Shares of Lamb Weston Holdings, Inc. (NYSE: LW) stayed inexperienced on Tuesday. The inventory has dropped 27% up to now three months. The frozen potato merchandise maker continues to function in a fluid and aggressive surroundings and has been battling just a few headwinds. Nonetheless, the corporate has been specializing in what it might probably management and this has helped it make progress in sure areas of its enterprise.
Gross sales and quantity development in opposition to value/combine challenges
Lamb Weston’s internet gross sales rose 1% to $1.62 billion within the second quarter of 2026 in comparison with the earlier 12 months. Quantity elevated 8%, pushed by buyer wins, share beneficial properties and robust retention, notably in North America and Asia. The corporate continued to achieve share even with new and rising prospects and this helped it develop quantity regardless of softness in restaurant site visitors.
As talked about on the Q2 earnings name, QSR, or quick-service restaurant, site visitors within the US remained flat throughout the three-month interval of August, September and October, with development in QSR rooster and declines in QSR burger. French fry quantity in North America foodservice gained barely, reflecting resilient demand. Restaurant site visitors in most worldwide markets declined, with the biggest market, the UK, witnessing a 3% drop.
Lamb Weston’s quantity development in Q2 was offset by a decline in value/combine. Worth/combine fell 8%, attributable to impacts from pricing and commerce to assist prospects, in addition to combine shifts in the direction of lower-margin gross sales. The affect from unfavorable value/combine led to a lower in adjusted gross revenue, which in flip prompted earnings per share, on an adjusted foundation, to say no 5% year-over-year to $0.69.
Worth/combine declined throughout the corporate’s enterprise segments as properly throughout the second quarter, and is anticipated to stay unfavorable within the second half of the 12 months though to a lesser extent than the primary half.
Secure North America enterprise and Worldwide enlargement
Lamb Weston’s North America enterprise section stays steady. In Q2, internet gross sales of $1.07 billion had been flat year-over-year, however quantity grew 8%, pushed by buyer contract wins, share beneficial properties, and development throughout channels. The corporate additionally restarted its beforehand curtailed manufacturing traces in North America to take care of its excessive service ranges.
LW is meaningfully increasing its worldwide presence. Web gross sales within the Worldwide section elevated 4% to $548.6 million within the second quarter versus the earlier 12 months. Quantity grew 7%, helped by development in Asia and with multinational chain prospects.
The corporate’s international manufacturing footprint and provide chain community might help construct buyer partnerships that may permit it to seize quantity in fast-growing markets comparable to Asia and Latin America. Its new facility in Argentina has began manufacturing and with the speedy development within the area, the French fry maker sees alternative for significant share beneficial properties.
Nonetheless, worldwide markets stay aggressive. In Q2, LW confronted softness in restaurant site visitors, decrease export demand, and pricing pressures in Europe. The corporate expects to proceed supporting prospects with value and commerce by fiscal 12 months 2026.
Outlook
Lamb Weston expects sturdy gross sales and quantity for the rest of fiscal 12 months 2026. North America is anticipated to see volumes within the second half develop at or above first-half charges, helped by sturdy demand. Worldwide volumes are anticipated to be flat as the corporate laps prior-year buyer wins. LW expects internet gross sales to vary between $6.35-6.55 billion in FY2026.
