The Simply Good Foods Company (NASDAQ:SMPL) has announced the departure of its Chief Growth Officer, Ms. Linda M. Zink, effective September 1, 2024. The company disclosed on Thursday that the role of Chief Growth Officer will be eliminated as part of a strategic realignment of responsibilities within the senior management team.
Ms. Zink's departure follows the company's decision to redistribute the duties previously under the purview of the Chief Growth Officer to other senior management members. This organizational change is part of Simply Good Foods' ongoing efforts to streamline operations and enhance efficiency within the leadership structure.
In accordance with the company's Second Amended and Restated Executive Severance Plan, Ms. Zink will receive her entitled benefits. Additionally, the Compensation Committee of the Board of Directors has approved the acceleration of 9,944 time-based Restricted Stock Units (RSUs) that were previously granted to Ms. Zink, with the vesting date now coinciding with her departure.
The company's SEC filing, which was made public today, indicates that this transition is a part of Simply Good Foods' broader strategy. The move is not accompanied by any immediate appointment of a new executive to replace the Chief Growth Officer's role, suggesting a consolidation of leadership roles within the company.
In other recent news, Sony Corp (TYO:6758). has had its share price target increased by Jefferies due to an optimistic growth outlook, particularly in the Games and Music divisions. Jefferies maintains a Buy rating on Sony (NYSE:SONY)'s stock, expecting earnings growth driven by software growth, increasing subscription revenue, and margin expansion. The firm also anticipates Sony's gaming business, especially its PlayStation 5 hardware, to perform well despite guidance suggesting a decline. The Music division is also expected to benefit from external factors such as Spotify (NYSE:SPOT)'s price increase.
In other developments, Simply Good Foods Company reported a 3.1% increase in net sales in its fiscal third-quarter results, amounting to $334.8 million. This growth was largely driven by volume expansion of the Quest brand. The company also saw a significant rise in gross margin to 39.9%, attributed to reduced costs for ingredients and packaging.
The recent acquisition of OWYN is expected to contribute $25 million to $30 million to the fourth-quarter net sales. Despite projected gross margin compression in fiscal 2025 due to input cost inflation, Simply Good Foods reaffirmed its full-year forecast, predicting an approximate 8% growth in adjusted EBITDA.
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