Lamb Weston Reports Q2 Loss, Appoints New CEO as Shares Plunge

The frozen French fry maker faces financial struggles, leadership changes, and reduced fiscal 2025 guidance amid declining demand.

Lamb Weston reported a $36 million loss for its second quarter, a sharp contrast to the $215 million profit in the same period last year, missing analysts' expectations.
The company announced Michael Smith, its current COO, will replace Thomas Werner as CEO starting January 3, 2025, as part of a planned leadership transition.
Shares of Lamb Weston fell over 20% following the earnings report, bringing the year-to-date decline to 42%, reflecting investor concerns about the company's strategy.
The company lowered its fiscal 2025 earnings forecast, now projecting adjusted EPS of $3.05 to $3.20, significantly below its previous guidance and Wall Street estimates.
Weakened demand for frozen potato products, driven by shifting consumer behavior and inflationary pressures, has led to job cuts, plant closures, and reduced production schedules.