Lamb Weston Holdings, Inc.
- Open
- 47.62
- Day high
- 48.12
- Day low
- 46.36
- Prev close
- 46.92
- Volume
- 1.5M
- Mkt cap
- $6.5B
- P/E (TTM)
- 21.8
- EPS (TTM)
- $2.15
- P/B
- 3.5
- P/S
- 1.0
- Yield
- 3.21%
- Per share
- $1.50
- ▲Insiders net buying $405K over the last 3 months (2 open-market buys, 0 sales)
- 🏛Institutions mixed (13F)
Lamb Weston Holdings, Inc. (LW) is a Consumer Defensive company listed on NYSE. The stock is down 5% over the past year. Over the trailing 3 months, insiders filed 2 open-market buys and 0 sales (SEC Form 4).
Lamb Weston Holdings, Inc. (LW) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LW earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 1, 2026 | $0.63 | $0.72 | +15.0% | $1.6B | +4.6% |
| Dec 19, 2025 | $0.64 | $0.69 | +7.1% | $1.6B | +1.7% |
| Sep 30, 2025 | $0.55 | $0.74 | +35.8% | $1.7B | +2.6% |
| Apr 3, 2025 | $0.87 | $1.10 | +26.4% | $1.5B | -4.5% |
| Dec 19, 2024 | $1.05 | $0.66 | -37.1% | $1.6B | -4.2% |
| Jul 24, 2024 | $1.26 | $0.78 | -38.1% | $1.6B | -5.3% |
| Apr 4, 2024 | $1.45 | $1.20 | -17.2% | $1.5B | -11.6% |
| Jan 4, 2024 | $1.41 | $1.45 | +2.8% | $1.7B | +1.9% |
| Oct 5, 2023 | $1.08 | $1.63 | +50.9% | $1.7B | +2.8% |
| Jul 25, 2023 | $1.05 | $1.22 | +16.2% | $1.7B | +2.3% |
| Apr 6, 2023 | $0.99 | $1.43 | +44.4% | $1.3B | -24.2% |
| Jan 5, 2023 | $0.74 | $1.28 | +73.0% | $1.3B | +11.2% |
LW insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 12, 2026 | Philip Amitofficer: Chief Strategy Officer | Grant | 59,801 | $60.00 |
| May 12, 2026 | Philip Amitofficer: Chief Strategy Officer | Grant | 29,631 | — |
| May 12, 2026 | Philip Amitofficer: Chief Strategy Officer | Grant | 51,258 | $85.00 |
| May 11, 2026 | Gray James Dofficer: Chief Financial Officer | Buy | 5,000 | $40.95 |
| May 11, 2026 | Gray James Dofficer: Chief Financial Officer | Grant | 15,096 | — |
| Apr 28, 2026 | Gray James Dofficer: Chief Financial Officer | Buy | 4,556 | $43.85 |
| Apr 15, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Buy | 50,000 | $43.19 |
| Apr 15, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Buy | 100,000 | $42.12 |
| Apr 13, 2026 | Gray James Dofficer: Chief Financial Officer | Grant | 7,644 | $42.19 |
| Apr 13, 2026 | Gray James Dofficer: Chief Financial Officer | Grant | 85,430 | $85.00 |
| Apr 13, 2026 | Schroeder Marcofficer: PRESIDENT, INTERNATIONAL | Tax | 6,084 | $42.19 |
| Apr 13, 2026 | Gray James Dofficer: Chief Financial Officer | Grant | 99,668 | $60.00 |
| Apr 13, 2026 | Gray James Dofficer: Chief Financial Officer | Grant | 54,985 | — |
| Apr 9, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Buy | 136,000 | $40.89 |
| Apr 9, 2026 | JANA Partners Management, LPdirector, other: See Remarks | Buy | 100,000 | $41.41 |
Source: LW SEC Form 4 filings, latest May 12, 2026. For informational purposes only — not investment advice.
See the full LW insider & 13F page →Lamb Weston Holdings, Inc. company profile
Overview
Lamb Weston Holdings, Inc. (NYSE:LW) is a leading global producer and distributor of frozen potato products, founded in 1950 and headquartered in Eagle, Idaho. The company went public in November 2016 following a spin-off from ConAgra Foods. Lamb Weston has grown to become one of the world's largest suppliers of value-added frozen potato products, serving restaurants, foodservice operators, and retail customers across more than 100 countries. The company operates manufacturing facilities in North America, Europe, Argentina, and Asia, with a focus on french fries and other frozen potato specialties that are ubiquitous in quick-service restaurants and grocery stores worldwide.
Business
Lamb Weston operates in the frozen potato processing industry, which sits at the intersection of agriculture and food manufacturing. The company transforms raw potatoes into value-added frozen products that are sold to restaurants, foodservice operators, and retailers globally. The company's core business revolves around frozen french fries, which represent the vast majority of its revenue. French fries are potato strips that are cut, blanched, partially cooked, and then frozen for distribution. This process allows restaurants to quickly finish cooking the fries in their kitchens while maintaining consistent quality and taste. Beyond basic french fries, Lamb Weston produces specialty potato products including seasoned fries, sweet potato fries, hash browns, potato wedges, and other appetizers. The business is organized into two primary segments following a recent restructuring: 1. North America Segment (approximately 75-80% of revenue): Serves the large North American market including major quick-service restaurant chains like McDonald's, Burger King, and other foodservice customers. This segment benefits from the massive scale of the North American QSR market and established customer relationships. 2. International Segment (approximately 20-25% of revenue): Covers operations in Europe, Asia-Pacific, and Latin America through manufacturing facilities and joint ventures. This includes the company's European operations acquired from joint ventures and facilities in Argentina and China. The company also operates under various brand names including Lamb Weston, Grown in Idaho, and Alexia (premium retail brand), while also producing private-label products for retail customers. The frozen potato industry requires significant capital investment in specialized processing equipment, cold storage facilities, and agricultural relationships with potato growers.
