America's Largest French Fry Producer Closes Facility Amid Fading Demand

Lamb Weston is cutting some 400 employees.

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Lamb Weston, the country's largest producer of French fries, is reportedly closing its plant in Connell, Washington, due to waning consumer demand for fast food.

The restaurant, grocery store and fast-food potato product supplier indicated that the closure would result in nearly 400 layoffs, or about 4% of its overall workforce. The company said it faces no other choice but to reduce production after rising inflation led consumers to cut fast-food expenses. The company's latest quarterly results saw net sales come in $11.2 million below the same quarter last year, and shares of the company's stock have fallen by 35% this year.

Nearly 80% of French fries consumed across the U.S. are from fast food chains. Fast-food chain traffic dropped by 2% last quarter and 3% the previous period; McDonald’s, which accounts for 13% of Lamb Weston’s sales by itself, saw U.S. restaurant sales fall 0.7% in the last quarter.

Lamb Weston also slashed its 2025 forecast by $100 million — from the previous $850 million down to to $750 million.

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