Financial Analysis

Litigation The Company is a party to certain litigation and claims that are considered normal to the operations of the business. From time to time, the Company has been and may again become involved in legal proceedings arising in the ordinary course of business. The Company is not presently a party to any litigation that it believes to be material, and the Company is not aware of any pending or threatened litigation against it that its management believes could have a material adverse effect on its business, operating results, financial condition or cash flows. Other The Company enters into endorsement contracts with certain celebrity figures and social media influencers to promote and endorse the Quest, Atkins, and OWYN brands and product lines. These contracts contain endorsement fees, which are expensed ratably over the life of the contract, and performance fees, that are recognized at the time of achievement. Based on the terms of contracts in place and achievement of performance conditions as of May 30, 2026, the Company will be required to make payments of $0.2 million over the next year.

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On July 7, 2017, the Company (through certain of its subsidiaries) entered into a credit agreement with Barclays Bank PLC and other parties (as amended to date, the Credit Agreement). The Credit Agreement at that time provided for (i) a term facility of $200.0 million (Term Facility) with a seven -year maturity and (ii) a revolving credit facility of up to $75.0 million (the Revolving Credit Facility) with a five -year maturity. Substantially concurrent with the consummation of the business combination which formed the Company between Conyers Park Acquisition Corp. and NCP-ATK Holdings, Inc. on July 7, 2017, the full $200.0 million of the Term Facility (the Term Loan) was drawn. On November 7, 2019, the Company entered into a second amendment (the Incremental Facility Amendment) to the Credit Agreement to increase the principal borrowed on the Term Facility by $460.0 million. The Term Facility together with the incremental borrowing make up the Initial Term Loans (as defined in the Incremental Facility Amendment). The Incremental Facility Amendment was executed to partially finance the acquisition of Quest Nutrition, LLC on November 7, 2019. No amounts under the Term Facility were repaid as a result of the execution of the Incremental Facility Amendment. Effective as of December 16, 2021, the Company entered into a third amendment (the Extension Amendment) to the Credit Agreement. The Extension Amendment provided for an extension of the stated maturity date of the Revolving C …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from transactions with external customers for each of the Companys products would be impracticable to disclose and management does not view its business by product line. The following is a summary of revenue disaggregated by geographic area and brands: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In thousands) May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 North America (1) Atkins $ 84,649 $ 112,287 $ 254,636 $ 329,105 Quest 230,260 227,737 652,045 630,445 OWYN 34,774 33,551 94,091 99,611 Total North America 349,683 373,575 1,000,772 1,059,161 International 7,300 7,381 22,422 22,718 Total net sales $ 356,983 $ 380,956 $ 1,023,194 $ 1,081,879 (1) The North America geographic area consists of net sales substantially related to the United States and there is no individual foreign country to which more than 10% of the Companys net sales are attributed or that is otherwise deemed individually material. Charges related to credit losses on accounts receivable from transactions with external customers were immaterial for the thirteen and thirty-nine weeks ended May 30, 2026. Charges related to credit losses on accounts receivable from transactions with external customers were $0.1 million and $0.2 million for the thirteen and thirty-nine weeks ended May 31, 2025, respectively. As of both May 30, 2026, and August 30, 2025, the allowance for credit losses related to accounts receivable were $0.9 million. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is used: Level 1 Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 Valuations based on unobservable inputs reflecting the Companys own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Components of the balance sheet such as accounts receivable, cash and cash equivalents, and others approximate fair value as of May 30, 2026. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Goodwill during the thirty-nine weeks ended May 30, 2026, were as follows: (In thousands) Goodwill Balance as of August 30, 2025 $ 589,974 Accumulated impairment (38,000) Balance as of May 30, 2026 $ 551,974 As a result of the sustained decline in the Companys share price and declines in the Companys market capitalization assessed during the third quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of the goodwill reporting unit was less than its carrying amount. The Company conducted a quantitative interim goodwill assessment as of the last day of its third quarter, May 30, 2026, utilizing a weighted combination of the discounted cash flow method under the income approach and the guideline public company method under the market approach to estimate the fair value of the equity of the Company. Based on testing, the fair value was less than its carrying value, resulting in a loss on impairment of $38.0 million for goodwill during the thirteen and thirty-nine weeks ended May 30, 2026. There were no impairment charges related to goodwill during the thirty-nine weeks ended May 31, 2025. Intangible assets, net in the Consolidated Balance Sheets consists of the following: May 30, 2026 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 849,000 $ $ 849,000 Intangible assets with fi …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

