Domino’s ‘loaded tots’ launch positive for Lamb Weston, says BofA

After Domino’s Pizza (DPZ) announced via social and traditional media the national launch of three varieties of its "Dominos Loaded Tots," BofA analyst Peter Galbo said the firm views the launch as a positive for Lamb Weston (LW), which it identifies as the largest manufacturer of frozen potato product in North America. Though the Domino’s announcement is not incremental to Lamb Weston’s FY23 financial outlook, the firm noted it is estimated that potatoes have 83% menu penetration at U.S. restaurants and said it expects this to increase with the launch. The firm, which also views the launch as positive for Domino’s and expects strong demand, has Buy ratings on both stocks.