Fast-food value meals have been credited with helping get inflation-weary diners back into their favorite chains.
Lamb Weston Holdings, Inc. (NYSE:LW ) Q1 2025 Earnings Conference Call October 2, 2024 10:00 AM ET Company Participants Tom Werner - President, Chief Executive Officer Bernadette Madarieta - Chief Financial Officer Dexter Congbalay - Vice President, Investor Relations Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Peter Galbo - Bank of America Tom Palmer - Citi Adam Samuelson - Goldman Sachs Robert Moskow - TD Cowen Rob Dickerson - Jefferies Marc Torrente - Wells Fargo Securities Matt Smith - Stifel Carla Casella - JPMorgan Operator Good day! And welcome to the Lamb Weston First Quarter Fiscal Year 2025 Earnings Call.
Shares of Lamb Weston Holdings (LW), one of the world's largest makers of frozen potato products, announced a restructuring that includes production cuts and layoffs.
Lamb Weston (LW, Financial) saw its stock rise by 5% following its Q1 earnings report. The Idaho-based frozen potato product supplier exceeded expectations on both EPS and revenue.
Lamb Weston's first-quarter fiscal 2025 results reflect lower earnings amid soft restaurant traffic and frozen potato demand.
U.S. stock futures were lower this morning, with the Dow futures falling around 100 points on Wednesday.
Lamb Weston (LW) came out with quarterly earnings of $0.73 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.63 per share a year ago.
LW's Q1 results are likely to reflect the impacts of soft global restaurant traffic and reduced demand for frozen potatoes due to high menu prices.
Lamb Weston focuses on volume-based growth, leveraging a strong customer base and partnerships, despite short-term pressures from reduced restaurant traffic. Consumer staple powerhouse, driven by global potato consumption growth and strong relationships with major quick-service restaurants. Short-term challenges include ERP transition issues and market share contraction, but LW expects recovery and growth in the second half of FY2025.
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.