LW Stock Gains on Strong Volume Growth and Cost Savings
Lamb Weston Holdings' (LW) shares have gained 13.1% in the past four weeks, driven by improving operating trends, particularly in North America.
The company's recent success comes after six consecutive quarters of sales-volume growth. In fiscal fourth-quarter 2026, consolidated volume increased 7%, while North America volume rose 11% due to customer contract wins, share gains, strong retention, and an extra week supporting demand.
Lamb Weston's largest customer, McDonald's Corporation (MCD), accounted for approximately 15% of fiscal 2026 net sales. The company expects North America volume to increase in the low single digits in fiscal 2027, while global restaurant traffic is assumed to remain flat.
Additionally, Lamb Weston has exceeded its cost savings milestone of $100 million under a three-year program targeting at least $250 million of annualized run-rate savings by the end of fiscal 2028. The company's price/mix declined 3% in fiscal fourth-quarter 2026 due to weaker pricing and International pressure.