French fry and frozen potato product giant Lamb Weston is reportedly facing pressure from an activist investor to ramp up its cost-cutting efforts.
Reuters, citing an initial report from the Wall Street Journal, noted that Starboard Value has become one of the top stakeholders in the Idaho-based potato processor. The New York firm previously held a stake in Lamb Weston but recently purchased more shares in a company that it considered “undervalued.”
Lamb Weston, which supplies McDonald’s, Yum Brands and other chains, outlined plans for at least $250 million in annualized savings last year amid a sluggish demand environment. Reuters noted that the latest report followed a settlement between Lamb Weston and another New York firm, Jana Partners, last year.
A Lamb Weston spokesperson told Reuters that the company values an “ongoing and constructive dialogue" with shareholders.
