Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

JANA seeks overhaul at Lamb Weston, cites performance woes

admin by admin
December 16, 2024
in Stock
0
JANA seeks overhaul at Lamb Weston, cites performance woes
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

JANA Partners, an influential shareholder of Lamb Weston Holdings, Inc. (NYSE:LW), has called for a substantial shake-up of the company’s board and leadership. In a letter released on Monday, the activist investor group urged for changes to enhance shareholder value and suggested that Lamb Weston should consider selling if these changes are not made.

The group, which holds over 5% of Lamb Weston’s shares, voiced disappointment with the company’s recent performance. JANA highlighted Lamb Weston’s underperformance relative to the S&P 500 and its peers over the past five years, including a notably weak earnings report in 2024 described as one of the worst for a large-cap food producer in recent times.

JANA’s letter pinpointed several areas where it believes Lamb Weston’s leadership has failed, including financial and operational issues that allegedly led to a near $400 million EBITDA loss over the last two and a half years. The investor criticized the company for customer relationship errors, inaccurate forecasting, a problematic ERP project, and product quality issues that have caused significant financial losses and damaged Lamb Weston’s reputation.

The activist investor also took aim at Lamb Weston’s capital allocation and executive compensation practices, arguing that they do not align with shareholder interests. JANA outlined concerns over questionable capital expenditures, stock buybacks preceding earnings disappointments, and executive pay targets that do not match the company’s actual performance.

Additional concerns were raised regarding the use and transparency of Lamb Weston’s aviation assets. JANA’s examination of flight records raised questions about the business use of the company’s corporate plane.

This push for change follows reports from last week that Post Holdings (NYSE: NYSE:POST) is in discussions with bankers to consider acquiring Lamb Weston. JANA’s previous announcement of its stake in the company on October 18, 2024, was said to have prompted a $1 billion increase in Lamb Weston’s market value, signaling market interest in a new direction for the company.

The letter concluded with JANA offering to collaborate with Lamb Weston’s Board to implement changes and improve company performance. However, the investor group warned that if the Board is unwilling to make significant changes, Lamb Weston should look into a sale to provide the best return for its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com

Previous Post

As Bolivia’s big state economic model slowly implodes, fear of ‘total crisis’

Next Post

US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

admin

admin

Next Post
US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

US stocks to rally into year-end but correction is ‘likely early in the New Year’: Fairlead

Trending News

President Trump reconsiders 50% tariff hike as Ontario pauses energy charge

President Trump reconsiders 50% tariff hike as Ontario pauses energy charge

March 12, 2025
Embraer says Boeing will pay $150 million for withdrawal from tie-up talks

Embraer says Boeing will pay $150 million for withdrawal from tie-up talks

September 16, 2024
Cheap DocuSign stock could surge 125% to $175

Cheap DocuSign stock could surge 125% to $175

December 1, 2024
Subscribe to Insightful Word


    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025
    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    S&P 500 nears record high as Wall Street opens higher amid tech momentum

    June 26, 2025
    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    Galaxy Digital launches $175 million fund to back DeFi and stablecoin startups

    June 26, 2025

    Recent News

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    S&P 500 nears record high despite headwinds: key drivers behind the surprise rally

    June 26, 2025
    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high

    June 26, 2025

    Latest News

    • S&P 500 nears record high despite headwinds: key drivers behind the surprise rally
    • Top Nasdaq 100 Index stocks of 2025 as it breaks new all-time high
    • S&P 500 nears record high as Wall Street opens higher amid tech momentum

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.