CAL-MAINE FOODS INC
For the period ended Nov 29, 2025. Filed Jan 7, 2026.
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Nov 29, 2025 · Filed Jan 7, 2026
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Item 2. 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.
Net sales
100.0
%
100.0
%
100.0
%
100.0
%
73.0
%
62.7
%
69.3
%
65.3
%
Gross profit
27.0
%
37.3
%
30.7
%
34.7
%
Selling, general and administrative
10.8
%
8.1
%
9.0
%
8.0
%
(Gain) loss on involuntary conversions
—
%
—
%
(0.4)
%
—
%
(Gain) loss on disposal of fixed assets
0.1
%
—
%
—
%
(0.1)
%
Operating income
16.1
%
29.2
%
22.1
%
26.8
%
Total other income, net
1.6
%
1.1
%
1.6
%
1.3
%
Income before income
taxes
17.7
%
30.3
%
23.7
%
28.1
%
Income tax expense
4.3
%
7.4
%
5.8
%
6.8
%
13.4
%
22.9
%
17.9
%
21.3
%
Less: Income (loss) attributable to
—
%
(0.1)
%
—
%
(0.1)
%
Net income attributable to Cal-Maine
13.4
%
23.0
%
17.9
%
21.4
%
Index
NET SALES
Total
net sales
for the
2026 were
$769.5 million
,
$954.7 million
for the
of
Shell egg
sales represented 84.4%
and 94.6%
of total
net sales
for the
second quarters
2026 and
2025, respectively.
shell egg offerings,
for both branded and private-label products, include specialty and conventional shell eggs.
shell
eggs
include
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.
prepared food
offerings
include
items
such
as
pre-cooked
egg
patties,
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.
Total net sales for both the twenty-six weeks ended November
29, 2025 and November 30, 2024 was
$1.7 billion.
Shell
egg
sales
represented
85.0%
and
94.5%
of
total
net
sales
for
the
weeks
ended
29,
and
November 30, 2024, respectively.
The table below presents net sales in key
categories (in thousands, except
percentage data):
Shell Eggs
$
649,567
$
903,861
(28.1)
%
$
1,438,964
$
1,645,374
(12.5)
%
71,650
10,439
586.4
155,586
19,377
702.9
34,531
30,212
14.3
71,638
56,449
26.9
Other
13,750
10,159
35.3
25,912
19,342
34.0
Total net sales
$
769,498
$
954,671
(19.4)
%
$
$
(2.8)
%
The table below presents an analysis of
our shell egg sales (in thousands, except
percentage data):
Shell egg sales
$
363,865
56.0
%
$
616,891
68.3
%
$
869,806
60.4
%
$
1,101,627
67.0
%
285,702
44.0
286,970
31.7
%
569,158
39.6
543,747
33.0
Total shell egg sales
$
649,567
100.0
%
$
903,861
100.0
%
$
1,438,964
100.0
%
$
1,645,374
100.0
%
Dozens sold
201,963
62.6
%
209,597
63.5
%
401,256
62.7
%
409,586
64.0
%
120,623
37.4
120,247
36.5
238,917
37.3
230,237
36.0
Total dozens sold
322,586
100.0
%
329,844
100.0
%
640,173
100.0
%
639,823
100.0
%
Net average selling price
per dozen
$
1.802
$
2.943
$
2.168
$
2.690
$
2.369
$
2.387
$
2.382
$
2.362
All shell eggs
$
2.014
$
2.740
$
2.248
$
2.572
Shell egg sales
In
the
second
fiscal
2026,
egg
sales
decreased $253.0
or
41.0%,
the
second quarter of fiscal 2025, primarily due to a
38.8
%
decrease in the prices for conventional eggs, which resulted in
a $230.4 million
decrease in net sales and a 3.6%
decrease in the volume
of conventional dozens sold, which resulted
in a $19.9 million decrease
in net sales.
Index
egg
sales
decreased $1.3
or
0.4%, in
the
second
fiscal
2026,
the
second
quarter of fiscal
2025, primarily
due to
a 0.8%
decrease in prices
for specialty
eggs, which resulted
in a
$2.1 million
net sales,
offset by
a 0.3%
the
volume of
specialty eggs
sold, which
resulted in
$1.0 million
See “Executive Overview” above for additional discussion of factors impacting shell
egg sales for the second quarters
of fiscal 2026 and 2025.
For
the
weeks
ended
29,
2025,
egg
sales
decreased $231.8
or
21.0%,
the
same
period
of
fiscal
2025,
due
to
a
the
prices
for
shell
eggs.
Prices for
conventional eggs
decreased 19.4%,
which resulted
in
a $209.5
million
net sales,
and a
2.0%
decrease in the volume of conventional eggs
sold resulted in a $22.4 million decrease
in net sales.
Specialty egg sales increased $25.4 million, or 4.7%, for the twenty-six weeks ended November 29, 2025 compared to
the
same
period
in
fiscal
2025,
due
to
an
the
volume
of
eggs
sold.
The
volume
of
specialty eggs sold increased 3.8%, which resulted in
a $20.5 million increase in net sales,
and the prices for specialty
eggs increased 0.8%, which resulted
in a $4.8 million increase in net sales.
During the first two
quarters of 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.
Prepared foods sales
The acquisition
of Echo
positively impacted our
net
sales with
an increase
of $56.6
revenue,
compared to the second quarter
of fiscal 2025.
net
sales increased
$136.2
fiscal
2025,
due to
the
$127.1
million in revenue from the acquisition
of Echo Lake Foods in the first quarter
of fiscal 2026.
