Lamb Weston, the largest producer of french fries in North America, announced last week that it is cutting 4% of its global workforce, or 375 jobs, and curtailing production lines following a dismal earnings report. In addition, Lamb Weston shares have plunged nearly 35% so far this year.
No, not a good sign at all.
Lamb Weston, the Eagle, Idaho potato company, also supplies french fries and waffle fries product to regular restaurants and grocery stores throughout the country.
And McDonald's isn’t the only fast food restaurant chain having issues, according to the New York Post. Wendy’s and Burger King have been hit by their suppliers with reduced production.
Tough times, especially how fries are a key part of each chain’s value meals. And nobody's meals are happy, either.
The french fries supplier’s net sales declined 1%, its income from operations dropped 34% and its net income plummeted 46% all compared to the same period a year earlier.
You want fries with that?
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