North America's largest french fry maker will close its Washington factory and lay off hundreds of workers, company officials announced in a recent earnings call.
In an Oct. 1 article, Tom Warner, president and CEO of Lamb Weston Holdings, cited “sluggish” restaurant traffic and demand for frozen fries. press release Provides details of business failures in the first quarter of 2025.
Compared to the first quarter of fiscal 2024, Lamb Weston's net income decreased by 46 percent to $127 million, the company highlighted.
Werner said “significant actions” to restructure the business include closing an “old and high-cost” facility in Connell, Wash., which will reduce the total number of employees to about four. It will be reduced by a percentage.
That means 375 workers will lose their jobs, Fox Business reported. reported.
“We achieved first-quarter financial results that were broadly in line with expectations, driven by sequential improvement in sales performance, a solid pricing structure, and tight control of operating costs,” said Werner. “However, restaurant traffic and frozen potato demand remain weak relative to supply, and we believe they will remain weak for the remainder of fiscal 2025.”
The closure of the Connell plant is “part of proactive measures aimed at improving our operating efficiency, profitability and cash flow, while also implementing a strategy to support our customers and create value for our stakeholders in the long term.” We are poised to continue making investments.” The CEO explained.
Fox Business noted that Idaho-based Lamb Weston is a “major” supplier of french fries to restaurants such as McDonald's.
Fast food prices are already falling rose sharply 33 percent since 2019, according to the Department of Labor data Released in August. Over the same period, the cost of groceries increased by 26%.
To increase foot traffic, McDonald's this summer launched a new $5 “meal deal” that includes a McDouble burger or McChicken sandwich, four pieces of chicken nuggets, small fries and a small drink.
Competitors such as Burger King and Wendy's are running similar deals that include fries, but Warner said people aren't buying fries as much as they used to.
“It's important to note that many of these promotional meal deals end up discounting consumers from medium to small,” the CEO told Fox Business. is important,” he said.
