Lamb Weston Holdings, Inc. LW reported first-quarter fiscal 2021 results, wherein both top and bottom lines declined year over year and the former fell short of the Zacks Consensus Estimate. Results were affected by lower demand due to the adverse impact of the pandemic on traffic at restaurants and other foodservice channels. Also, higher pandemic-related costs have been a deterrent.
Nonetheless, sales and earnings improved sequentially and the company is positive about the improvement in traffic at restaurants in the United States and core international markets. In the United States, demand stabilized in the latter part of the first quarter and also in September, thanks to a rebound in quick-service restaurants, increased deliveries and improved trends at full-service restaurants as curbs on pandemic-led restrictions are being lifted. However, demand remains below pre-pandemic levels. Retail demand for branded products remained steady, though lower than its peak in the initial weeks of