Market Newsdesk

Fastly AI Accelerator Helps Developers Unleash the Power of Generative AI

Fastly expands support to include OpenAI ChatGPT and Microsoft Azure AI Foundry

SAN FRANCISCO–(BUSINESS WIRE)–Fastly Inc. (NYSE: FSLY), a global leader in edge cloud platforms, today announced the general availability of Fastly AI Accelerator. A semantic caching solution created to address the critical performance and cost challenges faced by developers with Large Language Model (LLM) generative AI applications, Fastly AI Accelerator delivers an average of 9x faster response times.¹ Initially released in beta with support for OpenAI ChatGPT, Fastly AI Accelerator is also now available with Microsoft Azure AI Foundry.

“AI is helping developers create so many new experiences, but too often at the expense of performance for end-users. Too often, today’s AI platforms make users wait,” said Kip Compton, Chief Product Officer at Fastly. “With Fastly AI Accelerator we’re already averaging 9x faster response times and we’re just getting started.¹ We want everyone to join us in the quest to make AI faster and more efficient.”

Fastly AI Accelerator can be a game-changer for developers looking to optimize their LLM generative AI applications. To access its intelligent, semantic caching abilities, developers simply update their application to a new API endpoint, which typically only requires changing a single line of code. With this easy implementation, instead of going back to the AI provider for each individual call, Fastly AI Accelerator leverages the Fastly Edge Cloud Platform to provide a cached response for repeated queries. This approach helps to enhance performance, lower costs, and ultimately deliver a better experience for developers.

“Fastly AI Accelerator is a significant step towards addressing the performance bottleneck accompanying the generative AI boom,” said Dave McCarthy, Research Vice President, Cloud and Edge Services at IDC. “This move solidifies Fastly’s position as a key player in the fast-evolving edge cloud landscape. The unique approach of using semantic caching to reduce API calls and costs unlocks the true potential of LLM generative AI apps without compromising on speed or efficiency, allowing Fastly to enhance the user experience and empower developers.”

Existing Fastly customers can add AI Accelerator directly from their Fastly accounts. To learn more and get started, visit fastly.com/ai.

About Fastly, Inc.

Fastly’s powerful and programmable edge cloud platform helps the world’s top brands deliver online experiences that are fast, safe, and engaging through edge compute, delivery, security, and observability offerings that improve site performance, enhance security, and empower innovation at global scale. Compared to other providers, Fastly’s powerful, high-performance, and modern platform architecture empowers developers to deliver secure websites and apps with rapid time-to-market and demonstrated, industry-leading cost savings. Organizations around the world trust Fastly to help them upgrade the internet experience, including Reddit, Neiman Marcus, Universal Music Group, and SeatGeek. Learn more about Fastly at https://www.fastly.com, and follow us @fastly.

Forward-Looking Statements

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, those regarding the ability of Fastly AI Accelerator to help developers enhance performance, deliver faster response times, reduce costs, and improve user experience. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Fastly files with the Securities and Exchange Commission (“SEC”), including without limitation Fastly’s Annual Report on Form 10-K for the year ended December 31, 2023 and our Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on Fastly’s website and are available from Fastly without charge.

Source: Fastly, Inc.

¹ Responses from Fastly AI Accelerator semantic cache were served 9 times faster on average compared to those served without the AI Accelerator, calculated using all beta customer and demo traffic between October 15, 2024 and November 27, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216172993/en/

Media Contact

Spring Harris

[email protected]

Investor Contact

Vernon Essi, Jr.

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KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Software Technology Artificial Intelligence Data Management

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FTAC Emerald Acquisition Corp. Announces Change of Ticker Symbol of Its Common Stock Commencing December 18, 2024

As Part of a Procedural Measure due to a Timing Requirement from Nasdaq, Trading is Expected to Temporarily Transition to OTC Markets and, Upon Consummation of the Business Combination, will Relist on Nasdaq

NEW YORK–(BUSINESS WIRE)–
FTAC Emerald Acquisition Corp. (NASDAQ: FLD) (“FTAC Emerald”), a publicly-traded special purpose acquisition company, today announced that it will change its ticker symbol for its Common Stock. Beginning on December 18, 2024, FTAC Emerald’s Common Stock will begin trading under the new ticker symbol FLDD. FTAC Emerald’s Units and Warrants will continue to trade under the symbols FLDDU, and FLDDW, respectively.