Revenue model
Lamb Weston generates revenue primarily through product sales of frozen potato products to two main customer categories. The company sells directly to foodservice customers including major quick-service restaurant chains, casual dining restaurants, and institutional foodservice operators. It also sells to retail customers including grocery stores, mass merchants, and club stores for consumer purchase. The business model is built on contract-based relationships with large customers, particularly major QSR chains that require consistent supply, quality, and pricing. These contracts often span multiple years and provide volume commitments, creating relatively predictable revenue streams. Pricing is typically negotiated annually and includes mechanisms to adjust for input cost changes, particularly potato costs. Several factors significantly impact the company's margins. Potato crop yields and quality represent the most critical input cost variable, as poor harvests can dramatically increase raw material expenses. The company sources potatoes primarily from growers in Idaho, Washington, and other key agricultural regions through long-term contracts. Labor costs and availability affect manufacturing operations, particularly given the specialized nature of frozen food processing. Energy costs for processing and cold storage facilities represent another significant expense that can fluctuate with commodity prices. Restaurant traffic trends directly impact demand, as approximately 70% of frozen potato consumption occurs in foodservice channels. Economic downturns, changing consumer preferences, or health trends can reduce restaurant visits and subsequently potato product demand. Competitive dynamics also influence pricing power, as the industry includes other large players and faces periodic capacity additions that can create supply-demand imbalances. Transportation and logistics costs affect margins given the need for frozen distribution networks, while currency fluctuations impact international operations and export competitiveness.
Competitive moat
Lamb Weston possesses a moderate but meaningful competitive moat built primarily on scale advantages, customer relationships, and operational expertise. The company benefits from significant barriers to entry in frozen potato processing, which requires substantial capital investment in specialized equipment, cold storage facilities, and distribution networks. The technical expertise needed to consistently produce high-quality frozen fries at scale creates additional barriers for new entrants. The company's long-term customer relationships with major QSR chains provide some protection, as these customers value supply reliability, consistent quality, and the ability to meet massive volume requirements. Switching costs exist for customers due to the need to reformulate recipes, retrain staff, and potentially modify equipment for different product specifications. Lamb Weston's scale advantages in procurement, manufacturing, and distribution allow it to compete effectively on cost while maintaining quality standards. However, the moat faces several challenges. The commodity nature of basic frozen potato products limits differentiation opportunities and pricing power. Large customers wield significant bargaining power and can pressure suppliers on pricing, particularly during contract renewals. The industry experiences periodic capacity additions from both existing players and new entrants, which can create oversupply conditions and pressure margins. Potential disruption could come from changing consumer preferences toward healthier alternatives, though french fry consumption has remained relatively resilient. New processing technologies or alternative protein trends could also pose long-term challenges. Additionally, the company's heavy dependence on the QSR hamburger segment creates vulnerability to traffic declines in that specific category. Overall, while Lamb Weston has competitive advantages, the moat is not exceptionally wide and requires continuous investment to maintain.
Risks & safety
The company's margin of safety appears moderate with some concerns given recent operational challenges and industry headwinds. • Cash and Liquidity: Low cash position of $67.5 million with negative free cash flow of -$19.8 million in Q3 2025, indicating potential liquidity constraints during challenging periods • Debt Levels: High debt-to-equity ratio of 2.61, suggesting elevated financial leverage that could limit flexibility during downturns • Solvency Risk: Current ratio of 1.35 provides modest working capital cushion, but quick ratio of 0.58 indicates potential short-term liquidity pressure • Valuation Metrics: P/E ratio of 12.7 appears reasonable, but EV/EBITDA of 8.3 suggests modest valuation given current operational challenges • Operational Concerns: Declining volumes, margin pressure, and recent plant closures indicate fundamental business headwinds that may persist • Industry Dynamics: Capacity oversupply and weak restaurant traffic create challenging operating environment with limited near-term visibility for improvement
Recent development
Over the past few years, Lamb Weston has undergone significant strategic and operational changes in response to challenging market conditions. The company restructured its business segments from four segments (Global, Foodservice, Retail, Other) to two segments (North America and International) to better align with geographic markets and operational focus. Capacity optimization has become a major focus, with the company permanently closing its Connell, Washington facility in 2024, representing 5% of North American capacity. Additionally, the company has been temporarily curtailing production lines to manage excess inventory and focus operations on more efficient manufacturing lines. These actions are part of a broader $55 million cost reduction program that includes reducing global headcount by 4%. The company has engaged AlixPartners for a comprehensive value creation plan focusing on top-line growth, cost reduction across manufacturing and logistics, working capital optimization, and long-term growth strategy. This represents a significant strategic initiative to address persistent operational challenges. Leadership transition occurred with Tom Werner stepping down as CEO and Mike Smith becoming the new President and CEO in January 2025. International expansion continued with the acquisition of European joint venture interests and expansion of operations in Argentina, including breaking ground on a 250 million-pound capacity expansion. The company has been managing through challenging market conditions including soft restaurant traffic, particularly in the QSR hamburger segment, competitive pricing pressures, and industry capacity oversupply. Recent efforts have focused on customer retention, new product innovation, and improving operational efficiency while navigating potato crop cost fluctuations and supply chain disruptions.
LW company profile · for informational purposes only — not investment advice.
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