Lamb Weston Holdings (LW, Financial) (LW - $71.46 – NYSE) produces and distributes value-added frozen potato products, most notably French fries, to a variety of customers, including quick-service restaurants, sit-down restaurants, and foodservice operators. During the second quarter, Lamb Weston shares rallied nicely as weather trends emerged that bode well for this year’s potato crop. As the growing season has progressed, investors have gained more confidence in a good potato crop and thus a recovery in Lamb Weston’s gross margin in the coming year. This is a marked change from last year, when unusually hot weather produced a weaker-than-expected potato crop and resulted in margin and earnings pressure for the company.
From the Keeley Small-Mid Cap Vlaue Fund's second-quarter 2022 commentary.
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