The Simply Good Foods Company (NASDAQ:SMPL) provided its Q1 results, with adjusted EPS coming in at $0.43, beating the consensus estimate of $0.34. Quarterly revenue increased by 22% to $281.3 million, compared to the consensus estimate of $266 million.

While cost challenges will likely remain acute in 2022 (the company’s gross margin outlook was disappointing), analysts at Deutsche Bank said they are encouraged by top-line and demand/elasticity dynamics, and like the management's confidence in returning gross margins to above 40% in 2023, whether enabled by eventual cost relief and/or another round of incremental pricing exiting 2022.