Lamb Weston is facing challenges in commercial execution and supply chain operations, compounded by a global decline in demand for frozen fries.
Lamb Weston, an American food company that is one of the world's largest producers and processors of branded and private-label frozen potato products, is now a $9 billion (by market cap) food giant. To date, the company has increased its dividend for eight consecutive years, with a five-year dividend growth rate of 7.9%. Lamb Weston moved its revenue from $3.2 billion in FY 2017 to $6.5 billion in FY 2024.
The company's latest set of quarterly results caused shares to plunge, with LW falling short of the Zacks Consensus EPS estimate by 37% and reporting sales 5% below expectations.
I decided to go long on Lamb Weston Holdings despite recent disappointing quarters, believing short-term punishment is followed by long-term recovery. Lamb Weston, a major global frozen potato products provider, has shown substantial historical growth but faced significant setbacks in FY2024, impacting stock performance. Despite current challenges, I see potential for a 35-50% upside if management can stabilize operations and return to historical performance trends.
Lamb Weston stock faced significant declines post-3Q24 and 4Q24 earnings, but I remain confident in its long-term value due to strong product demand. French fries are highly profitable and popular, with global demand growth driven by quick-service restaurants and partnerships with giants like McDonald's. The ERP system transition caused major disruptions, leading to a 16% sales decline in 3Q24 and continued challenges in 4Q24.
Lamb Weston (LW) reported earnings 30 days ago. What's next for the stock?
LOS ANGELES, CA / ACCESSWIRE / August 17, 2024 / The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between July 25, 2023 and April 3, 2024, inclusive (the "Class Period"), are encouraged to contact the firm before August 12, 2024.
LOS ANGELES, CA / ACCESSWIRE / August 16, 2024 / The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between July 25, 2023 and April 3, 2024, inclusive (the "Class Period"), are encouraged to contact the firm before August 12, 2024.
LOS ANGELES, CA / ACCESSWIRE / August 15, 2024 / The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW) for violations of 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between July 25, 2023 and April 3, 2024, inclusive (the "Class Period"), are encouraged to contact the firm before August 12, 2024.
Lamb Weston (LW) is battling key issues like ongoing input cost inflation, persistent execution difficulties and a softening in global demand for frozen fries.
NEW YORK, NY / ACCESSWIRE / August 12, 2024 / If you suffered a loss on your Lamb Weston Holdings, Inc. (NYSE:LW) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information: Click Here or contact Joseph E. Levi, Esq.
NEW YORK, NY / ACCESSWIRE / August 12, 2024 / If you suffered a loss on your Lamb Weston Holdings, Inc. (NYSE:LW) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information: Click Here or contact Joseph E. Levi, Esq.