Lamb Weston Hold Stock Price, News & Analysis

JANA Partners, owning over 5% of Lamb Weston Holdings (NYSE: LW), issued a critical statement following the company's financial results and management change. As one of LW's largest shareholders, JANA strongly criticized the company's decision to replace its CEO with another long-term Lamb Weston executive, describing the financial results as 'disastrous' and the management change as inadequate. JANA demands either significant board changes or the sale of the company, stating the current board has 'completely failed shareholders.'

Lamb Weston Holdings (NYSE: LW) has announced that Michael J. Smith, current Chief Operating Officer, will become President and CEO effective January 3, 2025. Smith, who joined the company in 2007, will succeed Thomas P. Werner, who is stepping down but will serve in an advisory role through August 31, 2025.

Under Werner's leadership, Lamb Weston achieved significant growth, doubling both sales and EBITDA, and increasing stock price by more than 150%. Smith, who has served in various senior leadership roles during his 17-year tenure, brings extensive experience in driving growth across multiple areas of the company. His appointment represents the culmination of a years-long succession planning process by the Board.

Lamb Weston (NYSE: LW) reported declining Q2 FY2025 results with net sales down 8% to $1.6 billion and a net loss of $36.1 million. The company announced a $159 million pre-tax charge related to its Restructuring Plan, which includes facility closures and production curtailments. Key financial metrics declined significantly: Adjusted Income from Operations fell 41%, Adjusted Net Income dropped 55%, and Adjusted EBITDA decreased 25% to $282 million.

The company updated its FY2025 outlook, lowering targets due to challenging conditions including higher manufacturing costs and softer volumes. New guidance includes net sales of $6.35-6.45 billion and Adjusted EBITDA of $1.17-1.21 billion. The Board approved a $250 million increase to share repurchase authorization and raised the quarterly dividend.

JANA Partners, owning over 5% of Lamb Weston Holdings (NYSE: LW), sent a letter to the company's Board demanding significant leadership changes or pursuit of strategic alternatives, including a potential sale. The activist investor criticizes LW's poor performance, citing the company's bottom-quartile performance compared to peers and approximately $400M in EBITDA losses over 2.5 years.

The letter highlights multiple operational failures, including customer base mismanagement, demand forecasting errors, problematic ERP implementation, quality control issues, and questionable capital allocation decisions. JANA also raises concerns about corporate aviation asset usage and disclosure practices, particularly regarding flights to Omaha, NE.

Lamb Weston Holdings (NYSE: LW) has scheduled its fiscal 2025 second quarter earnings release for Thursday, December 19, 2024. The company will issue its news release at approximately 6:00 a.m. EST, followed by a conference call at 8:00 a.m. EST to discuss the results.

U.S. and Canadian participants can join the call by dialing 888-394-8218, while international participants should dial 1-323-994-2093 using conference ID 5411916. A rebroadcast will be available on Friday, December 20, 2024, after 2:00 p.m. EST on the company's investor relations website.

Lamb Weston (LW) has officially opened its new production facility in Kruiningen, The Netherlands, on November 7, 2024. The expansion increases the company's annual production capacity by 195 million kilos of frozen potato products. The new state-of-the-art facility employs approximately 120 new workers, bringing the total Kruiningen site workforce to 650 employees. The plant features sustainable technologies for efficient raw material use, water purification and reuse, and heat optimization to reduce emissions. This expansion, planned over five years ago, aims to meet growing global demand for frozen potato products while maintaining environmental responsibility.

Lamb Weston reported Q1 fiscal 2025 results with net sales declining 1% to $1,654 million and net income falling 46% to $127 million. The company announced a restructuring plan expected to generate $55 million in pre-tax cost savings in fiscal 2025 and reduce capital expenditures by $100 million. Key actions include closing a facility in Washington, curtailing production in North America, and reducing the global workforce by 4%.

Lamb Weston updated its fiscal 2025 outlook, reaffirming net sales of $6.6-$6.8 billion but reducing GAAP net income target to $395-$445 million and Diluted EPS target to $2.70-$3.15. The company is targeting the low-end of its Adjusted EBITDA range of $1,380-$1,480 million and reduced its Adjusted Net Income target to $600-$615 million.

Lamb Weston Holdings (NYSE: LW) has announced a quarterly dividend of $0.36 per share of common stock. The dividend will be payable on Nov. 29, 2024, to stockholders of record as of the close of business on Nov. 1, 2024. This decision was made by the company's Board of Directors, demonstrating their commitment to returning value to shareholders.

The announcement of a regular dividend payment can be seen as a positive sign of the company's financial health and confidence in its future prospects. It provides a steady income stream for investors and may attract those seeking dividend-yielding stocks.

Lamb Weston Holdings, Inc. (NYSE: LW) has appointed Norman Prestage to its Board of Directors, effective immediately. Prestage, a former partner at Ernst & Young, LLP, retired in June 2024 and will also serve on the Board's Audit and Finance Committee. With extensive experience advising consumer goods and foodservice companies, Prestage is expected to contribute significantly to Lamb Weston's growth strategies and shareholder value creation.

During his career at Ernst & Young, which began in 1987, Prestage served as the global client service partner for large global public companies in various industries. He held leadership roles including Retail and Consumer Products Industry Leader for the Midwest and Arkansas Office Managing Partner. Prestage, a certified public accountant, holds a Bachelor of Business Administration from the University of Notre Dame.