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Lamb Weston is serving up solid gains after a strong Q1 (Aug) earnings report. The frozen potato giant — best known for supplying French fries to restaurants globally — beat EPS expectations for the second straight quarter, while revenue of $1.66 bln (+0.3% yr/yr) came in roughly in line. The company reaffirmed its FY26 targets, reinforcing confidence in its long-term growth strategy.

• Global fry demand remains robust, with fries featured on 44% of global menus and cited as one of the most profitable restaurant items.
• LW is realigning its sales teams to prioritize key markets and is expanding North American reach by supplementing its direct sales force with brokers.
• The company secured multiple new global wins, growing share in away-from-home categories like convenience stores and QSRs (Quick Service Restaurants).
• Global fry volume continues to outpace total food growth since 2019, especially in developing markets.

Industry Trends: Restaurant traffic remains mixed. QSR chicken is growing, but QSR hamburger traffic declined low single digits and slipped again in August. International markets are uneven — UK traffic fell 4%. Still, value-driven promotions and LTOs (limited-time offers) are helping stabilize demand.

Briefing.com Analyst Insight:

Lamb Weston's consistent execution and global fry demand tailwinds are good to see despite a sluggish macro backdrop. While overall restaurant traffic is tepid, fries continue to punch above their weight as a high-margin staple. LW's channel expansion, QSR wins, and reaffirmed long-term targets suggest operational momentum is building. The muted top-line growth tempers the excitement, but the bottom-line beat and strategic wins were good to see. The stock has been weak for much of the past year as it seems investors are waiting for restaurant traffic to improve.