As anticipated as a procedural measure due to a timing requirement by Nasdaq, FTAC Emerald’s common stock, units, and warrants are expected to transition from Nasdaq to OTC Markets. The new ticker symbol will ensure uninterrupted market activity for shareholders. FTAC Emerald’s ongoing business combination agreement with Fold, a pioneering bitcoin financial services company, will be unaffected by the transition of trading venue.

Bracebridge (Brace) Young, Jr., President and CEO of FTAC Emerald, commented, “FTAC Emerald and Fold remain committed to our business combination. This transition of trading to the OTC Market is a procedural measure that was anticipated, and we expect Fold to trade on the Nasdaq once again at the close of the transaction.”

Will Reeves, CEO of Fold, said, “This transaction continues to represent a significant step forward in fulfilling Fold’s mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams. The response to our proposed go-public transaction from both shareholders and customers has been overwhelmingly positive and we look forward to completing the business combination and trading on Nasdaq early in 2025.”

The business combination, which has been unanimously approved by the boards of directors of both FTAC Emerald and Fold, is expected to close in the first quarter of 2025, subject to regulatory approvals, approval of the proposed transaction by the stockholders of FTAC Emerald, and the satisfaction or waiver of other customary closing conditions, including a registration statement on Form S-4 being declared effective by the Securities and Exchange Commission (the “SEC”).

On July 24, 2024, FTAC Emerald and Fold, Inc. (“Fold”), a pioneering bitcoin financial services company, announced that it entered into a business combination agreement that is expected to result in the combined company being listed on the Nasdaq. The transaction continues to be expected to close in the first quarter of 2025.

About Fold

Founded in 2019, Fold is a leading bitcoin financial services company dedicated to expanding access to bitcoin investment opportunities through premium financial products. By integrating bitcoin into everyday financial services, Fold aims to make the American Dream available to more people. For more information, visit https://foldapp.com/investors.

About FTAC Emerald Acquisition Corp.

FTAC Emerald is a special purpose acquisition company sponsored by Cohen Circle and formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses with a core commitment to providing social, financial, and/or environmental value.

Important Information About the Proposed Business Combination and Where to Find It

This document relates to a proposed transaction between Fold and FTAC Emerald. This document does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The parties have filed a registration statement on Form S-4 with the SEC, which includes a document that serves as a prospectus and proxy statement of FTAC Emerald, referred to as a proxy statement/prospectus. A proxy statement/prospectus will be sent to all FTAC Emerald stockholders. FTAC Emerald also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of FTAC Emerald are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction.

Investors and security holders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by FTAC Emerald through the website maintained by the SEC at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge by directing a request to: FTAC Emerald Acquisition Corp., 2929 Arch Street, Suite 1703, Philadelphia, PA 19104.

Participants in the Solicitation

Fold and FTAC Emerald and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from FTAC Emerald’s stockholders in connection with the proposed transaction. A list of the names of the directors and executive officers of FTAC Emerald and information regarding their interests in the business combination will be contained in the proxy statement/prospectus when available. You may obtain free copies of these documents as described in the preceding paragraph.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction.

