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[10-Q] CAL-MAINE FOODS INC Quarterly Earnings Report

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Index
1
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
Washington,
 
DC
 
20549
FORM
10-Q
 
 
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
 
Act of 1934
For the quarterly period ended
August 30, 2025
 
or
 
Transition report pursuant to Section 13 or 15(d)
 
of the Securities Exchange Act of 1934
For the transition period from ____________ to ____________
Commission File Number:
 
001-38695
 
CAL-MAINE FOODS, INC.
(Exact name of registrant as specified in its charter)
Delaware
 
64-0500378
(State or other jurisdiction of incorporation or organization)
 
(I.R.S Employer Identification No.)
1052 Highland Colony Pkwy
,
Suite 200
,
Ridgeland
,
Mississippi
 
39157
 
(Address of principal executive offices)
 
(Zip Code)
(
601
)
948-6813
 
(Registrant’s telephone number,
 
including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.01 par value per share
CALM
The
NASDAQ
 
Global Select Market
Indicate
 
by
 
check
 
mark
 
whether
 
the
 
registrant: (1)
 
has
 
filed
 
all
 
reports
 
required
 
to
 
be
 
filed
 
by
 
Section
 
13
 
or
 
15(d)
 
of
 
the
Securities Exchange
 
Act of 1934
 
during the preceding
 
12 months (or
 
for such
 
shorter period that
 
the registrant was
 
required to
file such reports), and (2) has been subject to such filing requirements for the past
 
90 days.
Yes
 
No
Indicate by check
 
mark whether the
 
registrant has submitted
 
electronically every
 
Interactive Data File
 
required to be
 
submitted
pursuant to
 
Rule 405
 
of Regulation
 
S-T (§232.405
 
of this
 
chapter) during
 
the preceding
 
12 months
 
(or for
 
such shorter
 
period
that the registrant was required to submit such files).
Yes
 
No
Indicate by
 
check mark
 
whether the registrant
 
is a large
 
accelerated filer,
 
an accelerated
 
filer, a
 
non-accelerated filer,
 
a smaller
reporting
 
company,
 
or
 
an
 
emerging
 
growth
 
company.
 
See
 
the
 
definitions
 
of
 
“large
 
accelerated
 
filer,”
 
“accelerated
 
filer,”
“smaller reporting company,”
 
and “emerging growth company” in Rule 12b-2 of
 
the Exchange Act.
Large Accelerated filer
Accelerated filer
 
Non – Accelerated filer
 
Smaller reporting company
 
Emerging growth company
 
If
 
an
 
emerging
 
growth
 
company,
 
indicate
 
by
 
check
 
mark
 
if
 
the
 
registrant
 
has
 
elected
 
not
 
to
 
use
 
the
 
extended
transition
 
period
 
for
 
complying
 
with
 
any
 
new
 
or
 
revised
 
financial
 
accounting
 
standards
 
provided
 
pursuant
 
to
Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined
 
in Rule 12b-2 of the Exchange Act).
Yes
 
No
There were
48,499,606
 
shares of Common Stock, $0.01 par value, outstanding as of October 1, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
2
INDEX
 
 
 
 
Page Number
Part I.
 
 
Financial Information
 
 
 
 
 
 
 
Item 1.
 
Financial Statements
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets -
 
August 30, 2025 and May 31, 2025
 
3
 
 
 
 
 
 
Condensed Consolidated Statements of Income -
Thirteen Weeks Ended August 30, 2025 and August 31, 2024
 
4
 
 
 
 
 
 
Condensed Consolidated Statements of Comprehensive Income -
Thirteen Weeks Ended August 30, 2025 and August 31, 2024
 
5
 
 
 
 
 
 
Condensed Consolidated Statements of Cash Flows -
 
Thirteen Weeks Ended August 30, 2025 and August 31, 2024
 
6
 
 
 
 
 
 
Notes to Condensed Consolidated Financial Statements
 
7
 
 
 
 
Item 2.
 
Management’s Discussion and Analysis of
 
Financial Condition and Results of Operations
 
17
 
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
27
Item 4.
 
Controls and Procedures
 
27
 
 
 
 
Part II.
 
 
Other Information
 
 
 
 
 
Item 1.
 
Legal Proceedings
 
28
 
 
 
 
Item 1A.
 
Risk Factors
 
28
 
 
 
 
Item 2.
 
Unregistered Sales of Equity Securities and Use of Proceeds
 
28
 
 
 
 
Item 5.
 
Other Information
 
28
Item 6.
 
Exhibits
 
29
 
 
 
 
Signatures
 
 
 
30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
3
PART
 
I.
 
FINANCIAL
INFORMATION
ITEM 1.
 
FINANCIAL STATEMENTS
Cal-Maine Foods, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except for par value amounts)
 
(Unaudited)
 
August 30, 2025
May 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
251,920
$
499,392
Investment securities available-for-sale
1,001,475
892,708
Trade and other receivables, net
242,848
259,304
Income tax receivable
3,073
13,057
Inventories
328,429
295,670
Prepaid expenses and other current assets
19,109
7,979
Total current
 
assets
1,846,854
1,968,110
Property, plant &
 
equipment, net
1,195,545
1,026,684
Investments in unconsolidated entities
10,905
11,095
Goodwill
75,815
46,776
Intangible assets, net
50,444
15,157
Other long-term assets
16,829
16,797
Total Assets
$
3,196,392
$
3,084,619
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
108,771
$
101,033
Accrued wages and benefits
26,328
60,263
Income taxes payable
40,386
Dividends payable
66,457
114,163
Accrued expenses and other liabilities
28,009
32,912
Total current
 
liabilities
269,951
308,371
Other noncurrent liabilities
55,575
55,582
Deferred income taxes, net
168,949
154,651
Total liabilities
494,475
518,604
Commitments and contingencies - see Note 10
Stockholders’ equity:
Common stock ($
0.01
 
par value) - authorized
120,000
 
shares, issued
75,061
 
shares
751
751
Paid-in capital
82,134
80,845
Retained earnings
2,698,811
2,565,928
Accumulated other comprehensive income (loss), net of tax
954
(1,007)
Common stock in treasury at cost –
26,561
 
shares at August 30, 2025 and
26,567
shares at May 31, 2025
(85,891)
(85,893)
Total Cal-Maine Foods,
 
Inc. stockholders’ equity
2,696,759
2,560,624
Noncontrolling interest in consolidated entity
5,158
5,391
Total stockholders’
 
equity
2,701,917
2,566,015
Total Liabilities and Stockholders’
 
Equity
$
3,196,392
$
3,084,619
See Notes to Condensed Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
4
Cal-Maine Foods, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
 
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Net sales
$
922,602
$
785,871
Cost of sales
611,288
538,653
Gross profit
311,314
247,218
Selling, general and administrative
69,514
61,932
(Gain) loss on involuntary conversions
(7,488)
146
(Gain) loss on disposal of fixed assets
104
(1,817)
Operating income
249,184
186,957
Other income (expense):
Interest income, net
12,850
9,785
Other, net
1,231
1,211
Total other income, net
14,081
10,996
Income before income taxes
263,265
197,953
Income tax expense
64,158
48,363
Net income
199,107
149,590
Less: Loss attributable to noncontrolling interest
(233)
(386)
Net income attributable to Cal-Maine Foods, Inc.
$
199,340
$
149,976
Net income per common share:
Basic
$
4.13
$
3.08
Diluted
$
4.12
$
3.06
Weighted average
 
shares outstanding:
Basic
48,281
48,761
Diluted
48,424
48,932
See Notes to Condensed Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
5
Cal-Maine Foods, Inc. and Subsidiaries
Condensed Consolidated Statements of
Comprehensive Income
(In thousands)
(Unaudited)
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Net income
$
199,107
$
149,590
Other comprehensive income, before tax:
Unrealized holding gain on available-for-sale securities, net of reclassification
adjustments
2,586
1,715
Income tax expense related to items of other comprehensive income
(625)
(416)
Other comprehensive income, net of tax
1,961
1,299
Comprehensive income
201,068
150,889
Less: Comprehensive loss attributable to the noncontrolling interest
(233)
(386)
Comprehensive income attributable to Cal-Maine Foods, Inc.
$
201,301
$
151,275
See Notes to Condensed Consolidated Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
6
Cal-Maine Foods, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Cash flows from operating activities:
Net income
$
199,107
$
149,590
Depreciation and amortization
29,663
22,048
Deferred income taxes
13,682
(14,605)
Other adjustments, net
36,152
(39,581)
Net cash provided by operations
278,604
117,452
Cash flows from investing activities:
Purchases of investment securities
(270,315)
(202,196)
Sales and maturities of investment securities
181,145
209,673
Acquisition of businesses, net of cash acquired
(275,291)
(111,521)
Purchases of property,
 
plant and equipment
(45,302)
(35,773)
Net proceeds from disposal of property,
 
plant and equipment
49
3,946
Net cash used in investing activities
(409,714)
(135,871)
Cash flows from financing activities:
Payments of dividends
(114,163)
(37,758)
Purchase of common stock by treasury
(18)
(34)
Net cash used in financing activities
(114,181)
(37,792)
Net change in cash, cash equivalents and restricted cash
(245,291)
(56,211)
Cash, cash equivalents and restricted cash at beginning of period
499,392
237,878
Cash, cash equivalents and restricted cash at end of period
$
254,101
$
181,667
See Notes to Condensed Consolidated Financial Statements.
Index
7
Cal-Maine Foods, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1 - Summary of Significant Accounting Policies
Basis of Presentation
The unaudited
 
condensed consolidated
 
financial statements
 
of Cal-Maine
 
Foods, Inc.
 
and its subsidiaries
 
(“Cal-Maine Foods,”
the
 
“Company,”
 
“we,”
 
“us,”
 
“our”)
 
have
 
been
 
prepared
 
in
 
accordance
 
with
 
the
 
instructions
 
to
 
Form
 
10-Q
 
and
 
Article
 
10
 
of
Regulation S-X and in accordance
 
with generally accepted accounting principles
 
in the United States of America
 
(“GAAP”) for
interim financial
 
reporting and
 
should be
 
read in
 
conjunction with
 
our Annual
 
Report on
 
Form 10-K
 
for the
 
fiscal year
 
ended
May
 
31,
 
2025
 
(the
 
“2025
 
Annual
 
Report”).
 
These
 
statements
 
reflect
 
all
 
adjustments
 
that
 
are,
 
in
 
the
 
opinion
 
of
 
management,
necessary
 
to
 
a
 
fair
 
statement
 
of
 
the
 
results
 
for
 
the
 
interim
 
periods
 
presented
 
and,
 
in
 
the
 
opinion
 
of
 
management,
 
consist
 
of
adjustments
 
of a
 
normal recurring
 
nature. Operating
 
results for
 
the interim
 
periods are
 
not necessarily
 
indicative
 
of operating
results for the entire fiscal year.
Fiscal Year
The Company’s
 
fiscal year ends on
 
the Saturday closest to
 
May 31. Each of
 
the three-month periods
 
ended on August 30, 2025
and August 31, 2024 included
13
 
weeks.
Use of Estimates
The
 
preparation
 
of the
 
condensed
 
consolidated
 
financial
 
statements
 
in
 
conformity
 
with GAAP
 
requires
 
management
 
to
 
make
estimates
 
and
 
assumptions
 
that
 
affect
 
the
 
amounts
 
reported
 
in
 
the
 
condensed
 
consolidated
 
financial
 
statements
 
and
accompanying notes. Actual results could differ from those estimates.
Dividends Payable
 
Dividends are accrued
 
at the end of each
 
quarter according to the Company’s
 
dividend policy adopted by
 
its Board of Directors
(“Board”).
 
The Company
 
pays a
 
dividend
 
to holders
 
of its
 
Common Stock
 
(and, prior
 
to its
 
conversion
 
to Common
 
Stock on
April
 
14,
 
2025
 
Class
 
A
 
Common
 
Stock)
 
on
 
a
 
quarterly
 
basis
 
for
 
each
 
quarter
 
for
 
which
 
the
 
Company
 
reports
 
net
 
income
attributable
 
to
 
Cal-Maine
 
Foods,
 
Inc.,
 
computed
 
in
 
accordance
 
with
 
GAAP
 
in
 
an
 
amount
 
equal
 
to
one-third
 
(1/3)
 
of
 
such
quarterly
 
net
 
income.
 
Dividends are
 
paid
 
to stockholders
 
of record
 
as of
 
the 60th
 
day
 
following
 
the last
 
day
 
of
 
such quarter,
except for
 
the fourth
 
fiscal quarter.
 
For the
 
fourth quarter,
 
the Company
 
pays dividends
 
to stockholders
 
of record
 
on the
 
65th
day after
 
the quarter
 
end. Dividends
 
are payable
 
on the
 
15th day
 
following the
 
record date.
 
Following a
 
quarter for
 
which the
Company
 
does
 
not
 
report
 
net
 
income
 
attributable
 
to
 
Cal-Maine
 
Foods,
 
Inc.,
 
the
 
Company
 
will
 
not
 
pay
 
a
 
dividend
 
for
 
a
subsequent profitable
 
quarter until the
 
Company is
 
profitable on
 
a cumulative
 
basis computed
 
from the
 
date of the
 
most recent
quarter for which a dividend was paid. The dividend policy is subject to periodic
 
review by the Board.
Revenue Recognition
The Company recognizes revenue through the sale of its products
 
to customers through retail, foodservice and other distribution
channels.
 
The
 
majority
 
of
 
the
 
Company’s
 
revenue
 
is
 
derived
 
from
 
agreements
 
or
 
contracts
 
with
 
customers
 
based
 
upon
 
the
customer
 
ordering
 
its
 
products
 
with
 
a
 
single
 
performance
 
obligation
 
of
 
delivering
 
the
 
product.
 
The
 
Company
 
believes
 
the
performance
 
obligation
 
is
 
met
 
upon
 
delivery
 
and
 
acceptance
 
of
 
the
 
product
 
by
 
its
 
customers,
 
which
 
generally
 
occurs
 
upon
shipment
 
or delivery
 
to a
 
customer based
 
on
 
the terms
 
of the
 
sale. Costs
 
paid
 
to third
 
party brokers
 
to obtain
 
agreements are
expensed as the Company’s
 
agreements are generally less than one year.
Revenues are
 
recognized in
 
an amount
 
that reflects
 
the net
 
consideration we
 
expect to
 
receive in
 
exchange for
 
delivery of
 
the
products.
 
The
 
Company
 
periodically
 
offers
 
sales
 
incentives
 
or
 
other
 
programs
 
such
 
as
 
rebates,
 
discounts,
 
coupons,
 
volume-
based incentives,
 
guaranteed sales and
 
other programs.
 
The Company
 
records an estimated
 
allowance for costs
 
associated with
these programs, which
 
is recorded as a
 
reduction in revenue at
 
the time of sale
 
using historical trends
 
and projected redemption
rates
 
of
 
each
 
program.
 
