McCollum Christoferson’s Exit from Simply Good Foods

It’s not every day your portfolio manager friend calls to ask if you’ve considered selling your stake in a company that markets itself as “simply good.” But there I was, on a Tuesday, listening to a story about McCollum Christoferson Group LLC, which had just offloaded its entire position in The Simply Good Foods Company (SMPL +3.71%). The numbers were precise: 125,985 shares, $3.98 million, a tidy sum that made me wonder if they’d been saving up for a Caribbean cruise.

What happened

According to an SEC filing, McCollum Christoferson sold out its entire position in Simply Good Foods during the third quarter. The exit was as thorough as a parent cleaning out a child’s closet-no sentimental value, just a pile of old t-shirts and a faint smell of regret. The transaction, valued at $3,979,866, was based on the quarterly average price, which I assume is a fancy way of saying “we’ll take whatever the market gives us.”

What else to know

The fund had previously held 1.14% of its reportable assets in Simply Good Foods, which is like keeping a single sock in a drawer labeled “investment.” After the sale, their top holdings included the usual suspects: Vanguard S&P 500 ETF, Microsoft, Apple, Costco, and Ecolab. It’s a portfolio of predictable pleasures, like a well-worn pair of slippers.

As of Nov. 20, 2025, Simply Good Foods shares were trading at $20.11, down 47% from their peak. That’s a drop so steep, it’s like watching a toddler’s tower of blocks collapse-only less charming.

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 is the kind of company that sells you a protein bar with a straight face, as if it’s the most logical thing in the world. Their products-Atkins, Quest, and the enigmatic Only What You Need-aim to convince you that “better-for-you” is the same as “actually good for you.” They distribute through every channel imaginable, from gas stations to e-commerce, which is like throwing a party and hoping someone shows up.

Foolish take

McCollum Christoferson’s sale was their largest of the quarter, which makes me think they might have been timing the market like a toddler timing a meltdown. They sold at $32 a share, and now it’s $20. It’s the financial equivalent of buying a ticket to a concert and then discovering the band is named “The B-52s.”

From a value stock perspective, Simply Good Foods is now trading at 13 times free cash flow. That’s a number that makes me think of old wallets and forgotten savings accounts. But here’s the catch: their sales growth has slowed, and their latest quarter showed a dip. It’s like a recipe that’s missing the salt-everything tastes fine, but something’s off.

The company’s brands are “better” than junk food, but not exactly “super.” It’s the difference between a salad and a salad that’s been microwaved. And while acquisitions like Quest and Only What You Need have helped distance them from the declining Atkins brand, their return on invested capital is still lower than a toddler’s attention span. It’s a company that’s trying to reinvent itself, but the magic hasn’t quite arrived.

I’d call it a fair company at a discount, but I’m not sure where the next growth will come from. Maybe more acquisitions? It’s the financial version of “I’ll just get another dog.”

Glossary

13F assets under management: The fund’s U.S. equity holdings, reported quarterly like a teenager reporting their social media activity.
AUM (Assets Under Management): The total value of investments, which sounds impressive until you realize it’s just numbers on a screen.
Liquidated: Selling an entire position, which is less dramatic than it sounds-more like a quiet conversation with a broker.
Reportable assets: Holdings that must be disclosed, like a teenager’s phone bill.
Quarterly average price: A calculation that feels like trying to guess the weather in a hurricane.
Mass merchandise channel: Retail outlets that sell everything, from toothpaste to existential dread.
Club channel: Stores where you need a membership to buy a bag of chips.
Convenience channel: Stores open 24/7, because nothing says “I’m alive” like a 2 a.m. snack.
E-commerce channel: The internet, where you can buy anything but never find what you’re looking for.
TTM: The past 12 months, which is just a fancy way of saying “last year, but with more math.”

So there you have it-a tale of a stock that’s lost its way, a fund that’s lost its nerve, and a company that’s trying to be the next big thing. Maybe next time, they’ll just sell kale. 🧠

2025-11-21 08:32