NEW YORK, July 26, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Lamb Weston Holdings, Inc. ("Lamb Weston" or the "Company") (NYSE: LW). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4- POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. The class action concerns whether Lamb Weston and cer ...

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Lamb Weston To Contact Him Directly To Discuss Their Options. According to the Complaint, Defendants made numerous material misrepresentations and omissions regarding the design and implementation of Lamb Weston's new ERP system. Specifically, throughout the Class Period, Defendants represented that, through the design of the Company's new ERP system, Lamb Weston had "strengt ...

Core Viewpoint - Lamb Weston experienced a significant decline in share price, dropping 32% week-to-date following disappointing quarterly results and subsequent analyst downgrades [1][5]. Financial Performance - The company's net sales for the fourth quarter of fiscal 2024 decreased by 5% year-over-year to $1.6 billion [6]. - Non-GAAP (adjusted) net income fell sharply by 40% to just under $114 million [6]. Analyst Reactions - Analysts had anticipated $1.7 billion in revenue and $1.26 per share for adjusted net income, but the company did not meet these expectations [2]. - Following the earnings release, several analysts downgraded their price targets and recommendations for Lamb Weston from buy to hold [3][4]. Market Conditions - CEO Tom Warner noted that the company's price/mix results were below expectations, and there were greater-than-expected market share losses and a slowdown in restaurant traffic in both the U.S. and key international markets [5].

Core Viewpoint - Lamb Weston Holdings, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934 related to the implementation of a new ERP system, which reportedly caused significant financial losses for the company [1][2][7]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled Cleveland Bakers and Teamsters Pension Fund v. Lamb Weston Holdings, Inc., and it allows purchasers of Lamb Weston shares from July 25, 2023, to April 3, 2024, to seek appointment as lead plaintiff by August 12, 2024 [1][4]. - The lawsuit alleges that Lamb Weston and its executives made false or misleading statements regarding the readiness and implementation of the new ERP system, which was not ready for deployment [7]. - On April 4, 2024, Lamb Weston disclosed that the ERP system had significant issues, resulting in a loss of over $130 million in sales during Q3 of fiscal 2024 and a reduction in sales guidance by $330 million for the full fiscal year [8]. Group 2: Financial Impact - The implementation problems with the ERP system led to a more than 19% drop in Lamb Weston’s stock price following the disclosure of these issues [8]. - The lawsuit claims that the defendants were aware of the potential negative impacts of the ERP system's implementation but proceeded regardless, which materially affected the company's business operations [7].

The Chart 1.) I am very disappointed with management, especially for having missed by so much and for two quarters in a row. At this point, it would be good to see them eat their own cooking, and the best way for this to happen is if I see multiple insiders buying Lamb Weston shares in a significant way. Let's not forget, this was a stock trading over $100 per share earlier this year, so if management is not interested in buying shares of the company they run, after it basically gets cut in half in a matter ...

Financial Data and Key Metrics Changes - Sales declined by $83 million or 5% to over $1.61 billion, with volume down 8% and price/mix up 3% [13][31] - Adjusted SG&A expenses decreased by $6 million to $172 million, reflecting lower performance-based compensation [15] - Adjusted EBITDA was $283 million, down $50 million year-over-year, primarily due to lower sales and gross profit [55] Business Line Data and Key Metrics Changes - North America segment sales declined by $47 million or 4%, with volume down 7% and price/mix up 3% [16] - International segment sales decreased by $36 million or 7%, with volume down 9% [33] - Adjusted EBITDA for the International segment fell by 52% to $40 million, impacted by lower sales volume and higher costs [34] Market Data and Key Metrics Changes - U.S. restaurant traffic, particularly in QSRs, was down about 3%, with hamburger chains seeing a decline of over 4% [8] - Internationally, restaurant traffic trends were mixed, with growth in China and Japan but declines in the UK and Germany [9] Company Strategy and Development Direction - The company is focusing on volume-driven sales growth rather than price-driven, with targeted investments in pricing and trade support [7][36] - Strategic actions include integrating acquisitions, modernizing production capabilities, and upgrading IT infrastructure [5][23] - The company anticipates a challenging operating environment in fiscal 2025, with a focus on regaining market share and improving profitability [44][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged execution challenges and soft global demand for fries, leading to disappointing financial results [4][29] - The company expects volume to decline in the first half of fiscal 2025 but anticipates recovery in the second half due to contract wins and market share recapture [26][62] - Management remains confident in the long-term growth outlook despite current market softness [44][60] Other Important Information - The company plans to target sales of $6.6 billion to $6.8 billion in fiscal 2025, implying growth of 2% to 5% [36] - Capital expenditures for the year are expected to be approximately $850 million, with a notable decrease anticipated in fiscal 2026 [39][65] Q&A Session Summary Question: What is the management's view on the current guidance and conservativeness? - Management indicated a cautious approach due to prolonged negative restaurant traffic trends, which have accelerated recently [97] Question: Can you provide more details on the voluntary product withdrawal? - The product withdrawal was a decision made to maintain product integrity, impacting both the fourth and first quarters financially [99][115] Question: How does the company view its capacity utilization and share losses? - Management refrained from providing specific capacity utilization rates but acknowledged that share losses were partly due to the ERP transition and current market conditions [88][90]

