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

We came across a bullish thesis on The Simply Good Foods Company (SMPL) on Substack by Stock Analysis Compilation. In this article, we will summarize the bulls’ thesis on SMPL. The Simply Good Foods Company (SMPL)’s share was trading at $39.02 as of Dec 5^th. SMPL’s trailing and forward P/E were 28.28 and 20.12 respectively according to Yahoo Finance.

The Simply Good Foods Company has emerged as a dominant player in the nutritional snacking market by leveraging its asset-light model and strategic acquisitions. The company began its journey with the acquisition of the Atkins brand in 2016 and has since expanded into protein bars, cookies, and shakes through significant acquisitions, including Quest in 2019 for $1 billion and OWYN in 2024 for $280 million. OWYN’s expertise in plant-based, clean-label protein shakes complements Simply Good Foods’ growing product portfolio, aligning with consumer trends toward healthier, high-protein snacking options.

By maintaining an asset-light model, Simply Good Foods achieves operational efficiency while focusing on innovation and market expansion. Its strategic acquisitions not only diversify its offerings but also strengthen its competitive position in the rapidly growing healthy snacking industry. This approach has allowed the company to capture increasing market share, with its flagship brands catering to a broad audience seeking convenient, nutritious alternatives. As the demand for healthy snacking continues to rise, Simply Good Foods is well-positioned to sustain its growth trajectory, capitalizing on its scalable model and ability to adapt to evolving consumer preferences. The company’s strong execution and targeted acquisitions make it a compelling investment opportunity in the consumer packaged goods sector.

The Simply Good Foods Company (SMPL) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held SMPL at the end of the third quarter which was 23 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 timeframe. If you are looking for an AI stock that is more promising than SMPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.