At a glance
Lamb Weston Holdings Inc is worth $7.37B, about 26 times its fiscal 2026 earnings. Revenue grew 2.5% to $6.61B in fiscal 2026, with 4.4% kept as profit; over 5 years it has grown 12.5% a year. It pays a 2.82% dividend yield, raised every year for at least 9 years, and returned $872.9M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −15.9% over the past year with dividends reinvested and +0.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 52.8% in the 2020 crash (S&P 500: 33.7%) and 28.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 34 months and 3 months after the lows.
The business in plain English
Lamb Weston is based in Eagle, Idaho. It makes and sells frozen potato products, and french fries make up most of its product range. It describes itself as the number one supplier of “value-added” frozen potato products in North America. Value-added means potatoes that have already been cut and processed into ready-to-cook items. It sells in more than 100 countries and runs 25 production facilities.
Its buyers include quick service (fast-food) and full-service restaurant chains, foodservice distributors, schools and other institutions, and grocery and club retailers. Products carry the Lamb Weston brand, licensed brands such as Grown in Idaho and Alexia, restaurant chains' own brands and store brands. Sales are concentrated. The ten largest customers made up about 50% of net sales in fiscal 2026 (ended May 31, 2026), and McDonald's alone made up about 15%.
The company reports two segments. North America (the US, Canada and Mexico) brought in about $4.40 billion, or 66.5% of fiscal 2026 revenue of $6.61 billion. International, which covers all other countries, brought in about $2.22 billion, or 33.5%. The company makes money on the gap between what it charges and what it pays for potatoes, edible oils, energy, packaging and labor. Gross margin is the share of sales left after production costs, and it was 20.6% in fiscal 2026.
Price history
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LW -15.9% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| North America | $4.40B | 66.5% |
| International | $2.22B | 33.5% |
By geography
| United States | $4.29B | 64.9% |
| Non-US | $2.32B | 35.1% |
Latest results
- In Q1 FY2027 (ended Aug 30, 2026), revenue was $1.67B, up 0.7% from a year earlier, and net income was $29.1M (-54.7%).
- For fiscal 2026, revenue was $6.61B (+2.5% year over year; +12.5% a year from FY2021 to FY2026) with a 4.4% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +12.5% good |
|---|---|
| Operating margin | 8.9% watch |
| Free cash flow margin | 8.2% watch |
| Return on equity (FY2026) | 15.9% good |
| Return on assets (FY2026) | 3.9% watch |
| Net cash (cash minus debt) | $-3.76B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $3.67B | $317.8M | $405.5M |
| FY2022 | $4.10B | $200.9M | $128.5M |
| FY2023 | $5.35B | $1.01B | $107.7M |
| FY2024 | $6.47B | $725.5M | $-131.3M |
| FY2025 | $6.45B | $357.2M | $230.1M |
| FY2026 | $6.61B | $290.0M | $540.2M |
Valuation snapshot
| Market value | $7.37B |
|---|---|
| P/E ratio | 25.7 |
| Dividend yield | 2.82% |
Rank among 1514 US companies
Market value at each year end
Lamb Weston Holdings’s market value went from $5.53B at the end of 2016 to $7.37B on Oct 28, 2026, up 33%; since the end of 2025 it is up 27%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $7.37B | +26.7% |
| 2025 | $5.82B | -39.0% |
| 2024 | $9.53B | -38.9% |
| 2023 | $15.61B | +21.4% |
| 2022 | $12.86B | +39.7% |
| 2021 | $9.20B | -20.1% |
| 2020 | $11.52B | -8.3% |
| 2019 | $12.57B | +16.6% |
| 2018 | $10.78B | +30.5% |
| 2017 | $8.25B | +49.3% |
| 2016 | $5.53B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| LW price data to Oct 28, 2026 | +30.9% | -15.9% | -13.5% | +0.5% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +30.9% |
| 2025 | -35.7% |
| 2024 | -37.0% |
| 2023 | +22.3% |
| 2022 | +43.0% |
| 2021 | -18.4% |
| 2020 | -7.2% |
| 2019 | +18.3% |
| 2018 | +31.8% |
| 2017 | +51.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 49.4% over that stretch · deepest drop along the way 52.8%, back to its old high 33.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 31.1% over that stretch · deepest drop along the way 28.6%, back to its old high 3.4 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 11.8% | Mar 31, 2026 |
| T. Rowe Price Associates, Inc. | 7.1% | Dec 31, 2025 |
| Vanguard Portfolio Management | 5.89% | Mar 31, 2026 |
| Vanguard Capital Management | 5.25% | Mar 31, 2026 |
| JPMORGAN CHASE & CO. | 5% | Dec 31, 2025 |
| JPMORGAN CHASE & CO | 4.9% | Jun 30, 2026 |
| FMR LLC | 4.2% | Jun 30, 2025 |
ETFs with the most weight in LW
| RSPS Invesco S&P 500 Equal Weight Consumer Staples ETF | 2.8% |
| FDIV MarketDesk Focused U.S. Dividend ETF | 2.24% |
| KEAT Keating Active ETF | 1.75% |
| VEGI iShares MSCI Agriculture Producers ETF | 1.7% |
| SPHB Invesco S&P 500® High Beta ETF | 0.86% |
| QMID WisdomTree U.S. MidCap Quality Growth Fund | 0.79% |
| DIVG Invesco S&P 500 High Dividend Growers ETF | 0.71% |
| IQSM NYLI Candriam U.S. Mid Cap Equity ETF | 0.45% |
What could go wrong
- Heavy dependence on a few big customers. Its ten largest customers made up about 50% of net sales in fiscal 2026, and McDonald's alone about 15%. A weaker relationship with one major chain could hurt sales and profits.
