Core Insights - Lamb Weston Holdings, Inc. is facing fundamental challenges impacting its performance, including difficulties in commercial execution, supply chain operations, and a global decline in demand for frozen fries [1] - The company anticipates another difficult year in fiscal 2025, with a projected year-over-year decline in sales of 6.6% and earnings of 55.2% [2] Performance Overview - Year-to-date, Lamb Weston has experienced disappointing stock market performance, with a stock price decline of 41.7%, underperforming the Zacks Food - Miscellaneous industry's growth of 4.4% and the broader Consumer Staples sector's increase of 10% [3] Volume-Related Concerns - In the fourth quarter of fiscal 2024, Lamb Weston saw an 8% decline in volume, attributed to market share losses and a strategic exit from lower-priced, lower-margin businesses in Europe [5] - Weak restaurant traffic trends in North America and other international markets contributed to approximately 25% of this volume decline [5] - For the first half of fiscal 2025, the company projects a low-to-mid single-digit volume decline compared to the previous year [6] Cost Pressures - The adjusted gross profit for Lamb Weston dropped by $72.2 million to $363 million in the fourth quarter of fiscal 2024, primarily due to losses from product withdrawals and lower sales volumes [7] - The company is facing high manufacturing costs due to inflation in raw potatoes, labor, and ingredients, along with increased transportation and warehouse expenses [7] - Input cost inflation is expected to persist, influenced by a potentially below-average potato crop in Europe [8] Future Outlook - Lamb Weston anticipates a challenging operating environment in fiscal 2025, characterized by softened global restaurant traffic and reduced demand for frozen potatoes [8] - The company projects a mid- to high single-digit decline in sales for the first quarter of fiscal 2025, reflecting ongoing market share losses and weak restaurant traffic [8] - Margin pressure is expected to be intensified by higher costs per pound, an unfavorable product mix, and increased investments in pricing and trade support [8] Investor Sentiment - Analysts' negative sentiment is reflected in the Zacks Rank 5 (Strong Sell) for Lamb Weston, indicating expectations of further deterioration in the company's financial performance [9]

Company Overview - Lamb Weston Holdings Inc. is a leading American food company specializing in frozen potato products, with a market cap of $9 billion [1] - The company operates in two segments: North America (67% of FY 2024 revenue) and International (33%) [1] - McDonald's Corp. is the largest customer, accounting for 14% of total net sales [1] Dividend Growth - The company has increased its dividend for eight consecutive years since becoming independent in 2017 [2] - The five-year dividend growth rate is 7.9%, with a recent increase of 28.6% [3] - The current stock yield is 2.3%, which is 110 basis points higher than its five-year average, and the payout ratio is 28.9% [3] Revenue and Earnings Growth - Revenue grew from $3.2 billion in FY 2017 to $6.5 billion in FY 2024, representing a compound annual growth rate (CAGR) of 10.7% [4] - Earnings per share (EPS) increased from $2.22 to $4.98 during the same period, with a CAGR of 12.2% [5] - Recent challenges include a botched ERP transition and excess supply in the market, leading to a significant drop in stock price [5] Financial Position - The long-term debt/equity ratio is 1.9, and the interest coverage ratio is nearly 8, indicating a decent financial position [6] - Return on equity (ROE) averaged 269% over the last five years, with a net margin of 10.8% [6] - The company benefits from economies of scale and strong customer relationships, providing durable competitive advantages [6] Valuation - The stock is currently trading at a P/E ratio of 12.4, significantly lower than its five-year average of 23.4 [7] - A dividend discount model analysis estimates a fair value of $61.92, indicating the stock may be undervalued [11] - Professional analysis firms rate the stock as a 4-star "buy," with target prices of $70.00 and $95.00 from CFRA and Morningstar, respectively [13][14] Investment Opportunity - The recent stock price drop of nearly 50% presents a potential buying opportunity for long-term investors [5][15] - The company has a low payout ratio and a history of dividend increases, making it an attractive option for dividend growth investors [15]

Core Viewpoint - Lamb Weston (LW) is currently facing significant challenges, reflected in its Zacks Rank of 5 (Strong Sell), indicating a bearish outlook from analysts on the company's earnings potential [1][7]. Financial Performance - The latest quarterly results showed that Lamb Weston fell short of the Zacks Consensus EPS estimate by 37% and reported sales that were 5% below expectations, marking the second consecutive quarter of disappointing earnings and revenue [4]. - The company's shares have declined by 40% in 2024, primarily due to the negative impact of back-to-back quarterly results [4]. Market Conditions - CEO Tom Werner indicated that fiscal 2025 is expected to be another challenging year, citing a rapid change in the operating environment over the past year, with softened global restaurant traffic and frozen potato demand due to menu price inflation [5]. - The increase in available capacity in North America and Europe is a direct consequence of the demand pullback, as consumers are experiencing financial strain [5][6]. Earnings Outlook - Negative earnings estimate revisions have emerged from the soft quarterly results, painting a challenging picture for the company's shares in the near term [7].

