Lamb Weston Holdings, Inc. LW shares are on watch Wednesday morning after the company reported its first-quarter financial results after Tuesday’s closing bell and announced a restructuring plan.

The Details: Lamb Weston reported quarterly earnings of 73 cents per share which beat the analyst consensus estimate of 71 cents. Quarterly revenue came in at $1.65 billion which beat the consensus estimate of $1.56 billion.

Net sales for the North America segment were down 3% and volume declined 4% versus the prior year quarter, reflecting the impact of customer share losses and declining restaurant traffic in the U.S.

“We delivered first quarter financial results that were generally in line with our expectations, driven by sequentially improved volume performance, solid price/mix, and strict management of operating costs,” said Tom Werner, CEO of Lamb Weston. “However, restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025.”

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The company also announced a restructuring plan aimed at improving cost efficiency and easing current supply and demand imbalances. The plan will include closing Lamb Weston’s Connell, Washington facility, temporarily curtailing production lines and schedules in North America, reducing approximately 4% of global workforce and eliminating unfilled job positions.

Outlook: Lamb Weston reaffirmed its fiscal 2025 net sales outlook of between $6.6 billion and $6.8 billion, versus the $6.615 billion estimate. The company revised its adjusted earnings per share target to between $4.15 and $4.35, versus the $4.48 estimate.

LW Price Action: According to Benzinga Pro, Lamb Weston shares are up 0.87% at $65.48 at the time of publication Wednesday. 

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