Lamb Weston Upsizes its Share Repurchase to $500 Million – Buyback Wednesdays

Lamb Weston (LW) is a successful spinoff story. Since its spun out of Conagra Brands (CAG) in November 2016, the potato products company has outperformed the S&P 500 by more than 88%! The company’s President and CEO, Tom Werner is a superstar. Mr. Werner had served at Conagra for 17 years. He was instrumental in the Lamb Weston spin-off, established an executive leadership team and built all of the capabilities for a standalone organization.

Under his leadership, Lamb Weston has grown its global manufacturing footprint through organic expansions and strategic acquisitions, despite the pandemic and a bad potato crop in 2022. The company consistently beats estimates and often increases its forecasts.

Lamb Weston Holdings, Inc. (LW): $86.88

Market Cap: $12.27B

EV: $15.58B

Key Insights

• Lamb Weston is one of the largest producers and processors of frozen potato products.
• The company has leading market positions, including #1 in North America and #2 globally in the frozen potato category.
• The company plans to distribute cash to shareholders with a target dividend payout ratio of 25% to 35% of net income and share repurchases under its newly expanded authorization.

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