Lamb Weston Holdings Inc
LW: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $231.00 | Zpcmwt | Pblpdmxm |
Lamb Weston Faces Near-Term Risks on ERP and Traffic, but Long-Term Demand Growth and Profit Intact
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Business Strategy and Outlook
Lamb Weston offers investors pure-play exposure to the frozen potato market as North America’s largest producer (more than 40% share), followed by McCain (30%), Simplot (20%), and Cavendish (7%-8%) though it trails McCain globally. The company primarily sells French fries to other businesses like quick service restaurants. Despite its niche focus, we view frozen potatoes as boasting robust demand growth and balanced supply.