Lamb Weston HoldingsNYSE: LW

Jana Partners and Continental Grain intend to discuss the financial results of the potato processing company and the beginning of a strategic evaluation.

Lamb Weston Holdings, Inc. is expected to grow well because more customers are returning, comparisons to last year are becoming easier, and they are working to balance supply and demand, which supports a buy recommendation. The company's profit margins are likely to improve thanks to increased sales and cost-saving measures, especially in the second half of fiscal 2025 and later. The stock is currently priced lower than usual, and as the company shows better revenue and profit margins, it should gain more interest from investors and see an increase in its price-to-earnings ratio.

Lamb Weston has seen a 28% increase since August, thanks to improved earnings and interest from activist investors, even though there are still challenges and low consumer confidence. The company's strategic plans, such as gaining market share and cutting costs, set it up for long-term growth and the possibility of double-digit earnings per share growth by 2026. JANA Partners' 5% ownership and their call for strategic changes could speed up Lamb Weston's recovery, making it a promising investment with undervalued shares.

The French fry industry is becoming more competitive.

Jana Partners, collaborating with Continental Grain on the investment, might aim to secure positions on the board.

Jana Partners invested in the potato company that is facing difficulties.

On October 7, JPMorgan analysts changed their rating for Lamb Weston Holdings Inc (NYSE: LW) from Overweight to Neutral and slightly increased the price target from $63 to $68. This change suggests that there is little potential for the stock to rise much from its current price. The decision is based on worries about the company's short-term performance being unclear.

Investors probably felt more positive about the announcement of a restructuring plan than they did about the results from the first quarter.

Value meals at fast-food restaurants have been recognized for bringing back customers who are concerned about rising prices. These affordable options are appealing to diners looking for a good deal. As a result, many people are returning to their favorite fast-food places.