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1. Company Snapshot

1.a. Company Description

Lamb Weston Holdings, Inc.produces, distributes, and markets value-added frozen potato products worldwide.It operates through four segments: Global, Foodservice, Retail, and Other.


The company offers frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as under various customer labels.The company also offers its products under its owned or licensed brands, such as Grown in Idaho and Alexia, and other licensed brands, as well as under retailers' brands.In addition, it engages in the vegetable and dairy businesses.


The company serves retail and foodservice customers; and grocery, mass merchants, club, and specialty retailers; and businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores.Lamb Weston Holdings, Inc.was incorporated in 1950 and is headquartered in Eagle, Idaho.

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1.b. Last Insights on LW

Breaking News: Lamb Weston Holdings Inc announced on February 6 2026 that it granted 317647 restricted stock units and options covering 1117346 shares of common stock to Jan Craps under the 2026 Inducement Stock Plan The grants were approved by the Compensation and Human Capital Committee as an inducement for Mr Craps No recent earnings release was available for comment Analysts at various firms have recommended a hold for the stock with some citing steady growth prospects and stable market position

1.c. Company Highlights

2. Lamb Weston Holdings' Q2 FY2026 Earnings: Volume Growth and Cost Savings Drive Performance

Lamb Weston Holdings, Inc. reported a 1% increase in net sales to $1.1 billion, driven by an 8% rise in volume, which was partially offset by an 8% decline in price mix. The company's adjusted EBITDA declined $9 million to $286 million, primarily due to unfavorable price mix, but was partially offset by benefits from cost savings initiatives and lower manufacturing costs per pound. Actual EPS came out at $0.69, beating estimates of $0.644.

Publication Date: Dec -20

📋 Highlights
  • 1. Sales Growth Driven by Volume: Net sales increased 1% to $1.1 billion, with 8% volume growth offset by 8% price mix decline.
  • 2. Adjusted EBITDA Decline: Adjusted EBITDA fell $9 million to $286 million, impacted by unfavorable price mix but partially offset by cost savings and lower manufacturing costs.
  • 3. Strong Free Cash Flow: Generated $375 million in free cash flow for the first half of fiscal 2026, with $530 million in operating cash flow.
  • 4. Dividend Increase and Share Buybacks: Approved a 3% dividend hike and repurchased $40 million in shares during Q2, reflecting capital return confidence.
  • 5. North America Volume Momentum: North America volume rose 8% in Q2, benefiting from customer wins and higher chain customer demand, though price mix headwinds persist.

Segment Performance

The North American segment was strong, with volume up 8% in the quarter, driven by share gains and customer wins despite softer restaurant traffic. The company restarted curtailed production lines in North America to meet customer expectations and ensure fill rates, with utilization rates in North American facilities now in the low nineties and more optimal. In international markets, Lamb Weston faces challenges, including a strong crop in Europe, leading to lower-cost raw materials, and soft traffic.

Cash Flow and Dividend

The company generated $530 million of cash from operations and $375 million of free cash flow in the first half of the year, with the board approving a 3% increase to the quarterly dividend. Lamb Weston repurchased $40 million of shares during the second quarter and remains below its 3.5 times leverage target, prioritizing capital allocation, including opportunistic share repurchases, investing in the business, and returning cash to shareholders.

Outlook and Valuation

Lamb Weston reaffirmed its fiscal 2026 outlook, expecting continued volume growth and strong sales momentum, with adjusted EBITDA guidance ranging from $1 billion to $1.2 billion. With a P/E Ratio of 15.61 and an EV/EBITDA of 9.74, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at 2.6%, and with a Dividend Yield of 3.37% and a Free Cash Flow Yield of 8.17%, the stock offers an attractive return profile.

Strategic Focus

The company is focused on executing its "Focus to Win" strategy, strengthening customer partnerships, and driving cost savings. It has made meaningful changes to its operations and cost structure, and will continue to monitor its mix impact and trends, including the shift from branded to private label products. With improved predictability in the North America business and a confident outlook for volume growth, Lamb Weston is well-positioned for long-term success.

