Description

Lamb Weston’s Hidden European Crisis — An 8% Sales Decline Threatens Its Recovery!

Lamb Weston reported a solid first quarter for fiscal 2027, with net sales increasing by 1% to $1.67 billion and adjusted diluted earnings per share rising 1% to $0.75. Adjusted EBITDA of $286 million was better than expectations despite a 5% decline compared to the prior year, primarily due to carry-over higher potato costs in the Europe, Middle East, and Africa (EMEA) region. The North America segment demonstrated particular strength, with a 5% increase in net sales and 7% growth in sales volume, marking seven consecutive quarters of volume growth. This outperformance was partly driven by favorable customer mix focused on chicken fast food chains and new customer wins, supported by jointly planned initiatives and consistent fill rates.