Lamb Weston Cost Savings Top $100M as Focus to Win Gains Traction

Lamb Weston Holdings, Inc.LW has made clear progress on the cost-reduction component of its Focus to Win strategy. The company launched a three-year Cost Savings Program in July 2025 with a target of delivering at least $250 million in annualized run-rate savings by the end of fiscal 2028. After the first year, Lamb Weston exceeded its fiscal 2026 savings milestone of $100 million.

The program is centered on structural savings across the supply chain and SG&A, alongside efforts to lower manufacturing cost per pound. These actions were reflected in North America's operating results. In the fourth quarter of fiscal 2026, North America adjusted EBITDA increased 17% to $305 million from $260 million a year earlier. Higher sales volumes and lower manufacturing costs per pound, reflecting cost-saving initiatives and improved operating efficiencies, more than offset inflation, unfavorable price/mix and higher operating expenses. The fiscal 2026 materials identify both supply-chain structural savings and lower SG&A costs as program achievements.

For fiscal 2026, North America adjusted EBITDA increased 3%, as higher sales volume, lower manufacturing costs per pound and cost savings more than offset inflation and customer investments. At the consolidated level, adjusted EBITDA declined 9% to $1.147 billion. In the fiscal fourth quarter, adjusted SG&A increased $16 million because higher incentive compensation more than offset benefits from cost savings.

Lamb Weston plans to continue driving cost savings across both cost of sales and SG&A in fiscal 2027, with SG&A expected to decline as a result of these efforts. The company is also continuing to pursue additional opportunities to improve its cost structure and capital efficiency as the Cost Savings Program advances.

Lamb Weston's Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 8.5% in the past month compared with the broader Consumer Staples sector, the industry and the S&P 500 index's 6%, 1.3% and 18.3% growth, respectively.

LW Stock's Past Month Performance

Image Source: Zacks Investment Research

Is LW a Value Play Stock?

Lamb Weston currently trades at a forward 12-month P/E ratio of 14.44, which is slightly up from the industry average of 14.18. This valuation positions the stock at a modest premium relative to its direct peers.

LW P/E Ratio (Forward 12 Months)

Image Source: Zacks Investment Research

Stocks to Consider

The Chefs' Warehouse, Inc.CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The consensus estimate for Chefs' Warehouse's current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.

Luckin Coffee Inc.LKNCY offers retail services of freshly brewed drinks and pre-made food and beverage items in the People's Republic of China. The company currently sports a Zacks Rank of 1. LKNCY delivered a trailing four-quarter earnings surprise of 6.6%, on average.

The Zacks Consensus Estimate for Luckin Coffee's current financial-year sales and earnings indicates growth of 33.3% and 40.8%, respectively, from the prior-year reported levels.

Utz BrandsUTZ engages in the manufacture, marketing and distribution of snack foods in the United States. It presently carries a Zacks Rank of 2 (Buy). UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.

The Zacks Consensus Estimate for Utz Brands' current financial-year sales indicates growth of 3.7% from the year-ago numbers.