The tax expense and the effective tax rate resulting from operations were as follows: Thirty-Nine Weeks Ended (In thousands) May 30, 2026 May 31, 2025 (Loss) income before income taxes $ (239,140) $ 151,395 (Benefit) provision for income taxes $ (52,739) $ 35,424 Effective tax rate 22.1 % 23.4 % The effective tax rate for the thirty-nine weeks ended May 30, 2026 was 1.3% lower than the effective tax rate for the thirty-nine weeks ended May 31, 2025, which was primarily driven by a tax benefit related to the wind-down of operations at the Companys legacy Canadian subsidiary and the tax effect related to the non-deductible goodwill impairment. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

The Company generally leases office space and distribution centers in the United States through operating lease agreements. As of May 30, 2026, the Company had no finance lease agreements. Our leases have remaining lease terms up to 6 years and most include an option to renew for additional terms. The Companys lease costs recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), respectively. consist of the following: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In thousands) Statements of Operations Caption May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 Operating lease cost: Lease cost Cost of goods sold and General and administrative $ 2,305 $ 2,504 $ 6,913 $ 6,923 Variable lease cost (1) Cost of goods sold and General and administrative 1,027 912 3,401 2,970 Total operating lease cost 3,332 3,416 10,314 9,893 Total lease cost $ 3,332 $ 3,416 $ 10,314 $ 9,893 (1) Variable lease cost primarily consists of common area maintenance, such as cleaning and repairs. The right-of-use assets and corresponding liabilities related to operating are as follows: (In thousands) Balance Sheets Caption May 30, 2026 August 30, 2025 Assets Operating lease right-of-use assets Other long-term assets $ 39,624 $ 44,118 Total lease assets $ 39,624 $ 44,118 Liabilities Current: Operating lease liabilities Accrued expenses and other current liabilities $ 7,975 $ 5,867 Long-term: Operating lease liabilities Other long-term liabilities 43,452 49,494 Total lease liab …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Refer to Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Annual Report for a description of significant accounting policies. Recently Issued and Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures (ASU 2023-09), which updates disclosures required in the footnotes to the financial statements to further aid investors in understanding how to analyze income tax reporting. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available. The amendments should be applied on a prospective basis, however, retrospective application is permitted. The Company is currently evaluating the provisions of the amendments and the effect on its future consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which will improve the disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions such as cost of sales, SG&A, and R&D. The amendme …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

For the thirteen and thirty-nine week periods ended May 30, 2026, the Company incurred $13.5 million and $18.1 million of costs for restructuring activities, of which $6.2 million and $6.2 million have been included within Cost of goods sold, $1.1 million and $1.1 million have been included within Selling and Marketing , and $6.2 million and $10.8 million have been included within General and administrative on the Consolidated Statements of Operations and Comprehensive Income (Loss), respectively. Changes to the restructuring liability during thirty-nine weeks ended May 30, 2026 were as follows: (in thousands) Termination benefits, severance and other Total Liability Balance as of August 30, 2025 $ $ Charges 18,073 18,073 Cash payments (3,938) (3,938) Non-cash settlements or adjustments (1,985) (1,985) Balance as of May 30, 2026 $ 12,150 $ 12,150 During the second quarter of fiscal year 2026, the Company announced certain restructuring activities in conjunction with the implementation of the Companys modified organization design and actions to streamline its operations, which will create a more efficient organization that will continue to support and build its business. These restructuring plans primarily included workforce reductions, changes in management structure, actions to streamline its operations and other cost savings initiatives. As of May 30, 2026, the Company expects to incur approximately $25.0 million, including the $18.1 million referenced above, in restructuri …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue from transactions with external customers for each of the Companys products would be impracticable to disclose and management does not view its business by product line. The following is a summary of revenue disaggregated by geographic area and brands: Thirteen Weeks Ended Thirty-Nine Weeks Ended (In thousands) May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 North America (1) Atkins $ 84,649 $ 112,287 $ 254,636 $ 329,105 Quest 230,260 227,737 652,045 630,445 OWYN 34,774 33,551 94,091 99,611 Total North America 349,683 373,575 1,000,772 1,059,161 International 7,300 7,381 22,422 22,718 Total net sales $ 356,983 $ 380,956 $ 1,023,194 $ 1,081,879 (1) The North America geographic area consists of net sales substantially related to the United States and there is no individual foreign country to which more than 10% of the Companys net sales are attributed or that is otherwise deemed individually material. Charges related to credit losses on accounts receivable from transactions with external customers were immaterial for the thirteen and thirty-nine weeks ended May 30, 2026. Charges related to credit losses on accounts receivable from transactions with external customers were $0.1 million and $0.2 million for the thirteen and thirty-nine weeks ended May 31, 2025, respectively. As of both May 30, 2026, and August 30, 2025, the allowance for credit losses related to accounts receivable were $0.9 million. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

