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Strategic Execution Highlights
- Continued focus on sales diversification and mix shift, expected to strengthen earnings durability and predictability over time
- In the third quarter of fiscal 2026:
- Specialty eggs sales increased to 50.5% of total shell egg sales, up 2,610 basis points
- Prepared foods accounted for 9.5% of net sales, up 870 basis points
- Combined, specialty eggs and prepared foods accounted for 52.9% of net sales, up 2,890 basis points
- In the first three quarters of fiscal 2026:
- Specialty eggs increased to 42.7% of total shell egg sales, up 1,350 basis points
- Prepared foods accounted for 9.3% of net sales, up 830 basis points
- Combined, specialty eggs and prepared foods accounted for 45.7% of net sales, up 1,710 basis points
- Subsequent to third quarter, acquired certain assets of
Creighton Brothers LLC and its affiliates, increasing integration across value chain
Third Quarter Fiscal 2026 Highlights
- Net sales of
$667.0 million , down 53.0%- Shell egg sales of
$572.3 million , down 57.5%- Conventional egg sales of
$283.2 million , down 72.1% - Specialty egg sales of
$289.1 million , down 12.1% - Average number of layer hens and breeding flock grew 2.0% and 13.0%, respectively and total chicks hatched rose 41.7%
- Conventional egg sales of
- Prepared foods sales of
$63.6 million , up 441.2%
- Shell egg sales of
- Gross profit of
$119.3 million , down 83.3%, and gross profit margin of 17.9% - Operating income of
$35.9 million , down 94.3%, and operating income margin of 5.4% - Net income attributable to
Cal-Maine Foods of$50.5 million , down 90.1% - Diluted earnings per share of
$1.06 , down 89.8% - Net cash flow from operations of
$103.6 million , down 81.9% - Cash dividend of approximately
$16.8 million , or approximately$0.36 per share, pursuant to the company’s established dividend policy
First Three Quarters of Fiscal 2026 Highlights
- Net sales of
$2.4 billion , down 25.3%- Shell egg sales of
$2.0 billion , down 32.8%- Conventional egg sales of
$1.2 billion , down 45.6% - Specialty egg sales of
$858.3 million , down 1.6% - Average number of layer hens and breeding flock grew 4.6% and 18.5%, respectively and total chicks hatched rose 59.6%
- Conventional egg sales of
- Shell egg sales of
- Prepared foods sales of
$219.2 million , up 604.1% - Gross profit of
$638.0 million , down 51.6%, and gross profit margin of 27.0% - Operating income of
$409.0 million , down 62.8%, and operating income margin of 17.2% - Net income attributable to
Cal-Maine Foods of$352.6 million , down 59.8% - Diluted earnings per share of
$7.34 , down 59.0% - Net cash flow from operations of
$476.9 million , down 41.2%
Commentary
“The shell egg market in the third quarter provided an important real-time test of our strategy. Periods of egg price softness highlighted that our performance is not simply a function of spot market conditions, but of how effectively we manage mix, pricing structures, costs, and capital across the cycle. Despite materially lower egg prices compared to the historic levels seen in the prior year, our diversified portfolio and operational execution enabled us to deliver solid results and maintain momentum. In our view, this reinforces the resilience of the model we are building that we expect will lead to more durable normalized earnings power” said
He continued, “We believe the recent decline in wholesale egg prices reflects improved supply following prior-year HPAI disruptions, during our last fiscal quarter, depopulations reported by the USDA were down 70.6% and the average national layer flock increased 2.2%, year over year. In parallel, more stable purchasing patterns across retail and foodservice have contributed to lower wholesale prices, while retail pricing continues to adjust more gradually.”
“At the same time, we continue to invest in strengthening the long-term structure of the business. The acquisition of certain assets of Creighton Brothers and
Review of Financial Results
| 13 Weeks Ended(in thousands) | ||||||||||||||
| $ Variance | % Variance | |||||||||||||
| Net sales | $ | 666,951 | $ | 1,417,685 | $ | (750,734 | ) | (53.0 | ) | % | ||||
| Conventional egg sales | $ | 283,173 | $ | 1,016,438 | $ | (733,265 | ) | (72.1 | ) | % | ||||
| Conventional egg price per dozen | $ | (70.1 | ) | % | ||||||||||
| Conventional sales volume | (6.7 | ) | % | |||||||||||
| Specialty egg sales | $ | 289,141 | $ | 328,944 | $ | (39,803 | ) | (12.1 | ) | % | ||||
| Specialty egg price per dozen | $ | (16.9 | ) | % | ||||||||||
| Specialty egg sales volume | 5.8 | % | ||||||||||||
| Prepared foods sales | $ | 63,626 | $ | 11,757 | $ | 51,869 | 441.2 | % | ||||||
| Gross profit | $ | 119,283 | $ | 716,115 | $ | (596,832 | ) | (83.3 | ) | % | ||||
Third Quarter Fiscal 2026 Results Overview
Net sales were
Conventional egg sales decreased 72.1%, with 70.1% lower selling prices and 6.7% lower sales volume. A higher proportion of conventional egg sales were executed under hybrid pricing models, supporting greater stability through cycles.
