Lamb Weston opens new french fry facility in Argentina

BUENOS AIRES - Lamb Weston Holdings, Inc. (NYSE:LW), a global frozen potato products leader with $6.46 billion in annual revenue, has officially opened a new frozen french fry production facility in Mar del Plata, Argentina, the company announced Monday. According to InvestingPro analysis, the company’s stock is currently trading below its Fair Value, suggesting potential upside opportunity.

The 40,000-square-meter plant has the capacity to process 200 million pounds of potatoes annually, producing more than 100 varieties of frozen potato products. The facility has already begun operations and completed its first shipments to Brazil. The expansion aligns with the company’s strong financial position, with InvestingPro data showing liquid assets exceeding short-term obligations and a healthy current ratio of 1.49.

According to the company, approximately 80% of the plant’s production will be exported to Brazil and other Latin American markets, leveraging the strategic location of the Mar del Plata port.

"This grand opening marks the completion of our quest to build out a modern, state-of-the-art facility, setting new standards for quality, efficiency and sustainability," said Mike Smith, president and CEO of Lamb Weston, in a press release statement.

The company has created 250 direct jobs at the facility, including administrative, technical, engineering, and operational positions. Lamb Weston estimates the venture will generate approximately 3,000 indirect jobs in the region.

The frozen potato producer is working with more than 100 local farmers to source raw materials for the plant, which the company says utilizes efficient practices to minimize waste and maximize natural resource use.

Lamb Weston, a global supplier of frozen potato products with a market capitalization of $8.72 billion, has been operating for 75 years and serves restaurants and retailers worldwide. InvestingPro subscribers can access detailed financial analysis, including 8 additional ProTips and a comprehensive research report that provides deep insights into the company’s performance and outlook.

In other recent news, Lamb Weston Holdings reported impressive financial results for the first quarter of fiscal year 2026, surpassing analysts’ expectations. The company achieved an earnings per share of $0.74, well above the projected $0.55, marking a 34.55% surprise. Revenue also outpaced forecasts, reaching $1.66 billion compared to the anticipated $1.62 billion. Following these strong results, several research firms adjusted their price targets for Lamb Weston. CFRA raised its target to $69 from $64, citing the stronger-than-expected earnings as a key factor. TD Cowen also increased its target to $60 from $58, noting the company’s volume and EBITDA performance. Stifel adjusted its target to $63, highlighting the sequential volume growth and better-than-expected gross margins. Additionally, Bernstein raised its price target to $65, attributing the change to strong volume growth and improved sales in North America and overseas.

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