The overhaul of the US student loan system is set to squeeze the budgets of millions of younger consumers, which could matter a lot for stocks tied to everyday essentials. With higher required repayments and less generous forgiveness, some households may rethink where every extra dollar goes, while spending on staples may hold up differently than more discretionary categories. This article looks at three consumer staples stocks from our screener that are closely exposed to this student debt reset, explaining how the new rules might support or challenge their demand profile so you can decide whether they deserve a closer look.

Simply Good Foods (SMPL)

Overview: Simply Good Foods is a Denver based packaged food and beverage company that sells protein bars, shakes, salty snacks, cookies and confectionery mainly under the Quest, Atkins and OWYN brands across major retailers and e-commerce platforms in North America and selected international markets.

Operations: Simply Good Foods generates about US$1.4b from branded nutritional foods and snacking products, with roughly US$1.39b coming from North America and US$29.3m from international markets.

Market Cap: US$1.1b

Simply Good Foods sits in an interesting spot for the student loan reset, offering convenient nutritional snacks that many consumers treat as everyday essentials while still being price sensitive. The company is working to lean into higher margin Quest and OWYN products, cut low returning spending and reduce fixed costs. These efforts could help earnings if they pay off against a backdrop of weaker Atkins demand and recent losses. At the same time, the stock has fallen sharply and trades well below one DCF based fair value estimate, and has active buybacks in place. However, it also carries execution and funding risks as management works through a turnaround.

Simply Good Foods looks like a turnaround story hiding inside a snack company, with cost cuts, brand mix shifts and a sharply lower share price all in play. It is worth reading the DCF valuation analysis for Simply Good Foods to see what the market might be missing.

Bakkavor Group (LSE:BAKK)

Overview: Bakkavor Group is a London headquartered food manufacturer that prepares chilled ready meals, salads, pizzas, breads, desserts and other fresh convenience foods for high street supermarkets and foodservice customers in the UK, US and China.

Operations: Bakkavor generates about £2.0b in revenue from its prepared food business, with roughly £1.95b from the UK and £233m from the US.

Market Cap: £1.46b

Bakkavor Group offers exposure to everyday food spending, which can be appealing when tighter US student loan rules are likely to push younger consumers toward affordable, convenient meals rather than eating out. Some analysts have highlighted the potential for earnings growth even where revenue growth remains modest, citing efficiency efforts and a tighter product focus, and the stock is described as trading below at least one published fair value estimate despite a relatively high P/E. That mix of improving margins, experienced leadership and established supermarket relationships comes with trade offs, including low current net margins, reliance on external borrowing and uncertainty around the long-term strength of convenience trends. These factors mean the company warrants a closer look before deciding how it might fit into a diversified portfolio.

Bakkavor Group’s mix of modest revenue growth potential, efficiency efforts and a relatively high P/E with a discount to at least one fair value estimate raises big questions, and the 2 key rewards and 2 important warning signs could show what the headline numbers are not yet telling you

Olaplex Holdings (OLPX)

Overview: Olaplex Holdings develops and sells science based haircare products, from salon treatments to at home shampoos, conditioners and serums, targeting hair repair and protection for consumers worldwide. The company reaches customers through professional salon distributors, major retailers, its own website and third party e-commerce platforms.

Operations: Olaplex Holdings generates about US$425.4m in revenue from personal products, split between roughly US$223.1m from international markets and US$202.3m from the United States.

Market Cap: US$1.38b

Olaplex Holdings sits at the crossroads of beauty and everyday essentials, which is important when tighter US student loan rules could make consumers prioritize recurring but affordable self care over bigger discretionary splurges. On one hand, the company is still loss making, has seen pressure in key channels and is part way through a wide ranging transformation. On the other hand, management is leaning into new products, stronger digital and international distribution and closer salon partnerships. There is also a proposed US$1.4b cash acquisition by Henkel that, if completed, would reshape the story. For investors, the real question is whether these changes can turn current headwinds into a more resilient, higher quality business over time.

Olaplex Holdings looks like a stalled beauty story that might be resetting, with a proposed US$1.4b cash deal that could change everything. The full narrative for Olaplex Holdings hints at what that price might really be saying.

The three stocks covered here are just a starting point, and the full Consumer Staples Stocks screener surfaces 29 more larger consumer staples companies with similar value, quality and resilience stories that could be just as interesting. Use Simply Wall St to identify the specific catalysts, filter by financial health and valuation, and analyze the narratives that matter most so you can focus on your highest conviction ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.