Tweaking Estimates Higher, In-Line With Consensus

Research evidence excerpt

Tweaking Estimates Higher, In-Line With Consensus

Food: Food Producers

Lamb Weston

TD SECURITIES (USA) LLC ESTIMATE CHANGES

May 11, 2026

Price: $42.01 (05/8/2026) Tweaking Estimates Higher, In-Line With

Price Target: $40.00 Consensus

HOLD (2)

ESG SCORE: 59/100

Robert Moskow THE TD COWEN INSIGHT

646 562 1474

We tweak our estimates slightly higher to better align with consensus for 4Q26 and FY27 as

robert.moskow@tdsecurities.com

we factor in less price discounting in North America than we initially feared. That said, our

Jacob Henry, CFA FY27 forecasts still embed a challenging International supply/demand backdrop and the

646 562 1380 likelihood of some pricing pressure from lower crop prices. We estimate -0.5% org sales and

jacob.henry@tdsecurities.com

3% underlying EBITDA growth in FY27.

Sergio Matsumoto

646 562 1339 North America Dynamics

sergio.matsumoto@tdsecurities.com

We raise North America FY27 organic growth to +1% with P/M down -2.5%. Recall, the company

Victor Ma expects North America price/mix to improve sequentially from -7% in fiscal 3Q given a price

646 562 1306

increase in early March to non-contracted, non-chain customers. That said, 3Q26 also marked

victor.ma2@tdsecurities.com

the beginning of the flow-through of a previous round of lower-priced contracts with 1/3 of

Seamus Cassidy their large QSR customers, which will continue through the first half of fiscal 2027. The next

646 562 1319 key catalyst comes this fall when they begin price negotiations with the next 1/3 tranche of

seamus.cassidy@tdsecurities.com their large QSR customers. Management thinks they will have stronger pricing power now that

Key Data their capacity utilization has improved to the low-90s and enable more "thoughtful" volume

Symbol NYSE: LW decisions.

Beta: 0.46