Forward-Looking Statements

The information in this document includes “forward-looking statements” within the meaning of the federal securities laws with respect to the proposed transaction between Fold and FTAC Emerald. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts regarding Fold’s business, net proceeds from the proposed transaction, potential benefits of the proposed transaction and the potential success of Fold’s market and growth strategies, and expectations related to the terms and timing of the proposed transaction. These statements are based on various assumptions and on the current expectations of FTAC Emerald and Fold’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of FTAC Emerald and Fold. These forward-looking statements are subject to a number of risks and uncertainties, including: (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the risk that the proposed transaction may not be completed by FTAC Emerald ‘s business combination deadline and the potential failure to obtain an extension of the business combination deadline; (iii) the failure to satisfy the conditions to the consummation of the proposed transaction, including the approval of the proposed transaction by the stockholders of FTAC Emerald and the receipt of certain governmental and regulatory approvals; (iv) the failure to realize the anticipated benefits of the proposed transaction; (v) the effect of the announcement or pendency of the proposed transaction on Fold’s business relationships, performance, and business generally; (vi) the outcome of any legal proceedings that may be instituted against FTAC Emerald or Fold related to the business combination agreement or the proposed transaction; (vii) the ability to maintain the listing of FTAC Emerald’s securities on the NASDAQ; (viii) the ability to address the market opportunity for Fold’s products and services; (ix) the risk that the proposed transaction may not generate the expected net proceeds for the combined company; (x) the ability to implement business plans and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; (xi) the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; (xii) the risk of downturns, new entrants and a changing regulatory landscape in the highly competitive industry in which Fold operates; and (xiii) those factors discussed in FTAC Emerald’s filings with the SEC under the headings “Risk Factors,” and other documents of FTAC Emerald filed, or to be filed, with the SEC. If any of these risks materialize or Fold’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither FTAC Emerald nor Fold presently know or that FTAC Emerald and Fold currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect FTAC Emerald’s and Fold’s expectations, plans or forecasts of future events and views as of the date of this document. While FTAC Emerald and Fold may elect to update these forward-looking statements at some point in the future, each specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing FTAC Emerald’s and Fold’s assessments as of any date subsequent to the date of this document. Accordingly, undue reliance should not be placed upon the forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216808185/en/

Investor and Media Contacts

Fold: [email protected]

FTAC Emerald: [email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Personal Finance Finance Cryptocurrency Professional Services Asset Management

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Amkor Technology Names John Liu to Board of Directors

TEMPE, Ariz.–(BUSINESS WIRE)–
Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, announced today that John Liu has been appointed as a new member of the company’s Board of Directors.

Mr. Liu has been the chief executive officer of Essex Equity Capital Management, a financial services company, and managing partner of Richmond Hill Investments, an investment management firm, since March 2008. Previously, he was employed by Greenhill & Co. for 12 years, where he held positions of increasing responsibility including both chief financial officer and the co-head of U.S. Mergers and Acquisitions. He later served as lead independent director of Greenhill and is currently serving as an independent director of Whirlpool Corporation.

“John’s global experience as a senior finance executive, strategic advisor and as an independent director of other leading public companies will be a strong addition to Amkor’s Board,” said Susan Kim, Amkor’s chairman. “We look forward to John’s contributions to the company as we continue to focus on building long-term value for our stakeholders.”

Mr. Liu holds a master’s degree in business administration from the Wharton School of the University of Pennsylvania and a bachelor’s degree in economics from Harvard University.

Following this change, Amkor’s Board of Directors will be composed of eleven directors, nine of whom are independent.

About Amkor Technology, Inc.

Amkor Technology, Inc. is the world’s largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216259573/en/

Investor Relations

Jennifer Jue

Vice President, Investor Relations and Finance

480-786-7594

[email protected]

Media Relations

Christina Parsons

Director, Marketing Communications

480-786-7823

[email protected]

Social Media: @amkortechnology

KEYWORDS: Arizona United States North America

INDUSTRY KEYWORDS: Other Manufacturing Hardware Artificial Intelligence Data Management Technology Semiconductor Manufacturing Other Technology

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OakStreet Wholesale Nursery Joins SiteOne Landscape Supply

ROSWELL, Ga.–(BUSINESS WIRE)–
SiteOne Landscape Supply, Inc. (NYSE: SITE) announced today its acquisition of OakStreet Wholesale Nursery (“OakStreet”), a wholesale distributor of nursery products with one location in Fairview, Texas, a suburb within the Dallas-Fort Worth market.

“This addition positions SiteOne as the nursery leader in the Dallas market,” said Doug Black, Chairman and CEO of SiteOne Landscape Supply. “OakStreet is a tremendous wholesale nursery distributor with a strong and experienced management team and a history of excellent market growth. We are excited to welcome the OakStreet team and customers to the SiteOne family.”

“We’ve built a reputation of having the highest quality products and exceptional customer service in the North Texas market, thanks to our dedicated team members and loyal customers,” said Mike Fritchie, OakStreet co-owner. “Joining SiteOne is a natural fit based on our shared values.”

“We’re excited for the wealth of advantages and new growth opportunities that will be offered to our employees and customers by joining SiteOne,” said Lance Martin, OakStreet co-owner.

This is the sixth acquisition in 2024 for SiteOne as the company continues to expand the number of markets in which it offers the full range of landscape supplies and services to landscape professionals.

