Frozen fries maker Lamb Weston raises annual forecasts on strong demand

Mcdonald's

06/10/2026 13:52

Oct 6 (Reuters) - Lamb Weston LW.N on Tuesday raised annual sales and profit forecasts, banking on resilient demand for its frozen potato products at quick-service restaurants, its primary customers.
Demand for lower-priced restaurant offerings such as fries has been on the rise with growing inflationary pressure on household budgets.

Here are more details:
Lamb Weston projected fiscal 2027 revenue growth in the low single digits, compared with the previous forecast of flat to 1% growth. Analysts were expecting a 1.5% decline, according to data compiled by LSEG.
The company raised its annual adjusted earnings forecast to $3.05 to $3.35 per share, above the prior view of $2.95 to $3.25.
Its first-quarter adjusted profit came in at 75 cents per share, beating analysts' average estimate of 59 cents per share.
Quarterly revenue rose 1% to $1.67 billion from a year ago, topping estimates of $1.65 billion.
Lamb Weston, whose customers include fast-food operators such as McDonald's MCD.N, said it is facing unexpected inflationary pressure in input costs and transportation and aims to counter it by working with suppliers and hedging.
Shares of the fries maker, which gained about 6% this year, were up about 4% premarket following the results.

 (Reporting by Shania S Thomas in Bengaluru; Editing by Shreya Biswas)
 ((shanias.thomas@thomsonreuters.com))