbohydrates without following a regimented diet. Quest (55% of revenue) operates in the complementary sports nutrition segment, also producing high-protein low-sugar bars, treats, chips, and other food items.