French-Fry Giant Lamb Weston Replaces CEO, Lowers Outlook

Lamb Weston Holdings said it was replacing its chief executive and slashing guidance again as demand for frozen potato products sputters, sending shares sharply lower.

- DEAN SEAL

The french-fry maker said Thursday that Thomas Werner has stepped down as CEO and left the board. He will continue to serve in an advisory capacity through Aug. 31, 2025.

Werner is being succeeded by Michael Smith, the company's chief operating officer since May 2023. Chairman W.G. Jurgensen said Smith's appointment comes after a "thoughtful, yearslong succession-planning process" by the board.

The shuffle follows a year of underperformance by Lamb Weston's stock as high restaurant prices have eaten into demand for its array of potatobased products, weighing on quarterly results. Activist investor Jana Partners disclosed in October that it has built a 5% stake in the company and would push it to pursue a sale.

Shares of the Eagle, Idaho, company dropped 20.1% to close at $62.50. The stock has fallen about 42% since the start of the year.