Group 1 - Lamb Weston is experiencing a decline in profits as sales stagnate, with management attributing this to restaurant companies raising menu prices, which has deterred consumers [2][5] - For fiscal 2025, Lamb Weston anticipates a maximum of 5% top-line growth and a decrease in net profits, with a projected net income range of $630 million to $705 million, indicating uncertainty in profitability [2][6] - The company's net sales increased by 21% year-over-year in fiscal 2024, but 99% of this growth was due to acquisitions, highlighting weak consumer demand trends [5] Group 2 - Following the financial results for fiscal Q4 2024, Lamb Weston shares dropped significantly, with a decline of 26% on the reporting day [4] - The current market capitalization of Lamb Weston is approximately $8 billion, and in a worst-case scenario, the stock trades at less than 13 times its forward earnings, making it attractive to value investors [7] - Despite the current challenges, the long-term outlook for the frozen potato market remains stable, suggesting potential for a modest rebound in Lamb Weston stock [3]

Table of Contents FORM 10-K ____________________________________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 26, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-37830 ____________________________________________________________ Delaware 61-1797411 (State or other jurisdiction of incorporation ...

Core Viewpoint - The company, Lamb Weston Holdings, Inc. (LW), reported disappointing financial results for the fourth quarter of fiscal 2024, with significant declines in net sales and earnings, attributed to market share losses, a voluntary product withdrawal, and a slowdown in restaurant traffic across key markets [14][15]. Financial Performance - Net sales for the quarter were $1,611.9 million, down 5% year over year, missing the Zacks Consensus Estimate of $1,706.5 million [2]. - Volume declined by 8%, primarily due to market share losses and a strategic exit from lower-margin businesses in Europe [2]. - Adjusted gross profit decreased by $72.2 million to $363 million, impacted by a nearly $40 million loss from a voluntary product withdrawal and reduced sales volumes [3]. - Adjusted EBITDA fell by $50.3 million to $283.4 million, mainly due to lower net sales and adjusted gross profit [4]. Segment Analysis - In North America, sales dropped 4% to $1,113.2 million, with a volume decrease of 7% driven by a 5-percentage-point loss in market share [5]. - The International segment saw sales fall 7% to $498.7 million, with volume down 9%, influenced by market share losses and subdued restaurant traffic [19]. Guidance and Future Outlook - For fiscal 2025, the company anticipates a low-to-mid single-digit decline in volume in the first half, with expectations of favorable volume growth in the latter half as it moves beyond prior challenges [9]. - Management projects net sales between $6.6 billion and $6.8 billion for fiscal 2025, reflecting a growth of approximately 2-5% on a constant-currency basis [21]. - Adjusted EBITDA is expected to range from $1,380 million to $1,480 million for fiscal 2025 [22]. Cash and Capital Management - The company ended the quarter with cash and cash equivalents of $71.4 million and long-term debt of $3,440.7 million [7]. - In fiscal 2024, dividends paid amounted to $174 million, and stock repurchases totaled $210 million, with $390 million remaining under the current buyback plan [8].

Core Viewpoint - Lamb Weston experienced a significant decline in share price following disappointing Q4 results, but this may present a buying opportunity for investors as the market adjusts [2][15]. Financial Performance - The company's revenue for the quarter was $1.61 billion, down 5.3% year-over-year, primarily due to an 8% decline in volume, partially offset by a 3% increase in price and mix [7][15]. - The decline in revenue was attributed to a global slowdown in restaurant volumes and the exit from lower-margin businesses, which accounted for approximately 25% of the decline, with the remainder linked to a product recall [7][15]. - Adjusted earnings fell to $0.78, representing a 40% year-over-year decrease, largely due to recall expenses that impacted revenue by an estimated $40 million [9][15]. Market Sentiment and Guidance - The market reacted negatively to the company's guidance for revenue and earnings, which fell below consensus estimates, affecting overall market sentiment [5][15]. - Despite the cautious guidance, the dividend payout ratio is only 30% of the earnings guidance, indicating a stable capital return outlook [5][8]. Dividend and Shareholder Value - The annual dividend is set at $1.44, with a dividend yield of approximately 2.47%, which is at historical highs due to the recent decline in share price [8][16]. - Share repurchases have contributed to shareholder value, reducing the share count by an average of 1.2% in Q4 [10]. Long-term Outlook - Analysts suggest that the current sell-off may be overblown, positioning Lamb Weston as a deep value stock trading near historical lows, with potential for recovery as the market stabilizes [18]. - The company remains a leading supplier in the french fry market, particularly to major clients like McDonald's, which supports its long-term success [18].