The
 
Company
 
regularly
 
reviews
 
these
 
estimates
 
and
 
any
 
difference
 
between
 
the
 
estimated
 
costs
 
and
actual realization of these programs would be recognized
 
in the subsequent period.
Index
8
 
Business Combinations
The Company applies the acquisition
 
method of accounting, which
 
requires that once control is obtained,
 
all the assets acquired
and liabilities assumed,
 
including amounts
 
attributable to noncontrolling
 
interests, are recorded
 
at their respective
 
fair values at
the
 
date
 
of acquisition.
 
The
 
excess
 
of
 
the
 
purchase
 
price
 
over
 
fair
 
values
 
of
 
identifiable
 
assets
 
and
 
liabilities
 
is
 
recorded
 
as
goodwill.
 
We
 
use
 
various
 
models
 
and
 
methods
 
to
 
determine
 
the
 
fair
 
values
 
of
 
identifiable
 
assets
 
and
 
liabilities,
 
such
 
as
 
top-down
 
and
bottom-up
 
approach
 
for
 
inventory,
 
cost
 
method
 
and
 
market
 
approach
 
for
 
property,
 
and
 
relief-from-royalty
 
and
 
multi-period
excess earnings to value
 
intangibles. Significant estimates in
 
valuing certain intangible assets include,
 
but are not limited to,
 
the
amount and timing of future cash flows, growth rates, discount rates
 
and useful lives.
 
New Accounting Pronouncements and Policies
In December
 
2023, the
 
Financial Accounting
 
Standards Board
 
(“FASB”)
 
issued Accounting Standards
 
Update (“ASU”)
 
2023-
09,
Income Taxes
 
(Topic
 
740) – Improvements to
 
Income Tax
 
Disclosures
. This ASU requires that an
 
entity, on an
 
annual basis,
disclose
 
additional
 
income
 
tax
 
information,
 
primarily
 
related
 
to
 
the
 
rate
 
reconciliation
 
and
 
income
 
taxes
 
paid.
 
The
 
ASU
 
is
intended
 
to enhance
 
the transparency
 
and decision
 
usefulness of
 
income tax
 
disclosures. ASU
 
2023-09
 
is effective
 
for annual
periods
 
beginning
 
after
 
December
 
15,
 
2024.
 
The
 
Company
 
is
 
currently
 
evaluating
 
the
 
impact
 
of
 
ASU
 
2023-09
 
on
 
its
consolidated financial statement disclosures.
In
 
November
 
2024,
 
the
 
FASB
 
issued
 
ASU
 
2024-03,
Income
 
Statement
Reporting
 
Comprehensive
 
Income
Expense
Disaggregation Disclosures
 
(Subtopic 220-40)
. The objective of ASU
 
2024-03 is to improve disclosures
 
about a public entity’s
expenses, primarily
 
through additional
 
disaggregation of
 
income statement expenses.
 
Additionally,
 
in January
 
2025, the FASB
further
 
clarified
 
the
 
effective
 
date
 
of
 
ASU
 
2024-03
 
with
 
the issuance
 
of ASU
 
2025-01.
 
ASU
 
2024-03 is
 
effective
 
for
 
annual
periods beginning
 
after December
 
15, 2026, and
 
interim periods
 
within annual
 
reporting periods
 
beginning after
 
December 15,
2027. Early
 
adoption is permitted
 
and may
 
be applied
 
either on a
 
prospective or
 
retrospective basis. The
 
Company is
 
currently
evaluating the impact of ASU 2024-03 on its consolidated financial statement disclosures.
 
There are no
 
other new accounting
 
pronouncements
 
issued or effective
 
during the fiscal year
 
that had or
 
are expected to have
 
a
material impact on our consolidated financial statements.
 
 
Index
9
Note 2 - Acquisition
Acquisition of Echo Lake Foods, LLC
Effective
June 2, 2025
, the Company
 
acquired Echo
 
Lake Foods, LLC
 
and certain
 
related companies
 
(collectively “Echo
 
Lake
Foods”). Echo
 
Lake Foods
 
is based
 
in Burlington,
 
Wisconsin and
 
produces, packages,
 
markets and
 
distributes prepared
 
foods,
including waffles, pancakes, scrambled eggs, frozen
 
cooked omelets, egg patties, toast and diced eggs. The Company
 
accounted
for the acquisition as a business combination.
 
Pending
 
the
 
finalization
 
of
 
the
 
Company’s
 
valuation,
 
the
 
following
 
table
 
summarizes
 
the
 
consideration
 
paid
 
for
 
Echo
 
Lake
Foods and the amounts of assets acquired and liabilities assumed recognized
 
at the acquisition date (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash consideration paid
$
275,406
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash
$
115
Investment securities available-for-sale
14,147
Accounts receivable
31,923
Inventories
21,601
Prepaid expenses and other current assets
3,131
Property, plant &
 
equipment
151,697
Intangible assets
36,800
259,414
Accounts payable and other current liabilities
(13,047)
Total identifiable
 
net assets
246,367
Goodwill
29,039
$
275,406
Cash and
 
accounts receivable
 
acquired
 
along with
 
liabilities assumed
 
were valued
 
at their
 
carrying value
 
which approximates
fair value due to the short maturity of these instruments.
Inventories consisted
 
primarily of
 
raw materials,
 
supplies and
 
finished goods.
 
Raw materials
 
and supplies
 
were valued
 
at their
carrying value as
 
management believes that
 
their carrying value
 
best approximates their
 
fair value. Finished
 
goods were valued
using both the bottom-up and top-down approach. The
 
bottom-up approach measures the value of inventory as the value created
by the
 
target company
 
(i.e., the
 
costs incurred,
 
profit realized,
 
and tangible
 
and intangible
 
assets utilized)
 
pre-acquisition date.
The top-down
 
approach measures
 
the value
 
of inventory
 
as the
 
incremental
 
inventory value
 
created by
 
the market
 
participant
buyer as part
 
of its selling
 
effort to an
 
end customer (i.e.,
 
the costs that
 
will be incurred,
 
the profit that
 
will be realized,
 
and the
tangible and intangible assets that will be utilized) post-acquisition date.
Property,
 
plant and
 
equipment were
 
valued
 
utilizing
 
the cost
 
approach
 
and
 
market approach.
 
Machinery
 
and equipment
 
were
valued
 
utilizing
 
the
 
cost
 
approach
 
which
 
is
 
based
 
on
 
replacement
 
or
 
reproduction
 
costs
 
of
 
the
 
assets
 
and
 
subtracting
 
any
depreciation resulting from
 
physical deterioration and/or
 
functional or economic
 
obsolescence. Land and
 
buildings were valued
utilizing the market approach by using a real estate valuation.
Intangible assets
 
consisted primarily
 
of customer
 
relationships and
 
a trade name.
 
Customer relationships
 
were valued using
 
the
multi-period excess earnings method and the trade name was valued
 
using the relief-from-royalty method.
 
Goodwill
 
represents
 
the
 
excess
 
of
 
the
 
purchase
 
price
 
of
 
the
 
acquired
 
business
 
over
 
the
 
acquisition
 
date
 
fair
 
value
 
of
 
the
 
net
assets acquired.
 
Goodwill
 
recorded
 
in
 
connection
 
with
 
the Echo
 
Lake
 
Foods
 
acquisition is
 
primarily
 
attributable
 
to projected
synergies
 
from integrating
 
the operations
 
of Echo
 
Lake Foods
 
with the
 
operations of
 
the Company.
 
The Company
 
recognized
goodwill of $
29.0
 
million as a result of the acquisition, all of which is deductible for tax purposes.
 
 
 
 
 
 
 
 
 
Index
10
 
The Company
 
recorded
 
transaction costs
 
of
 
$
594
 
thousand and
 
$
6.6
 
million
 
in the
 
first quarter
 
of
 
fiscal 2026
 
and fiscal
 
year
2025, respectively,
 
as a result of the Echo Lake Foods acquisition.
Note 3 - Investment
Securities Available-for-Sale
The following
 
represents the
 
Company’s
 
investment securities
 
available-for-sale as
 
of August
 
30, 2025
 
and May
 
31, 2025
 
(in
thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August 30, 2025
Amortized
Cost
Unrealized
 
Gains
Unrealized
Losses
Estimated
 
Fair Value
Municipal bonds
$
22,072
$
68
$
$
22,140
Commercial paper
81,527
23
81,504
Corporate bonds
536,273
2,120
538,393
Certificates of deposits
4,960
8
4,968
US government and agency obligations
245,019
65
245,084
Treasury bills
109,288
98
109,386
Total current
 
investment securities
$
999,139
$
2,359
$
23
$
1,001,475
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 31, 2025
Amortized
 
Cost
Unrealized
 
Gains
Unrealized
Losses
Estimated
 
Fair Value
Municipal bonds
$
21,695
$
3
$
$
21,698
Commercial paper
90,880
50
90,830
Corporate bonds
431,378
130
431,508
Certificates of deposits
5,200
6
5,194
US government and agency obligations
240,655
260
240,395
Treasury bills
103,119
36
103,083
Total current
 
investment securities
$
892,927
$
133
$
352
$
892,708
Actual maturities
 
may differ
 
from contractual
 
maturities as some
 
borrowers have
 
the right to
 
call or prepay
 
obligations with
 
or
without penalties. Contractual maturities of current investment securities
 
at August 30, 2025 are as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated Fair Value
Within one year
$
472,795
1-5 years
528,680
Total
$
1,001,475
Note 4 - Fair Value
 
Measurements
The Company
 
is required
 
to categorize
 
both financial
 
and nonfinancial
 
assets and
 
liabilities based
 
on the
 
following fair
 
value
hierarchy. The
 
fair value
 
of an
 
asset is
 
the price
 
at which
 
the asset
 
could be
 
sold in
 
an orderly
 
transaction between
 
unrelated,
knowledgeable, and willing
 
parties able to engage in
 
the transaction. A liability’s
 
fair value is defined
 
as the amount that would
be
 
paid
 
to
 
transfer
 
the
 
liability
 
to
 
a
 
new
 
obligor
 
in
 
a
 
transaction
 
between
 
such
 
parties,
 
not
 
the
 
amount
 
that
 
would
 
be paid
 
to
settle the liability with the creditor.
Level 1
 
- Quoted prices in active markets for identical assets or liabilities
Level 2
 
- Inputs
 
other than
 
quoted
 
prices included
 
in Level
 
1 that
 
are observable
 
for the
 
asset or
 
liability,
 
either
directly or indirectly,
 
including:
Quoted prices for similar assets or liabilities in active markets
Quoted prices for identical or similar assets in non-active markets
Inputs other than quoted prices that are observable for the asset or liability
Inputs derived principally from or corroborated by other observable market
 
data
Level 3
 
- Unobservable inputs for the asset or liability that are
 
supported by little or no market activity and that
 
are
significant to the fair value of the assets or liabilities
 
 
 
 
 
 
 
 
Index
11
 
 
 
The disclosures of fair value of certain financial assets and liabilities that are recorded
 
at cost are as follows:
Cash and Cash Equivalents, Accounts Receivable, and Accounts Payable
 
The carrying amount approximates fair value due to the short maturity of these instruments.
Assets and Liabilities Measured at Fair
 
Value
 
on a Recurring Basis
In accordance with
 
the fair value hierarchy
 
described above, the
 
following table shows the
 
fair value of our
 
financial assets and
liabilities
 
that
 
are
 
required
 
to
 
be
 
measured
 
at
 
fair
 
value
 
on
 
a
 
recurring
 
basis
 
as
 
of
 
August
 
30,
 
2025
 
and
 
May
 
31,
 
2025
 
(in
thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August 30, 2025
Level 1
Level 2
Level 3
Balance
Assets
Municipal bonds
$
$
22,140
$
$
22,140
Commercial paper
81,504
81,504
Corporate bonds
538,393
538,393
Certificates of deposits
4,968
4,968
US government and agency obligations
245,084
245,084
Treasury bills
109,386
109,386
Total assets measured at fair
 
value
$
$
1,001,475
$
$
1,001,475
Liabilities
Contingent consideration
$
$
$
21,500
$
21,500
Total liabilities measured
 
at fair value
$
$
$
21,500
$
21,500
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 31, 2025
Level 1
Level 2
Level 3
Balance
Assets
Municipal bonds
$
$
21,698
$
$
21,698
Commercial paper
90,830
90,830
Corporate bonds
431,508
431,508
Certificates of deposits
5,194
5,194
US government and agency obligations
240,395
240,395
Treasury bills
103,083
103,083
Total assets measured at fair
 
value
$
$
892,708
$
$
892,708
Liabilities
Contingent consideration
$
$
$
21,500
$
21,500
Total liabilities measured
 
at fair value
$
$
$
21,500
$
21,500
Investment securities – available-for-sale are all classified as Level 2 and consist of
 
securities with maturities of three months or
longer
 
when
 
purchased.
 
We
 
classified
 
these
 
securities
 
as
 
current
 
because
 
amounts
 
invested
 
are
 
readily
 
available
 
for
 
current
operations. Observable inputs for these securities are yields, credit risks, default
 
rates, and volatility.
Contingent consideration
 
classified as
 
Level 3
 
consists of
 
the potential
 
obligation to
 
pay an
 
earnout to
 
Fassio Egg
 
Farms, Inc.
(“Fassio”) contingent
 
on the
 
acquired
 
business meeting
 
certain return
 
on profitability
 
milestones over
 
a
three-year
 
period that
commenced on the
 
date of the acquisition
 
in the second
 
quarter of fiscal
 
2024. The fair
 
value of the
 
contingent consideration is
estimated using a discounted
 
cash flow model. Key assumptions
 
and unobservable inputs that require
 
significant judgment used
in the
 
estimate include
 
weighted average
 
cost of
 
capital, egg
 
prices, projected
 
revenue and
 
expenses over
 
the period
 
for which
the
 
contingent
 
consideration
 
is
 
measured,
 
and
 
the
 
probability
 
assessments
 
with
 
respect
 
to
 
the
 
likelihood
 
of
 
achieving
 
the
forecasted
 
projections. There
 
were
no
 
adjustments to
 
the fair
 
value of
 
contingent consideration
 
recorded in
 
the thirteen
 
weeks
ended August 30, 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
12
Note 5 - Inventories
Inventories consisted of the following as of August 30, 2025 and May 31,
 
2025 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
August 30, 2025
May 31, 2025
Flocks, net of amortization
$
168,968
$
166,507
Feed and supplies
107,165
99,188
Raw materials and finished goods inventory
52,296
29,975
$
328,429
$
295,670
We
 
grow
 
and
 
maintain
 
flocks
 
of
 
layers
 
(mature
 
female
 
chickens),
 
pullets
 
(female
 
chickens,
 
under
 
18
 
weeks
 
of
 
age),
 
and
breeders (male
 
and female
 
chickens used
 
to produce
 
fertile eggs
 
to hatch
 
for egg
 
production flocks).
 
