Shares of Lamb Weston Holdings (NYSE:LW) fell 5.3% to $61.50 in premarket trading following the company's decision to lower its annual profit forecast.
The frozen potato appetizers supplier cited weaker demand from restaurants and fast-food chains, as more consumers opt to cook at home due to higher menu prices.
As part of a restructuring plan, Lamb Weston will cut about 4% of its global workforce and temporarily reduce production lines and schedules across its North American facilities.
The plan also includes the closure of its Connell, Washington, facility.
The company now projects its fiscal 2025 adjusted earnings per share (EPS) to be in the range of $4.15 to $4.35, down from the previous estimate of $4.35 to $4.85.
For Q1, revenue dropped by 1% to $1.65 billion, though it surpassed analysts' estimates of $1.55 billion, according to LSEG data.
Adjusted EPS for the quarter stood at 73 cents, slightly above the expected 72 cents.
Year-to-date, Lamb Weston’s share price has fallen approximately 40%.