Company Overview - Lamb Weston is a global leader in frozen potato products, serving both retail and foodservice markets with a diversified brand portfolio [1] - The company generates revenue by manufacturing and distributing frozen foods to various customers globally, including grocery retailers, foodservice operators, and educational institutions [8] - As of February 13, 2026, Lamb Weston reported a revenue of $6.47 billion and a net income of $392.30 million, with a dividend yield of 2.99% [5] Recent Developments - Liberty One Investment Management reduced its position in Lamb Weston by 544,473 shares during Q4 2025, with an estimated transaction value of approximately $32.04 million [2] - Following this sale, Lamb Weston constituted 2.23% of Liberty One's 13F reportable AUM, down from 3.1% in the previous quarter [3][4] - As of the same date, Lamb Weston shares were priced at $49.82, reflecting a 12.4% decline over the past year, underperforming the S&P 500 by 25 percentage points [4] Financial Metrics - The company has a reasonable EV-to-EBITDA ratio of 9 and a P/E ratio of 11, but carries a net debt of $3.8 billion against a market cap of $6.9 billion [10] - Over the last decade, Lamb Weston has returned over $2 billion to shareholders through dividends and share repurchases, while also paying approximately $1 billion in interest [10] Investment Perspective - Lamb Weston is viewed as a stock that sits between a turnaround and a value stock, with its current valuation potentially appealing to value and income-seeking investors [11] - Despite the company's challenges, including a dip in sales over the last two years, it is not considered to be in immediate danger [11]

Core Viewpoint - Lamb Weston Holdings, Inc. is a mid-cap food company with a market cap of $8.3 billion, specializing in frozen potato products and serving various sectors including restaurants and foodservice institutions [1][2]. Financial Performance - For Q1 2026, Lamb Weston reported an adjusted EPS of $0.74 and net sales of $1.66 billion, exceeding estimates [5]. - The company experienced a 6% volume growth, improved cost savings, and lower SG&A expenses, leading to a positive full-year outlook with projected net sales of $6.35 billion to $6.55 billion and adjusted EBITDA of $1 billion to $1.20 billion [5]. Stock Performance - Lamb Weston shares have decreased by 28.1% from their 52-week high of $83.98 and are down 9.6% year-to-date, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which has risen by 1.4% [3][4]. - Over the past 52 weeks, Lamb Weston shares have declined by 23.8%, while XLP has only dropped by 2.9% [4]. - Despite the stock's recent performance, it has risen by 7.7% over the past three months, outperforming XLP's marginal gain [3]. Analyst Sentiment - Analysts maintain a moderately optimistic outlook for Lamb Weston, with a consensus rating of "Moderate Buy" from 12 analysts and a mean price target of $65.27, indicating an 8.6% premium to current levels [6].