Our total
 
flock at
 
August
30, 2025 and May
 
31, 2025 consisted of
 
approximately
11.1
 
million and
11.5
 
million pullets and breeders
 
and
48.5
 
million and
48.3
 
million layers, respectively.
Note 6 - Equity
The following reflects equity activity for the thirteen weeks ended
 
August 30, 2025 and August 31, 2024 (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks
 
Ended August 30, 2025
Cal-Maine Foods, Inc. Stockholders
Treasury
Paid In
Accum. Other
Retained
Noncontrolling
Amount
Amount
Capital
Comp. Gain (Loss)
Earnings
Interest
Total
Balance at May 31, 2025
$
751
$
(85,893)
$
80,845
$
(1,007)
$
2,565,928
$
5,391
$
2,566,015
Other comprehensive
income, net of tax
1,961
1,961
Stock compensation plan
transactions
2
1,289
1,291
Dividends ($
1.371
 
per share)
(66,457)
(66,457)
Net income (loss)
199,340
(233)
199,107
Balance at August 30, 2025
$
751
$
(85,891)
$
82,134
$
954
$
2,698,811
$
5,158
$
2,701,917
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks
 
Ended August 31, 2024
Cal-Maine Foods, Inc. Stockholders
Class A
Treasury
Paid In
Accum. Other
Retained
Noncontrolling
Amount
Amount
Amount
Capital
Comp. Loss
Earnings
Interest
Total
Balance at June 1,
2024
$
703
$
48
$
(31,597)
$
76,371
$
(1,773)
$
1,756,395
$
(3,104)
$
1,797,043
Other comprehensive
income, net of tax
1,299
1,299
Stock compensation
plan transactions
(35)
1,132
1,097
Dividends ($
1.019
 
per
share)
Common
(45,075)
(45,075)
Class A common
(4,891)
(4,891)
Net income (loss)
149,976
(386)
149,590
Balance at August 31,
2024
$
703
$
48
$
(31,632)
$
77,503
$
(474)
$
1,856,405
$
(3,490)
$
1,899,063
Note 7 - Net Income per Common Share
 
Basic net
 
income per
 
share attributable
 
to Cal-Maine
 
Foods, Inc.
 
is based
 
on the
 
weighted average
 
shares of
 
Common Stock
(and when
 
they were
 
outstanding shares
 
of Class
 
A Common
 
Stock) outstanding.
 
All shares
 
of Class
 
A Common
 
Stock were
 
 
 
Index
13
 
converted into
 
Common Stock
 
on April
 
14, 2025.
 
Diluted net
 
income per
 
share attributable
 
to Cal-Maine
 
Foods, Inc.
 
is based
on weighted-average
 
shares of
 
Common Stock
 
outstanding during
 
the relevant
 
period adjusted
 
for the
 
dilutive effect
 
of share-
based awards.
 
The
 
following
 
table
 
provides
 
a
 
reconciliation
 
of
 
the
 
numerators
 
and
 
denominators
 
used
 
to
 
determine
 
basic
 
and
 
diluted
 
net
income per common share attributable to Cal-Maine Foods, Inc.
 
(amounts in thousands, except per share data):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Numerator
Net income
$
199,107
$
149,590
Less: Loss attributable to noncontrolling interest
(233)
(386)
Net income attributable to Cal-Maine Foods, Inc.
$
199,340
$
149,976
Denominator
Weighted-average
 
common shares outstanding, basic
48,281
48,761
Effect of dilutive restricted shares
143
171
Weighted-average
 
common shares outstanding, diluted
48,424
48,932
Net income per common share attributable to Cal-Maine Foods, Inc.
Basic
$
4.13
$
3.08
Diluted
$
4.12
$
3.06
Note 8 - Stock Based Compensation
Total
 
stock-based compensation
 
expense was
 
$
1.3
 
million and
 
$
1.1
 
million for
 
the thirteen
 
weeks ended
 
August 30,
 
2025 and
August 31, 2024, respectively.
Unrecognized
 
compensation expense
 
as a
 
result of
 
non-vested shares
 
of equity-based
 
awards outstanding
 
under the
 
Amended
and
 
Restated 2012
 
Omnibus Long-Term
 
Incentive
 
Plan at
 
August
 
30,
 
2025
 
of $
8.0
 
million will
 
be recorded
 
over a
 
weighted
average period of
2.0
 
years. Refer to Part
 
II Item 8,
 
Notes to Consolidated
 
Financial Statements and
 
Supplementary Data, Note
13 – Stock-Based Compensation in our 2025 Annual Report for further
 
information on our stock compensation plans.
The Company’s equity-based award
 
activity for the thirteen weeks ended August 30, 2025 was as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of
Shares
Weighted
Average Grant
Date Fair Value
Outstanding, May 31, 2025
212,717
$
66.93
Granted
13,518
101.14
Vested
(529)
54.10
Forfeited
(793)
73.93
Outstanding, August 30, 2025
224,913
$
68.99
 
 
 
 
Index
14
Note 9 – Segment Reporting
The Company has
one
 
operating and
one
 
reportable segment, which is
 
the production, packaging, marketing
 
and distribution of
shell eggs,
 
prepared foods and egg products. The Company is managed on a consolidated basis.
 
The Company’s
 
operating segment
 
is determined
 
on the
 
basis of
 
our organizational
 
structure and
 
information that
 
is regularly
reviewed by
 
our Chief
 
Operating Decision Maker
 
(“CODM”). The
 
Company’s
 
CODM is Sherman
 
Miller, President
 
and Chief
Executive Officer.
 
The CODM reviews net income,
 
which is reported on the
 
Condensed Consolidated Statements of
 
Income, to
assess the
 
performance of,
 
and make
 
decisions on
 
how to
 
allocate resources
 
to, the
 
segment. The
 
CODM utilizes
 
consolidated
expense information
 
regularly provided
 
in the CODM
 
package in
 
order to
 
assist with assessing
 
performance and
 
deciding how
to
 
allocate
 
resources,
 
which
 
align
 
with
 
the
 
consolidated
 
expense
 
categories
 
as
 
disclosed
 
on
 
the
 
face
 
of
 
the
 
Condensed
Consolidated Statements
 
of Income.
 
The measure
 
of segment
 
assets is
 
reported on
 
the Condensed
 
Consolidated Balance
 
Sheet
as Total assets.
 
Revenue
 
primarily
 
derives
 
from
 
the
 
sales
 
of
 
shell
 
eggs,
 
prepared
 
foods,
 
and
 
egg
 
products
 
throughout
 
the
 
Unites
 
States.
 
The
Company’s
 
shell
 
egg
 
product
 
offerings
 
include
 
specialty
 
and
 
conventional
 
shell
 
eggs.
 
Specialty
 
shell
 
eggs
 
include
 
cage-free,
organic,
 
brown,
 
free-range,
 
pasture-raised
 
and
 
nutritionally
 
enhanced
 
eggs.
 
Conventional
 
shell
 
eggs
 
sales
 
represent
 
all
 
other
shell egg sales not sold as specialty shell eggs. The Company’s
 
prepared foods include offerings such as pre-cooked
 
egg patties,
omelets,
 
folded
 
and
 
scrambled
 
egg
 
formats,
 
hard-cooked
 
eggs,
 
pancakes,
 
waffles,
 
and
 
specialty
 
wraps.
 
Egg
 
products
 
include
liquid and frozen egg products.
 
Other sales represent feed sales, miscellaneous byproducts and resale products.
The following table provides revenue disaggregated by product category
 
(in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Conventional shell egg sales
$
505,941
$
484,736
Specialty shell egg sales
283,456
256,777
Prepared foods
83,936
8,938
Egg products
37,107
26,237
Other
12,162
9,183
$
922,602
$
785,871
The following table provides revenue disaggregated by sales channel
 
(in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Retail
$
739,787
$
669,709
Foodservice
152,085
109,845
Other
30,730
6,317
$
922,602
$
785,871
Retail customers include primarily national
 
and regional grocery store chains,
 
club stores, and companies servicing independent
supermarkets
 
in
 
the
 
U.S.
 
Foodservice
 
customers
 
include
 
primarily
 
companies
 
that
 
sell
 
food
 
products
 
and
 
related
 
items
 
to
restaurants, convenience stores, healthcare and education facilities and hotels.
 
 
Note 10 - Commitments and Contingencies
LEGAL PROCEEDINGS
Civil Investigative Demand
In
 
March
 
2025,
 
the
 
Company
 
received
 
a
 
Civil
 
Investigative
 
Demand
 
(“CID”)
 
from
 
the
 
Department
 
of
 
Justice
 
(“DOJ”)
 
in
connection with
 
an antitrust investigation
 
to determine whether
 
there is, has
 
been or may
 
be a violation
 
of the antitrust
 
laws by
anticompetitive
 
conduct
 
by
 
and
 
among
 
egg
 
producers.
 
In August
 
2025,
 
the
 
Company
 
received
 
a
 
subpoena
 
from
 
the
 
State
 
of
New York
 
requesting information
 
and documents
 
related to its
 
investigation of
 
anticompetitive conduct
 
and high
 
egg prices
 
in
the
 
egg
 
industry.
 
The
 
Company
 
is
 
complying
 
with
 
the
 
CID
 
and
 
the
 
subpoena
 
and
 
cooperating
 
with
 
the
 
investigations.
Index
15
 
 
 
Management
 
cannot
 
predict
 
the
 
eventual
 
scope,
 
duration
 
or
 
outcome
 
of
 
these
 
investigations
 
and
 
is
 
unable
 
to
 
estimate
 
the
amount or range of potential losses, if any,
 
at this time.
State of Texas
 
v. Cal-Maine Foods, Inc. d/b/a Wharton;
 
and Wharton County Foods, LLC
 
On April
 
23, 2020,
 
the Company
 
and its subsidiary
 
Wharton County
 
Foods, LLC (“WCF”)
 
were named
 
as defendants in
 
State
of
 
Texas
 
v.
 
Cal-Maine
 
Foods,
 
Inc.
 
d/b/a
 
Wharton;
 
and
 
Wharton
 
County
 
Foods,
 
LLC,
 
Cause
 
No.
 
2020-25427,
 
in
 
the
 
District
Court of
 
Harris County,
 
Texas.
 
The State
 
of Texas
 
(the “State”)
 
asserted claims
 
based on
 
the Company’s
 
and WCF’s
 
alleged
violation
 
of
 
the
 
Texas
 
Deceptive
 
Trade
 
Practices—Consumer
 
Protection
 
Act,
 
Tex.
 
Bus.
 
&
 
Com.
 
Code
 
§§
 
17.41-17.63
(“DTPA”).
 
The
 
State
 
claimed
 
that
 
the
 
Company
 
and
 
WCF
 
offered
 
shell
 
eggs
 
at
 
excessive
 
or
 
exorbitant
 
prices
 
during
 
the
COVID-19
 
state
 
of
 
emergency
 
and
 
made
 
misleading
 
statements
 
about
 
shell
 
egg
 
prices.
 
The
 
State
 
sought
 
temporary
 
and
permanent
 
injunctions
 
against
 
the
 
Company
 
and
 
WCF
 
to
 
prevent
 
further
 
alleged
 
violations
 
of
 
the
 
DTPA,
 
along
 
with
 
over
$
100,000
 
in damages. On August 13, 2020, the court granted the defendants’ motion to dismiss the State’s
 
original petition with
prejudice. On September
 
11, 2020,
 
the State filed a
 
notice of appeal,
 
which was assigned to
 
the Texas
 
Court of Appeals
 
for the
First
 
District.
 
On
 
August
 
16,
 
2022,
 
the
 
appeals
 
court
 
reversed
 
and
 
remanded
 
the
 
case
 
back
 
to
 
the
 
trial
 
court
 
for
 
further
proceedings. On October 31, 2022,
 
the Company and WCF appealed
 
the First District Court’s
 
decision to the Supreme Court
 
of
Texas.
 
On September
 
29, 2023,
 
the Supreme
 
Court of
 
Texas
 
denied the
 
Company’s
 
Petition for
 
Review and
 
remanded to
 
the
trial
 
court
 
for
 
further
 
proceedings.
 
On
 
November
 
30,
 
2024,
 
the
 
State
 
filed
 
an
 
amended
 
petition,
 
primarily
 
to
 
address
 
a
procedural
 
deficiency
 
that
 
required
 
the
 
State
 
to
 
generally
 
plead
 
it
 
was
 
seeking
 
monetary
 
relief
 
over
 
$
1.0
 
million
 
including
restitution,
 
civil
 
penalties,
 
attorney’s
 
fees
 
and
 
costs.
 
Pre-trial
 
proceedings
 
are
 
progressing
 
in
 
accordance
 
with
 
the
 
court’s
schedule. Management believes the risk of material loss related to this matter to
 
be remote.
Kraft Foods Global, Inc. et al. v.
 
United Egg Producers, Inc. et al.
 
On September
 
25, 2008,
 
the Company
 
was named
 
as one
 
of several
 
defendants in
 
numerous antitrust
 
cases involving
 
the U.S.
shell
 
egg
 
industry.
 
The
 
Company
 
settled
 
all of
 
these
 
cases,
 
except
 
for
 
the
 
claims
 
of
 
certain
 
plaintiffs
 
who
 
sought
 
substantial
damages
 
allegedly
 
arising from
 
the purchase
 
of egg
 
products (as
 
opposed
 
to shell
 
eggs). These
 
remaining
 
plaintiffs
 
are Kraft
Food Global,
 
Inc., General
 
Mills, Inc.,
 
and Nestle
 
USA, Inc.
 
(the “Egg
 
Products Plaintiffs”)
 
and, until
 
a subsequent
 
settlement
was reached as described below,
 
The Kellogg Company.
On September
 
13, 2019,
 
the case
 
with the
 
Egg Products
 
Plaintiffs was
 
remanded from
 
a multi-district
 
litigation proceeding
 
in
the
 
United
 
States
 
District
 
Court
 
for
 
the
 
Eastern
 
District
 
of
 
Pennsylvania,
 
In
 
re
 
Processed
 
Egg
 
Products
 
Antitrust
 
Litigation,
MDL No. 2002, to
 
the United States District Court
 
for the Northern District
 
of Illinois, Kraft Foods Global,
 
Inc. et al. v.
 
United
Egg
 
Producers,
 
Inc.
 
et
 
al., Case
 
No.
 
1:11-cv-8808,
 
for
 
trial. The
 
Egg
 
Products
 
Plaintiffs
 
alleged
 
that
 
the
 
Company
 
and
 
other
defendants
 
violated
 
Section
 
1
 
of
 
the
 
Sherman
 
Act,
 
15.
 
U.S.C.
 
§
 
1,
 
by
 
agreeing
 
to
 
limit
 
the
 
production
 
of
 
eggs
 
and
 
thereby
illegally
 
to
 
raise
 
the
 
prices
 
that
 
plaintiffs
 
paid
 
for
 
processed
 
egg
 
products.
 
In
 
particular,
 
the
 
Egg
 
Products
 
Plaintiffs
 
attacked
certain features of
 
the United Egg
 
Producers animal-welfare guidelines
 
and program used by
 
the Company and
 
many other egg
producers.
 
