Lamb Weston Holdings, Inc. (Lamb Weston) is a global producer, distributor, and marketer of value-added frozen potato products.
The company supplies value-added frozen potato products in North America and internationally, with a strong presence in high-growth emerging markets. The company offers a broad product portfolio to a diverse channel and customer base in over 100 countries. French fries represent most of the company’s value-added frozen potato product portfolio.
Segments
The company h...
Lamb Weston Holdings, Inc. (Lamb Weston) is a global producer, distributor, and marketer of value-added frozen potato products.
The company supplies value-added frozen potato products in North America and internationally, with a strong presence in high-growth emerging markets. The company offers a broad product portfolio to a diverse channel and customer base in over 100 countries. French fries represent most of the company’s value-added frozen potato product portfolio.
Segments
The company has two reportable segments: North America and International.
North America
The company's North America segment primarily includes frozen potato products sold in the United States, Canada, and Mexico to quick service and full-service restaurants and chains, foodservice distributors, non-commercial channels, and retailers. The company's North America segment’s product portfolio includes frozen potatoes, commercial ingredients, and appetizers sold under the Lamb Weston brand, as well as frozen potatoes sold under the company’s owned or licensed brands, including Grown in Idaho and Alexia, other licensed equities comprise brand names of major North American restaurant chains, customer labels, and retailers’ own brands.
International
The company’s International segment primarily includes frozen potato products sold outside of North America to quick service and full-service restaurant chains, foodservice distributors, non-commercial channels, and retailers. The company’s International segment’s product portfolio includes frozen potatoes, commercial ingredients, and appetizers sold under the Lamb Weston brand, as well as many customer labels.
Joint Venture Relationships
The company holds a 50% ownership interest in Lamb-Weston/RDO Frozen (Lamb Weston RDO), a joint venture with RDO Frozen Co., that operates a single potato processing facility in the U.S. The company provides all sales and marketing services to Lamb Weston RDO and receives a fee for these services based on a percentage of the net sales of the venture.
Sales, Distribution and Customers
The company sells its products through a network of internal sales personnel and independent brokers, agents, and distributors to chain restaurants, wholesale, grocery, mass merchants, club retailers, specialty retailers, and foodservice distributors and institutions, including businesses, educational institutions, independent restaurants, regional chain restaurants, and convenience stores. The company has long-tenured relationships with leading quick service and fast casual restaurant chains, global foodservice distributors, large grocery retailers, and mass merchants.
Products are generally shipped from warehouse distribution centers where they are consolidated for shipment to customers if an order includes products manufactured in more than one production facility or product category. Some customers also pick up their orders at distribution centers.
A relatively limited number of customers account for a large percentage of the company’s consolidated net sales. In the year ended May 25, 2025 (fiscal 2025), the company’s ten largest customers accounted for approximately 50% of its net sales. In fiscal 2025, the company’s largest customer, McDonald’s Corporation, accounted for approximately 15%, of its consolidated net sales.
Research and Development
The company’s research and development costs were $22.0 million in fiscal 2025.
Trademarks, Licenses and Patents
The company’s significant trademarks include Lamb Weston, Lamb Weston Supreme, Lamb Weston Seeing Possibilities in Potatoes (and design), Possibilities in Potatoes (and design), Lamb Weston Seasoned, Lamb Weston Private Reserve, Lamb Weston Stealth Fries, Lamb Weston Colossal Crisp, Lamb Weston Crispy on Delivery, Twister Fries, and CrissCut. The company also sells certain products in connection with marks such as Grown in Idaho and Alexia, which it licenses from third parties.
International Operations
At May 25, 2025, the company had operations in 32 countries, with sales support in each of these countries and production and processing facilities in eight countries.
Seasonality
The company segments adjusted EBITDA percentage tends to be highest in its fiscal third quarter (year ended May 2025) reflecting the cost benefits of freshly harvested potatoes. The company typically harvests potatoes in the Pacific Northwest of the U.S. and Europe from July through October, which is primarily in its fiscal second quarter. While the quality of potatoes affects production efficiency, overall, freshly harvested potatoes process more efficiently in the company's production lines and are not subject to storage or secondary transport costs. The company typically holds 50 to 60 days of finished goods inventory on a first-in-first-out basis, so the costs incurred from its fiscal second quarter harvest, which are generally favorable, will flow through its income statement in its fiscal third quarter. Inventory levels also tend to be higher in the company's fiscal third quarter, requiring more working capital at that time. In general, net sales and cash flows tend to be higher in the company’s fiscal fourth quarter, reflecting customer and consumer buying patterns.
Food Safety and Labeling
The company is subject to extensive regulation, including among other things, the Food, Drug and Cosmetic Act, as amended by the Food Safety Modernization Act, the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, and the rules and regulations promulgated thereunder by the U.S. Food and Drug Administration (FDA). This comprehensive and evolving regulatory program governs, among other things, the manufacturing, composition and ingredients, labeling, packaging, and safety of food, including compliance with current Good Manufacturing Practices. In addition, the Nutrition Label Reform Act of 2016 and regulations promulgated thereunder by the FDA prescribe the format and content in which specific nutrition information is required to appear on the labels of food products. The company is also subject to regulation by certain other governmental agencies, including the U.S. Department of Agriculture.
History
Lamb Weston Holdings, Inc. was founded in 1950. The company was incorporated in 1950.