Company Performance - Shares of Lamb Weston Holdings, Inc. (NYSE: LW) have declined approximately 8% over the past year due to weak pricing and lower traffic at restaurants [1] - Cost-cutting efforts are being implemented to stabilize results [1] Market Context - The company is facing challenges in the current market environment, particularly in the food service sector [1]

Company Updates - Spotify shares dropped following the announcement that co-founder and CEO Daniel Ek will step down, with co-presidents Gustav Soderstrom and Alex Norstrom set to take over as co-CEOs [2][4] - Instacart operator Maplebear saw its shares tumble after BTIG downgraded its rating from "buy" to "neutral," citing increased competition in the food delivery sector [2] - Firefly Aerospace experienced a significant decline in shares after one of its rocket boosters exploded during preflight tests [2] Market Reactions - Pfizer shares gained after the pharmaceutical company reached a deal with the Trump administration to lower drug prices [3][4] - CoreWeave shares surged following the announcement of a new agreement with Meta Platforms valued at up to $14.2 billion [3] - Lamb Weston Holdings shares increased after the company reported better-than-expected sales driven by improved restaurant demand [3] Economic Indicators - Major U.S. equities indexes, including the Dow, S&P 500, and Nasdaq, edged lower amid concerns over a potential government shutdown [4]

Table of Contents For the quarterly period ended August 24, 2025 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 _________________________________________________________________ LAMB WESTON HOLDINGS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________________________ FORM 10-Q ______________________________________________ ...

Lamb Weston (LW) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +37.04%. A quarter ago, it was expected that this frozen foods supplier would post earnings of $0.64 per share when it actually produced earnings of $0.87, delivering a surprise of +35.94%.Over the last four quarters, th ...

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades while teaching investors to become proficient traders [1] - Quad 7 Capital has a proven track record, being known for their February 2020 call to sell everything and go short, and maintaining an average position of 95% long and 5% short since May 2020 [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, which enhances their research quality [1] Group 2 - Benefits of BAD BEAT Investing include learning market dynamics, receiving well-researched trade ideas weekly, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also offers education on basic options trading and provides extensive trading tools to assist investors [2]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Lamb Weston Holdings, Inc. (NYSE:LW) posted first-quarter fiscal 2026 net sales of $1.66 billion, up slightly from $1.65 billion a year earlier and ahead of the $1.62 billion estimate. Adjusted net income was $103 million, with adjusted earnings per share of 74 cents, topping the 55-cent estimate. Adjusted EBITDA increased to $302.2 million from $299.4 million. "The Lamb Weston team delivered a strong start to the fiscal year with solid volume growth and positive customer momentum, underscoring the streng ...

Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [15] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [15] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [21] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [17] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [17] - Adjusted EBITDA in North America declined 6% to $260 million, while international segment adjusted EBITDA increased by $6 million to $57 million [22] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [16][78] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [78] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aiming for profitable growth through category-leading innovation and customer-centric actions [4][5] - The company is prioritizing specific markets and products where it has a sustainable competitive advantage [7] - New innovative products are set to launch in the fall, including flavor-forward offerings and artisanal fries [11] Management's Comments on Operating Environment and Future Outlook - Management noted positive customer momentum and strong volume growth, with expectations for continued growth in both segments [4][26] - The company anticipates challenges in price/mix due to strong crop yields and competitive actions, particularly in Latin America [18][26] - Management reaffirmed its fiscal 2026 outlook, expecting revenue in the range of $6.35 billion to $6.55 billion [25][26] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [23] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [24] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [36][37] Question: Price/mix expectations for the first half of the fiscal year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [39] Question: Gross margin commentary and seasonal increases - Management confirmed that the North America segment will see a seasonal increase, but input cost inflation will also impact margins [45] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil, with an expected annualized impact of about $25 million [47] Question: Customer wins and profitability - Management refrained from discussing specific profitability on new customers but emphasized that pricing aligns with expectations [100] Question: Capital expenditures outlook - Management indicated that the $500 million capital expenditure plan is in line with expectations for maintenance and environmental projects [101]

Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [15] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [15] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [21] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [17] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [17] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [16][78] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [78] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aiming for profitable growth through category-leading innovation and customer-centric actions [4][5] - The company is prioritizing specific markets and products where it has a sustainable competitive advantage [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry is rational regarding capacity, with some announced capacity not moving forward as planned [36] - The company expects continued pressure on price/mix due to a strong crop and competitive actions, particularly in Latin America [18] Other Important Information - The company is on track to achieve at least $250 million of annual run-rate savings by fiscal year-end 2028 [5] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [24] Q&A Session Summary Question: Restarting a curtailed production line and supply-demand imbalance - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that not all new capacity announcements will proceed as planned [36][37] Question: Price/mix expectations for the first fiscal half - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating to low to mid in the back half of the year [39] Question: Gross margin commentary for North America - Management confirmed a seasonal increase in North America, with input cost inflation expected to rise in Q2 but benefits from lower potato prices also anticipated [45] Question: Tariff exposure - Most tariff exposure relates to imports of palm oil and other ingredients, with an annualized expectation of about $25 million [47] Question: New customer wins and profitability - Management refrained from discussing specific profitability on new customers but emphasized that pricing aligns with the P&L moving forward [100] Question: Capital expenditures outlook - Management indicated that the $500 million capital expenditure for the year is in line with expectations for maintenance and environmental projects [101]

Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [13] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [13] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [19] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [16] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [16][20] - Adjusted EBITDA in North America declined 6% to $260 million, while the international segment's adjusted EBITDA increased by $6 million to $57 million [20] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [14][72] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [15][72] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aimed at driving profitable growth and enhancing customer partnerships [4][7] - The company is prioritizing specific markets and products where it believes it has a sustainable competitive advantage [5] - New innovative products are set to launch in the fall, aligning with customer trends [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter results exceeded expectations, the outlook remains cautious due to potential pressures from soft restaurant market demand and increased competition [25][29] - The company expects unfavorable price/mix to continue in the first half of the year, moderating in the second half [25][27] - Management reaffirmed the fiscal 2026 revenue outlook, expecting a range of $6.35 billion to $6.55 billion [24] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [22] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [23] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [34] Question: Price/mix expectations for the first half of the year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [36] Question: Gross margin commentary for North America - Management confirmed that the increase in gross margin is expected to be seasonal, with input cost inflation anticipated in the second quarter [42] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil and is expected to be about $25 million annually, with full amounts included in guidance [44] Question: Customer win growth in North America - Management noted that new customer wins have materialized quicker than anticipated, contributing to volume growth [55] Question: Impact of restarting the curtailed line - Management stated that restarting the line would not incur significant costs and is expected to maintain production based on demand signals [63] Question: Phasing of cost savings in fiscal 2026 - Management confirmed that they are on track to deliver the $100 million target for fiscal 2026, with two-thirds of the benefits expected in the back half of the year [67] Question: Drivers of business wins with QSR customers - Management emphasized a renewed focus on service quality and consistency, alongside joint business planning with customers [70]