On October 24, 2019,
 
the Company entered into
 
a confidential settlement agreement
 
with The Kellogg Company
 
dismissing all
claims against the
 
Company for an
 
amount that did
 
not have a
 
material impact on
 
the Company’s
 
financial condition or
 
results
of operations.
 
On November
 
11,
 
2019, a
 
stipulation
 
for dismissal
 
was filed
 
with the
 
court, and
 
on March
 
28, 2022,
 
the court
dismissed the Company with prejudice.
The trial of this case began
 
on October 17, 2023. On December
 
1, 2023, the jury returned a decision
 
awarding the Egg Products
Plaintiffs $
17.8
 
million in damages.
 
On November 6,
 
2024, the court
 
entered a final
 
judgement against the
 
Company and other
defendants,
 
jointly
 
and
 
severally,
 
totaling
 
$
43.6
 
million
 
after
 
trebling.
 
On
 
December
 
4,
 
2024,
 
the
 
Company
 
filed
 
a
 
renewed
motion for judgment as
 
a matter of law or
 
for a new trial, and a
 
motion to alter or amend
 
the judgment. On December 13,
 
2024,
the
 
court
 
granted
 
defendants’
 
November
 
20,
 
2024
 
motion
 
to
 
stay
 
enforcement
 
of
 
the
 
judgment
 
and
 
entered
 
an
 
agreed
 
order
requiring the
 
defendants to
 
post security
 
during post-judgment
 
proceedings and
 
appeal, and
 
stayed proceedings
 
to enforce
 
the
judgment until the disposition
 
of the post-judgment motions
 
and ultimate appeals. On
 
December 17, 2024, the
 
Company posted
a
 
bond in
 
the approximate
 
amount of
 
$
23.9
 
million,
 
representing
 
a portion
 
of the
 
total bond
 
required
 
to preserve
 
the right
 
to
appeal the trial
 
court’s
 
decision. Another defendant
 
posted a bond
 
for the remaining
 
amount. The Company
 
intends to continue
to vigorously defend the claims asserted by the Egg Products Plaintiffs.
If the
 
jury’s
 
decision is
 
ultimately upheld,
 
the Company
 
would be
 
jointly and
 
severally liable
 
with other
 
defendants for
 
treble
damages,
 
or
 
$
43.6
 
million,
 
subject
 
to
 
credit
 
for
 
certain
 
settlements
 
with
 
previous
 
settling
 
defendants,
 
plus
 
the
 
Egg
 
Product
Plaintiffs’
 
reasonable
 
attorneys’
 
fees.
 
During
 
our
 
second
 
fiscal
 
quarter
 
of
 
2024,
 
we
 
recorded
 
an
 
accrued
 
expense
 
of
 
$
19.6
million
 
in selling,
 
general and
 
administrative
 
expenses in
 
the Company’s
 
Condensed
 
Consolidated Statements
 
of Income
 
and
classified
 
as
 
other
 
noncurrent
 
liabilities
 
in
 
the
 
Company’s
 
Condensed
 
Consolidated
 
Balance
 
Sheets.
 
Although
 
less
 
than
 
the
bond
 
posted
 
by
 
the
 
Company,
 
the
 
accrual
 
represents
 
our
 
estimate
 
of
 
the
 
Company’s
 
proportional
 
share
 
of
 
the
 
reasonably
Index
16
 
 
 
possible ultimate damages award,
 
excluding the Egg Product
 
Plaintiffs’ attorneys’ fees
 
that we believe would
 
be approximately
offset
 
by
 
the
 
credits
 
noted
 
above.
 
We
 
have
 
entered
 
into
 
a
 
judgment
 
allocation
 
and
 
joint
 
defense
 
agreement
 
with
 
the
 
other
defendants remaining in the
 
case. Our accrual may change
 
in the future to the extent
 
we are successful in further
 
proceedings in
the litigation.
 
State of Oklahoma Watershed Pollution
 
Litigation
On June
 
18, 2005,
 
the State
 
of Oklahoma
 
filed suit,
 
in the
 
United States
 
District Court
 
for the
 
Northern District
 
of Oklahoma,
against Cal-Maine
 
Foods,
 
Inc. and
 
Tyson
 
Foods,
 
Inc., Cobb-Vantress,
 
Inc., Cargill,
 
Inc., George’s,
 
Inc., Peterson
 
Farms, Inc.
and
 
Simmons
 
Foods,
 
Inc.,
 
and
 
certain
 
of
 
their
 
affiliates.
 
The
 
State
 
of
 
Oklahoma
 
claims
 
that
 
through
 
the
 
disposal
 
of
 
chicken
litter the
 
defendants polluted
 
the Illinois
 
River Watershed.
 
This watershed
 
provides water
 
to eastern
 
Oklahoma. The
 
complaint
sought
 
injunctive
 
relief
 
and
 
monetary
 
damages,
 
but
 
the
 
claim
 
for
 
monetary
 
damages
 
was dismissed
 
by
 
the
 
court.
 
Cal-Maine
Foods,
 
Inc.
 
discontinued
 
operations
 
in
 
the
 
watershed
 
in
 
or
 
around
 
2005.
 
Since
 
the
 
litigation
 
began,
 
Cal-Maine
 
Foods,
 
Inc.
purchased
100
%
 
of
 
the
 
membership
 
interests
 
of
 
Benton
 
County
 
Foods,
 
LLC,
 
which
 
is
 
an
 
ongoing
 
commercial
 
shell
 
egg
operation within
 
the Illinois
 
River Watershed.
 
Benton County
 
Foods, LLC
 
is not
 
a defendant
 
in the
 
litigation. We
 
also have
 
a
number of small contract producers that operate in the area.
The non-jury trial in the case began in September 2009
 
and concluded in February 2010. On January 18, 2023, the court entered
findings of
 
fact and
 
conclusions of
 
law in favor
 
of the
 
State of
 
Oklahoma, but
 
no penalties
 
were assessed.
 
The court
 
found the
defendants jointly
 
and severally
 
liable for
 
state law
 
nuisance, federal
 
common law
 
nuisance, and
 
state law
 
trespass. The
 
court
also found
 
the producers
 
vicariously liable
 
for the
 
actions of
 
their contract
 
producers. On
 
June 12,
 
2023, the
 
court ordered
 
the
parties to mediate
 
before retired Tenth
 
Circuit Chief Judge
 
Deanell Reece Tacha,
 
but the mediation
 
was unsuccessful. On
 
June
26, 2024,
 
the district
 
court denied
 
defendants’ motion
 
to dismiss
 
the case.
 
On September
 
13, 2024,
 
a status
 
hearing
 
was held
and the court scheduled an evidentiary
 
hearing for December 3, 2024,
 
to determine whether any legal
 
remedy is available based
on the now
 
14-year-old record
 
and changed
 
circumstances of the
 
Illinois River watershed.
 
On June 17,
 
2025, the court
 
entered
an opinion
 
and order
 
that found
 
that the
 
State satisfied
 
its burden
 
to show
 
that conditions
 
in the
 
Illinois River
 
watershed have
not materially changed
 
since the original trial
 
and the case was
 
not moot. On
 
July 9, 2025, the
 
State of Oklahoma filed
 
its form
of proposed
 
final judgment
 
and brief
 
in support
 
thereof seeking
 
over $100
 
million in
 
total fines
 
from all
 
defendants, including
approximately
 
$
18.2
 
million
 
in
 
fines
 
from
 
the
 
Company,
 
plus
 
attorneys’
 
fees.
 
On
 
July
 
30,
 
2025,
 
the
 
Company
 
and
 
other
defendants filed
 
their form of proposed
 
final judgment and
 
brief in support
 
thereof seeking no
 
monetary fines or
 
penalties. The
court has not
 
ruled on these
 
submissions but is
 
expected to enter
 
a final judgment
 
imposing fines and
 
potentially non-monetary
remedies,
 
if
 
any,
 
in
 
the
 
future.
No
 
accrual
 
for
 
this
 
legal
 
proceeding
 
has
 
been
 
recorded
 
as
 
of
 
August
 
30,
 
2025.
 
Based
 
on
information available as
 
of September 30,
 
2025, management expects
 
that the ultimate
 
resolution of this
 
litigation will result
 
in
a loss to the Company, if any,
 
that is substantially less than the amount sought from the Company by the State of
 
Oklahoma.
Other Matters
In addition to
 
the above, the Company
 
is involved in
 
various other claims
 
and litigation incidental
 
to its business. Although
 
the
outcome of
 
these matters
 
cannot be
 
determined with
 
certainty,
 
management, upon
 
the advice
 
of counsel,
 
is of
 
the opinion
 
that
the final outcome should not have a material effect on the Company’s
 
consolidated results of operations or financial position.
Index
17
ITEM
 
2.
 
MANAGEMENT’S
DISCUSSION
AND
 
ANALYSIS
 
OF
 
FINANCIAL
 
CONDITION
 
AND
 
RESULTS
 
OF
OPERATIONS
The following
 
should be
 
read in
 
conjunction
 
with Management’s
 
Discussion and
 
Analysis of
 
Financial Condition
 
and Results
of Operations included
 
in Part II Item
 
7 of the Company’s
 
Annual Report on
 
Form 10-K for its
 
fiscal year ended May
 
31, 2025
(the “2025 Annual Report”), and the accompanying financial statements and
 
notes included in Part II Item 8 of the 2025 Annual
Report and in
Part I Item 1
 
of this Quarterly Report on Form 10-Q (“Quarterly Report”).
This Quarterly
 
Report contains
 
numerous forward-looking
 
statements within
 
the meaning of
 
Section 27A
 
of the
 
Securities Act
of 1933
 
(the “Securities
 
Act”) and
 
Section 21E
 
of the
 
Securities Exchange
 
Act of
 
1934 (the
 
“Exchange
 
Act”) relating
 
to our
business,
 
including
 
potential
 
future
 
supply
 
of
 
and
 
demand
 
for
 
our
 
products,
 
potential
 
future
 
corn
 
and
 
soybean
 
price
 
trends,
potential future
 
impact on our
 
business of the
 
resurgence in United
 
States (“U.S.”) commercial
 
table egg
 
layer flocks of
 
highly
pathogenic avian influenza (“HPAI”),
 
estimated future production data, expected
 
construction schedules, projected construction
costs, potential future
 
impact on our business
 
of inflation and changing
 
interest rates, potential future
 
impact on our business
 
of
new legislation,
 
rules or
 
policies, potential
 
outcomes of
 
legal proceedings,
 
including loss
 
contingency accruals
 
and factors
 
that
may result
 
in changes
 
in the
 
amounts recorded,
 
other projected
 
operating data,
 
including anticipated
 
results of
 
operations
 
and
financial condition, and
 
potential future cash
 
returns to stockholders
 
including the timing
 
and amount of
 
any repurchases under
our
 
share
 
repurchase
 
program.
 
Such
 
forward-looking
 
statements
 
are
 
identified
 
by
 
the
 
use
 
of
 
words
 
such
 
as
 
“believes,”
“intends,”
 
“expects,”
 
“hopes,” “may,”
 
“should,”
 
“plans,”
 
“projected,”
 
“contemplates,”
 
“anticipates,”
 
or
 
similar words.
 
Actual
outcomes
 
or
 
results
 
could
 
differ
 
materially
 
from
 
those
 
projected
 
in
 
the
 
forward-looking
 
statements.
 
The
 
forward-looking
statements
 
are
 
based
 
on management’s
 
current
 
intent,
 
belief,
 
expectations,
 
estimates,
 
and
 
projections
 
regarding
 
the Company
and its
 
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 in
 
Part I
Item 1A
 
Risk Factors
 
of our 2025
 
Annual Report,
 
as well as
 
those included
 
in other
 
reports we
 
file from
 
time to
 
time with
 
the
United
 
States
 
Securities
 
and
 
Exchange
 
Commission
 
(“SEC”)
 
(including
 
our
 
Quarterly
 
Reports
 
on
 
Form
 
10-Q
 
and
 
Current
Reports on Form 8-K), (ii)
 
the risks and hazards inherent
 
in the shell egg business (including
 
disease, pests, weather conditions,
and potential for product recall),
 
including but not limited to the
 
current outbreak of HPAI
 
affecting poultry in the
 
U.S., Canada
and other countries that was first
 
detected in commercial flocks in
 
the U.S. in November 2023 and that
 
first impacted our flocks
in December 2023,
 
(iii) changes in the
 
demand for and market
 
prices of shell eggs
 
and feed costs, (iv)
 
our ability to predict
 
and
meet demand for cage-free
 
and other specialty eggs, (v)
 
risks, changes, or obligations that could
 
result from our recent or future
acquisition
 
of
 
new
 
flocks
 
or
 
businesses,
 
such
 
as
 
our
 
acquisition
 
of
 
Echo
 
Lake
 
Foods
 
completed
 
June
 
2,
 
2025,
 
and
 
risks
 
or
changes that
 
may cause
 
conditions to
 
completing a
 
pending acquisition
 
not to
 
be met,
 
(vi) our
 
ability to
 
successfully integrate
and
 
manage
 
the
 
business
 
of
 
Echo
 
Lake
 
Foods
 
and
 
realize
 
the
 
expected
 
benefits
 
of
 
the
 
acquisition,
 
including
 
synergies,
 
cost
savings,
 
reduction
 
in
 
earnings
 
volatility,
 
margin
 
expansion,
 
financial
 
returns,
 
expanded
 
customer
 
relationships,
 
or
 
sales
 
or
growth opportunities,
 
(vii) our ability
 
to retain existing
 
customers, acquire
 
new customers and
 
grow our product
 
mix including
our
 
prepared
 
foods
 
product
 
offerings,
 
(viii)
 
the
 
impacts
 
and
 
potential
 
future
 
impacts
 
of government,
 
customer
 
and
 
consumer
reactions to recent high market
 
prices for eggs, (ix) potential
 
impacts to our business as
 
a result of our Company
 
ceasing to be a
“controlled company”
 
under the rules
 
of The Nasdaq
 
Stock Market on
 
April 14, 2025,
 
(x) risks relating
 
to potential changes
 
in
inflation, interest
 
rates and
 
trade and
 
tariff policies,
 
(xi) adverse
 
results in
 
pending litigation
 
and other
 
legal matters,
 
and (xii)
global instability,
 
including as a
 
result of the
 
war in Ukraine,
 
the conflicts involving
 
Israel and
 
Iran, and attacks
 
on shipping
 
in
the
 
Red
 
Sea.
 
The
 
actual
 
timing,
 
number
 
and
 
value
 
of
 
shares
 
repurchased
 
under
 
our
 
share
 
repurchase
 
program
 
will
 
be
determined
 
by management
 
in its
 
discretion
 
and will
 
depend
 
on a
 
number
 
of factors,
 
including but
 
not limited
 
to, the
 
market
price
 
of our
 
Common Stock
 
and
 
general
 
market and
 
economic
 
conditions.
 
The share
 
repurchase
 
program
 
may be
 
suspended,
modified
 
or
 
discontinued
 
at
 
any
 
time
 
without
 
prior
 
notice.
 
