LW

Lamb Weston Holdings Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is LW Halal?

Potato-food manufacturing is generally permissible, but the latest debt/assets ratio materially fails.

What You Should Know

Lamb Weston's February 22, 2026 filing reports 54.00% interest-bearing debt/assets, 0.78% identifiable liquidity/assets and 10.93% receivables-plus-cash/assets. Interest income is not separately disclosed. The core potato-product business is generally permissible, while restaurant customer mix and downstream use remain qualitative.

⚠️ Concerns

  • Debt/assets is 54.00%, above the examined limits
  • Restaurant customers may serve non-halal meat or alcohol
  • Interest income is not separately disclosed
  • Net interest expense is 45.0 million for the quarter

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-02-22; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
54.00%Above limit
Below 33.333% under FTSE Yasaar

3,992.7 / 7,393.5

Cash + interest-bearing securities / assets
0.78%Within limit
Below 33.333% under FTSE Yasaar

57.5 / 7,393.5

Receivables + cash / assets
10.93%Within limit
Below 50% under FTSE Yasaar

808 / 7,393.5

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 54.00%, above the examined FTSE 33.333% limit; liquidity/assets is 0.78% and receivables plus cash/assets is 10.93%, while interest income remains unavailable.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 54.00%, above the examined MSCI total-assets limit; liquidity/assets is 0.78% and receivables plus cash/assets is 10.93%. This is not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 54.00%, above the examined Malaysia SAC 33% financial limit; identifiable liquidity/assets is 0.78%. This is a calculation against SAC ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.

Business-activity disclosure

Lamb Weston manufactures frozen potato products for restaurants and retailers. Potato processing is generally permissible, while restaurant customer mix and downstream non-halal food service require qualitative review.

Limitation: The filing does not quantify customer-level downstream use or gross interest income under a universal Sharia taxonomy.

Purification

Interest income is not separately disclosed in the current filing. ZakatInvest does not prescribe a fixed scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Lamb Weston's February 22, 2026 Form 10-Q, the latest public periodic filing used here.
  • Interest-bearing debt includes short-term borrowings, current long-term debt and financing obligations, and non-current long-term debt and financing obligations (3,992.7).
  • Cash is 57.5 and no separate interest-bearing securities are reported.
  • Receivables are 750.5 and quarterly net sales are 1,564.8.
  • Interest income is not separately disclosed; the filing reports 45.0 of net interest expense. Restaurant customer and product-level revenue is not allocated to a universal prohibited-revenue numerator.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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