Lamb Weston, a major supplier of frozen potato products to restaurants and retailers, raised its fiscal 2027 sales and earnings outlook on October 6 after first-quarter results exceeded its expectations. Net sales for the quarter were $1.67 billion, up 1% from a year earlier. North American sales rose 5%, with volume up 7% for the seventh consecutive quarter; the company attributed the increase to demand from existing customers and new customer wins.
The gains did not translate into broad-based profit growth. Companywide adjusted EBITDA, a measure of operating performance, fell 5% to $286 million. Net income dropped 55% to $29 million, while adjusted diluted earnings per share edged up to 75 cents from 74 cents. Lamb Weston cited lower price and product mix, higher costs, and weaker international performance. It also reported unexpected inflation in key inputs and freight expenses.
The company’s revised outlook is its expectation, not a guarantee of results. Its earnings release does not establish whether restaurants or grocery retailers will change prices in response. For consumers, the results are a business signal, not evidence of a new change in the price of fries.