JANA Partners' second letter to Lamb Weston's board, on what shareholders told it

What to notice

1. 1

   JANA says the 19 December 2024 report brought another significant cut to fiscal 2025 guidance and a 20% fall in the shares in one day, leaving them near their 52-week low.

“highlights just how detached the Board is from the urgent need for wholesale change at Lamb Weston”

About this letter

Scott Ostfeld, Managing Partner and Portfolio Manager of JANA Partners, signed this second letter to the board of Lamb Weston Holdings on 27 January 2025, and JANA filed it as an exhibit to an amendment of its Schedule 13D. JANA, together with its strategic and operating partners, beneficially owned more than 5% of the shares.

The letter follows the company's earnings report of 19 December 2024, at which Lamb Weston cut its fiscal 2025 guidance again and replaced its chief executive with its chief operating officer. JANA reads the board's response as a decision to double down on a broken status quo. Much of the letter reports what shareholders said in an independent perception study in which roughly 70% of the top 70 holders took part, quoting their comments on the board and management directly. It ends with JANA's commitment to offer shareholders new directors at the 2025 Annual Meeting if the board will not change, and its view that Lamb Weston should otherwise pursue a sale.

Companies

• Lamb Weston LW

Themes

• governance
• board change
• management change
• leadership