Lamb Weston Raises Cost-Savings Target to 2028

Lamb Weston reported fourth-quarter revenue of $1.68 billion and adjusted earnings per share of $0.87, both exceeding analyst estimates, driven by robust international sales and disciplined cost management. The company announced a strategic restructuring plan, including a 4% workforce reduction and the elimination of some unfilled positions, targeting at least $250 million in annualized cost savings by fiscal 2028. International growth, particularly in the Middle East, offset weaker U.S. demand amid consumer spending challenges and global trade uncertainties. Sales volumes grew 8% for the quarter, while prices dropped 4%, and Lamb Weston forecasted fiscal 2026 sales between $6.35 billion and $6.55 billion, surpassing most analyst expectations. The restructuring and cost-saving measures are intended to enhance profitability and cash flow, following a period of underperformance and a recent CEO change. Shares rose nearly 8% after the earnings and restructuring news.