Frozen potato supplier Lamb Weston beats quarterly estimates on resilient demand

Sept 30 (Reuters) - Lamb Weston LW.N beat analysts' estimates for first-quarter revenue and profit on Tuesday, driven by resilient demand for its frozen potato products even amid inflationary pressures, sending its shares up about 7% in early trading.

The company, which also supplies potato sides and appetizers to fast-food chains such as McDonald's MCD.N and Yum Brands YUM.N, has been trying to boost sales by cutting prices for some of its products in North America.

Lamb Weston's international volumes rose 6%, led by strong demand in Asia, while North America volumes grew 5%.

The company reported adjusted profit of 74 cents per share for the first quarter of fiscal 2026, compared with analysts' average estimate of 55 cents, according to data compiled by LSEG.

Its quarterly revenue stood at $1.66 billion, also above the expectation of $1.62 billion.

Net sales for Lamb Weston's international business rose 4% during the period, while those from its North America segment, which includes all sales to customers in the U.S., Canada and Mexico, declined 2%.

The Idaho-based company also reaffirmed its fiscal 2026 forecast.