Readers
 
are
 
cautioned
 
not
 
to
 
place
 
undue
 
reliance
 
on
 
forward-
looking
 
statements
 
because,
 
while
 
we
 
believe
 
the
 
assumptions
 
on
 
which
 
the
 
forward-looking
 
statements
 
are
 
based
 
are
reasonable, there can
 
be no assurance that
 
these forward-looking statements
 
will prove to be
 
accurate. Further,
 
forward-looking
statements included herein
 
are made only
 
as of the respective
 
dates thereof, or
 
if no date
 
is stated, as of
 
the date hereof.
 
Except
as otherwise required by law,
 
we disclaim any intent or obligation
 
to update publicly these forward-looking
 
statements, whether
because of new information, future events, or otherwise.
 
COMPANY
 
OVERVIEW
Cal-Maine Foods,
 
Inc. (“Cal-Maine
 
Foods,” the
 
“Company,”
 
“we,” “us,”
 
“our”) is
 
the largest
 
egg company
 
in the
 
U.S. and
 
a
leading
 
player
 
in
 
the
 
egg-based
 
food
 
industry.
 
With
 
a
 
strong
 
national
 
footprint,
 
Cal-Maine
 
Foods
 
provides
 
nutritious,
affordable, and sustainable protein to millions of households every
 
day.
 
 
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
 
eggs—serving
 
both
 
retail
 
and
 
foodservice
 
customers
 
nationwide.
 
Cal-
Index
18
Maine
 
Foods
 
also
 
participates
 
in
 
the
 
growing
 
prepared
 
foods
 
sector,
 
with
 
offerings
 
such
 
as
 
pre-cooked
 
egg
 
patties,
 
omelets,
folded
 
and scrambled
 
egg formats,
 
hard-cooked
 
eggs,
 
pancakes, waffles,
 
and
 
specialty wraps.
 
Our
 
branded portfolio
 
includes
Eggland’s Best®, Land O’Lakes®, Farmhouse
 
Eggs®, 4Grain®, Sunups®, MeadowCreek Foods®, and Crepini®.
Our operations are fully integrated,
 
and we have one operating and reportable
 
segment. Our total flock as of
 
August 30, 2025 of
approximately
 
48.5
 
million
 
layers
 
and
 
11.1
 
million
 
pullets
 
and
 
breeders
 
is
 
the
 
largest
 
in
 
the
 
U.S.
 
We
 
sell
 
our
 
products
 
to
 
a
diverse group of
 
customers, including national
 
and regional grocery
 
store chains,
 
club stores, companies
 
servicing independent
supermarkets
 
in
 
the
 
U.S.,
 
and
 
foodservice
 
distributors
 
serving
 
restaurants,
 
convenience
 
stores,
 
healthcare
 
and
 
education
facilities and hotels throughout the majority of the U.S. and
 
aim to maintain efficient, state-of-the-art operations
 
located close to
our customers.
Our
 
strategy
 
includes
 
three
 
primary
 
priorities:
 
expanding
 
specialty
 
eggs
 
and
 
prepared
 
foods,
 
pursuing
 
disciplined
 
growth
through acquisitions and leveraging our scale, vertical integration, operational
 
excellence and financial strength.
 
Our
 
operating
 
results
 
are
 
materially
 
impacted
 
by
 
market
 
prices for
 
eggs
 
and
 
feed
 
grains
 
(corn
 
and
 
soybean
 
meal),
 
which
 
are
highly
 
volatile,
 
independent
 
of
 
each
 
other,
 
and
 
out
 
of
 
our
 
control.
 
Generally,
 
higher
 
market
 
prices
 
for
 
eggs
 
have
 
a
 
positive
impact on
 
our financial
 
results while
 
higher market
 
prices for
 
feed grains
 
have a
 
negative impact
 
on our
 
financial results.
 
Our
pricing for
 
shell eggs
 
is negotiated
 
with our
 
customers on
 
individual terms.
 
We
 
sell our
 
shell eggs
 
at prices
 
based on
 
formulas
that take into
 
account, in varying
 
ways, independently
 
quoted regional wholesale
 
market prices for
 
shell eggs, formulas
 
related
to
 
our
 
costs
 
of
 
production,
 
such
 
as
 
grain-based
 
and
 
variations
 
of
 
cost-plus
 
arrangements,
 
or
 
hybrid
 
models
 
including
 
cost
 
of
production and wholesale market prices.
The majority
 
of our
 
conventional eggs
 
are priced
 
and sold
 
under frameworks
 
that generally
 
utilize market-based
 
formulas tied
to independently
 
quoted regional
 
wholesale market
 
quotes. The
 
majority of
 
our specialty
 
eggs are
 
sold under
 
frameworks that
do not utilize market-based
 
formulas, although we do
 
have some customers that prefer
 
market-based pricing for cage-free
 
eggs.
As
 
a
 
result,
 
specialty
 
egg
 
prices
 
typically
 
do
 
not
 
fluctuate
 
as
 
much
 
as
 
conventional
 
pricing.
 
We
 
do
 
not
 
sell
 
eggs
 
directly
 
to
consumers or set the prices at which eggs are sold to consumers.
 
Retail
 
sales
 
of
 
shell
 
eggs
 
historically
 
have
 
been
 
highest
 
during
 
the
 
fall
 
and
 
winter
 
months
 
and
 
lowest
 
during
 
the
 
summer
months. Prices
 
for shell
 
eggs fluctuate
 
in response
 
to seasonal
 
demand factors
 
and a
 
natural increase
 
in egg
 
production during
the
 
spring
 
and
 
early
 
summer.
 
Historically,
 
shell
 
egg
 
prices
 
tend
 
to
 
increase
 
with
 
the
 
start
 
of
 
the
 
school
 
year
 
and
 
tend
 
to
 
be
highest
 
prior
 
to
 
holiday
 
periods,
 
particularly
 
Thanksgiving,
 
Christmas
 
and
 
Easter.
 
Consequently,
 
and
 
all
 
other
 
things
 
being
equal, we would
 
expect to experience
 
lower selling prices, sales
 
volumes and net
 
income (and may incur
 
net losses) in our
 
first
and
 
fourth
 
fiscal
 
quarters
 
ending
 
in
 
August/September
 
and
 
May/June,
 
respectively.
 
Because
 
of
 
the
 
seasonal
 
and
 
quarterly
fluctuations,
 
comparisons
 
of
 
our
 
sales
 
and
 
operating
 
results
 
between
 
different
 
quarters
 
within
 
a
 
single
 
fiscal
 
year
 
are
 
not
necessarily meaningful comparisons.
We
 
routinely
 
fill
 
our
 
storage
 
bins
 
during
 
harvest
 
season
 
when
 
prices
 
for
 
feed
 
ingredients
 
are
 
generally
 
lower.
 
To
 
ensure
continued
 
availability of
 
feed ingredients,
 
we may
 
enter into
 
contracts for
 
future purchases
 
of corn
 
and soybean
 
meal, and
 
as
part
 
of
 
these
 
contracts,
 
we
 
may
 
lock-in
 
the
 
basis
 
portion
 
of
 
our
 
grain
 
purchases
 
several
 
months
 
in
 
advance.
 
Basis
 
is
 
the
difference
 
between the
 
local cash
 
price for
 
grain and
 
the applicable
 
futures price.
 
A basis
 
contract is
 
a common
 
transaction in
the grain
 
market that
 
allows us
 
to lock-in
 
a basis
 
level for
 
a specific
 
delivery period
 
and wait
 
to set
 
the futures
 
price at
 
a later
date. Furthermore,
 
due to
 
the more
 
limited supply
 
for organic
 
ingredients,
 
we may
 
commit to
 
purchase organic
 
ingredients in
advance to help ensure supply.
 
Ordinarily, we do
 
not enter into long-term contracts beyond a year to purchase
 
corn and soybean
meal
 
or
 
hedge
 
against
 
increases
 
in
 
the
 
prices
 
of
 
corn
 
and
 
soybean
 
meal.
 
Corn
 
and
 
soybean
 
meal
 
are
 
commodities
 
and
 
are
subject
 
to
 
volatile
 
price
 
changes
 
due
 
to
 
weather,
 
various
 
supply
 
and
 
demand
 
factors,
 
transportation
 
and
 
storage
 
costs,
speculators,
 
agricultural, energy
 
and trade
 
policies in
 
the U.S.
 
and internationally
 
,
 
and global
 
instability that
 
could disrupt
 
the
supply chain.
An important competitive advantage
 
for Cal-Maine Foods is
 
our ability to meet
 
our customers’ evolving needs
 
with a favorable
mix of
 
branded and
 
private-label products
 
of conventional
 
and specialty
 
eggs, including
 
cage-free, organic,
 
brown, free-range,
pasture-raised and nutritionally-enhanced eggs as well as prepared
 
foods and egg products.
HPAI
Outbreaks of
 
HPAI
 
have continued
 
to occur
 
in U.S.
 
poultry flocks.
 
Since the
 
HPAI
 
outbreaks in
 
2015, there
 
were no
 
reported
significant
 
outbreaks
 
of
 
HPAI
 
in
 
the
 
commercial
 
table
 
egg
 
layer
 
flocks
 
until
 
the
 
February
 
 
December
 
2022
 
time
 
period.
Thereafter,
 
there were
 
no HPAI
 
cases affecting
 
commercial
 
layers until
 
November
 
2023. In
 
calendar year
 
2024,
 
40.2 million
commercial
 
layer
 
hens
 
and
 
pullets
 
were
 
depopulated
 
due
 
to
 
HPAI,
 
and
 
in
 
calendar
 
year
 
2025,
 
an
 
additional
 
42.4
 
million
Index
19
commercial layer
 
hens and
 
pullets were depopulated
 
due to HPAI
 
as of
 
September 30,
 
2025. The
 
United States
 
Department of
Agriculture
 
(the
 
“USDA”)
 
reported
 
that
 
the
 
estimated
 
table-egg
 
layer
 
flock
 
as
 
of
 
August
 
1,
 
2025
 
was
 
approximately
 
296.9
million, compared to
 
301.9 million, 314.2 million,
 
308.7 million and
 
321.5 million as of
 
August 1, 2024, 2023,
 
2022 and 2021,
respectively.
 
HPAI
 
is currently widespread in the wild
 
bird population worldwide. Further,
 
according to the U.S. Centers for Disease Control
and
 
Prevention
 
(“CDC”),
 
as
 
of
 
September
 
18,
 
2025,
 
there
 
were
 
outbreaks
 
in
 
1,080
 
herds
 
of
 
dairy
 
cows
 
in
 
18
 
states,
 
and
 
70
human cases
 
in the
 
U.S., almost
 
entirely among
 
poultry and
 
dairy workers.
 
In 2024,
 
one of
 
the human
 
cases resulted
 
in severe
illness
 
after
 
the
 
patient
 
was
 
exposed
 
to
 
sick
 
and
 
dead
 
birds
 
in
 
backyard
 
flocks.
 
The
 
patient,
 
who
 
was
 
reported
 
to
 
have
underlying health
 
conditions, died
 
in January
 
2025. There
 
have been
 
no reported
 
cases of
 
person-to-person
 
spread. According
to
 
the
 
CDC,
 
the
 
human
 
health
 
risk
 
to
 
the
 
U.S.
 
public
 
from
 
the
 
HPAI
 
virus
 
is
 
considered
 
to
 
be
 
low.
 
We
 
remain
 
dedicated
 
to
robust
 
biosecurity
 
programs
 
across
 
our
 
locations
 
and
 
have
 
invested
 
more
 
than
 
$80
 
million
 
in
 
biosecurity
 
technology,
equipment,
 
supplies,
 
procedures,
 
and
 
training
 
across
 
our
 
locations since
 
the
 
last major
 
HPAI
 
outbreak
 
in 2015.
 
However,
 
no
farm is
 
immune from
 
HPAI.
 
For example,
 
during the
 
third and
 
fourth quarters
 
of fiscal
 
2024, we
 
experienced HPAI
 
outbreaks
within
 
our
 
facilities
 
located
 
in
 
Kansas
 
and
 
Texas,
 
which
 
are
 
now
 
fully
 
operational.
 
The
 
extent
 
of
 
possible
 
future
 
outbreaks
among U.S. commercial
 
egg layer flocks,
 
with heightened risk during
 
migration seasons, cannot
 
be predicted. According
 
to the
USDA, HPAI
 
cannot be transmitted
 
through safely handled
 
and properly cooked
 
eggs. There is
 
no known risk
 
related to HPAI
associated with
 
eggs that
 
are currently
 
in the
 
market and
 
no eggs
 
have been
 
recalled. For
 
additional information,
 
see the
 
2025
Annual
 
Report,
 
Part
 
II
 
Item
 
7
 
“Management’s
 
Discussion
 
and
 
Analysis
 
of
 
Financial
 
Condition
 
and
 
Results
 
of
 
Operations
 
HPAI.”
 
We
 
have taken
 
proactive steps
 
to help
 
mitigate the
 
tight egg
 
supply situation
 
across the
 
country.
 
Our efforts
 
resulted in
 
a 10%
increase
 
in our
 
average number
 
of layer
 
hens (reflecting
 
re-start of
 
prior year
 
facility outages
 
and both
 
organic
 
and inorganic
expansion)
 
and
 
a
 
77%
 
increase
 
in
 
our
 
total
 
chicks
 
hatched
 
during
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026
 
compared
 
to
 
the
 
prior-year
quarter.
 
Our breeder flocks increased
 
46% as of the
 
end of the first
 
quarter of fiscal
 
2026 compared to
 
the end of
 
the prior-year
quarter.
 
We
 
also continue
 
to invest
 
in expansion
 
projects within
 
our current
 
operations that
 
are expected
 
to add
 
approximately
1.1 million cage-free layer hens and 250,000 pullets by the end of calendar
 
2025.
CAGE-FREE EGGS
Ten
 
states
 
have
 
passed
 
legislation
 
or
 
regulations
 
mandating
 
minimum
 
space
 
or
 
cage-free
 
requirements
 
for
 
egg
 
production
 
or
mandated
 
the
 
sale
 
of
 
only
 
cage-free
 
eggs
 
and
 
egg
 
products
 
in
 
their
 
states,
 
with
 
implementation
 
of
 
these
 
laws
 
ranging
 
from
January
 
2022
 
to
 
January
 
2030.
 
These
 
states
 
represent
 
approximately
 
27%
 
of
 
the
 
U.S.
 
total
 
population
 
according
 
to
 
the 2020
U.S.
 
Census.
 
California,
 
Massachusetts,
 
Colorado,
 
Michigan,
 
Oregon,
 
Washington,
 
and
 
Nevada,
 
which
 
collectively
 
represent
approximately 23% of the total estimated U.S. population,
 
have cage-free legislation currently in effect.
A significant number of
 
our customers have announced
 
goals to either exclusively offer
 
cage-free eggs or significantly
 
increase
the
 
volume
 
of
 
cage-free
 
egg
 
sales
 
in
 
the
 
future,
 
subject
 
in
 
most
 
cases
 
to
 
availability
 
of
 
supply,
 
affordability
 
and
 
consumer
demand,
 
among
 
other
 
contingencies.
 