As of May 30, 2026, the Company determined its operations are organized into one consolidated operating segment and reportable segment, represented by the Companys consolidated financial statements. Previously, as of May 31, 2025, the Companys operations were organized into two operating segments, Quest and Atkins, and OWYN, which were aggregated into one reportable segment due to similar financial, economic and operating characteristics. The Chief Operating Decision Maker (CODM) is the President and Chief Executive Officer (CEO). The CODM regularly reviews consolidated segment performance including net sales, significant expenses, net income, Adjusted EBITDA, budget to actual variance analysis, as well as other key metrics. The CODM uses net income as the measure of profitability to assess segment performance and allocate resources. The accounting policies of the segment are the same as those described in Note 2, Summary of Significant Accounting Policies. The following table summarizes our segment net sales, significant expenses, and net income for the thirteen and thirty-nine week periods ended May 30, 2026, and May 31, 2025: Thirteen Weeks Ended Thirty-Nine Weeks Ended May 30, 2026 May 31, 2025 May 30, 2026 May 31, 2025 Net sales $ 356,983 $ 380,956 $ 1,023,194 $ 1,081,879 Cost of goods sold 240,884 242,437 694,162 682,737 Operating expenses: Selling and marketing 39,173 33,799 97,017 101,871 General and administrative 40,453 41,229 113,334 115,306 Depreciation and amorti …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Refer to Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in the Annual Report for a description of significant accounting policies. Recently Issued and Adopted Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures (ASU 2023-09), which updates disclosures required in the footnotes to the financial statements to further aid investors in understanding how to analyze income tax reporting. The amendments are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available. The amendments should be applied on a prospective basis, however, retrospective application is permitted. The Company is currently evaluating the provisions of the amendments and the effect on its future consolidated financial statements. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), which will improve the disclosures about a public business entitys expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions such as cost of sales, SG&A, and R&D. The amendme …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Stock Repurchase Program The Company adopted a stock repurchase program in November 2018. On January 6, 2026, the Company announced that its Board of Directors approved a $200.0 million increase in its repurchase authorization under its stock repurchase program (the Current Authorization). Under the stock repurchase program, the Company may repurchase shares from time to time in the open market or in privately negotiated transactions. The stock repurchase program does not obligate the Company to acquire any specific number of shares or acquire shares over any specific period of time. The stock repurchase program may be suspended or discontinued at any time by the Company and does not have an expiration date. During the thirteen and thirty-nine weeks ended May 30, 2026, the Company repurchased 2,061,263 and 11,651,767 shares of common stock at an average price of $12.14 and $18.29 per share, respectively, inclusive of commissions and exclusive of accrued excise tax. During the thirteen and thirty-nine weeks ended May 31, 2025, the Company repurchased 693,375 shares of common stock at an average price of $35.10 per share, inclusive of commissions and exclusive of accrued excise tax. The U.S. Inflation Reduction Act of 2022 requires a 1% excise tax on the net amount of share repurchases. As of May 30, 2026, approximately $157.5 million remained available under the Current Authorization. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing