Should Investors Sell Simply Good Foods After McCollum Christoferson Liquidated its Position in the Stock?
Key Points
The firm sold 125,985 shares, reducing position value by $3.98 million.
The transaction represents 1.14% of reportable 13F assets under management.
Post-trade holding: 0 shares, $0 value.
The position was previously 1.2% of the fund's AUM as of the prior quarter.
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On Nov. 14, 2025, McCollum Christoferson Group LLC disclosed a complete exit from The Simply Good Foods Company (NASDAQ:SMPL), reducing its stake by 125,985 shares, for an estimated $3.98 million change.
What happened
According to a U.S. Securities and Exchange Commission (SEC) filing dated Nov. 14, 2025, McCollum Christoferson Group sold out its entire position in Simply Good Foods during the third quarter.
The exit involved a reduction of 125,985 shares, with a transaction value of $3,979,866, based on the quarterly average price.
What else to know
The fund fully liquidated its stake in Simply Good Foods, which accounted for 1.14% of its reportable assets prior to the sale.
The firm's top holdings after the filing:
- Vanguard S&P 500 ETF (NYSEMKT: VOO): $24.50 million (7.0% of AUM)
- Microsoft (NASDAQ: MSFT): $23.69 million (6.8% of AUM)
- Apple (NASDAQ: AAPL): $19.22 million (5.5% of AUM)
- Costco Wholesale (NASDAQ: COST): $19.21 million (5.5% of AUM)
- Ecolab (NYSE: ECL): $15.39 million (4.4% of AUM)
As of Nov. 20, 2025, shares were priced at $20.11, down 47% over the past year, underperforming the S&P 500 by 57 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Market capitalization | $2.09 billion |
| Revenue (TTM) | $1.45 billion |
| Net income (TTM) | $103.61 million |
| Price (as of market close 11/20/25) | $20.11 |
Company Snapshot
Simply Good Foods:
- Offers branded snacks, meal replacements, protein bars, shakes, chips, and confectionery, primarily under the Atkins and Quest brands.
- Generates revenue through the development, marketing, and sale of consumer packaged foods distributed across mass merchandise, grocery, club, convenience, and e-commerce channels.
- Targets health-conscious consumers seeking convenient, high-protein, and low-sugar food options in North America and select international markets.
The Simply Good Foods Company develops, markets, and sells snacks and meal replacements primarily under the Atkins and Quest brands, including high-protein and low-sugar products.
The company distributes its products through mass merchandise, grocery, club, convenience, gas station, and e-commerce channels.
Foolish take
McCollum Christoferson's liquidation of its Simply Good Foods stake was its largest sale of the quarter.
It appears they timed it well, selling the stock at around $32 per share, and the stock is now trading at only $20.
From a Foolish perspective, Simply Good Foods has entered value stock territory, now trading at just 13 times free cash flow (FCF).
That said, the company's sales growth has slowed from 12% annually over the last five years to 9% this year, despite making a significant acquisition in the fourth quarter of 2024. Worse yet, sales actually dipped in the company's latest quarter, which helped prompt the stock's price to plunge.
While Simply Good Foods products and brands are better-for-you options, compared to the junk foods they replace, they're not exactly "superfoods" either.
Furthermore, while acquiring Quest and Only What You Need (OWYN) helps distance the company from its declining Atkins brand, its return on invested capital (ROIC) and return on equity (ROE) figures remain low, signaling that these purchases are yet to pay off for investors.
I'd consider Simply Good Foods a fair company trading at a discounted price, but I am worried about where its next round of growth will come from, other than spending on more M&A.
Glossary
13F assets under management: The portion of a fund's holdings reported quarterly to the SEC, typically covering U.S. equities.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Liquidated: Sold off an entire investment position, converting it to cash or cash equivalents.
Reportable assets: Holdings that must be disclosed in regulatory filings, such as the SEC's Form 13F.
Quarterly average price: The average share price of a security over a specific quarter, used for transaction value estimates.
Mass merchandise channel: Retail outlets that sell a wide variety of products, often at lower prices, such as big-box stores.
Club channel: Wholesale retailers requiring membership, like Costco or Sam's Club, selling goods in bulk.
Convenience channel: Small retail stores offering everyday items, typically with extended hours and quick service.
E-commerce channel: Online platforms where products are bought and sold over the internet.
TTM: The 12 months ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Costco Wholesale. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Microsoft. The Motley Fool recommends Ecolab and Simply Good Foods and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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