Specialty egg sales decreased 12.1%, with 16.9% lower selling prices and 5.8% higher sales volume. Volume growth was broad-based across the majority of specialty egg subcategories, including free-range and pasture-raised.
Prepared foods sales were
Gross profit was
Outlook
“Looking forward, we expect a progressive recovery in prepared foods, with volumes rebounding as capacity comes online and utilization improves, supported by steady underlying demand. Importantly, these dynamics position the business for more stable, higher-quality earnings over the long term,”
“We believe
Share Repurchase Update
Dividend Payment
For the third quarter of fiscal 2026,
Conference Call and Webcast
Management will host a conference call and webcast at
About
The company’s portfolio spans the full egg value ladder—from conventional to specialty, including cage-free, organic, brown, free-range, pasture-raised, and nutritionally enhanced—serving both retail and foodservice customers nationwide.
Headquartered in
Forward Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on management’s current intent, belief, expectations, estimates and projections regarding our Company and our industry. These statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include, among others, (i) the risk factors set forth the company’s SEC Filings (including its Annual Report on Form 10-K, as updated in Part II Item 1A of the company’s quarterly reports on Form 10-Q and Current Reports on Form 8-K), (ii) the risks and hazards inherent in the shell egg, egg products, and prepared foods operations (including, as applicable, disease, pests, weather conditions, and potential for product recall), including but not limited to the current outbreak of HPAI affecting poultry in the
FINANCIAL HIGHLIGHTS |
||||||||||||||||
| (Unaudited) (In thousands, except per share amounts) |
||||||||||||||||
| SUMMARY STATEMENTS OF INCOME |
||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| Net sales | $ | 666,951 | $ | 1,417,685 | $ | 2,359,051 | $ | 3,158,227 | ||||||||
| Cost of sales | 547,668 | 701,570 | 1,721,068 | 1,838,852 | ||||||||||||
| Gross profit | 119,283 | 716,115 | 637,983 | 1,319,375 | ||||||||||||
| Selling, general and administrative | 83,304 | 79,967 | 235,705 | 219,532 | ||||||||||||
| (Gain) Loss on involuntary conversions | (480 | ) | - | (7,968 | ) | 156 | ||||||||||
| (Gain) loss on disposal of fixed assets | 515 | 478 | 1,249 | (1,001 | ) | |||||||||||
| Operating income | 35,944 | 635,670 | 408,997 | 1,100,688 | ||||||||||||
| Other income, net | 22,242 | 27,359 | 48,533 | 49,255 | ||||||||||||
| Income before income taxes | 58,186 | 663,029 | 457,530 | 1,149,943 | ||||||||||||
| Income tax expense | 7,068 | 154,876 | 104,378 | 273,841 | ||||||||||||
| Net income | 51,118 | 508,153 | 353,152 | 876,102 | ||||||||||||
| Less: Income (loss) attributable to noncontrolling interest | 659 | (380 | ) | 594 | (1,471 | ) | ||||||||||
| Net income attributable to |
$ | 50,459 | $ | 508,533 | $ | 352,558 | $ | 877,573 | ||||||||
| Net income per common share: | ||||||||||||||||
| Basic | $ | 1.07 | $ | 10.42 | $ | 7.37 | $ | 17.99 | ||||||||
| Diluted | $ | 1.06 | $ | 10.38 | $ | 7.34 | $ | 17.92 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 47,299 | 48,798 | 47,866 | 48,774 | ||||||||||||
| Diluted | 47,414 | 48,971 | 48,003 | 48,962 | ||||||||||||
FINANCIAL HIGHLIGHTS |
||||||
| (Unaudited) (In thousands) |
||||||
| SUMMARY BALANCE SHEETS | ||||||
| ASSETS | ||||||
| Cash and short-term investments | $ | 1,151,927 | $ | 1,392,100 | ||
| Receivables, net | 234,898 | 272,361 | ||||
| Inventories, net | 348,910 | 295,670 | ||||
| Prepaid expenses and other current assets | 13,751 | 7,979 | ||||
| Current assets | 1,749,486 | 1,968,110 | ||||
| Property, plant and equipment, net | 1,221,162 | 1,026,684 | ||||
| Other noncurrent assets | 168,613 | 89,825 | ||||
| Total assets | $ | 3,139,261 | $ | 3,084,619 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Accounts payable and accrued expenses | $ | 196,137 | $ | 194,208 | ||
| Dividends payable | 16,841 | 114,163 | ||||
| Current liabilities | 212,978 | 308,371 | ||||
| Deferred income taxes and other liabilities | 219,151 | 210,233 | ||||
| Stockholders' equity | 2,707,132 | 2,566,015 | ||||
| Total liabilities and stockholders' equity | $ | 3,139,261 | $ | 3,084,619 | ||
Contacts
Investors: ir@cmfoods.com
Media: media@cmfoods.com
Telephone: (601) 948-6813
Source: Cal-Maine Foods, Inc.