Narrow-Moat Lamb Weston Delivers Crispy Results in Q2, but Shares Still Rich

Narrow-moat Lamb Weston showcased its pricing power in its second quarter (ended Nov. 27) as it delivered 27% sales growth, with a 30% lift from price/mix and only a 3% drag from volume. The top-line strength came despite supply constraints, as well as softer casual dining and full-service restaurant traffic in its foodservice segments (28% of sales). However, fry attachment rate and quick service restaurant traffic remain robust as consumers look for cheaper dining options, spurred by economic turbulence.