Can Quest Nutrition Grow During a Recession? | The Simply Good Foods Company 22Q3 Earnings

Will the protein bar competitive landscape continue to be envious of market leader Quest Nutrition as the economy falls into a recession? In this latest episode, I'll utilize the 2022 Q3 Simply Good Foods Company (NASDAQ: SMPL) earnings report, earnings call, and supplemental presentations that were filed on 6/30/2022 as the backdrop to provide broad health and fitness snacking market insights. In Q3 of fiscal 2022, both brands had strong retail takeaway growth, with Quest Nutrition specifically having more than 30% growth. I hate using the “R-word” before its official, but with the yield curve inverting recently you have a high probability of a recession happening soon. Even the Atlanta Fed GDPNow gauge is predicting the second quarter running at negative 1%. Coupled with the first-quarter’s GDP decline of 1.6%, that would fit the technical definition of recession. So, how does the nutritional snacking category perform during this recession? Also, how does the Simply Good Foods Company do in a recession? I think many of the assumptions laid out in this content will be a net-positive for Quest Nutrition and Atkins Nutritionals. It’s a decent setup for the company to likely thrive comparative to most of the competitive landscape. It’s going to be a wild period for any functional CPG brand, but I think humans will continue to invest in themselves and the categories will be resilient even though they are considered consumer discretionary and not consumer staples. FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS LINKEDIN - https://www.linkedin.com/in/joshuaschallmba TWITTER - https://www.twitter.com/joshua_schall INSTAGRAM - https://www.instagram.com/joshua_schall FACEBOOK - https://www.facebook.com/jschallconsulting MEDIUM - https://www.medium.com/@joshuaschall