About SiteOne Landscape Supply:

SiteOne Landscape Supply (NYSE: SITE), is the largest and only full product line national wholesale distributor of landscape supplies in the United States and has a growing presence in Canada. Its customers are primarily residential and commercial landscape professionals who specialize in the design, installation and maintenance of lawns, gardens, golf courses and other outdoor spaces. https://www.siteone.com/

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216311193/en/

Investor Relations:

SiteOne Landscape Supply, Inc.

470-270-7011

[email protected]

or

Media:

SiteOne Landscape Supply, Inc.

Erin Edstrom 404-395-5357

Senior Director, Integrated Marketing & Events

[email protected]

KEYWORDS: Texas Georgia United States North America

INDUSTRY KEYWORDS: Retail Home Goods Residential Building & Real Estate Commercial Building & Real Estate Specialty Construction & Property Landscape

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Redfin Reports Older Americans Are More Likely to Buy Disaster-Prone Homes Than Younger Americans

37% of home purchases made by people 65+ occur in counties with high risk of extreme heat, compared with 32% of purchases made by people under 35, and the same trend holds true for flood and fire risk

SEATTLE–(BUSINESS WIRE)–
(NASDAQ: RDFN) — Older Americans are more likely than younger Americans to buy homes in places with significant climate risk, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Over one-third (36.9%) of home purchases made by people 65 and older last year were in counties with high risk of extreme heat, compared with less than one-third (32.3%) of home purchases made by people under 35.

The trend holds true for flood and fire risk; 13.3% of purchases made by people 65+ were in counties with high risk of flooding, compared with 9.8% of purchases by those under 35. And 3.7% of purchases made by people 65+ were in counties with high fire risk, compared with 2.6% of purchases by people under 35.

There are a few reasons older Americans are more likely than younger Americans to buy homes in risky areas:

• Many of America’s retirement hotspots are risky for the same reason they’re desirable: They’re exposed to the hot sun and/or the coast. Think Arizona, which is prone to extreme heat and drought, and Florida, which is prone to hurricanes and rising sea levels. Florida is a top retirement destination in part because it doesn’t tax retirement income. But that benefit is beginning to be offset by a surge in insurance costs and HOA fees caused by intensifying natural disasters, along with soaring property taxes.
• Young Americans often gravitate toward major urban job centers—like Boston, Chicago and Minneapolis—many of which face lower climate risk than retirement hotspots in places like Florida and Arizona. Though it’s worth noting that remote work and the growth of Sun Belt metros has upended this dynamic somewhat.
• Older Americans are less likely than younger Americans to factor climate change into their decisions about where to live. Over half (56%) of millennials and exactly half (50%) of Gen Zers say climate change affects where they choose to live, compared with less than one-third (31%) of baby boomers, according to a recent survey commissioned by Redfin. That may be because younger people will have to deal with the consequences of climate change for longer, and because climate change is a major topic in young social circles.

“Retirees understand the risks of moving to Florida, but many believe the pros still outweigh the cons,” said Rafael Corrales, a Redfin Premier real estate agent in Miami. “When I explain to buyers that they can get more bang for their buck and lower flood risk a little further inland, they often tell me, ‘Rafael, we came to Florida for the waterfront views.’”

Corrales said that many homebuyers are now asking sellers how much they pay for insurance and, if it’s a good rate, requesting that the sellers pass along their insurance broker’s contact information. This gives buyers leverage when they’re negotiating with other insurers. Buyers are also considering how much they’ll have to pay for insurance when writing offers, he said.

Redfin broke the findings down by income level, and found that older people of all income levels—not just those who are affluent—are generally more likely to move to risky areas than younger people.

Nearly 100% of homes face high heat risk in places where buyers skew older, compared with 59% of homes where buyers skew younger

Nearly all homes (96.2%) face high heat risk in the counties where 65+ buyers took out the largest share of mortgages last year, on average. That compares 59.2% of homes in the counties where buyers under 35 took out the largest share of mortgages.

This trend also holds true for flood and fire risk. In the counties where 65+ buyers took out the largest share of mortgages, 24.6% of homes face high flood risk and 35.7% face high fire risk, on average. In the counties where buyers under 35 took out the largest share, 16% of homes face high flood risk and 19% face high fire risk.

