Why Lamb Weston Stock Was Plummeting This Week

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].