By Colin Kellaher

Lamb Weston Holdings will close a production plant in the Netherlands as part of efforts by the french-fry maker to improve its operating efficiency and better align its global manufacturing footprint with demand.

Lamb Weston on Thursday said the closure of the plant in Broekhuizenvorst will affect about 100 employees and result in pretax charges of $80 million to $110 million, primarily related to the write-down of long-lived assets and inventory and to employee severance and termination benefits.

The Boise, Idaho, company, said it expects to recognize substantially all of the charges in its fiscal year ending May 30, 2027, adding that it estimates at least 20% of the charges will result in future cash expenditures.

Lamb Weston, which counts McDonald's as its largest customer, has been struggling with a global decline in restaurant traffic.

The company in April reported quarterly earnings that topped Wall Street's expectations, but its profit declined in the quarter due in part to lower-than-planned sales in its international segment.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 04, 2026 08:27 ET (12:27 GMT)

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