These findings are based on a Redfin analysis of climate risk scores from First Street, and Home Mortgage Disclosure Act (HMDA) data covering mortgage originations for primary homes. Redfin defines a high-risk county as one that ranks in the top 10% when it comes to the share of homes facing high fire or flood risk, and the top 33% for heat risk. Climate risk scores are based on a property’s current risk as well as how that risk is expected to grow over the next 30 years.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/climate-risk-by-generation/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country’s #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we’ve saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, email [email protected]. To view Redfin’s press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216499719/en/

Redfin Journalist Services:

Isabelle Novak

[email protected]

KEYWORDS: Washington United States North America

INDUSTRY KEYWORDS: Residential Building & Real Estate Technology Construction & Property Seniors Baby Boomers Millennials Software Generation Z Internet Generation X Consumer

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Retail Veteran Venki Krishnababu Joins Dutch Bros Coffee as Chief Technology and Information Officer

GRANTS PASS, Ore.–(BUSINESS WIRE)–
Dutch Bros Inc. (“Dutch Bros”) (NYSE: BROS), one of the fastest-growing brands in the quick service beverage industry in the United States by location count, today announced that lauded retail veteran Venki Krishnababu has joined Dutch Bros Coffee as the drive-thru beverage company’s new Chief Technology and Information Officer. Krishnababu brings nearly 30 years of experience leading transformational, enterprise-shaping strategies and a proven track record of creating business value through technology, innovation, and partnerships.

“Venki has deep experience leading technology strategies across multiple functions, including data and analytics, cybersecurity, and digital transformations,” said Christine Barone, CEO and president of Dutch Bros. “Above all, though, Venki is known for his people-centric leadership, which aligns perfectly with Dutch Bros culture. His leadership will be key as we continue to invest in technology to enhance our customer experience.”

Krishnababu assumed the role of Chief Technology and Information Officer on Dec. 16, 2024. Prior to joining Dutch Bros, he capped a seven year career with lululemon athletica inc. (NASDAQ:LULU) as Chief Technology Officer. Prior to lululemon, Krishnababu was Chief Technology Officer at Premera Blue Cross and in various leadership roles over 16 years at Nordstrom.

“Dutch Bros is one of the most innovative rapidly growing coffee chains, known for its friendly service, delicious drinks, and vibrant atmosphere. What truly sets Dutch Bros apart from other coffee chains is its people-centric culture,” said Krishnababu. “Technology is such a critical component in delivering great customer experiences, building community, helping our Broistas and scale the enterprise to the future. My perennial focus will be to position technology as a strategic enabler of the company while embodying Dutch Bros’ people-first culture. I am excited and look forward to working with Dutch Bros, to serve our customers, teams, and business.”

About Dutch Bros

Dutch Bros Inc. (NYSE: BROS) is a high growth operator and franchisor of drive-thru shops that focus on serving high QUALITY, hand-crafted beverages with unparalleled SPEED and superior SERVICE. Founded in 1992 by brothers Dane and Travis Boersma, Dutch Bros began with a double-head espresso machine and a pushcart in Grants Pass, Oregon. While espresso-based beverages are still at the core of what we do, Dutch Bros now offers a wide variety of unique, customizable cold and hot beverages that delight a broad array of customers. We believe Dutch Bros is more than just the products we serve—we are dedicated to making a massive difference in the lives of our employees, customers and communities. This combination of hand-crafted and high-quality beverages, our unique drive-thru experience and our community-driven, people-first culture has allowed us to successfully open new shops and continue to share the “Dutch Luv” at more than 950 locations across 18 states as of September 30, 2024.

To learn more about Dutch Bros, visit https://www.dutchbros.com, follow Dutch Bros on Instagram, Facebook, X, and TikTok, and download the Dutch Bros app to earn points and score rewards!

