Lamb Weston Holdings, Inc. shares plummeted 5.45% in early trading on Friday, extending pre-market losses after the frozen potato supplier issued a disappointing fiscal 2027 sales outlook and reported a decline in full-year earnings, despite beating quarterly estimates.

The company's fiscal fourth-quarter adjusted earnings fell to $0.87 per share from $0.92 a year earlier, even as net sales rose 6% to $1.77 billion. For the full fiscal year 2026, net income dropped 19% to $290 million and adjusted diluted EPS declined 16% to $3.01. Lamb Weston also forecast fiscal 2027 net sales growth of just 0% to 1%, reflecting a challenging operating environment.

Management cited ongoing disruption in the Middle East and input cost inflation as significant headwinds weighing on its EMEA business, which offset volume growth in North America and other regions. The company noted it is taking actions to help mitigate the volatility from the Middle East conflict in what it described as a challenging competitive environment.