Idaho-based food processing company Lamb Weston is one of the largest producers and processors of frozen french fries, waffle fries, and other frozen potato products. 🥔
Today it reported adjusted earnings per share well above analyst expectations of $0.50, at $0.75. Meanwhile, revenues of $1.13 billion matched consensus expectations.
In terms of result drivers, management said that sales volumes fell 5%. This was primarily due to softer casual dining and full-service restaurant traffic. However, its product mix and pricing helped offset that impact and helped reach its revenue estimates.
The company also noted that heat waves would likely result in a total potato crop at the lower end of its historical averages. It expects overall quality to remain good, though. 👍
The stock rose 4.18% today towards the mid-80s, where it failed to break through over the last few years. Traders will be watching to see if the market’s current preference for “consumer staples” companies like $LW can help push its shares to new highs. 💪
