News

Lamb Weston ( LW ) shares jumped Thursday after the potato processing giant's latest quarterly results came in above expectations.

The maker of french fries and other potato products reported fiscal third-quarter adjusted earnings per share (EPS) of $1.10 on net sales of $1.52 billion. Analysts polled by Visible Alpha were looking for $0.86 and $1.48 billion, respectively.

"As a result of the actions we took in early fiscal 2025 to drive operational and cost efficiencies, we closed the quarter with sequentially improved volume trends and profitability metrics that were in line with our previously updated fiscal 2025 outlook," CEO Mike Smith said, noting the company expects "headwinds from soft restaurant traffic to persist."

Lamb Weston shares were up nearly 10% to lead S&P 500 gainers 30 minutes after the opening bell. They entered the day down nearly 50% over the past year.

Lamb Weston Has Cut Production, Replaced CEO Recently

Last summer , Lamb Weston executives said inflation had negatively impacted its sales to fast-food chains like McDonald's ( MCD ), and hoped value meals would draw people back.

In October, the company announced plans to shutter a Washington production facility and lay off about 4% of its employees. Two months later, Lamb Weston reported an unexpected loss due to the restructuring costs, and announced that COO Michael Smith would take over as CEO on Jan. 3, replacing Tom Werner.

Activist investor Jana Partners, which took a stake in Lamb Weston late last year, criticized the move of replacing one longtime company executive for another amid softening demand for its potato products. Jana has nominated several candidates for Lamb Weston's board to push for its desired changes.

UPDATE—This article has been updated with the latest share price information.

Read the original article on Investopedia