Frozen fries maker Lamb Weston raises annual forecasts on strong demand

Lamb Weston raised its fiscal 2027 revenue growth forecast to the low single digits, from its previous forecast of flat to 1% growth. It lifted its annual adjusted earnings forecast to $3.05-$3.35 per share, from $2.95-$3.25.

First-quarter North America net sales rose 5% year over year to $1.14 billion, while sales in the international segment fell 8%, hurt by weakness in Europe following extensive heat and dry conditions. The company beat analysts’ estimates for quarterly net sales and profit.

Executives said greater exposure to chicken-focused fast-food chains, which saw stronger traffic, benefited sales mix. They expect tighter potato supply due to poor yields in Europe to raise raw material costs this year, and said the company is mitigating costs through pricing actions; it also aims to counter unexpected input-cost and transportation inflation by working with suppliers and hedging.