Shares of Lamb Weston Holdings, Inc. (NYSE: LW) stayed inexperienced on Thursday. The inventory has gained over 18% previously three months. The frozen potato merchandise maker delivered flat gross sales and decrease income for the primary quarter of 2026, as development in volumes was offset by unfavorable worth/combine. The corporate expects quantity development to proceed by means of fiscal 12 months 2026 whereas headwinds from worth/combine are anticipated to reasonable within the second half of the 12 months.
Q1 efficiency
Lamb Weston’s web gross sales of $1.66 billion noticed little change within the first quarter of 2026 in comparison with the identical interval a 12 months in the past. On a continuing foreign money foundation, web gross sales declined 1%. Quantity elevated 6%, pushed by buyer wins and retention, led primarily by beneficial properties in North America and Asia. This was offset by a 7% decline in worth/combine.
The North America phase noticed a 2% drop in gross sales, primarily as a consequence of decrease costs. Quantity grew 5%, helped by buyer contract wins and development throughout channels, whereas worth/combine declined 7%. Worldwide phase gross sales grew 4%, with a 6% development in quantity. Value/combine declined 6%, primarily as a consequence of pricing actions in key worldwide markets.
Lamb Weston’s earnings per share, on an adjusted foundation, decreased 5% to $0.74 within the first quarter in comparison with the year-ago interval.
Trade tendencies and French fry demand
As talked about on its quarterly convention name, Lamb Weston noticed restaurant visitors at a number of buyer channels stay flat in Q1, together with general QSR visitors. Nevertheless, some channels, together with QSR Hen, are seeing development. In the meantime, QSR Hamburger declined within the low-single-digits. Exterior the US, restaurant visitors has been combined. In sure markets, together with the UK, visitors declined 4%.
Nonetheless, LW has a stable place throughout the robust French fry class. French fries proceed to be an especially well-liked and worthwhile merchandise in eating places. The fry attachment fee, which signifies how usually prospects order fries with their meals, stays excessive versus pre-pandemic ranges. International demand continues to develop, with an estimated 44% of world menus providing fries. As well as, as QSRs increase, they introduce fries in creating markets, producing additional development.
Focus to Win
Lamb Weston is making progress on its Focus to Win technique, which entails focusing investments on precedence international markets and segments, strengthening buyer partnerships, robust execution, and product innovation.
Outlook
For fiscal 12 months 2026, Lamb Weston expects web gross sales at fixed foreign money to be down 2% to up 2%, ranging between $6.35-6.55 billion. It expects quantity development in each segments. Within the North America division, quantity is predicted to develop all year long whereas within the Worldwide phase, quantity within the latter half of the 12 months is predicted to be flat. Value/combine is anticipated to stay unfavorable, with the influence extra pronounced within the first half of the 12 months and a moderation anticipated within the second half.
