Fast-food powers Lamb Weston

Article Excerpt

LAMB WESTON HOLDINGS INC. $73 is a buy. The company (New York symbol LW, Income Portfolio, Consumer sector; Shares outstanding: 146.1 million; Market cap: $10.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 1.3%; TSINetwork Rating: Average; www.lambweston.com) is a leading producer of frozen french fries, potatoes and other packaged vegetables. In November 2016, Conagra investors received one Lamb Weston share for every three shares they held. The stock has jumped 87% from its low of $39.06 on March 18, 2020. Increasing shipments to fast-food restaurants drove that gain as they re-opened for business following spring lockdowns. Shipments are now at 95% of their pre-pandemic levels. More specifically, shipments to consumer-products makers are now at the same levels as a year ago. Lamb Weston is a buy. buy…