(Reuters) - Lamb Weston ( LW ) forecast its annual sales and profit below analysts' expectations on Wednesday, as higher prices of its frozen food products begin to hurt volumes, sending its shares plunging more than 20% in early trading.

The company has been increasing prices of its products, including ready-to-cook classic and sweet potato fries to offset rising costs of manufacturing, transportation and inputs such as potatoes.

Lamb Weston ( LW ), which supplies to fast-food chains such as McDonald's and KFC-owner Yum Brands, also faced pressure from more people opting to cook their meals at home amid persistent inflation.

"Market share losses and a slowdown in restaurant traffic in the U.S. and many of our key international markets were greater than we expected. We also incurred losses related to a voluntary product withdrawal," CEO Tom Werner said.

The company forecast 2025 net sales in the range of $6.6 billion to $6.8 billion, the mid-point of which was below LSEG estimates of $6.79 billion.

It also expects full-year earnings per share to be between $4.35 and $4.85, compared with analysts' average estimate of $6.09.

The company said its volumes in the first half of the fiscal 2025 was likely to decline low-to-mid single-digits range.

Its volumes fell 8% in the fourth quarter.

Revenue of $1.61 billion in the quarter ended May 26 was below analysts' estimate of $1.70 billion.

The company's adjusted earnings per share was at 78 cents compared with the $1.26 estimated.