Frozen potato supplier Lamb Weston raises lower end of annual sales forecast on resilient demand

Mcdonalds

01/04/2026 14:08

April 1 (Reuters) - Lamb Weston LW.N raised the lower end of its annual sales forecast on Wednesday, betting on resilient demand for its frozen potato products, particularly in North America segment.

The fries maker, which counts McDonald's MCD.N and Yum Brands YUM.N among its customers, has benefited from a shift toward at-home meal preparation as households curb discretionary spending, sustaining retail demand for its products even as restaurant traffic remains under pressure.

Shares of the company were up about 1% in premarket trading.

Lamb Weston forecast annual revenue of $6.45 billion to $6.55 billion, up from its previous range of $6.35 billion to $6.55 billion earlier.

Expects annual adjusted EBITDA in the range of $1.08 billion to $1.14 billion, compared with the previous estimate of $1 billion to $1.20 billion.

The forecast reflects an anticipated impact of U.S. import tariffs but does not include potential effects of evolving trade policies or the potential for refunds, Lamb Weston said, adding that its guidance factors in the ongoing disruptions in the Middle East.

It posted third-quarter revenue of $1.56 billion, above analysts' estimate of $1.49 billion, according to data compiled by LSEG.

Quarterly net sales for the North America segment, which includes all sales to customers in the U.S., Canada and Mexico, increased 5% to $1.03 billion compared to the prior-year quarter.

The company reported an adjusted profit of 72 cents per share, beating estimates of 61 cents.

Earlier in the month, activist investor Starboard urged Lamb Weston to double its cost-cutting goal to about $500 million by 2028 from its current plan of at least $250 million.

The company now expects to exceed its cost-saving target of at least $250 million by fiscal 2028.

 (Reporting by Krisha Bhatt in Bengaluru; Editing by Shailesh Kuber)

 ((Krisha.Bhatt@thomsonreuters.com;))