Analyst Note
| Rebecca Scheuneman, CFA |Narrow-moat Lamb Weston's fiscal third quarter sales dropped 4.4%, much better than the 12% decline we had forecast and a marked improvement from the 12% fall suffered in the fiscal first half. Sales to global food-service chains (largely quick-serve) fell 2% while sales to smaller food-service outlets contracted 22%, partially offset by 23% growth at retail. We plan to bump our fiscal 2021 revenue forecast to a 5% drop from 6% previously, and we continue to think sales will return to prepandemic levels at the end of calendar 2021, with mid-single-digit long-term sales growth expectations intact.