Lamb Weston is North America’s largest frozen potato producer (more than 40% 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.
Lamb Weston’s products generate high margins for restaurants, increasing loyalty and willingness to pay for consistency and quality.
Poor execution, like the initial rollout of its new ERP system in fiscal 2024, can overshadow competitive advantages and lead to lost market share and profit margin erosion.
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Metric
|
LW
|
KHC
|
GIS
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.54 | 9.98 | 10.48 |
Price/Book Value | 3.57 | 0.72 | 2.70 |
Price/Sales | 1.01 | 1.21 | 1.09 |
Price/Cash Flow | 8.53 | 7.36 | 7.57 |
|
Metric
|
LW
|
KHC
|
GIS
|
|---|---|---|---|
Quick Ratio | 0.57 | 0.72 | 0.35 |
Current Ratio | 1.46 | 1.20 | 0.68 |
Interest Coverage | 3.43 | −4.86 | 1.66 |
|
Metric
|
LW
|
KHC
|
GIS
|
|---|---|---|---|
Return on Assets (Normalized) | 5.74% | 6.86% | 5.93% |
Return on Equity (Normalized) | 24.16% | 13.26% | 21.35% |
Return on Invested Capital (Normalized) | 9.34% | 9.86% | 10.05% |
|
1-Day Chart
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Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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United States