Lamb Weston Holdings Inc. (LW) shares gained 4% on Tuesday after reporting better-than-expected first-quarter revenue and profit, driven by sustained demand for its frozen potato products both in the US and internationally.
The Idaho-based company, a major supplier of French fries and potato sides to fast-food giants such as McDonald’s and Yum Brands, saw its shares rise as much as 8.8% to a near six-month high of $60.6 in the trading session before easing to $58.01, at the time of writing.
The results highlighted the resilience of consumer appetite for fries despite persistent inflation, with Lamb Weston’s CEO Mike Smith noting that the “fry-attachment rate” — how often diners order fries with their meals — remains about two percentage points higher than before the pandemic.
“What that means is that when people go out to eat, they are ordering fries more often than in 2019,” Smith told analysts.
Revenue and earnings beat expectations
For the fiscal first quarter ended in 2026, Lamb Weston reported adjusted earnings of 74 cents per share, beating the consensus analyst estimate of 55 cents per share, according to data compiled by LSEG.
Quarterly revenue came in at $1.66 billion, also ahead of Wall Street’s forecast of $1.62 billion.
Sales volumes rose 6% overall, providing a boost to results.
While the company has cut prices on some products in North America to remain competitive, volume growth in both international and domestic markets helped offset pricing pressures.
By segment, international net sales increased 4%, while North America net sales declined 2%.
International volume rose 6%, led by strong demand in Asia, while North America volumes improved by 5%.
The divergence underscores how global fry consumption is expanding more rapidly than overall food sales compared to pre-pandemic levels, according to Smith.
Shares rebound despite year-to-date decline
Following the quarterly results, shares of Lamb Weston initially jumped before paring gains, settling higher on the day.
The company’s stock has struggled in 2025, falling 16.7% year-to-date before Tuesday’s rebound, but the earnings beat provided a measure of relief for investors.
The company reaffirmed its fiscal 2026 outlook, maintaining projections for net sales and adjusted EBITDA.
However, management’s full-year guidance came in slightly below analysts’ expectations, tempering some of the enthusiasm from the quarterly beat.
While stronger international performance helped offset weakness in North America, the outlook suggested ongoing challenges in balancing pricing, volumes, and cost pressures.
French fries continue to drive growth
Lamb Weston’s results reflect the enduring popularity of French fries, both in the US and abroad.
Analysts noted that consumer willingness to order fries more frequently than before the pandemic has provided a tailwind, even as broader inflation weighs on dining habits.
Smith emphasized that fry demand has proven resilient across markets, helping the company navigate shifting cost structures and consumer behaviors. “Global fry-volume growth has outpaced total food growth versus 2019,” he said.
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