Why Lamb Weston Stock Tanked Today
Shares of frozen-potato company Lamb Weston (NYSE: LW) tanked on Wednesday after the company reported financial results for its fiscal fourth quarter of 2024 and warned investors regarding its fiscal 2025. As of 10:30 a.m. EDT, Lamb Weston stock was down a painful 26%.
Lamb Weston is one of the largest french fry companies in the world, serving restaurant chains and stocking grocery stores worldwide. The company's net sales were up 21% year over year during fiscal 2024, but 99% of this growth was from acquisitions. By contrast, consumer-demand trends aren't great and point to a tougher fiscal 2025 than what investors had hoped.
Lamb Weston essentially directs blame toward restaurant companies that have raised menu prices to the point of pushing consumers away. In fiscal 2025, management expects 5% top-line growth, at best. And its guidance calls for a drop in net profits.
Source Fool.com
