Lamb Weston Cost-Savings Measures Boost Earnings and the Stock -- Barrons.com
Dow Jones2026/10/06 16:59By Mariapaula Gonzalez Lamb Weston stock gained Tuesday after the company raised its financial targets for fiscal 2027, citing momentum across key customer segments, ongoing cost-saving initiatives, and margin improvement. The frozen-potato supplier, supplying french fries for chains like McDonald's and Chick-fil-A, posted fiscal first-quarter adjusted earnings of 75 cents a share, surpassing analysts' calls for 59 cents. Revenue grew 1% to $1.67 billion, slightly topping Wall Street's estimates of $1.65 billion. Lamb Weston stock jumped 12% to $49.91 Tuesday, with shares on pace to have their largest single-day percentage gain since July 23, 2025. The stock has risen nearly 20% this year, according to Dow Jones Market Data. The company raised its outlook for fiscal 2027, citing higher sales volume in the North America division and improved operating margins on cost-saving measures, including lowering prices to attract more customers. The company also previously shut down some facilities and said it would cut its global workforce by approximately 4%. Lamb Weston now expects net sales in the fiscal year to increase by low single digits, up from a prior benchmark of up to 1%. The company projects adjusted earnings to range from $3.05 and $3.35 a share , above a previous outlook of $2.95 to $3.25. Management previously noted that earnings were expected to surpass top-line sales, driven by cost-savings initiatives and operational efficiencies following restructuring actions. Aside from the positive outlook, Lamb Weston saw some declining figures. The company's net income dropped 55% from the year before to $29.1 million, down from $64.3 million. Adjusted earnings before interest, taxes, depreciation, and amortization also fell nearly 6% to $285.6 million, falling short of $302.2 million from last year. Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Stree
By Mariapaula Gonzalez
Lamb Weston stock gained Tuesday after the company raised its financial targets for fiscal 2027, citing momentum across key customer segments, ongoing cost-saving initiatives, and margin improvement.
The frozen-potato supplier, supplying french fries for chains like McDonald's and Chick-fil-A, posted fiscal first-quarter adjusted earnings of 75 cents a share, surpassing analysts' calls for 59 cents. Revenue grew 1% to $1.67 billion, slightly topping Wall Street's estimates of $1.65 billion.
Lamb Weston stock jumped 12% to $49.91 Tuesday, with shares on pace to have their largest single-day percentage gain since July 23, 2025. The stock has risen nearly 20% this year, according to Dow Jones Market Data.
The company raised its outlook for fiscal 2027, citing higher sales volume in the North America division and improved operating margins on cost-saving measures, including lowering prices to attract more customers. The company also previously shut down some facilities and said it would cut its global workforce by approximately 4%.
Lamb Weston now expects net sales in the fiscal year to increase by low single digits, up from a prior benchmark of up to 1%. The company projects adjusted earnings to range from $3.05 and $3.35 a share , above a previous outlook of $2.95 to $3.25.
Management previously noted that earnings were expected to surpass top-line sales, driven by cost-savings initiatives and operational efficiencies following restructuring actions.
Aside from the positive outlook, Lamb Weston saw some declining figures. The company's net income dropped 55% from the year before to $29.1 million, down from $64.3 million. Adjusted earnings before interest, taxes, depreciation, and amortization also fell nearly 6% to $285.6 million, falling short of $302.2 million from last year.
Write to Mariapaula Gonzalez at mariapaula.gonzalez@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 06, 2026 12:59 ET (16:59 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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