$64 Million Exit: Lamb Weston Stock Down 9% As Investor Dumps 1 Million Shares
Key Points
Gates Capital exited Lamb Weston in the fourth quarter, selling off 1,096,923 shares.
The quarter-end position value declined by $63.71 million as a result.
The position previously accounted for 1.1% of fund AUM.
- 10 stocks we like better than Lamb Weston ›
On February 17, 2026, Gates Capital Management, Inc. disclosed in a U.S. Securities and Exchange Commission (SEC) filing that it sold out of Lamb Weston (NYSE:LW), exiting 1,096,923 shares worth $63.71 million.
What happened
An SEC filing dated February 17, 2026, shows Gates Capital Management, Inc. fully liquidated its stake in Lamb Weston, selling 1,096,923 shares. The quarter-end value of the position decreased by $63.71 million.
What else to know
- Top holdings after the filing:
- NYSE:ATKR: $172.87 million (6.0% of AUM)
- NYSE:DAR: $170.79 million (5.9% of AUM)
- NYSE:CARR: $170.17 million (5.9% of AUM)
- NYSE:SPGI: $150.27 million (5.2% of AUM)
- NYSE:TIC: $149.99 million (5.2% of AUM)
- As of Monday, shares of Lamb Weston were priced at $47.47, down 9% over the past year and trailing the S&P 500, which is instead up about 17%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $6.47 billion |
| Net income (TTM) | $392.30 million |
| Dividend yield | 3% |
| Price (as of Monday) | $47.47 |
Company snapshot
- Lamb Weston produces and markets value-added frozen potato products, commercial ingredients, and appetizers under owned, licensed, and private label brands.
- The company generates revenue primarily through the sale of frozen potato products to retail, foodservice, and institutional customers worldwide.
- It serves grocery and mass retailers, foodservice distributors, restaurants, educational institutions, and convenience stores.
Lamb Weston is a leading supplier of frozen potato products with a diversified global customer base across retail and foodservice channels. The company leverages scale, brand portfolio, and operational expertise to maintain a strong position in the packaged foods industry. Strategic focus on innovation and broad distribution supports its competitive edge in value-added frozen foods.
What this transaction means for investors
Gates’ sale signals less conviction in a defensive food name at a moment when execution, not just stability, is driving returns. Lamb Weston remains a scale player in frozen potato products, but the latest quarter showed how competitive the landscape has become.
Second quarter net sales rose 1% to $1.62 billion, while adjusted EBITDA slipped 3% to $285.7 million. Volume climbed 8%, yet that strength was offset by an 8% decline in price and mix as the company leaned into trade support to protect share. Management reaffirmed full-year guidance for $6.35 billion to $6.55 billion in sales and $1.00 billion to $1.20 billion in adjusted EBITDA and approved a 3% dividend hike, extending a steady capital return streak.
Still, shares around $47 sit roughly 9% lower over the past year, badly trailing a market up about 17%. Within a portfolio tilted toward industrial and infrastructure names like Atkore, Carrier, and TIC Solutions, a packaged foods operator facing pricing pressure may simply rank lower on upside potential.
Should you buy stock in Lamb Weston right now?
Before you buy stock in Lamb Weston, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lamb Weston wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 2, 2026.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global and Tic Solutions. The Motley Fool recommends Darling Ingredients and recommends the following options: short April 2026 $45 calls on Darling Ingredients. The Motley Fool has a disclosure policy.
Recommended Articles
