Sep 30, 2026, 6:07 AM ETConsumer Defensive

Cal-Maine Foods — First Quarter Fiscal 2027 Earnings Summary

CALMCAL-MAINE FOODS INC

Financial Performance

Net sales decreased 41.5% year-over-year to $539.6 million from $922.6 million in the prior-year period.
Gross profit declined 99.9% to $403,000 compared to $311.3 million in the prior-year period.
Operating loss was $82.2 million, a significant deterioration from operating income of $249.2 million in the prior-year period.
Net loss attributable to Cal-Maine Foods, Inc. was $58.6 million, compared to net income of $199.3 million in the prior-year period.
Diluted loss per share was $1.26, compared to diluted earnings per share of $4.12 in the prior-year period.
Cash and short-term investments were $767.6 million as of August 29, 2026, down from $924.1 million as of May 30, 2026.
Total assets were $3.01 billion as of August 29, 2026, compared to $3.11 billion as of May 30, 2026.

Management expects Prepared Foods production capacity to increase by more than 60% by the first half of fiscal 2028 compared to fiscal 2026 year-end.
Management stated they cannot precisely predict when the conventional shell egg market will rebalance but have greater visibility into when Prepared Foods investments will translate into earnings contributions.
The company aims to build a more diversified and durable earnings profile through continued investment in Specialty Shell Eggs and Prepared Foods.

Conventional Shell Eggs: Net sales decreased 59.5% to $201.7 million, driven by a 59.3% drop in average selling price per dozen while volume remained relatively flat (down 0.7%). Segment operating loss was $71.0 million compared to income of $168.2 million in the prior year.
Specialty Shell Eggs: Net sales decreased 14.0% to $236.9 million, reflecting a 10.7% decrease in average selling price and a 3.8% decrease in volume. Segment operating income was $14.9 million, down from $64.2 million in the prior year.
Prepared Foods: Net sales decreased 13.0% to $63.0 million, driven by a 19.3% decrease in pounds sold due to temporary production reductions for capacity expansion, partially offset by a 7.9% increase in average selling price per pound. Segment operating income was $7.8 million, down from $13.2 million in the prior year.
Prepared Foods accounted for 11.7% of net sales in Q1 2027, up from 7.8% in the prior year.
Combined Specialty Shell Eggs and Prepared Foods represented 54.1% of net sales in Q1 2027, up from 37.1% in the prior year.
The company acquired additional Eggland's Best franchise territory in the Northeast to expand distribution footprint.

The conventional shell egg market is currently characterized by an industry supply imbalance resulting from layer flock repopulation during fiscal 2026.
Pricing pressure in the conventional shell egg sector is attributed to abundant supply and historically softer seasonal pricing.
Underlying demand for eggs remains healthy despite pricing pressures.
Specialty shell egg volumes in the current quarter reflected a more typical demand relationship compared to the prior year, which benefited from atypical pricing relationships.

The company faces risks related to the current outbreak of Highly Pathogenic Avian Influenza (HPAI) affecting poultry in the U.S., Canada, and other countries.
Risks include increases in feed costs for shell egg operations and input costs for prepared foods.
Potential for product recalls, disease, pests, and weather conditions remain inherent risks.
The company must recover a cumulative loss of $94.5 million before paying future dividends under its variable dividend policy.

Sherman Miller, President and CEO, noted that results reflect the current point in the conventional shell egg cycle and the evolution of the company's earnings model.
Management emphasized that current earnings do not fully reflect the through-cycle earnings power being built due to difficult commodity cycle conditions and simultaneous investments ahead of growth.
Management expressed confidence in the company's strong balance sheet and ability to invest through the cycle to build a diversified earnings profile.

The company repurchased 66,601 shares for $5.0 million during the first quarter of fiscal 2027.
The share repurchase program allows for up to $500 million, with $315.7 million remaining available as of the end of the first quarter.
Subsequent to the quarter, the company repurchased 204,888 shares for $14.9 million.
No cash dividend was paid for the first quarter of fiscal 2027; no dividend will be paid for a subsequent profitable quarter until the cumulative loss of $94.5 million is recovered.
The company reported a loss on disposal of fixed assets of $916,000, compared to $104,000 in the prior year.
There was no gain on involuntary conversion in the current quarter, compared to a gain of $7.5 million in the prior year.