Our
 
customers
 
typically
 
do
 
not
 
commit
 
to
 
long-term
 
purchases
 
of
 
specific
 
quantities or
types
 
of
 
eggs
 
with
 
us,
 
and
 
as
 
a
 
result,
 
it
 
is
 
difficult
 
to
 
accurately
 
predict
 
customer
 
requirements
 
for
 
cage-free
 
eggs.
 
We
 
are
focused
 
on
 
adjusting
 
our
 
cage-free
 
production
 
capacity
 
with
 
a
 
goal
 
of
 
meeting
 
the
 
future
 
needs
 
of
 
our
 
customers
 
in
 
light
 
of
changing state requirements
 
and our
 
customers’ goals.
 
As always, we
 
strive to offer
 
a product
 
mix that aligns
 
with current
 
and
anticipated
 
customer
 
purchase
 
decisions.
 
We
 
are
 
engaging
 
with
 
our
 
customers
 
to
 
help
 
them
 
meet
 
their
 
announced
 
goals
 
and
needs. We
 
have invested significant capital
 
in recent years to acquire
 
and construct cage-free facilities, and
 
we expect our focus
for future
 
expansion will
 
continue to
 
include cage-free
 
facilities. Our
 
volume of
 
cage-free egg
 
sales has
 
continued to
 
increase
and
 
account for
 
a larger
 
share of
 
our product
 
mix. Cage-free
 
egg
 
revenue represented
 
approximately
 
27.3% of
 
our total
 
shell
egg revenue for the
 
first quarter of fiscal year
 
2026. At the same time,
 
we understand the importance
 
of our continued ability to
provide
 
conventional
 
eggs
 
in
 
order
 
to
 
provide
 
our
 
customers
 
with
 
a
 
variety
 
of
 
egg
 
choices
 
and
 
to
 
address
 
hunger
 
in
 
our
communities.
 
For
 
additional
 
information,
 
see
 
the
 
2025
 
Annual
 
Report,
 
Part
 
I
 
Item
 
1,
 
“Business
 
 
Specialty
 
Eggs,”
 
“Business
 
 
Growth
Strategy” and
 
“Business –
 
Government
 
Regulation,” and
 
the first
 
risk factor
 
in Part
 
I Item
 
1A, “Risk
 
Factors” under
 
the sub-
heading “Legal and Regulatory Risk Factors.”
ACQUISITIONS
Effective
 
June
 
2,
 
2025,
 
the
 
Company
 
acquired
 
Echo
 
Lake
 
Foods,
 
LLC
 
(formerly
 
Echo Lake
 
Foods,
 
Inc.)
 
and
 
certain
 
related
companies
 
(collectively
 
“Echo
 
Lake
 
Foods”).
 
Echo
 
Lake
 
Foods
 
is
 
based
 
in
 
Burlington,
 
Wisconsin
 
and
 
produces,
 
packages,
markets and
 
distributes prepared
 
foods, including
 
waffles, pancakes,
 
scrambled eggs,
 
frozen cooked
 
omelets, egg
 
patties, toast
and
 
diced
 
eggs.
 
The
 
acquisition
 
contributed
 
$70.5
 
million
 
to
 
prepared
 
foods
 
revenue
 
and
 
increased
 
cost
 
of
 
sales
 
by
 
$51.7
Index
20
million
 
for
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026.
 
Integration
 
efforts
 
are
 
ongoing,
 
with
 
synergies
 
expected
 
to
 
be
 
realized
 
from
 
egg
purchasing and other operational
 
efficiencies. The acquisition
 
has expanded our prepared foods
 
product line and customer base.
See further
 
discussion
 
in
Note 2 – Acquisition
 
of the
 
Notes to
 
Condensed
 
Consolidated Financial
 
Statements included
 
in this
Quarterly Report.
During the
 
third quarter
 
of fiscal
 
2025, we
 
acquired certain
 
assets of
 
Deal-Rite Foods,
 
Inc. and
 
certain of
 
its affiliates
 
(“Deal-
Rite”). The assets acquired
 
included two feed mills,
 
storage facilities, usable grain,
 
vehicles, related equipment
 
and a retail feed
sales business
 
located in
 
North Carolina.
 
The acquired
 
assets will
 
produce and
 
deliver feed
 
to our
 
nearby shell
 
egg production
operations.
During
 
the
 
second
 
quarter
 
of
 
fiscal
 
2025,
 
we
 
completed
 
a
 
strategic
 
investment
 
with
 
Crepini
 
LLC,
 
establishing
 
a
 
new
 
egg
products and
 
prepared foods
 
venture. Crepini
 
LLC, founded
 
in 2007, grew
 
its brand
 
throughout the
 
U.S. and
 
Mexico featuring
egg
 
wraps,
 
protein
 
pancakes,
 
crepes,
 
and
 
wrap-ups,
 
which
 
are
 
sold
 
online
 
and
 
in
 
over
 
3,500
 
retail
 
stores.
 
The
 
new
 
entity,
located
 
in
 
Hopewell
 
Junction,
 
New
 
York,
 
operates
 
as
 
Crepini
 
Foods
 
LLC
 
(“Crepini”).
 
We
 
capitalized
 
Crepini
 
with
approximately
 
$6.75 million
 
in cash
 
to purchase
 
additional equipment
 
and other
 
assets and
 
fund working
 
capital in
 
exchange
for a 51% interest in the new venture. Crepini LLC contributed
 
its existing assets and business in exchange for a 49% interest
 
in
the new venture.
In
 
fiscal
 
2022,
 
we
 
announced
 
a
 
strategic
 
investment
 
in
 
a
 
new
 
entity,
 
MeadowCreek
 
Food,
 
LLC
 
(“MeadowCreek”),
 
which
became a majority-owned subsidiary of the Company.
 
During the fourth quarter of fiscal 2023, MeadowCreek
 
began operations
with
 
a
 
focus
 
on
 
being
 
a
 
leading
 
provider
 
of
 
hard-cooked
 
eggs.
 
During
 
the
 
second
 
quarter
 
of
 
fiscal
 
2025,
 
we
 
acquired
 
the
remaining ownership interests in MeadowCreek and it became a wholly-owned
 
subsidiary of the Company.
During the
 
first quarter
 
of fiscal
 
2025,
 
we acquired
 
substantially all
 
the commercial
 
shell egg
 
production,
 
processing and
 
egg
products
 
breaking
 
assets
 
of
 
ISE
 
America,
 
Inc.
 
and
 
certain
 
of
 
its
 
affiliates
 
(“ISE”).
 
The
 
assets
 
acquired
 
included
 
commercial
shell
 
egg
 
production
 
and
 
processing
 
facilities
 
with
 
a
 
capacity
 
at
 
the
 
time
 
of
 
acquisition
 
of
 
approximately
 
4.7
 
million
 
laying
hens, including
 
1.0 million cage-free,
 
and 1.2 million
 
pullets, feed mills,
 
approximately 4,000
 
acres of land,
 
inventories and an
egg products breaking facility.
 
The acquired assets also include an extensive customer
 
distribution network across the Northeast
and Mid-Atlantic
 
states, and
 
production operations
 
in Maryland,
 
New Jersey,
 
Delaware and
 
South Carolina.
 
These production
assets
 
are
 
our
 
first
 
in
 
Maryland,
 
New
 
Jersey
 
and
 
Delaware.
 
We
 
believe
 
this
 
acquisition
 
provides
 
us
 
with
 
an
 
opportunity
 
to
significantly enhance our market reach in the Northeast and Mid-Atlantic states.
 
EXECUTIVE OVERVIEW
For
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026,
 
we
 
recorded
 
a
 
gross
 
profit
 
of
 
$311.3
 
million,
 
compared
 
to
 
$247.2
 
million
 
for
 
the
 
same
period
 
of fiscal
 
2025,
 
primarily driven
 
by an
 
increase
 
in the
 
net average
 
selling price
 
of shell
 
eggs,
 
particularly
 
conventional
eggs, and
 
higher specialty
 
egg volumes, as
 
well as lower
 
feed ingredient
 
prices and
 
the acquisition of
 
Echo Lake Foods
 
during
fiscal 2026.
Our
 
net
 
average
 
selling
 
price
 
per
 
dozen
 
for
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026
 
was
 
$2.486
 
compared
 
to
 
$2.392
 
in
 
the
 
prior-year
period.
 
Average
 
conventional
 
egg
 
prices
 
per
 
dozen
 
were
 
$2.539
 
compared
 
to
 
$2.424
 
for
 
the
 
prior-year
 
period,
 
and
 
average
specialty egg
 
prices per
 
dozen were $2.396
 
compared to
 
$2.335 for the
 
prior-year period.
 
Although lower
 
than recent quarters,
egg prices in the first quarter of fiscal 2026
 
were higher compared to the prior-year period primarily due to
 
the decreased supply
as
 
the
 
industry
 
continues
 
to
 
recover
 
from
 
the
 
HPAI
 
outbreaks
 
in
 
late
 
calendar
 
year
 
2024
 
and
 
early
 
2025.
 
According
 
to
 
the
USDA, the
 
monthly average
 
size of
 
the layer
 
hen flock
 
from June
 
2025
 
through August
 
2025
 
(which most
 
closely aligns
 
with
our
 
first
 
fiscal
 
quarter)
 
was
 
approximately
 
291.4
 
million
 
hens,
 
representing
 
a
 
decrease
 
of
 
12.1
 
million
 
layers,
 
or
 
4.0%,
compared
 
to the
 
same period
 
in the
 
prior year.
 
The daily
 
average price
 
for the
 
Urner Barry
 
southeast large
 
index for
 
the first
quarter
 
of
 
fiscal
 
2026
 
increased
 
0.6%
 
and
 
the
 
USDA
 
daily
 
average
 
price
 
for
 
large
 
shell
 
eggs
 
increased
 
0.1%
 
from
 
the
comparable period in the prior
 
year. For
 
more information about historical
 
shell egg prices, see Part I,
 
Item 1. “Business – Price
for Shell Eggs” of our 2025 Annual Report.
 
Our dozens
 
sold for
 
the first
 
quarter
 
of fiscal
 
2026
 
increased 2.5%
 
compared
 
to the
 
first quarter
 
of fiscal
 
2025.
 
Demand was
consistent during
 
the first
 
fiscal quarter
 
of 2025
 
and 2026,
 
which is
 
typically a
 
period of
 
lower seasonal
 
demand. In
 
addition,
the first quarter of fiscal
 
2026 benefited from our
 
facilities in Kansas and Texas
 
being fully operational during
 
the quarter and a
full quarter of production capacity from the acquisition of the commercial
 
shell egg production and processing business of ISE.
 
Our
 
farm
 
production
 
costs per
 
dozen
 
produced
 
for
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026
 
increased
 
1.7%,
 
or
 
$0.02
 
compared
 
to
 
the
prior
 
year period,
 
primarily
 
due to
 
higher other
 
farm production
 
costs. Other
 
farm
 
production
 
costs increased
 
8.8%
 
primarily
due to high
 
facility costs compared
 
to the comparable
 
period in the
 
prior year.
 
Feed costs per
 
dozen produced
 
decreased 4.3%,
or $0.02
 
in the
 
first quarter
 
of fiscal
 
2026,
 
compared to
 
the first
 
quarter of
 
fiscal 2025,
 
primarily due
 
to lower
 
feed ingredient
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
21
prices. For
 
information about historical
 
corn and soybean
 
meal prices, see
 
Part I, Item
 
1. “Business –
 
Feed Costs for
 
Shell Egg
Production”
 
of
 
our
 
2025
 
Annual
 
Report.
 
Our
 
prepared
 
foods
 
cost
 
of
 
sales
 
increased
 
$55.1
 
million
 
quarter-over-quarter,
primarily due to the acquisition of Echo Lake Foods.
 
RESULTS OF
 
OPERATIONS
The following
 
table sets forth,
 
for the periods
 
indicated, certain
 
items from
 
our Condensed Consolidated
 
Statements of Income
expressed as a percentage of net sales.
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Net sales
100.0
%
100.0
%
Cost of sales
66.3
%
68.5
%
Gross profit
33.7
%
31.5
%
Selling, general and administrative
7.5
%
7.9
%
(Gain) loss on involuntary conversions
(0.8)
%
%
(Gain) loss on disposal of fixed assets
%
(0.2)
%
Operating income
27.0
%
23.8
%
Total other income, net
1.5
%
1.4
%
Income before income taxes
28.5
%
25.2
%
Income tax expense
7.0
%
6.2
%
Net income
21.5
%
19.0
%
Less: Loss attributable to noncontrolling interest
%
%
Net income attributable to Cal-Maine Foods, Inc.
21.5
%
19.0
%
NET SALES
Total
 
net sales for the
 
first quarter of fiscal
 
2026 were $922.6
 
million, compared to
 
$785.9 million for
 
the same period of
 
fiscal
2025.
Shell egg
 
sales represented
 
85.6% and
 
94.4% of
 
total net
 
sales for
 
the first
 
quarters
 
of fiscal
 
2026 and
 
2025, respectively.
 
The
Company’s
 
shell
 
egg
 
offerings,
 
for
 
both
 
branded
 
and
 
private-label
 
products,
 
include
 
specialty
 
and
 
conventional
 
shell
 
eggs.
Specialty
 
shell
 
eggs
 
include
 
cage-free,
 
organic,
 
brown,
 
free-range,
 
pasture-raised
 
and
 
nutritionally
 
enhanced
 
shell
 
eggs.
Conventional shell
 
eggs sales represent
 
all other shell
 
egg sales not
 
sold as specialty
 
shell eggs.
 
