McCollum Christoferson Exits Simply Good Foods (SMPL) Position Entirely ๐
According to an SEC 13F filing dated November 14, 2025, McCollum Christoferson Group LLC has completely exited its stake in The Simply Good Foods Company (SMPL). The sale involved approximately 126,000 shares for an estimated value of $4 million. This move represents a full liquidation of a position the fund had held since 2023.
Meanwhile, SMPL shares traded at $20.11 as of the filing date, having plunged 47% over the past year and underperforming the S&P 500 by a staggering 57 percentage points.
Decoding the Exit: Why Did the Institution Sell? ๐
McCollum Christoferson's decision to sell likely goes beyond simple profit-taking. Their estimated average sale price was around $32 per share, which, compared to the current price (~$20), suggests they timed their exit relatively well. ๐ฏ
The fund's top holdings consist of stable mega-caps like VOO, MSFT, AAPL, and COST. SMPL likely represented a smaller, more volatile position within their portfolio. An institution trimming a less liquid, higher-risk name can be seen as a prudent risk management move.
The market is divided on the implications of this institutional exit. Here's the Bull vs. Bear debate.
Simply Good Foods (SMPL) Snapshot: The Numbers ๐
| Metric | Value | Note |
|---|---|---|
| Market Cap | $2.09B | |
| Revenue (TTM) | $1.45B | |
| Net Income (TTM) | $103.6M | |
| Share Price (11/20/25) | $20.11 | -47% YoY |
| FCF Multiple | ~13x | Value Territory |
Company Overview: Known for its Atkins and Quest brands, Simply Good Foods specializes in high-protein, low-sugar snacks and meal replacements. It distributes products through mass merchandise, club, convenience, and e-commerce channels.
๐ In-Depth Fundamental Analysis
| Company | Share Price | P/E Ratio | P/B Ratio | ROE | Operating Margin (OPM) | Revenue Growth |
|---|---|---|---|---|---|---|
| Apple | $246 | 33.05 | 49.33 | 171.42% | 31.65% | 7.90% |
| Costco | $981 | 52.41 | 14.36 | 30.33% | 3.66% | 8.30% |
| Ecolab | $279 | 40.11 | 11.90 | 21.87% | 14.71% | 17.80% |
| Microsoft | $441 | 31.42 | 9.03 | 32.24% | 48.87% | 18.40% |
| The | $21 | 23.10 | 1.14 | 5.17% | 12.79% | -0.30% |
| Vanguard | $0 | 27.61 | 1.60 | 0.00% | 0.00% | 0.00% |
Conclusion: An Institutional Exit โ Opportunity or Warning? ๐ก
McCollum Christoferson's sale does not necessarily negate SMPL's fundamental value. In fact, a ~13x FCF multiple suggests an attractive valuation. The core issue is growth momentum. Recent quarterly sales declined, and the strategy to offset Atkins' weakness with the Quest and OWYN acquisitions has yet to translate into improved returns (ROIC/ROE).
Investment Scenarios:
- ๐ Bull Case: Health trends persist, Quest brand gains traction, operational efficiency improves returns. A combination of valuation re-rating and growth recovery drives a share price rebound.
- ๐ Bear Case: Growth stagnation continues, increased competition erodes market share, M&A fails to deliver, worsening financials. The stock remains a "value trap" for an extended period.
Final Take: The institutional sell-off is a critical data point, but the ultimate decision rests on individual due diligence. While the current price is compelling, a scaled buying approach or watchful waiting might be prudent until clearer signs of renewed growth emerge. This analysis is not investment advice. All investment decisions should be based on personal research.
