Few areas of the stock market have managed to stay above the selling in 2022 outside of the booming energy sector. Lamb Weston stock didn’t just avoid the fall, but it has climbed over 30% YTD to hit new 52-week highs recently, as it thrives amid an economic downturn, according to Benjamin Rains, reporting for Zacks.com earlier today.
According to Rains, Lamb Weston is one of the largest suppliers of frozen potatoes in the world, selling a nearly endless array of potato-based offerings. LW makes everything from classic fries to sweet potato waffle fries and everything imaginable in between. The company also sells potato chips, hash browns, mashed potatoes, and beyond, alongside some frozen vegetables.
Rains says in his report that “Lamb Weston topped our Q1 FY23 (period ended on August 28) earnings estimate in early October.”
He notes that the company grew its revenue by 14% year-on-year to $1.13 billion even though volumes declined due to “softer casual dining and full-service restaurant traffic in the U.S. as well as the timing of shipments to large chain restaurant customers.”
LW was reportedly able to raise its prices nearly across the board, with its price/mix up 19%.
Source: Zacks. Read the full story here
Photo: Courtesy Lamb Weston