Activist investor ups pressure on Lamb Weston as french fry maker reaches ‘critical juncture’

Starboard said the food company has failed to restore investor confidence and show that it’s on a path toward “sustainable” growth.

What happened

French fry maker Lamb Weston is at a “critical juncture” and needs to take steps to “rebuild” support from shareholders after a series of missteps by prior management, activist investor Starboard warned the company’s board in a letter.

While the Idaho-based company has taken meaningful steps to improve volumes during the last year, Starboard said normalized earnings and “sustainable” growth so far appear elusive. The activist said the potato giant needs to host an investor day to “reset the narrative, clearly communicate its path to durable earnings growth and rebuild investor confidence.”

Why it matters

“At this Investor Day, the Company must first reestablish the foundation of its story: Lamb Weston is a high-quality business with a leadership position within an attractive industry,” Starboard wrote in its April 30 letter.

In March, Starboard first disclosed its stake in Lamb Weston and demanded that it double its cost-cutting targets and consider selling certain businesses in Asia.

Lamb Weston is no stranger to pressure from activist investors. It reached a separate agreement with Jana Partners last summer that gave the firm a larger presence on the company’s board through the appointment of former food industry executives from Nestlé USA and McCormick & Co.

This news brief is based on reporting published by Food Dive on 2026-05-06. The original report is linked below.