Lamb Weston Holdings experienced a significant stock drop of over 20% following a disappointing earnings report and an outlook that fell short of analysts' expectations. The company reported quarterly revenue of $1.61 billion, below the anticipated $1.70 billion, and an adjusted earnings per share (EPS) of 78 cents, also missing the expected $1.26. CEO Tom Werner attributed the poor performance to increased competition, market share losses, and a decline in restaurant traffic due to rising menu prices and inflation, leading to a shift toward home cooking. For fiscal 2025, Lamb Weston projected net sales between $6.6 billion and $6.8 billion, below the $6.79 billion forecasted by analysts, with full-year EPS expected to be between $4.35 and $4.85, compared to the $6.09 estimate. The company anticipates that the supply-demand imbalance in the frozen potato market will persist throughout the year, prompting operational adjustments to cope with the changing market conditions. These challenges reflect broader trends affecting the food sector as consumers adapt to inflationary pressures and modified dining habits.