Jim Cramer Highlights the Possible Struggles of Lamb Weston Holdings

Lamb Weston Holdings, Inc. (NYSE:LW) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted the major decline in the stock over the past couple of years, as he said:

Third, Lamb Weston sells frozen potatoes. They dominate that entire business. The company was spun off by Conagra in 2016, and for a big chunk of the following decade, Lamb Weston was a consistent winner. But in the last few years, the stock’s been eviscerated. Now, look, maybe it’s a victim of the GLP-1 weight loss drugs, or maybe it just reflects the broader struggles of the restaurant industry. Either way, the stock’s down 55% over the past two years to the point where Lamb Weston’s become a $6.4 billion company. It’s now the subject, by the way, of an activist push from Starboard Value, a very smart firm that wants Lamb Weston to aggressively cut costs.

Photo by Chris Liverani on Unsplash

Lamb Weston Holdings, Inc. (NYSE:LW) produces and markets frozen potato products, appetizers, and commercial ingredients and distributes them through its network of sales personnel and independent brokers to restaurant chains, grocery stores, and foodservice institutions.

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