Major McDonald's french fry supplier abruptly closes plant

By SYDNEY TRAVIS

Published: | Updated:

Fries seem to be falling out of favor in America, as major McDonald's french fry supplier is abruptly shutting a Washington facility. Lamb Weston, the largest french fry producer in North America, announced the Connell closure along with layoffs last week. Nearly 400 employees, or 4 percent of its workforce, will be impacted by the potato giant's restructuring plan.

Fries seem to be falling out of favor in America, as major McDonald's french fry supplier is abruptly shutting a Washington facility. Lamb Weston, the largest french fry producer in North America, announced the Connell closure along with layoffs last week. Nearly 400 employees, or 4 percent of its workforce, will be impacted by the potato giant's restructuring plan.

As stated in the company's earning report, it's projected that the restructuring initiatives will generate around $55 million of pre-tax cost savings in fiscal 2025 as well as a $100 million reduction in capital expenditures. President and CEO Tom Werner said, 'Restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025.'

As stated in the company's earning report, it's projected that the restructuring initiatives will generate around $55 million of pre-tax cost savings in fiscal 2025 as well as a $100 million reduction in capital expenditures. President and CEO Tom Werner said, 'Restaurant traffic and frozen potato demand, relative to supply, continue to be soft, and we believe it will remain soft through the remainder of fiscal 2025.'

He continued, 'To drive operational and cost efficiencies, we are taking actions that include the permanent closure of an older, higher-cost processing facility and the temporary curtailment of certain production lines and schedules in our manufacturing network.'

He continued, 'To drive operational and cost efficiencies, we are taking actions that include the permanent closure of an older, higher-cost processing facility and the temporary curtailment of certain production lines and schedules in our manufacturing network.'

Approximately 80 percent of french fries consumed in the US come from fast food chains, according to the company. McDonald's is Lamb Weston's biggest customer, making up  13 percent of its sales. The company's success is tied to that of McDonald's and its other customers. In the April-June period, McDonald's reported that its sales had fallen.

Approximately 80 percent of french fries consumed in the US come from fast food chains, according to the company. McDonald's is Lamb Weston's biggest customer, making up  13 percent of its sales. The company's success is tied to that of McDonald's and its other customers. In the April-June period, McDonald's reported that its sales had fallen. 

Amid widespread price hikes, major chains have launched value meal deals in hopes of winning back customers. McDonald's launched a $5 meal deal, which includes a McDouble or McChicken, a four-piece portion of chicken nuggets, a small fries, and a small fountain drink.

Amid widespread price hikes, major chains have launched value meal deals in hopes of winning back customers. McDonald's launched a $5 meal deal, which includes a McDouble or McChicken, a four-piece portion of chicken nuggets, a small fries, and a small fountain drink.

Similarly, Burger King and Wendy's jumped on the bandwagon, launching their own value meals. Burger King's $5 Your Way Meal includes a choice between Whopper Jr., Bacon Cheeseburger and Chicken Jr., a four-piece chicken nuggets, fries and a soft drink.

Similarly, Burger King and Wendy's jumped on the bandwagon, launching their own value meals. Burger King's $5 Your Way Meal includes a choice between Whopper Jr., Bacon Cheeseburger and Chicken Jr., a four-piece chicken nuggets, fries and a soft drink.

With Wendy's $5 biggie bag, customers can choose a sandwich option, and get a 4-piece Chicken Nuggets, Jr. Hot & Crispy Fries and a small soft drink of choice. The fast food giant also launched a $3 breakfast.

With Wendy's $5 biggie bag, customers can choose a sandwich option, and get a 4-piece Chicken Nuggets, Jr. Hot & Crispy Fries and a small soft drink of choice. The fast food giant also launched a $3 breakfast.

Despite fries being featured in these meal deals, demand has declined. Werner said, 'It's important to note that many of these promotional meal deals have consumers trading down from a medium fry to a small fry.'

Despite fries being featured in these meal deals, demand has declined. Werner said, 'It's important to note that many of these promotional meal deals have consumers trading down from a medium fry to a small fry.'

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