Lamb Weston Stock Swoons as Demand for Frozen Potatoes Softens

Core Insights - Lamb Weston missed analysts' expectations for both profit and revenue in its fiscal fourth-quarter results [1][2] - CEO Tom Werner indicated that demand for frozen potatoes has softened due to inflation [1][3] - The company anticipates that fiscal 2025 will be another challenging year [1][4] Financial Performance - The company reported earnings per share (EPS) of $0.89, a decline of 74$1.61 billion, which fell short of expectations of $1.27 and$1.7 billion [2] - Analysts expect Lamb Weston to generate net sales between $6.6 billion and$6.8 billion in fiscal 2025, with EPS projected between $4.35 and$4.85 [4] Market Conditions - CEO Werner expressed disappointment over the fourth-quarter performance, citing below-expectation price/mix results and greater-than-expected market share losses alongside a slowdown in restaurant traffic in the U.S. and key international markets [3][4] - The operating environment has rapidly changed, with global restaurant traffic and frozen potato demand declining due to menu price inflation negatively impacting restaurant traffic [4] Stock Performance - Following the disappointing results, shares of Lamb Weston fell 28% to $56.54, marking a decline of over 47% in 2024 [5]