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216190260/en/

For Media Relations Inquiries:

Jessica Liddell

ICR

(203) 682 8208

[email protected]

For Investor Relations Inquiries:

Jeff Priester

ICR

(332) 242-4370

[email protected]

KEYWORDS: Oregon United States North America

INDUSTRY KEYWORDS: Professional Services Retail Security Data Analytics Restaurant/Bar Technology Food/Beverage

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JANA Partners Sends Letter to Board of Directors of Lamb Weston Holdings

Believes Significant Board and Leadership Change Is Necessary to Improve Performance

Absent Meaningful Board and Leadership Change, Lamb Weston Should Launch a Formal Review of Strategic Alternatives to Maximize Value for Shareholders

NEW YORK–(BUSINESS WIRE)–
JANA Partners (“JANA”), which together with its strategic and operating partners owns more than 5% of Lamb Weston Holdings, Inc. (NYSE: LW) (“Lamb Weston” or the “Company”) and is one of the Company’s largest shareholders, today sent a letter to the Company’s Board of Directors reiterating its belief that significant Board and leadership change is needed at Lamb Weston, and that in its absence the Company should pursue a formal review of strategic alternatives, including a sale, in order to maximize value for shareholders.

The full text of the letter is as follows:

December 16, 2024

Board of Directors

Lamb Weston Holdings, Inc.

599 S. Rivershore Lane

Eagle, ID 83616

Board of Directors,

JANA Partners (“JANA,” “we” or “us”) together with our strategic and operating partners beneficially own more than 5% of the outstanding shares of Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”), making us one of the Company’s largest shareholders. Having received no response from the Board to our months-long involvement and engagement, we are hopeful that the Company will use the upcoming fiscal second quarter earnings announcement to address our previously expressed view that significant Board and leadership change is needed at Lamb Weston, and that in its absence the Company should pursue a formal review of strategic alternatives, including a sale.

We believe Lamb Weston’s Board and management have wasted the chance to sustain and grow shareholder value in a high-quality business. It is indisputable that Lamb Weston’s track record for shareholders prior to the disclosure of our investment has been poor, not only in a disastrous 2024 (which includes an earnings report so ignominious that it prompted one long-tenured analyst to declare it “one of the worst days for a larger-cap food producer in modern history”),¹ but also over the long-term with total returns in the last five years² dramatically trailing the S&P 500 and performing in the bottom quartile when compared to proxy peers.

Regrettably, we believe this dismal performance record significantly understates the magnitude of lost opportunity at the Company. Relative to its publicly traded packaged food peers, we believe Lamb Weston enjoys the benefits of an attractive end market, a strong industry position and key competitive advantages (including geographic ones). When coupled with Lamb Weston’s long-time reputation as a premier foodservice supplier – which took prior management many years to build – we think these attributes should have positioned the Company as an attractive ‘compounder’ stock and best-in-class performer for investors.

Instead, the current Board and management have overseen a multi-year period of uncorrelated failures across many major elements of operating the business, in the process damaging the Company’s reputation and leading market position. This has impaired performance, dissolved confidence among customers, investors and other stakeholders and caused Lamb Weston to veer off its path as a world-class business.³

The disclosure of our involvement on October 18^th led to an approximately $1 billion increase in Lamb Weston’s market cap and an overwhelmingly positive reception from investors and Wall Street analysts,⁴ which we believe demonstrates the intense appetite from shareholders for a change in direction. The extensive investor feedback we have received since emerging publicly in the Company, including proprietary survey work that has included dozens of investors and other stakeholders, has further confirmed what was clear from our initial due diligence: that there is urgent need – and strong desire – for significant Board and leadership change at Lamb Weston.⁵

A failure of Board oversight has permitted chronic mis-execution, a bloated expense structure, poor capital allocation and questionable use and disclosure practices involving the Company’s aviation assets. Making matters worse, the Board has supported management as Company leadership has attempted to place primary blame for the Company’s challenges on end market softness – rather than offering a long overdue mea culpa and acknowledging the magnitude of damage inflicted on the business and investors from its litany of self-inflicted missteps.⁶ This contradicts what we believe to be an environment where the Company’s primary competitors (all private companies) have enjoyed stronger performance at Lamb Weston’s expense. This disconnect has not been lost on the investors and other stakeholders we have spoken with or who took part in a proprietary survey.⁷

Lamb Weston’s failures include:

• Significant Financial and Operating Deficiencies: These have cost the Company (at a minimum) nearly $400m⁸ in EBITDA over the past ~2.5 years and have eroded Lamb Weston’s credibility with stakeholders across the value chain, from growers to customers.
  • A fumbled attempt to enhance its customer base by voluntarily ceasing business with some customers (i.e. ‘firing’ them) before the Company had secured the superior replacement volume, resulting in lost market share and a volume shortfall that has weighed on revenue.