- A poor potato crop hurts results. Results depend on each potato crop's quality, which weather, disease and pests can damage. There is no active market in the US or Europe for potato derivatives, the contracts often used to lock in prices.
- Tough competition and industry oversupply. Rivals include McCain Foods, J.R. Simplot and Cavendish Farms, and some competitors are larger. Local producers have added capacity in Saudi Arabia, China and India. Too much supply could reduce sales or profits.
- Rising costs that price increases may not cover. Edible oils, grains, starches, packaging, energy and labor have grown costlier. Raising prices to cover this may cut sales volume, especially with soft restaurant traffic, most notably in Europe.
- A heavy debt load. As of August 30, 2026, total debt was about $3.93 billion against $166 million of cash and investments. Debt can limit cash for the business, and covenants (lender rules) restrict how the company operates.
- Tariffs and trade barriers. Its annual report filed July 24, 2026 said imports from its one Canadian plant were exempt from US tariffs under the US-Mexico-Canada agreement. New tariffs, or retaliatory tariffs abroad, could hurt sales and profits.
Recent events
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released
- Executive or board change
- Restructuring or exit costs
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Quarterly results released
- Executive or board change
- Restructuring or exit costs
For income and retirement investors
Lamb Weston's dividend per share has risen for at least nine straight fiscal years. It went from $0.93 in fiscal 2021 to $1.50 in fiscal 2026 (ended May 31, 2026), about 10% a year. The yield was 2.82% as of October 28, 2026. The fiscal 2026 dividend used 71.6% of earnings, a high share after profits fell 18.8%. It used only 38.4% of free cash flow, which is the cash left after running the business and buying equipment. Shares outstanding fell about 5.7% from September 2021 to September 2026.
In the 2020 COVID crash, the shares fell 52.8% between February 24 and March 18, 2020, and took about 34 months to recover. In the 2022 bear market (a long, broad decline), they rose 31.1% from the market's January 3 peak to its October 12 low, despite a 28.6% dip along the way. The stock also lost 37.0% in 2024 and 35.7% in 2025. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Lamb Weston make money?
Lamb Weston makes money by producing frozen potato products, mostly french fries. It sells them to restaurant chains, foodservice distributors and retailers in more than 100 countries. In fiscal 2026 (ended May 31, 2026), sales were about $6.61 billion. North America brought in 66.5% and International 33.5%. Its brands include Lamb Weston and licensed names such as Grown in Idaho and Alexia. It also makes products sold under restaurant chains' and retailers' own labels.
Is McDonald's Lamb Weston's biggest customer?
Yes. McDonald's made up about 15% of Lamb Weston's net sales in fiscal 2026 (ended May 31, 2026), about 15% in fiscal 2025 and about 14% in fiscal 2024. No other customer topped 10% in those years. Together, the ten largest customers made up about 50% of net sales in fiscal 2026. The company lists changes in its relationships with major customers as a risk, because losing or weakening one could hurt sales and profits.
Does Lamb Weston raise its dividend every year?
Yes, so far. Dividends per share have risen for at least nine fiscal years in a row. They reached $1.50 in fiscal 2026 (ended May 31, 2026), up from $0.93 in fiscal 2021, or about 10% a year. The yield was 2.82% as of October 28, 2026. Earnings fell 18.8% in fiscal 2026, and the dividend used 71.6% of earnings but only 38.4% of free cash flow. Past increases do not guarantee future ones.
Are Lamb Weston's profits growing?
No. Net income has fallen every year since fiscal 2023, when it was $1.01 billion. In fiscal 2026 (ended May 31, 2026), revenue rose 2.5% to about $6.61 billion, but net income fell 18.8% to $290 million, or $2.08 per diluted share. In the quarter ended August 30, 2026, net income dropped 54.7% from a year earlier to $29.1 million, while revenue rose 0.7%.
How much debt does Lamb Weston have?
Lamb Weston had about $3.93 billion of total debt as of August 30, 2026. It had about $166 million of cash and investments, which leaves net debt of roughly $3.76 billion. Shareholders' equity was about $1.81 billion. The company's annual report lists its large debt as a risk because it may limit the cash available to invest in the business. Its loan agreements also include covenants, which are rules set by lenders that restrict some decisions.