Lamb Weston Holdings, Inc. (LW)

In December 2024, JANA Partners called for Board and leadership changes or a strategic review due to a "disastrous 2024" earnings report. In March 2025, the stock slumped by 33.5% due to global market overcapacity, reduced restaurant traffic, rising manufacturing costs, and production inefficiencies. On April 3, 2025, Lamb Weston released its fiscal third-quarter results, reporting an EPS of $1.10 and revenue of $1.52 billion, leading to a 10.06% stock price increase. On May 30, 2025, the company declared a quarterly dividend of $0.37 per share. As of June 2025, Lamb Weston's stock price was $54.80 per share, marking a 37.09% decline from its price on June 17, 2024, and analysts generally hold a "Hold" rating on the stock.

Lamb Weston's product contribution margin percentage typically peaks in its fiscal third quarter due to freshly harvested potatoes. Potatoes are generally harvested in the Pacific Northwest between July and October. The company primarily manufactures to fulfill customer orders from finished goods inventories, and any order backlog due to seasonal manufacturing is not considered material. Global demand for frozen potato products is projected to increase, and recent volume declines were attributed to strategic decisions and destocking rather than a fundamental decline in demand. Investor concerns regarding GLP-1 drugs also influenced the stock.

Lamb Weston Holdings, Inc. is a global manufacturer and marketer of value-added frozen potato products, sweet potato, appetizer, and vegetable products. The company operates within the Consumer Defensive sector, specifically in the Consumer Packaged Goods and Packaged Foods industries. Its product portfolio includes fries, potato products, and appetizers, marketed under brand names such as Lamb Weston, Grown in Idaho, and Northwest Grown. Lamb Weston primarily supplies its products to the foodservice and retail industries worldwide.

Lamb Weston is headquartered in Eagle, Idaho, and has a significant global presence, selling products in over 100 countries. Its manufacturing operations are concentrated in the Pacific Northwest, particularly in the Columbia River Basin. The company maintains an operational presence and facilities in various international markets, including the UK, Australia, China, Argentina, Mexico, Canada, Singapore, Austria, the Netherlands, and Japan. In February 2023, Lamb Weston completed the acquisition of the remaining equity interests in its European joint venture, and in July 2022, the company increased its equity interest in its Argentine joint venture.

Lamb Weston has maintained a reputation for high-quality products, innovative solutions, and strong brand recognition, emphasizing sustainability and releasing its annual Global Sustainability Report in June 2025. However, the company's reputation faced challenges due to criticism from JANA Partners regarding financial and operating deficiencies and a fumbled attempt to enhance its customer base. The stock's decline and reported issues such as global market overcapacity and escalating manufacturing costs may have negatively impacted its brand perception.

Lamb Weston Holdings, Inc. is primarily owned by institutional shareholders, who collectively hold 94.42% of the company's shares. Insiders own 1.14%, and retail investors account for 4.44% of the ownership. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., JANA Partners Management, LP, Fmr LLC, State Street Corp, Price T Rowe Associates Inc /md/, Invesco Ltd, Clarkston Capital Partners LLC, Geode Capital Management LLC, and Boston Partners.