Lamb Weston Holdings Inc LW

Morningstar Rating

International Challenges Overshadow Lamb Weston's Improvements in North America

Business Strategy and Outlook

Lamb Weston is North America’s largest frozen potato producer (with more than 40% market share), followed by McCain Foods (30%), J.R. Simplot (20%), and Cavendish Farms (7%-8%), though it trails McCain globally. The firm primarily sells french fries to restaurants. Despite the current supply/demand imbalance, we view frozen processed potatoes as positioned for cyclical recovery.

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