  • Mis-forecasting customer demand so dramatically that the Company has been forced to write off an inordinate amount of raw potatoes in both F2024 and F2025.⁹
  • Executing a multi-hundred million dollar ERP project riddled with delays (underway for almost a decade and now paused) where implementation failed so spectacularly that it left important Lamb Weston customers without products for a period in F3Q24, costing the Company both customers and reputational damage.

  • Failing to identify and address product quality problems for a key customer until so late in the process that the Company incurred ~$80m in losses from product withdrawal.

  • Generating little to no overhead cost leverage in the business despite doubling revenue over the last eight years,¹⁰ with the Company increasing its SG&A targets from 8-8.5% sales to 10.5-11% in 2023.¹¹

• Failed Oversight of Capital Allocation: The multi-year escalation of capital deployment – rubber-stamped by the Board and paired with misaligned incentives – led to elevated capex without acceptable returns, left the Company with no margin of safety when operational missteps surfaced, dramatically reduced free cash flow generation and eroded investor confidence in the Company. This includes:
  • An escalation in capital expenditures for new capacity so ill-conceived and poorly risk-managed that the new capacity subsequently necessitated the costly shuttering of existing capacity, including closing a manufacturing plant in Connell, WA and terminating nearly 400 employees.

  • Announcing a long-term capex target of 9%¹² of revenue, substantially higher than stated maintenance capex levels of ~3% revenue, creating confusion around these elevated levels¹³ and with no clear roadmap for how the spend would generate sustainable and acceptable returns on capital.

  • Inexplicably permitting management to execute stock repurchases shortly before large earnings misses and dramatic declines in the Company’s share price.¹⁴
  • Misaligned executive compensation targets that heavily incent growth, have no return on capital guardrails and have allowed management to earn the maximum amount (200%) of the target in FY24 on the operational performance component of the Long-Term Incentive Program’s Performance Share Awards¹⁵ despite disastrous performance for investors.

• Questionable Use and Disclosure Practices around Aviation Assets:
  • Having a corporate plane to facilitate transport of employees between Boise, ID and key manufacturing locations is an understandable investment of corporate resources. However, our analysis of flight records shows that since 2019, Lamb Weston’s plane has registered ~300 flights into or out of Omaha, NE – the former headquarters of Conagra and what appears to be the CEO’s primary residence – and additional flights to numerous other destinations that raise questions regarding the legitimate business purpose of these flights. The Company’s proxy disclosures – which show compensation of only $14,463, $13,737 and $21,349 of value for the CEO’s personal use of Company aircraft in the years F2022, F2023 and F2024 and neither disclosure for any value received in earlier periods nor indication of plane usage for business purposes related to productivity and safety – seem to be at odds with our flight analysis, which raises serious questions about the use and disclosure around the Company’s aviation assets.

  • In September 2023, shortly before the Company’s 2023 Investor Day, when it created consternation and confusion among analysts and shareholders by announcing a new long-term capex target of 9% of revenue, Lamb Weston reserved two new tail numbers with the US Federal Aviation Administration. FAA Registry data shows these reservations were subsequently purged on October 18, 2024 – the day of JANA’s 13D filing in Lamb Weston.

This track record makes clear that the status quo is no longer tenable – and is completely unacceptable – for shareholders. JANA has a multi-decade reputation of working constructively with Boards to drive change and improve performance – in this spirit, our offer stands to work with Lamb Weston, as we and our team of highly regarded industry executives¹⁶ are prepared to join the Board immediately and help rehabilitate the Company and drive long-term value. However, if the Board is unwilling to make the significant changes needed to repair Lamb Weston, then the Company should work with its financial advisors to explore a sale and take advantage of strategic interest in the Company to achieve the highest possible risk-adjusted return for shareholders.

We look forward to the Board’s prompt response.

Sincerely,

Scott Ostfeld

Managing Partner & Portfolio Manager

About JANA Partners

JANA Partners was founded in 2001 by Barry Rosenstein. JANA invests in undervalued public companies and engages with management teams and boards to unlock value for shareholders.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241216832356/en/

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KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Retail Supermarket Food/Beverage

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X: @Dianaship

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