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00:02Activist investor Starboard Value built a large steak in frozen potato producer Lamb Weston
00:07and is pushing the company to accelerate cost cuts and operational improvements,
00:12according to the Wall Street Journal. Starboard is now one of the company's largest shareholders,
00:17though the size of the steak was not disclosed. The Idaho-based company has a market value of
00:21about $6.5 billion and is the largest producer of French fries in North America and the second
00:27largest globally. It supplies products such as fries, hash browns, and tater tots to customers,
00:33including McDonald's and Chick-fil-A. Lamb Weston shares have fallen more than 10% over the past
00:3812 months during operational challenges tied to rising menu prices, capacity expansion,
00:43and pricing decisions. Lamb Weston expects at least $250 million in annual cost savings,
00:49while Starboard believes savings should be at least twice that amount.
00:53For all things money, visit Benzinga.com.
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