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Jana Partners Pushes for Change at Lamb Weston Amidst Leadership Shake-up

Activist Investor Gains Momentum

Jana Partners is intensifying its efforts to influence the direction of Lamb Weston Holdings, a leading frozen potato manufacturer, by leveraging the support of another former executive. The firm recently announced that Jeffery DeLapp, the former president of Lamb Weston, now holds 458 voting shares in the company. This addition comes as Jana maintains a significant stake of over 5% in Lamb Weston.

The activist investor has been vocal about its dissatisfaction with the current state of the company, especially following the recent appointment of a new CEO and the announcement of an unexpected financial loss.

Boardroom Dynamics

In a regulatory disclosure, it was revealed that DeLapp’s involvement adds to a growing list of industry professionals aligned with Jana’s vision for Lamb Weston. Former Executive Chair Timothy McLevish has also pledged support, bringing the total number of food industry executives in Jana’s proposed board candidacy to six. This strategic maneuver underscores Jana’s intent to push for a robust reorganization of the company’s governance.

On Friday, shares of Lamb Weston experienced a modest increase of around 4%. Despite this upward movement, the company has faced significant challenges this year, with stock values plummeting by more than a third.

Financial Struggles Unveiled

The impetus for Jana’s latest actions arose after Lamb Weston released its second-quarter financial results for 2025. The company reported a surprising loss and subsequently lowered its earnings forecasts. Lamb Weston attributed these adverse outcomes to a decline in demand for frozen potato products, a trend it anticipates will persist into 2026.

Amid these challenges, Lamb Weston announced a leadership transition, with COO Michael J. Smith set to replace CEO Tom Werner effective January 3. Jana Partners responded critically, labeling the financial results as “disastrous” and condemning the board’s decision to promote another long-serving executive from within the ranks. The firm expressed disappointment in the board’s oversight, suggesting that they have failed to adequately represent shareholder interests.

Call for Action

In a pointed statement, Jana Partners declared “enough is enough,” calling for a sweeping change in the company’s board. If these changes are not realized, the activist investor signaled that selling the company should be a serious consideration.

This ongoing saga highlights the broader challenges facing Lamb Weston in navigating its operational hurdles while under the scrutiny of activist investors. As the situation unfolds, stakeholders will be watching closely for developments that could reshape the future of this prominent player in the frozen food industry.

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