The Company’s
 
prepared food
offerings
 
include
 
items
 
such
 
as
 
pre-cooked
 
egg
 
patties,
 
omelets,
 
folded
 
and
 
scrambled
 
egg
 
formats,
 
hard-cooked
 
eggs,
pancakes, waffles, and specialty wraps. Egg product
 
offerings include liquid and frozen egg products. Other
 
sales represent feed
sales, miscellaneous byproducts and resale products.
The table below presents net sales in key categories (in thousands, except percentage
 
data):
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
% Change
Shell Eggs
$
789,397
$
741,513
6.5
%
Prepared foods
83,936
8,938
839.1
Egg products
37,107
26,237
41.4
Other
12,162
9,183
32.4
Total net sales
$
922,602
$
785,871
17.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
22
The table below presents an analysis of our shell egg sales (in thousands,
 
except percentage data):
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
Shell egg sales
Conventional
$
505,941
64.1
%
$
484,736
65.4
%
Specialty
283,456
35.9
256,777
34.6
%
Total shell egg sales
$
789,397
100.0
%
$
741,513
100.0
%
Dozens sold
Conventional
199,293
62.8
%
199,989
64.5
%
Specialty
118,294
37.2
109,990
35.5
Total dozens sold
317,587
100.0
%
309,979
100.0
%
Net average selling price per dozen
Conventional
$
2.539
$
2.424
Specialty
$
2.396
$
2.335
All shell eggs
$
2.486
$
2.392
Shell egg sales
First Quarter – Fiscal 2026
 
vs. Fiscal 2025
-
In
 
the
 
first
 
quarter
 
of
 
fiscal
 
2026,
 
conventional
 
egg
 
sales
 
increased
 
$21.2
 
million,
 
or
 
4.4%,
 
compared
 
to
 
the
 
first
quarter of
 
fiscal 2025,
 
primarily due
 
to a
 
4.7% increase
 
in the
 
prices for
 
conventional eggs,
 
which resulted
 
in a
 
$22.9
million increase in net sales.
-
Specialty egg sales increased $26.7 million, or
 
10.4%, in the first quarter of fiscal 2026
 
compared to the first quarter of
fiscal 2025, primarily
 
due to a 7.5%
 
increase in the volume
 
of specialty dozens
 
sold, which resulted
 
in a $19.4 million
increase in
 
net sales
 
and a
 
2.6% increase
 
in prices
 
for specialty
 
eggs, which
 
resulted in
 
a $7.2
 
million increase
 
in net
sales.
-
Specialty egg
 
sales benefited
 
in the
 
first quarter
 
of fiscal
 
2026 from
 
increased specialty
 
egg production
 
due primarily
to
 
our
 
facilities
 
in
 
Kansas
 
and
 
Texas
 
being
 
fully
 
operational
 
during
 
the
 
quarter
 
as
 
well
 
as
 
organic
 
and
 
inorganic
growth.
-
See “Executive
 
Overview” above for
 
additional discussion of
 
factors impacting shell
 
egg sales for
 
the first quarters
 
of
fiscal 2026 and 2025.
During
 
first quarter
 
fiscal 2026,
 
a higher
 
proportion of
 
our conventional
 
eggs were
 
sold on
 
a hybrid
 
pricing model
 
that takes
into account both our
 
cost of production as
 
well as wholesale market
 
prices, instead of
 
solely market-based pricing,
 
in response
to
 
customer
 
demand.
 
We
 
believe
 
the
 
hybrid
 
pricing
 
arrangement
 
may
 
help
 
some
 
customers
 
better
 
plan
 
and
 
manage
 
their
businesses and
 
reinforces our
 
role as
 
a trusted
 
supplier.
 
Although hybrid
 
pricing may
 
reduce our
 
profitability when
 
egg prices
are
 
high,
 
compared
 
to
 
pure
 
market-based
 
pricing,
 
it
 
could
 
enhance
 
our
 
profitability
 
when
 
egg
 
prices
 
are
 
low,
 
and
 
lead
 
to
reduced volatility in our financial
 
results. A majority of our conventional
 
eggs continue to be priced and
 
sold under frameworks
that generally utilize market-based formulas tied to independently quoted
 
regional wholesale market quotes.
Prepared foods sales
First Quarter – Fiscal 2026
 
vs. Fiscal 2025
-
The
 
acquisition
 
of Echo
 
Lake
 
Foods
 
positively
 
impacted
 
our
 
net sales
 
with
 
an
 
increase of
 
$70.5
 
million
 
in revenue,
compared to the first quarter of fiscal 2025.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
23
Egg products sales
First Quarter – Fiscal 2026 vs. Fiscal 2025
-
Egg products sales increased $10.9
 
million or 41.4%, in the first
 
quarter of fiscal 2026, compared
 
to the first quarter of
fiscal
 
2025,
 
primarily
 
due
 
to
 
a
 
37.8%
 
increase
 
in
 
the
 
net
 
average
 
selling
 
price
 
per
 
pound
 
sold,
 
resulting
 
in
 
a
 
$10.2
million increase in net sales.
COST OF SALES
Cost of
 
sales consists
 
of
 
costs directly
 
related
 
to producing,
 
processing
 
and
 
packing
 
shell eggs,
 
purchases
 
of
 
shell
 
eggs from
outside
 
sources,
 
processing and
 
packing of
 
prepared foods
 
and
 
egg products
 
,
 
and other
 
non-egg
 
costs. Farm
 
production
 
costs
are
 
those costs
 
incurred
 
at
 
our egg
 
production
 
facilities,
 
including
 
feed,
 
facility (including
 
labor), hen
 
amortization
 
and other
related farm production costs.
The following table presents our cost of sales (in thousands):
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
%
Change
Cost of sales
Farm production
$
259,927
$
241,701
7.5
%
Processing, packaging, and warehouse - shell eggs
101,147
91,711
10.3
Egg purchases and other cost of sales
163,594
168,449
(2.9)
Prepared foods
65,214
10,115
544.7
Egg products
21,406
26,677
(19.8)
Total cost of sales
$
611,288
$
538,653
13.5
%
Farm production costs (per dozen produced)
Feed
$
0.473
$
0.494
(4.3)
%
Other
$
0.458
$
0.421
8.8
%
Total farm production
 
cost
$
0.931
$
0.915
1.7
%
Dozens produced
282,374
266,839
5.8
%
Percent produced to sold
88.9%
86.1%
3.3
%
First Quarter – Fiscal 2026
 
vs. Fiscal 2025
-
Feed costs decreased 4.3% in the
 
first quarter of fiscal 2026, compared
 
to the first quarter of fiscal 2025.
 
This decrease
was primarily
 
due
 
to
 
lower prices
 
for
 
soybean
 
meal,
 
one
 
of our
 
primary
 
feed
 
ingredients.
 
The
 
decrease
 
in
 
feed
 
cost
resulted in
 
a decrease
 
in cost
 
of sales
 
of $5.9
 
million for
 
the first
 
quarter of
 
fiscal 2026
 
compared to
 
the prior
 
period
quarter.
 
-
For the
 
first quarter
 
of fiscal
 
2026, the
 
average Chicago
 
Board of
 
Trade
 
(“CBOT”) daily
 
market price
 
was $4.23
 
per
bushel
 
for
 
corn
 
and
 
$281.75
 
per
 
ton
 
for
 
soybean
 
meal,
 
representing
 
an
 
increase
 
of
 
4.9%
 
and
 
a
 
decrease
 
of
 
17.1%,
respectively, as compared
 
to the average CBOT daily market prices for the first quarter of fiscal 2025.
 
-
Other
 
farm
 
production
 
costs
 
increased
 
primarily
 
due
 
to
 
higher
 
facility
 
costs.
 
In
 
particular,
 
facility
 
costs
 
for
 
labor
increased 10.8% and we had increased spending for repairs and maintenance.
-
Prepared
 
foods
 
costs
 
increased
 
primarily
 
due
 
to
 
the
 
acquisition
 
of
 
Echo
 
Lake
 
Foods
 
which
 
increased
 
cost
 
of
 
sales
$51.7 million compared to the first quarter of fiscal 2025.
Current indications
 
for corn
 
and soybean
 
project a
 
favorable stocks-to-use
 
ratio for
 
us near
 
the levels
 
prevailing today
 
for the
remainder of
 
fiscal 2026; however,
 
as long as
 
outside factors remain
 
uncertain (including
 
trade and
 
tariff negotiations,
 
weather
patterns and global supply chain disruptions), volatility could remain.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
24
GROSS PROFIT
 
Gross profit
 
for the thirteen
 
weeks ended
 
August 30, 2025
 
was $311.3
 
million compared
 
to $247.2 million
 
for the same
 
period
of 2025.
 
The increase
 
was primarily
 
due to
 
higher net
 
average selling
 
prices for
 
shell eggs,
 
particularly for
 
conventional eggs,
and higher specialty volumes,
 
as well as lower feed ingredient prices and contributions from Echo Lake Foods.
SELLING, GENERAL, AND ADMINISTRATIVE
 
EXPENSES
Selling,
 
general,
 
and
 
administrative
 
(“SGA”)
 
expenses
 
include
 
costs
 
of
 
delivery,
 
marketing,
 
and
 
other
 
general
 
and
administrative expenses.
 
Delivery expense includes
 
contract trucking
 
expense and
 
all costs to
 
maintain and operate
 
our fleet of
trucks to
 
deliver products
 
to customers
 
including the
 
related payroll
 
expenses. Marketing
 
expense includes
 
franchise fees
 
that
are
 
submitted
 
to
 
Eggland’s
 
Best,
 
Inc.
 
(“EB”)
 
to
 
support
 
the
 
EB
 
brand,
 
brokerage
 
and
 
commission
 
fees,
 
and
 
other
 
general
marketing
 
expenses
 
such
 
as payroll
 
expenses
 
for
 
our
 
in-house
 
sales team.
 
Other
 
general
 
and
 
administrative
 
expenses
 
include
corporate payroll
 
related expenses
 
and other
 
general corporate
 
overhead costs.
 
The following
 
table presents
 
an analysis
 
of our
SGA expenses (in thousands):
Thirteen Weeks
 
Ended
August 30, 2025
August 31, 2024
$ Change
% Change
Delivery expense
$
26,043
$
21,064
$
4,979
23.6
%
Marketing expense
14,462
14,352
110
0.8
%
Other general and administrative expenses
29,009
26,516
2,493
9.4
%
Total
$
69,514
$
61,932
$
7,582
12.2
%
First Quarter – Fiscal 2026
 
vs. Fiscal 2025
-
Delivery
 
expense
 
increased
 
due
 
to
 
increased
 
sales
 
volumes
 
from
 
the
 
acquisition
 
of
 
Echo
 
Lake
 
Foods
 
as
 
well
 
as
increased
 
sales volumes of specialty shell eggs.
-
In the first quarter of
 
fiscal 2026, other general and
 
administrative expenses increased 9.4% compared
 
to the prior year
period primarily due to the acquisition of Echo Lake Foods.
GAIN ON INVOLUNTARY
 
CONVERSION
In the first quarter of fiscal
 
2026, we recorded a gain
 
of $7.5 million due to business
 
interruption insurance recoveries
 
related to
a weather-related event that occurred in fiscal 2021.
OPERATING
 
INCOME
For the
 
first quarter
 
of fiscal
 
2026,
 
we recorded
 
operating income
 
of $249.2
 
million, compared
 
to operating
 
income of
 
$187.0
million for the same period of fiscal 2025.
OTHER INCOME (EXPENSE)
 
Total
 
other
 
income
 
(expense)
 
consists
 
of
 
items
 
not
 
directly
 
charged
 
or
 
related
 
to
 
operations,
 
such
 
as
 
interest
 
income
 
and
expense, equity
 
in income or
 
loss of unconsolidated
 
entities, and patronage
 
dividends,
 
among other items.
 
Patronage dividends
are paid to us from our membership in the EB cooperative.
For the first
 
quarter of fiscal
 
2026, we earned
 
$13.0 million of
 
interest income compared
 
to $9.9 million
 
for the same period
 
of
fiscal 2025,
 
primarily due to higher average
 
cash and cash equivalents and
 
investment securities available-for-sale balances
 
and
higher yields.
 
The Company recorded
 
interest expense of
 
$150 thousand and
 
$160 thousand for
 
the first quarters
 
ended August
30, 2025 and August 31, 2024, respectively.
INCOME TAXES
For the
 
first quarter
 
of fiscal
 
2026, our
 
pre-tax income
 
was $263.3
 
million, compared
 
to $198.0
 
million for
 
the first
 
quarter of
fiscal 2025. Income tax expense of $64.2 million was recorded
 
for first quarter 2026 with an effective tax
 
rate of 24.4%. For the
first quarter 2025, income tax expense was $48.4 million with an effective
 
tax rate of 24.4%.
 
 
 
 
 
 
 
 
 
 
 
Index
25
Items causing
 
our effective
 
tax rate
 
to differ
 
from the
 
federal statutory
 
income tax
 
rate of
 
21% are
 
state income
 
taxes, certain
federal tax
 
credits and
 
certain items included
 
in income or
 
loss for financial
 
reporting purposes that
 
are not included
 
in taxable
income or
 
loss for income
 
tax purposes, including
 
tax exempt interest
 
income, certain
 
nondeductible expenses,
 
and net income
or loss attributable to noncontrolling interest.
NET INCOME ATTRIBUTABLE
 
TO CAL-MAINE FOODS, INC.
Net income
 
attributable to
 
Cal-Maine Foods,
 
Inc. for
 
the first quarter
 
ended August
 
30, 2025
 
was $199.3
 
million, or
 
$4.13 per
basic and $4.12
 
per diluted common
 
share, compared to
 
net income attributable
 
to Cal-Maine Foods,
 
Inc. of $150.0
 
million, or
$3.08 per basic and $3.06 per diluted common share, for the same period of
 
fiscal 2025.
LIQUIDITY AND CAPITAL
 
RESOURCES
 
Working
 
Capital and Current Ratio
Our working capital
 
was $1.6 billion
 
at August 30, 2025
 
compared to $1.7 billion
 
at May 31, 2025.
 
The calculation of working
capital is defined
 
as current assets
 
less current
 
liabilities. Our current
 
ratio was 6.8
 
at August 30,
 
2025 compared
 
to 6.4 at
 
May
31, 2025.
 
The increase
 
in our
 
current ratio
 
is primarily
 
due to
 
a decrease
 
in dividends
 
payables. The
 
current ratio
 
is calculated
by dividing current assets by current liabilities.
Cash Flows from Operating Activities
For
 
the thirteen
 
weeks
 
ended August
 
30, 2025,
 
$278.6
 
million
 
in net
 
cash
 
was provided
 
by operating
 
activities,
 
compared
 
to
$117.5
 
million
 
provided
 
by
 
operating
 
activities
 
for
 
the
 
comparable
 
period
 
in
 
fiscal
 
2025.
 
The
 
increase
 
in
 
cash
 
flow
 
from
operating
 
activities
 
resulted
 
primarily
 
from
 
increased
 
revenue
 
from
 
shell
 
egg
 
sales,
 
compared
 
to
 
the
 
prior-year
 
period,
 
and
increased revenue from the acquisition of Echo Lake Foods.
Cash Flows from Investing Activities
For the thirteen
 
weeks ended August
 
30, 2025,
 
$409.7 million
 
was used in
 
investing activities, primarily
 
due to the
 
acquisition
of Echo Lake Foods and purchases of investments,
 
compared
 
to $135.9 million used in investing activities in the same period
 
of
fiscal 2025.
 
Purchases of investment
 
securities were $270.3
 
million during the
 
thirteen weeks ended
 
August 30, 2025
 
and sales
and
 
maturities
 
of
 
investment
 
securities
 
were
 
$181.1
 
million
 
during
 
the
 
period.
 
