Should Investors Sell Simply Good Foods After McCollum Christoferson Liquidated its Position in the Stock?

McCollum Christoferson Group fully liquidated its position in The Simply Good Foods Company (NASDAQ: SMPL), selling 125,985 shares in the third quarter for roughly $3.98 million and reducing a position that had represented 1.14% of its reportable 13F assets to zero. Simply Good Foods shares were trading at $20.11 on Nov. 20, 2025 (down ~47% over the past year), with a market cap of ~$2.09 billion, TTM revenue of $1.45 billion and TTM net income of $103.6 million. The sale—characterized as the fund’s largest of the quarter—highlights investor concern after slowing sales growth, a recent quarterly revenue decline and low ROIC/ROE despite acquisitions such as Quest and OWYN; the stock now trades at a discounted multiple (~13x FCF) but recovery hinges on renewed organic growth or value-accretive M&A.

Analysis

McCollum Christoferson Group fully liquidated its position in The Simply Good Foods Company (SMPL), selling 125,985 shares for an estimated $3.98 million and reducing a stake that represented 1.14% of its reportable 13F assets to zero, according to an SEC filing dated Nov. 14, 2025. The fund identified this as its largest sale of the quarter and the post-trade holding is reported at $0.

Simply Good Foods shares traded at $20.11 on Nov. 20, 2025, roughly 47% beneath last year’s level and about 57 percentage points behind the S&P 500; the company shows a market capitalization of $2.09 billion, TTM revenue of $1.45 billion and TTM net income of $103.61 million. Growth has slowed from ~12% annualized over five years to ~9% this year, management’s recent quarter saw sales decline, and recent acquisitions (Quest, OWYN) have yet to drive clear ROIC/ROE improvements even as the stock now trades near 13x free cash flow per the analysis cited.

The liquidation signals waning conviction from a reported holder and contributes to a mildly negative sentiment backdrop, but the sale size (1.14% of reported AUM) limits direct market impact. Key risks are continued top-line deterioration, integration execution on acquired brands, and persistent low returns on invested capital; potential upside requires visible stabilization in sales, margin expansion or demonstrably accretive M&A.

Key Decisions for Investors

• Delay initiating a large long position until new-quarter revenue and margin data show stabilization or improvement, monitor top-line and FCF trends closely
• If currently long, consider trimming exposure or hedging given the recent fund liquidation, year-over-year price decline and low ROIC/ROE
• Value-oriented investors may establish a small, size-limited starter position given ~13x FCF but use strict position sizing and a predefined stop-loss near recent trading lows
• Watch for execution-related catalysts: integration progress on Quest/OWYN, management guidance on organic growth initiatives, and any change in institutional positioning before increasing exposure