Updated version 1 - Frozen French fries producer Lamb Weston raises annual performance outlook due to strong demand
路透社2026/10/06 14:56Updated share price data in the first paragraph, added analyst comments in the third point, provided more details in the fourth and seventh points, and included executive remarks in the fifth and sixth points. Reuters, October 6 – Lamb Weston (LW.N) raised its full-year sales and profit forecast on Tuesday, mainly due to resilient demand for frozen potato products from its key customers—fast-food restaurants. Boosted by this news, the company's share price rose 11% in early trading. As inflation continues to impact household budgets, consumer demand for low-priced dining items such as french fries remains strong. More details are as follows: Lamb Weston expects its fiscal 2027 revenue to achieve low single-digit growth, compared to its earlier forecast of flat to 1% growth. According to data compiled by LSEG, analysts had previously expected revenue to decline 1.5%. The company raised its annual adjusted earnings per share forecast to $3.05-$3.35, higher than the previous forecast of $2.95-$3.25. BNP Paribas analysts commented that this forecast upgrade is "encouraging news," especially at the start of the year and against the backdrop of persistent inflation. Net sales in North America, which account for the majority of the company's revenue, rose 5% year-on-year in the first quarter to $1.14 billion. In a conference call with analysts, Lamb Weston executives said the company has increased its focus on fast-food chains specializing in chicken, which have stronger customer traffic, benefiting the sales mix. They also expect raw material costs to increase this year due to tightening supplies caused by poor potato yields in Europe and are using pricing measures to mitigate this impact. International segment quarterly sales declined 8%, mainly due to ongoing hot and dry weather in Europe. Lamb Weston stated that it is facing unexpected inflationary pressures on input and transportation costs, and plans to manage this through cooperation with suppliers and hedging activities. The company's quarterly net sales and profits both exceeded analyst expectations. (For the convenience of non-English speakers, Reuters offers automatic translations of its reports into several other languages. Automated translations may contain inaccuracies or lack the necessary context, and Reuters does not guarantee the accuracy of these texts. The function is provided solely to assist readers. Reuters accepts no responsibility for damages or losses arising from the use of automated translations.)
Updated stock price data in paragraph 1, added analyst comments in point 3, included more details in points 4 and 7, and incorporated executive comments in points 5 and 6.
Reuters, October 6 - Lamb Weston (LW.N) raised its annual sales and profit forecasts on Tuesday, mainly due to resilient demand for frozen potato products from its core customers—fast food chains—which pushed its shares up 11% in early trading.
As inflationary pressures increasingly affect household budgets, demand from consumers for low-priced food items such as fries has continued to rise.
Details are as follows:
Lamb Weston expects fiscal 2027 revenue to achieve low single-digit growth, compared to its previous guidance of flat to 1% growth. According to data compiled by LSEG, analysts had previously expected revenue to decline by 1.5%.
The company raised its full-year adjusted earnings per share guidance to $3.05 to $3.35, up from the previous range of $2.95 to $3.25 per share.
Analysts at BNP Paribas said the revised outlook is an “encouraging sign,” particularly at the start of the year and against a backdrop of persistent inflation.
The North American region, which accounts for the majority of the company’s revenue, saw first-quarter net sales grow year-on-year by 5% to $1.14 billion.
Lamb Weston executives said on an analyst call that the company has expanded its focus on fast-food chains that specialize in chicken, which continue to see strong customer traffic, benefiting the company’s sales mix.
They also expect raw material costs to rise this year due to tight supply caused by poor potato yields in Europe, and the company is using pricing actions to offset the impact.
International segment sales dropped 8% in the quarter due to ongoing hot and dry weather in Europe.
Lamb Weston said the company is experiencing unexpected inflationary pressures related to input costs and transportation, and it plans to address these through partnerships with suppliers and hedging strategies.
The company’s quarterly net sales and profits both exceeded analyst expectations.
(To assist non-English language speakers, Reuters has automated its reports into several other languages. Automated translation may have errors or lack the required context. Reuters does not guarantee the accuracy of automated translation texts, which are provided for reader convenience only. Reuters accepts no liability for any damage or loss caused by use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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