Sales
 
and
 
maturities
 
of
 
investment
 
securities
were $202.2
 
million
 
in the
 
prior
 
year
 
period
 
while purchases
 
of investment
 
securities
 
were
 
$209.7
 
million
 
during
 
the period.
Cash
 
paid
 
for
 
business
 
acquisitions,
 
net
 
of
 
cash
 
acquired,
 
was
 
$275.3
 
million
 
in
 
the
 
thirteen
 
weeks
 
ended
 
August
 
30,
 
2025
related
 
to
 
the
 
Echo
 
Lake
 
Foods
 
acquisition,
 
and
 
$111.5
 
million
 
in
 
the
 
prior-year
 
period,
 
related
 
to
 
the
 
ISE
 
acquisition.
Purchases of
 
property,
 
plant and
 
equipment were
 
$45.3 million
 
and $35.8
 
million in
 
the first
 
quarter of
 
fiscal 2026
 
and 2025,
respectively, primarily
 
reflecting progress on our construction projects.
Cash Flows from Financing Activities
We
 
paid
 
dividends
 
of
 
$114.2
 
million
 
for
 
the
 
thirteen
 
weeks
 
ended
 
August
 
30,
 
2025,
 
compared
 
to
 
$37.8
 
million
 
in
 
the
 
same
prior-year period.
Net Change in Cash and Cash Equivalents
As of
 
August
 
30,
 
2025,
 
cash
 
and
 
cash
 
equivalents
 
decreased
 
$245.3
 
million
 
since
 
May
 
31,
 
2025,
 
compared
 
to
 
a
 
decrease
 
of
$56.2
 
million during
 
the same
 
period of
 
fiscal 2025.
 
The decrease
 
is primarily
 
due to
 
the cash
 
paid for
 
the Echo
 
Lake Foods
acquisition and higher dividends paid during the first quarter of fiscal 2026.
Credit Facility
On
 
November
 
15,
 
2021,
 
we
 
entered
 
into
 
a
 
credit
 
agreement
 
that
 
provides
 
for
 
a
 
senior
 
secured
 
revolving
 
credit
 
facility
 
(the
“Credit Facility”),
 
in an initial
 
aggregate principal
 
amount of up
 
to $250 million
 
with a five-year
 
term. As of
 
August 30, 2025,
no
 
amounts
 
were
 
borrowed
 
under
 
the
 
Credit
 
Facility
 
and
 
we
 
had
 
$4.7
 
million
 
in
 
outstanding
 
standby
 
letters
 
of
 
credit
 
issued
under our Credit Facility for the benefit of certain insurance companies.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
26
Share Repurchase Program
In February
 
2025, the Company’s
 
Board of
 
Directors (“Board”)
 
approved a $500
 
million share
 
repurchase program.
 
The share
repurchase program
 
authorizes the
 
Company,
 
in management’s
 
discretion, to
 
repurchase Common
 
Stock from
 
time to
 
time for
an
 
aggregate
 
purchase
 
price
 
up
 
to
 
$500
 
million
 
(exclusive
 
of
 
any
 
fees,
 
taxes,
 
commissions
 
or
 
other
 
expenses
 
related
 
to
 
such
repurchases), subject
 
to market
 
conditions and
 
other factors.
 
The actual
 
timing, number
 
and value
 
of shares
 
repurchased under
the
 
program
 
will
 
be
 
determined
 
by
 
management
 
in
 
its
 
discretion
 
and
 
will
 
depend
 
on
 
a
 
number
 
of
 
factors,
 
including,
 
but
 
not
limited to,
 
the market
 
price
 
of the
 
Common Stock
 
and general
 
market
 
and economic
 
conditions.
 
No shares
 
were repurchased
under the
 
repurchase
 
program during
 
the first
 
quarter of
 
fiscal 2026.
 
As of
 
the end
 
of the
 
first quarter
 
of fiscal
 
2026, we
 
had
remaining authorization to purchase up to $450 million under the repurchase
 
program.
The Company expects to strategically
 
and opportunistically repurchase shares
 
from time to time through solicited
 
or unsolicited
transactions in
 
the open
 
market, in
 
privately negotiated
 
transactions or
 
by other
 
means in accordance
 
with securities
 
laws. The
Company expects that share
 
repurchases under the program
 
will be funded from
 
one or a combination of
 
existing cash balances
and future
 
free cash
 
flow.
 
The share
 
repurchase program
 
does not
 
obligate the
 
Company to
 
repurchase any
 
specific amount
 
of
shares, does not have an expiration date, and may be suspended, modified or
 
discontinued at any time without prior notice.
 
Dividends
In
 
accordance
 
with
 
our
 
variable
 
dividend
 
policy,
 
we
 
will
 
pay
 
a
 
cash
 
dividend
 
totaling
 
approximately
 
$66.5
 
million,
 
or
approximately $1.370
 
per share,
 
to holders
 
of our
 
Common Stock
 
with respect
 
to our
 
first quarter
 
of fiscal
 
2026. The
 
amount
paid per
 
share will
 
vary based
 
on the
 
number of
 
outstanding shares
 
on the
 
record date.
 
The dividend
 
is payable
 
on November
13, 2025 to holders of record on October 29, 2025.
 
Material Cash Requirements
Material cash
 
requirements for
 
operating activities
 
primarily consist
 
of feed
 
ingredients, processing,
 
packaging and
 
warehouse
costs, employee related
 
costs, and other
 
general operating expenses,
 
which we expect
 
to be paid
 
from our cash
 
from operations
and cash and
 
investment securities on
 
hand for at
 
least the next
 
12 months. While
 
volatile egg prices
 
and feed ingredient
 
costs,
among
 
other
 
things,
 
make
 
long-term
 
predictions
 
difficult,
 
we
 
have
 
substantial
 
liquid
 
assets
 
and
 
availability
 
under
 
our
 
Credit
Facility to fund future operating requirements.
Our material
 
cash requirements
 
for capital
 
expenditures consist
 
primarily of
 
our construction
 
projects to increase
 
our cage-free
production capacity.
 
We continue to monitor
 
the increasing demand for cage-free eggs and engage
 
with our customers in efforts
to achieve
 
a smooth
 
transition toward
 
their announced
 
timelines for
 
cage-free egg
 
sales. The
 
following table
 
presents material
construction projects approved as of August 30, 2025 (in thousands):
Project(s) Type
Projected
 
Completion
Projected Cost
Spent as of August
30, 2025
Remaining
Projected Cost
Feed Mills
Fiscal 2026
$
9,800
$
 
7,386
$
 
2,414
Prepared Foods Expansion
Fiscal 2026
14,853
-
14,853
Egg Products Expansion
Fiscal 2026
19,582
15,891
3,691
Cage-Free Layer & Pullet Houses
Fiscal 2026
213,107
186,976
26,131
$
257,342
$
210,253
$
47,089
We
 
believe our
 
current cash
 
balances, investments,
 
projected cash
 
flows from
 
operations, and
 
available borrowings
 
under our
Credit Facility
 
will be
 
sufficient
 
to fund
 
our cash
 
needs for
 
at least
 
the next
 
12 months
 
and
 
to fund
 
our
 
capital commitments
currently in place thereafter.
 
Future acquisitions of businesses may require additional financing.
IMPACT OF
 
RECENTLY
 
ISSUED ACCOUNTING STANDARDS
For information on changes in accounting
 
principles and new accounting principles
 
,
 
see “
New Accounting Pronouncements
 
and
Policies”
in
Note 1 - Summary of Significant Accounting Policies
 
of
 
the
 
Notes
 
to
 
Condensed
 
Consolidated
 
Financial
Statements included in this Quarterly Report.
Index
27
CRITICAL ACCOUNTING ESTIMATES
 
Critical accounting
 
estimates
 
are those
 
estimates
 
made
 
in accordance
 
with U.S.
 
generally
 
accepted
 
accounting
 
principles that
involve
 
a
 
significant
 
level
 
of
 
estimation
 
uncertainty
 
and
 
have
 
had
 
or
 
are
 
reasonably
 
likely
 
to
 
have
 
a
 
material
 
impact
 
on
 
our
financial
 
condition
 
or results
 
of operations.
 
There
 
have been
 
no changes
 
to our
 
critical accounting
 
estimates identified
 
in our
2025 Annual Report.
ITEM 3. QUANTITATIVE
 
AND QUALITATIVE
 
DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our exposure to market risk during the
 
thirteen weeks ended August 30, 2025 from the
information provided in Part II Item 7A, Quantitative and Qualitative Disclosures About
 
Market Risk in our 2025 Annual
Report.
ITEM 4.
 
CONTROLS
AND
PROCEDURES
Disclosure Controls and Procedures
Our disclosure
 
controls and
 
procedures are
 
designed to
 
provide reasonable
 
assurance that
 
information required
 
to be
 
disclosed
by us in the reports
 
we file or submit
 
under the Exchange Act
 
is recorded, processed, summarized
 
and reported, within the
 
time
periods
 
specified
 
in
 
the
 
SEC’s
 
rules
 
and
 
forms. Disclosure
 
controls
 
and
 
procedures
 
include,
 
without
 
limitation,
 
controls
 
and
procedures
 
designed
 
to
 
ensure
 
that
 
information
 
required
 
to be
 
disclosed
 
by us
 
in
 
the reports
 
that
 
we
 
file
 
or
 
submit under
 
the
Exchange
 
Act
 
is
 
accumulated
 
and
 
communicated
 
to
 
management,
 
including
 
our
 
principal
 
executive
 
and
 
principal
 
financial
officers, or
 
persons performing
 
similar functions, as
 
appropriate to allow
 
timely decisions regarding
 
required disclosure. Based
on
 
an
 
evaluation
 
of
 
our
 
disclosure
 
controls
 
and
 
procedures
 
conducted
 
by
 
our
 
Chief
 
Executive
 
Officer
 
and
 
Chief
 
Financial
Officer,
 
together
 
with
 
other
 
financial
 
officers,
 
such
 
officers
 
concluded
 
that
 
our
 
disclosure
 
controls
 
and
 
procedures
 
were
effective as of August 30, 2025 at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
There
 
was no
 
change
 
in our
 
internal control
 
over financial
 
reporting
 
that occurred
 
during the
 
quarter
 
ended
 
August
 
30, 2025
that has materially affected, or is reasonably likely to materially affect,
 
our internal control over financial reporting.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
28
PART
 
II. OTHER INFORMATION
ITEM 1.
 
LEGAL PROCEEDINGS
Refer
 
to
 
the
 
discussion
 
of
 
certain
 
legal
 
proceedings
 
involving
 
the
 
Company
 
and/or
 
its
 
subsidiaries
 
in
 
(i)
 
our
 
2025
 
Annual
Report,
 
Part
 
I
 
Item
 
3
 
Legal
 
Proceedings,
 
and
 
Part
 
II
 
Item 8,
 
Notes
 
to
 
Consolidated
 
Financial
 
Statements
 
and
 
Supplementary
Data,
 
Note
 
16
 
-
 
Commitments
 
and
 
Contingencies,
 
and
 
(ii)
 
in
 
this
 
Quarterly
 
Report
 
in
Note 10
- Commitments and
Contingencies
 
of
 
the
 
Notes
 
to
 
Condensed
 
Consolidated
 
Financial
 
Statements,
 
which
 
discussions
 
are
 
incorporated
 
herein
 
by
reference.
ITEM 1A.
 
RISK
FACTORS
There have been no material changes in the risk factors previously disclosed in
 
the 2025 Annual Report.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
 
PROCEEDS
 
The following table is a summary of our first quarter 2026 share repurchases:
Issuer Purchases of Equity Securities
Total
 
Number of
Maximum Approximate
Shares Purchased
Dollar Value
 
of
Total
 
Number
Average
as Part of Publicly
Shares that May Yet
of Shares
Price Paid
Announced Plans
Be Purchased Under
Period
Purchased (a)
per Share
Or Programs
the Plans or Programs (b)
06/01/25 to 06/28/25
194
$
98.13
$
06/29/25 to 07/26/25
07/27/25 to 08/30/25
450,000,034
194
$
98.13
$
450,000,034
(a)
As permitted
 
under our
 
Amended and
 
Restated 2012
 
Omnibus Long-Term
 
Incentive Plan,
 
194 shares
 
were withheld
 
by us
 
to satisfy
 
tax withholding
obligations for employees in connection with the vesting of restricted
 
common stock.
 
(b)
In
 
February
 
2025,
 
the
 
Company
 
announced
 
a
 
$500
 
million
 
share
 
repurchase
 
program.
 
The
 
share
 
repurchase
 
program
 
authorizes
 
the
 
Company,
 
in
management’s discretion, to
 
repurchase shares of Common Stock from
 
time to time for
 
an aggregate purchase price up
 
to $500 million (exclusive of
 
any fees,
taxes, commissions
 
or other
 
expenses related
 
to
 
such repurchases),
 
subject to
 
market conditions
 
and
 
other
 
factors. The
 
share
 
repurchase program
 
does not
obligate the Company
 
to repurchase any
 
specific amount of
 
shares, does not
 
have an expiration
 
date, and may
 
be suspended, modified
 
or discontinued at
 
any
time without prior notice.
ITEM 5.
 
OTHER INFORMATION
During
 
the first
 
quarter of
 
fiscal 2026,
 
no director
 
or officer
 
of the
 
Company
adopted
 
or
terminated
 
any
 
Rule 10b5-1
 
trading
arrangement or
non-Rule
10b5-1
 
trading arrangement, as such terms are defined in Item 408(a) of Regulation S-K.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Index
29
ITEM 6. EXHIBITS
Exhibits
No.
Description
2.1
Echo Lake Purchase Agreement (incorporated by reference to Exhibit 10.5 to the Registrant’s Form 10-Q,
filed April 8, 2025)
3.1
Fourth Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to
Exhibit 4.1 in the Registrant’s Form S-3, filed April 15, 2025, Registration No. 333-286548)
3.2
Amended and Restated Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the
Registrant’s Form 8-K, filed March 27, 2025)
31.1*
Rule 13a-14(a) Certification of the Chief Executive Officer
31.2*
Rule 13a-14(a) Certification of the Chief Financial Officer
32**
Section 1350 Certification of the Chief Executive Officer and the Chief Financial Officer
101.SCH*+
Inline XBRL Taxonomy
 
Extension Schema Document
101.CAL*+
Inline XBRL Taxonomy
 
Extension Calculation Linkbase Document
101.DEF*+
Inline XBRL Taxonomy
 
Extension Definition Linkbase Document
101.LAB*+
Inline XBRL Taxonomy
 
Extension Label Linkbase Document
101.PRE*+
Inline XBRL Taxonomy
 
Extension Presentation Linkbase Document
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained
 
in Exhibit 101)
 
*
Filed herewith as an Exhibit.
 
**
Furnished herewith as an Exhibit.
+
Submitted electronically with this Quarterly Report.
 
 
Index
30
SIGNATURES
Pursuant to
 
the requirements
 
of the Securities
 
Exchange Act
 
of 1934,
 
the registrant has
 
duly caused
 
this report
 
to be signed
 
on
its behalf by the undersigned, thereunto duly authorized.
CAL-MAINE FOODS, INC.
(Registrant)
Date:
 
October 1, 2025
/s/ Max P.
 
Bowman
Max P.
 
Bowman
Vice President, Chief Financial
 
Officer
(Principal Financial Officer)
໿
Date:
 
October 1, 2025
/s/ Matthew S. Glover
Matthew S. Glover
Vice President – Accounting
(Principal Accounting Officer)
໿
Cal Maine Foods Inc

NASDAQ:CALM

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4.56B
43.72M
9.84%
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10.09%
Farm Products
Consumer Defensive
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United States
RIDGELAND