Shares of Lamb Weston Holdings, Inc. (NYSE: LW) stayed inexperienced on Thursday. The inventory has gained over 18% prior to now three months. The frozen potato merchandise maker delivered flat gross sales and decrease earnings for the primary quarter of 2026, as progress in volumes was offset by unfavorable value/combine. The corporate expects quantity progress to proceed by fiscal yr 2026 whereas headwinds from value/combine are anticipated to reasonable within the second half of the yr.
Q1 efficiency
Lamb Weston’s internet gross sales of $1.66 billion noticed little change within the first quarter of 2026 in comparison with the identical interval a yr in the past. On a relentless foreign money foundation, internet gross sales declined 1%. Quantity elevated 6%, pushed by buyer wins and retention, led primarily by positive factors in North America and Asia. This was offset by a 7% decline in value/combine.
The North America phase noticed a 2% drop in gross sales, primarily resulting from decrease costs. Quantity grew 5%, helped by buyer contract wins and progress throughout channels, whereas value/combine declined 7%. Worldwide phase gross sales grew 4%, with a 6% progress in quantity. Value/combine declined 6%, primarily resulting from 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.
Business 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 Rooster, are seeing progress. 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%.
However, LW has a strong place inside the robust French fry class. French fries proceed to be an especially fashionable and worthwhile merchandise in eating places. The fry attachment charge, which signifies how typically clients order fries with their meals, stays excessive versus pre-pandemic ranges. World 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 progress.
Focus to Win
Lamb Weston is making progress on its Focus to Win technique, which entails focusing investments on precedence world markets and segments, strengthening buyer partnerships, robust execution, and product innovation.
Outlook
For fiscal yr 2026, Lamb Weston expects internet gross sales at fixed foreign money to be down 2% to up 2%, ranging between $6.35-6.55 billion. It expects quantity progress in each segments. Within the North America division, quantity is anticipated to develop all year long whereas within the Worldwide phase, quantity within the latter half of the yr is anticipated to be flat. Value/combine is anticipated to stay unfavorable, with the impression extra pronounced within the first half of the yr and a moderation anticipated within the second half.
