Lamb Weston Closes Plant Amid Falling Demand

Lamb Weston, the largest North American producer of french fries, is closing its Washington plant and laying off nearly 400 employees due to declining demand for frozen potatoes and reduced fast food sales. The company's net income fell by 46% in the first quarter of FY 2025, influenced by softer restaurant traffic and a sluggish economy. McDonald's, Lamb Weston's largest customer, has seen a decrease in foot traffic, contributing to the french fry supplier's financial struggles. Despite value meals like McDonald's $5 Meal Deal, which includes a smaller portion of fries, the demand for fries has not rebounded. This downturn is part of a broader trend of consumers cutting back on fast food amid rising prices. Lamb Weston aims to restructure to improve efficiency and profitability while expecting the demand challenges to persist through fiscal 2025.