Goodwill and Intangibles

9 Months Ended

May 30, 2026

Intangible Asset, Goodwill and Other [Abstract]

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 Company’s share price and declines in the Company’s 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 finite lives:
Customer relationships	15 years			194,500		87,863		106,637
Licensing agreements	10 years			16,072		15,634		438
Proprietary recipes and formulas	7 years			7,000		7,000		—
Software and website development costs	3	-	5 years	6,641		5,833		808

				$	1,073,213	$	116,330	$	956,883


				August 30, 2025
(In thousands)	Useful life			Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets with indefinite life:
Brands and trademarks	Indefinite life			$	1,142,000	$	—	$	1,142,000
Intangible assets with finite lives:
Customer relationships	15 years			194,500		78,138		116,362
Licensing agreements	10 years			16,072		14,319		1,753
Proprietary recipes and formulas	7 years			7,000		7,000		—
Software and website development costs	3	-	5 years	6,641		5,153		1,488

				$	1,366,213	$	104,610	$	1,261,603

Changes in Intangible assets, net during the thirty-nine weeks ended May 30, 2026, were primarily related to the impairment of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets, and recurring amortization expense. Amortization expense related to intangible assets was $3.9 million and $11.7 million for the thirteen and thirty-nine weeks ended May 30, 2026. Amortization expense related to intangible assets was $3.7 million and $11.2 million for the thirteen and thirty-nine weeks ended May 31, 2025. There were no impairment charges related to its finite-lived intangible assets during the thirty-nine weeks ended May 30, 2026, and May 31, 2025.

As a result of the sustained decline in the Company’s stock price and declines in the Company’s 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 both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its third quarter, May 30, 2026, utilizing an income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets carrying values exceeded their fair values, resulting in a loss on impairment of $13.0 million for OWYN and $31.0 million for Atkins during the thirteen weeks ended May 30, 2026. Impairment charges were

$200.0 million for OWYN and $93.0 million for Atkins for the thirty-nine weeks ended May 30, 2026. In addition, the Company included the Quest brand and trademark indefinite-lived intangible asset within the quantitative assessment; utilizing an income approach to estimate the fair value of the intangible asset. Based on testing, its fair value exceeded its carrying value, resulting in no impairment. There were no impairment charges related to the Company’s indefinite-lived intangible assets during the thirty-nine weeks ended May 31, 2025.

We believe the estimates and assumptions utilized in our impairment assessments are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those utilized in our initial valuations. Significant declines of future revenue projections or changes of other assumptions used in estimating fair values versus those utilized at the time of the initial valuations could result in impairment charges that could materially affect the consolidated financial statements.

Estimated future amortization for each of the next five fiscal years and thereafter is as follows:


(In thousands)	Amortization
Remainder of 2026	$	3,879
2027	13,575
2028	12,967
2029	12,967
2030	12,967
2031 and thereafter	51,528
Total	$	107,883

Goodwill

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

- Definition

The entire disclosure for goodwill.

+ References + Details