Lamb Weston Appoints Jan Craps as Executive Chair Amid Ongoing Turnaround Efforts

What happened

Lamb Weston announced the appointment of Jan Craps as Executive Chair, effective February 6, 2026, to accelerate its 'Focus to Win' strategy aimed at driving growth and shareholder value. This move follows activist pressure from Jana Partners and previous governance changes, including a new CEO and board additions, as noted in the DeepValue report. The report highlights that LW faces structural challenges such as persistent negative price/mix, global fry overcapacity, and elevated leverage at 3.8x net debt/EBITDA. While Craps brings international experience from Anheuser-Busch InBev, the report cautions that cost savings from restructuring are back-loaded into FY27-28 and near-term earnings remain depressed with FY26 EBITDA guidance of $1.0-1.2 billion. Investors should view this leadership change as a continuation of the turnaround narrative but remain critical until tangible improvements in pricing stability and cost-savings conversion are demonstrated.

Implication

Jan Craps' appointment may enhance execution of the Focus to Win plan, particularly in international markets where his experience could aid in navigating overcapacity and pricing challenges. However, the DeepValue report underscores that LW's issues are deep-rooted, with price/mix declines expected through FY26 and leverage limiting near-term upside. Investors should closely monitor upcoming quarterly results for signs that this change accelerates savings delivery or stabilizes pricing, as the report's base case assumes gradual improvement with 50% probability. Key risks include persistent discounting, failure to meet the $250 million savings target, and industry overcapacity prolonging margin pressure. Therefore, maintaining the report's 'WAIT' rating is prudent, with attractive entry points around $35 contingent on evidence of margin recovery and deleveraging progress.

Thesis delta

The investment thesis remains unchanged; this news aligns with the existing narrative of governance and operational restructuring but does not shift the fundamental risk-reward dynamics. Key catalysts are still price/mix stabilization and visible cost-savings conversion, as outlined in the report, with no new data to alter the 'WAIT' recommendation. Investors should continue to await concrete proof points in FY26 results before considering a position change.