Lamb Weston Holdings Inc. LW said Wednesday its board has agreed to add $500 million to its share buyback authorization. The frozen potato company made the announcement in a statement released ahead of an investor day, in which it set long-term guidance and backed guidance for fiscal 2024. The company will target sales growth in the low-to-mid-single digits, driven by a balance of volume growth and price and mix. It’s targeting adjusted per-share earnings growth in the high single digits. The company is still expecting fiscal 2024 sales to range from $6.8 billion to $7.0 billion and for adjusted EPS of $5.50 to $5.95. Lamb Weston is also aiming to return cash to shareholders with a target dividend payout ratio of 25% to 35% of net income. It will also evaluate M&A opportunities that could drive growth, expand its manufacturing footprint to be more cost competitive and strengthen its presence in local markets. The stock has gained 8% in the year to date, while the S&P 500 SPX has gained 13.5%.
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