Activist hedge fund Starboard Value reported that it has taken a significant stake in food-processing company Lamb Weston (LW) and is urging the company to cut its costs by $500 million by fiscal 2028, Bloomberg reported. The french fry maker, which currently has a 3.4% dividend yield, has already said that it would look to cut its expenditures by $250 million by 2028.
However, given Starboard's mixed record in recent years, along with Lamb Weston's very low growth and its significant negative exposure to GLP-1 weight-loss drugs, I do not recommend that investors buy LW stock at this point.
