McDonald’s French Fries Supplier Lamb Weston Jumps On Q3 Beat, Cost Saving Plan: Retail's Hungry For More

Lamb Weston Holdings, Inc. (LW) shares rose 10% on Thursday after the french fry supplier posted fiscal third-quarter results that topped estimates and hired a consulting firm to examine cost savings.

The company reported fiscal third-quarter adjusted earnings per share (EPS) of $1.10 on net sales of $1.52 billion. According to estimates from Visible Alpha, analysts were expecting $0.86 and $1.48 billion, respectively.

It also reaffirmed its fiscal 2025 guidance, which includes net sales of $6.35 billion to $6.45 billion and adjusted core earnings between $1.17 billion and $1.21 billion.

However, management expects "headwinds from soft restaurant traffic to persist" and has hired advisory firm AlixPartners to evaluate strategic and cost-saving opportunities.

The company, which supplies burger chain giant McDonald's, expects to reduce spending by $250 million in the current fiscal year and $200 million in fiscal year 2026.

Lamb Weston is a leading supplier of frozen potato products, especially fries, to restaurants and retailers. Over the past year, its revenue grew steadily, driven by strong global demand, though inflation and higher costs slightly pressured profit margins.

On Thursday, Lamb Weston and fellow staple firm Coca-Cola Co (KO) were among the handful of stocks that closed in the green amid a broad selloff after Donald Trump's "Liberation Day" tariffs announcement.

On Stocktwits, the retail sentiment was 'bullish,' and message volume jumped over 200% from the previous day.

LW sentiment and message volume as of April 3 | Source: Stocktwits

One user said they were cautiously watching the stock's strength, given that consumer spending at restaurants is expected to remain weak.

The company has hired a consulting firm to look for cost savings.

Shares of LW closed at $59.57, down 11% year to date.

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