Cal-Maine Foods loses momentum as egg prices weaken

RIDGELAND, MISS. — After benefiting from, at times, record-high egg prices during fiscal 2025, Cal-Maine Foods’ financial performance was impacted by weakening egg prices during the second quarter of fiscal 2026. Adding to the pressure was the decision to slow production in the company’s prepared foods business to remodel and expand processing capacity.

“Despite the impact of eggs prices, we believe our performance in the second quarter and first half of the fiscal year demonstrates strength and momentum,” said Sherman Miller, president and chief executive officer. “We delivered solid results compared to a prior year marked by supply-demand imbalances and historic price levels. 

“With lower egg prices, our increasingly diversified business model, paired with disciplined execution, proved to be a source of resilience. In our view, this positions us as a rare combination of value and growth — an advantage poised to strengthen over time.”

During the quarter ended Nov. 29, Cal-Maine Foods earned $103 million, equal to $2.14 per share on the common stock, down 53% from $219 million, or $4.49 per share, in the same period a year ago.

Quarterly sales fell 24% to $770 million from $955 million the year before.

Cal-Maine Foods attributed its lower prepared foods sales during the second quarter compared to the first quarter to remodeling and expansion projects at its facilities.

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During the quarter, total shell egg sales decreased 28%, with 27% lower selling prices and 2% lower sales volume, according to the company. Conventional egg sales decreased 41%, with 39% lower selling prices and 4% lower sales volume. Specialty egg sales decreased 0.4%, with 0.8% lower selling prices and 0.3% higher sales volume.

Prepared foods sales were $72 million during the quarter, which compared with $10 million during the same period of the year before. Compared with the first quarter of fiscal 2026, prepared foods sales fell 15% to $84 million.

The company attributed the lower sales during the second quarter compared to the first quarter to remodeling and expansion projects at its prepared foods facilities. In addition to installing a pancake processing line, the company is consolidating its scrambled egg manufacturing into a single facility.

“With our recently announced expansions, we are positioning our prepared foods business to deliver sustained double-digit volume growth,” Miller said.

The company did not issue guidance for the second half of fiscal 2026, but Miller said about the company’s future, “Cal-Maine is systematically advancing a structural upgrade in the egg category from a position of strength. While the market has long viewed us as a pure commodity business, we are focused on becoming a higher-value, more stable earnings platform as consumer demand shifts toward specialty, premium, and convenient protein solutions.

“Our core shell-egg business provides a durable foundation, while specialty eggs, more hybrid pricing arrangements, and prepared foods are driving sales mix improvement, deeper customer engagement, and a higher earnings floor with more predictable and resilient results. This is not a pivot — it is a disciplined evolution of an essential food business into a more diversified platform with multiple growth engines and opportunity for improved long-term earnings visibility.”