3. NewsRoom

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Envestnet Asset Management Inc. Decreases Stock Holdings in Lamb Weston $LW

09:22

Source: defenseworld.net

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2 More of the Best Small-Cap Stocks to Buy While They're Still Undervalued

Feb -10

Source: youtube.com

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Lamb Weston Announces Inducement Award Under NYSE Listing Rule 303A.08

Feb -06

Source: businesswire.com

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Lamb Weston Announces Leadership Changes to Accelerate Focus to Win Strategy and Drive Shareholder Value

Feb -04

Source: businesswire.com

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Lamb Weston: Turnaround Opportunity As Fast-Food Headwinds Mask Improving Fundamentals

Feb -03

Source: seekingalpha.com

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$50 Million Still at Stake as Manager Cuts Exposure to Volatile Food Stock Down 28% This Past Year

Jan -23

Source: fool.com

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Lamb Weston Holdings: Upgrade To Buy On Earnings Growth Potential

Jan -23

Source: seekingalpha.com

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Kerry Group (OTCMKTS:KRYAY) versus Lamb Weston (NYSE:LW) Financial Contrast

Jan -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.89%)

6. Segments

Global

Expected Growth: 6.0%

Lamb Weston Holdings, Inc.'s 6.0% global growth is driven by increasing demand for frozen potato products, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, product diversification, and operational efficiencies have contributed to its growth momentum.

Foodservice

Expected Growth: 5.5%

Lamb Weston Holdings, Inc.'s Foodservice segment growth of 5.5% is driven by increasing demand for frozen potato products in restaurants and other foodservice channels, expansion into new markets, and product innovation. Additionally, the company's strategic pricing initiatives, effective supply chain management, and strong relationships with key customers contribute to the segment's growth.

Retail

Expected Growth: 6.2%

Lamb Weston Holdings, Inc.'s Retail segment growth of 6.2% is driven by increasing demand for frozen potato products, expansion in emerging markets, and strategic partnerships with major foodservice chains. Additionally, the company's focus on innovation, quality, and customer service has led to market share gains and pricing power.

Other

Expected Growth: 5.8%

Lamb Weston Holdings, Inc.'s 5.8% growth in 'Other' segment is driven by increasing demand for frozen potato products in international markets, particularly in Asia and Latin America. Additionally, the company's strategic acquisitions and investments in new product lines, such as sweet potato and vegetable-based offerings, have contributed to the segment's growth.

7. Detailed Products

Frozen Potatoes

Lamb Weston offers a wide range of frozen potato products, including fries, hash browns, and potato patties, designed to meet the needs of restaurants, foodservice providers, and retailers.

Sweet Potato Products

The company provides a variety of sweet potato-based products, including frozen sweet potato fries, sweet potato patties, and sweet potato hash browns.

Appetizers and Snacks

Lamb Weston offers a range of frozen appetizers and snacks, including onion rings, cheese sticks, and mozzarella sticks.

Vegetable Products

The company provides a variety of frozen vegetable products, including broccoli, cauliflower, and carrots.

Customized Products

Lamb Weston offers customized frozen potato and vegetable products tailored to meet the specific needs of its customers.

8. Lamb Weston Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lamb Weston Holdings, Inc. is medium due to the availability of alternative products in the market, such as fresh potatoes and other frozen food products.

Bargaining Power Of Customers

The bargaining power of customers for Lamb Weston Holdings, Inc. is high due to the concentration of major customers, such as McDonald's and other large foodservice companies, which can exert significant pressure on prices and terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Lamb Weston Holdings, Inc. is low due to the company's large scale of operations and its ability to negotiate favorable prices with suppliers.

Threat Of New Entrants

The threat of new entrants for Lamb Weston Holdings, Inc. is low due to the high barriers to entry, including the need for significant capital investment and the complexity of the frozen potato products market.

Intensity Of Rivalry

The intensity of rivalry for Lamb Weston Holdings, Inc. is medium due to the presence of several major competitors in the frozen potato products market, including McCain Foods and J.R. Simplot Company.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.21%
Debt Cost 4.41%
Equity Weight 28.79%
Equity Cost 7.91%
WACC 5.42%
Leverage 247.34%

11. Quality Control: Lamb Weston Holdings, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.5/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.91$

Current Price

49.91$

Potential

-0.00%

Expected Cash-Flows