Lamb Weston, a major supplier of frozen French fries to global chains like McDonald’s, KFC and Taco Bell, has named a new CEO after posting a surprise loss in the second quarter as consumers pull back

Lamb Weston posted a surprise quarterly loss as demand for its potatoes and fries fell below historical rates. The company also named a new CEO and lowered its forecast for sales for the full year.The stock sank 23% to to $60.

The listed business, based in Idaho, has appointed current COO Michael Smith as its CEO and president, effective 3 January. He replaces Thomas Werner, who is stepping down as CEO and as a member of the board, although he will remain with the business in an advisory capacity until next August.

Just days after an activist investor urged leadership changes at Eagle-based Lamb Weston, the company’s CEO of more than eight years is out. The potato products company appointed Michael J. Smith, the company’s current Chief Operating Officer to the CEO job starting on January 3.

Lamb Weston (LW) replaced its chief executive and slashed guidance again as demand for frozen potato products sputters, sending its shares tumbling. The French-fry maker said Thursday that Thomas Werner has stepped down as CEO and left the board.

Lamb Weston trimmed its annual forecasts and replaced its CEO with insider Michael Smith on Thursday, following pressure from activist investor Jana Partners to revamp its top management or sell itself.

Lamb Weston Holdings said it was replacing its chief executive and slashing guidance again as demand for frozen potato products sputters, sending shares sharply lower.