Oh man, Lamb Weston and its frozen potatoes—who knew spuds could be so dramatic? So, here’s the scoop: they just dropped their fiscal 2025 fourth-quarter earnings, and things are a bit zigzaggy. They did better than the smarty-pants analysts expected—their adjusted EPS was $0.87, beating the $0.78 prediction. That’s like snatching the last fry when everyone’s watching. Revenue? $1.68 billion. Yep, they outdid the $1.65 billion estimates. High fives all around, but wait, there’s more.
So, even with those sweet numbers, they’re feeling the pinch. Competitive pricing and climbing costs are like those pesky fries that stick to the pan—hard to ignore. They’ve whipped up a major cost-cutting plan to nip those issues in the bud. Will it work? Guess we’ll find out.
Alright, diving deeper, LW isn’t just about fries. They’ve got hash browns, onion rings, and even some funky potato appetizers. Imagine your freezer living its best life. They’re hustling to stay top dog in North America, keeping cozy with restaurant chains, and mixing up snacks to keep us, snack lovers, happy. Oh, and they’re shaking things up to save on costs because—let’s face it, life’s expensive.
In the last quarter, they saw a 4% kick in revenue, thanks to a 9% jump in sales volume. You’d think that’d mean more cha-ching, right? But, no. Price and product mix slid down by 4%. Competitive pricing is no joke—it’s like trying to out-yell a toddler. Overall, adjusted EPS climbed 12%, showing they’re fighting the good fight despite margin squeezes and ingredient prices going wild.
Checking out the North America scene—revenue dipped 1% even with a 4% volume rise. Yeah, go figure. Costs like transportation gobbled up their gains. On the flip side, the international side saw a 15% revenue pop. They shook hands on new contracts abroad, which was like finding a surprise fry at the bottom of your takeout bag. Nice.
Let’s talk innovations—stuff like fridge-friendly fries and funky new fry varieties aimed at making us go “ooh, aah” in grocery aisles. They’re spicing things up with new snacks, though not seeing massive numbers in return yet. But hey, culinary journeys take time, right?
Supply chain-wise, they’re trying to dance around issues. Inventory days went down by eight. Quicker turnover sounds good, but warehouse costs went up—low double digits, yikes. Their “Focus to Win” plan is aimed at cutting down wasted dollars, hoping for $250 million in savings by FY2028. Fingers crossed.
On the global scale, their joint ventures are having a bit of a sob story—lower earnings due to less restaurant traffic and unused production capacity. Still, they’re key pieces in LW’s worldwide puzzle.
And they’re sharing love with shareholders, dolling out nearly $489 million in FY2025. That’s some serious care package, eh? Keeps investors smiling amidst the fry chaos.
Looking forward to 2026, they’re expecting revenue somewhere between $6.35 and $6.55 billion. Not exactly fireworks, but not bad either. Adjusted EBITDA might dip, though, because those price slumps and cost craziness aren’t vanishing overnight.
So, there you have it. Lamb Weston is on a mission, juggling potatoes and predictions, trying to master the tricky balance of fries and finances. Next chapter? We’ll see—spuds willing, they’ll ride the wave and keep their potato empire crunchy and golden.
