Wire
Starboard Urges Lamb Weston Board to Host Investor Day, Reset Earnings
Lamb Weston (LW) shareholder Starboard Value said in a letter to the board Thursday that the company should hold an investor day and reset earnings to a normalized level.Starboard said an investor day would allow the company to highlight its core strengths, reaffirm its competitive advantages, and focus on key priorities. The company must also present a clear plan to restore earnings and deliver long-term growth, Starboard said.The first step is to bring earnings to a normalized level, Starboard said, adding that it believes the company can reach a 25% adjusted earnings before interest, taxes, depreciation, and amortization margin by fiscal 2029 through a mix of profitable revenue growth and cost reductions.However, restoring earnings is not enough; the company must also show it can grow consistently over the long term, Starboard added. "Management needs to earn back the trust that they have lost and convince shareholders that the team understands how to maintain a high-quality business and create value," the firm said.Lamb Weston didn't immediately reply to' request for comment.Price: $43.52, Change: $+0.48, Percent Change: +1.13%
$LW