Lamb Weston: Turnaround Opportunity As Fast-Food Headwinds Mask Improving Fundamentals
Lamb Weston Holdings is upgraded to Buy as North American volumes inflect positively, reversing prior declines. LW's strategic price reset has driven 8% North America volume growth, improving utilization and delivering 15% EBIT growth despite a 7% price/mix decline. Enhanced capital allocation—dividend increase and buybacks—creates a valuation floor, signaling management's confidence in current share levels.
Explore how Lamb Weston's (LW) revenue from international markets is changing and the resulting impact on Wall Street's predictions and the stock's prospects.
Lamb Weston Holdings, Inc. (LW) Q2 2026 Earnings Call Transcript
LW beats fiscal second-quarter earnings and sales estimates as volume gains offset pricing pressure, even as profit declines from last year.
Although the revenue and EPS for Lamb Weston (LW) give a sense of how its business performed in the quarter ended November 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Lamb Weston (LW) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.66 per share a year ago.
French-fry maker Lamb Weston swung to a profit in its latest quarter as revenue edged up.
LW's second-quarter results are likely to show softer revenues and pricing pressure, partly offset by steady volume growth and benefits from restructuring efforts.
Lamb Weston Holdings, Inc. faces margin pressure from rising input costs and competitive pricing, prompting a Hold rating despite reasonable valuation. LW's international segment growth was acquisition-driven; organic sales declined 9% due to weak demand and strategic exits from low-margin businesses. North America revenue is flat as price cuts to defend market share offset only modest volume gains, reflecting a challenging environment.
Lamb Weston (LW) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Consumer staples lag in 2025, but PEP, MNST, LW, UNFI and OLLI are five stocks that show improving growth drivers for 2026.