A month has gone by since the last earnings report for Lamb Weston (LW) . Shares have added about 17.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Lamb Weston due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Lamb Weston Q4 Earnings & Sales Lag Estimates, Down ...

NEW YORK, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Lamb Weston Holdings, Inc. (NYSE: LW) on behalf of long-term stockholders following a class action complaint that was filed against Lamb Weston on June 13, 2024 with a Class Period from July 25, 2023 to April 3, 2024. Our investigation concerns whether the board of directors of Lamb Weston have breached their fiduciary duties to the company. ...

Lamb Weston Holdings, Inc. (LW) struggles with persistent execution difficulties both commercially and within the supply chain. Global softening in demand for frozen fries and substantial market share losses are hurting volumes. LW is grappling with high costs that are impacting its performance. Unimpressively, Lamb Weston came out with soft results for fourth-quarter fiscal 2024, following which it issued a lackluster outlook for first-quarter fiscal 2025. The Zacks Rank #5 (Strong Sell) company's shares h ...

Case Overview - A class action lawsuit has been filed against Lamb Weston Holdings Inc (NYSE: LW) for alleged material misrepresentations and omissions regarding the design and implementation of its new Enterprise Resource Planning (ERP) system [5] - The Class Period for the lawsuit is between July 25 2023 and April 3 2024 [1] - Investors who purchased Lamb Weston common stock during the Class Period may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement [2] Allegations - Defendants made numerous material misrepresentations and omissions regarding the design and implementation of Lamb Weston's new ERP system [5] - Lamb Weston represented that the new ERP system had strengthened its operational infrastructure and downplayed any implementation issues as usual bumps [5] - The company told investors that its financial guidance for fiscal 2024 appropriately accounted for any negative financial impact associated with the system's deployment [5] - As a result of these misrepresentations Lamb Weston stock traded at artificially inflated prices during the Class Period [5] Legal Action - The Rosen Law Firm is reminding purchasers of Lamb Weston common stock during the Class Period of the important August 12 2024 lead plaintiff deadline [1] - To join the Lamb Weston class action investors can visit https://rosenlegal com/submit-form/?case_id=26209 or call Phillip Kim Esq toll-free at 866-767-3653 [3][6] - A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation and must move the Court no later than August 12 2024 [3] Rosen Law Firm Background - The Rosen Law Firm represents investors throughout the globe concentrating its practice in securities class actions and shareholder derivative litigation [4] - The firm has achieved the largest ever securities class action settlement against a Chinese Company and was ranked No 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017 [4] - In 2019 alone the firm secured over $438 million for investors and has been ranked in the top 4 each year since 2013 [4] - Founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar in 2020 [4]

Core Viewpoint - The Lamb Weston Holdings, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to the problematic implementation of a new Enterprise Resource Planning (ERP) system, which has resulted in significant financial losses for the company [1][4][5]. Company Overview - Lamb Weston is a food processing company and a major producer of frozen potato products [3]. Class Action Details - The class action lawsuit is titled Cleveland Bakers and Teamsters Pension Fund v. Lamb Weston Holdings, Inc., and it covers purchasers of Lamb Weston shares from July 25, 2023, to April 3, 2024 [1]. - Investors have until August 12, 2024, to seek appointment as lead plaintiff in the lawsuit [2][6]. Allegations Against the Company - The lawsuit alleges that Lamb Weston and its executives made false or misleading statements regarding the readiness and implementation of the ERP system [4]. - It is claimed that the company was aware of issues with the ERP system that would hinder its successful implementation but proceeded with the rollout anyway [4]. - On April 4, 2024, Lamb Weston disclosed significant problems with the ERP system, leading to a loss of over $130 million in sales during Q3 of fiscal 2024 and a reduction in sales guidance by $330 million [5]. Financial Impact - Following the disclosure of the ERP issues, Lamb Weston’s stock price fell by more than 19% [5].

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 If you suffered losses exceeding $100,000 investing in Lamb Weston stock or options between July 25, 2023 and April 3, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: w ...

NEW ORLEANS, Aug. 07, 2024 (GLOBE NEWSWIRE) -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until August 12, 2024 to file lead plaintiff applications in securities class action lawsuits against Lamb Weston Holdings, Inc. (NYSE: LW), if they purchased the Company's shares between July 25, 2023 and July 23, 2024, inclusive (the "Class Period"). These actions are pending in the United States District Court for the District of Idaho. Get Help Lamb Weston investors should ...