Egg products sales
Egg
products sales
increased $4.3
or 14.3%,
in
the
second
fiscal 2026,
the
second
primarily due
to
a 10.1%
the net
price, resulting
in a
$3.0 million
Egg
products sales
increased $15.2
or 26.9%,
primarily due
to
increased net
price. The
net
average
selling
price
increased
17.0%,
resulting
in
a
$10.4
million
in
net
sales,
and
an
8.5%
in
pounds sold, resulted in a $5.6 million
Index
COST OF SALES
consists of costs
directly related to producing, processing and packaging shell
eggs, purchases of shell eggs from
outside sources,
processing and
packing of
prepared foods
and egg
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):
%
Change
%
Change
Farm production
$
263,794
$
258,246
2.1
%
$
523,721
$
499,947
4.8
%
Processing, packaging,
and warehouse - shell
eggs
103,916
98,823
5.2
205,063
190,534
7.6
Egg purchases and other
cost of sales
112,109
198,030
(43.4)
275,703
366,479
(24.8)
57,583
11,626
395.3
122,797
21,741
464.8
24,710
31,904
(22.5)
46,116
58,581
(21.3)
Total cost of sales
$
562,112
$
598,629
(6.1)
%
$
1,173,400
$
1,137,282
3.2
%
Farm production costs (per
dozen produced)
Feed
$
0.477
$
0.483
(1.2)
%
$
0.475
$
0.488
(2.7)
%
Other
$
0.449
$
0.418
7.4
%
$
0.453
$
0.421
7.6
%
Total farm production cost
$
0.926
$
0.901
2.8
%
$
0.928
$
0.909
2.1
%
Dozens produced
289,886
288,035
0.6
%
572,260
554,874
3.1
%
Percent produced to sold
89.9%
87.3%
3.0
%
89.4%
86.7%
3.1
%
Farm
production costs
increased 2.1%
due to
increased production
costs
to
run our
facilities,
specifically
within labor and repairs and maintenance,
partially offset by a 1.2% decrease
in feed costs.
Processing, packaging and
warehouse increased $5.1
as our
processing costs
and packing
materials
cost per
dozen increased 5%
which had a $4.7 million increase
Egg
purchases and
other
cost
of
sales
decreased
$85.9
due
to
a
29.7%
the
price
of
outside egg purchases compared
to the second quarter of fiscal 2025, which resulted
in a $61.0 million decrease in cost
of sales, and a 11.5%
decrease in the volume of outside egg purchases,
compared to the second quarter of fiscal 2025,
which resulted in a $26.6 million decrease
costs
increased primarily
due
to
the
acquisition of
Echo
Lake
Foods
which increased
cost
of
sales
$42.9 million compared to the second
quarter of fiscal 2025.
Farm
production costs
increased 4.8%
due to
eggs
produced, which
in
$15.8
million
increase in cost of sales, and a 2.1% increase in production costs.
This increase was primarily due to the same reasons
as described above.
Processing, packaging and warehouse increased $14.5 million,
as our processing costs and
packing materials
cost per
dozen increased 5% which had
a $9.2 million
increase in cost of sales,
as well as
increase volume of
eggs processed,
which resulted in $3.5 million increase
in cost of sales
Index
Egg
purchases and
other
cost
of
sales
decreased
$90.8
due
to
a
14.9%
the
price
of
outside egg
purchases compared to
the same
prior-year period,
which resulted
in a
$57.3
million decrease in
cost of
sales, and
a
9.6% decrease
in
the
volume
of outside
egg
purchases compared
to
the
same
period, which
resulted in a $41.1 million decrease
costs
increased primarily
due
to
the
acquisition of
Echo
Lake
Foods
which increased
cost
of
sales
$94.6 million compared to the twenty-six weeks
ended November 30, 2024.
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.
GROSS PROFIT
Gross profit for the second
quarter of fiscal 2026 was $207.4 million, compared to $356.0 million for
the same period of 2025.
The decrease
was primarily
driven by
26.5% lower
net
prices
for shell
eggs
and 2.2%
lower shell
egg sales
volume,
offset
partially by
lower egg
prices for
outside purchases
and a
3% increase
in
percent produced
to
sold,
as well
as
contributions from prepared
foods.
Gross profit for the twenty-six
weeks ended November 26, 2025 was $518.7
million, compared to $603.3 million
for the same
period of 2026.
The decrease was primarily driven by 12.6% lower net
average selling prices
for shell eggs, offset
partially by
a decrease in the price and
volume of outside egg purchases, as dozens produced increased 3.1%, as well
as contributions from
prepared foods.
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES
Selling,
general,
and
administrative
(“SGA”)
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 tha
t
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):
$ Change
Delivery expense
$
26,402
$
23,666
$
2,736
11.6
%
Marketing expense
14,686
15,074
(388)
(2.6)
%
Other general and administrative expenses
41,799
38,893
2,906
7.5
%
Total
$
82,887
$
77,633
$
5,254
6.8
%
Delivery expense increased
primarily due to the acquisition of Echo Lake Foods.
In the second quarter of
fiscal 2026, other general
and administrative expenses increased 7.5%,
compared to the prior
year period,
primarily due to the acquisition of Echo Lake Foods and increased
spending in professional and legal fees.
This was partially offset
by a reduced charge
in the change in
earnout liability
recorded in the prior year period
and a
reduction in the accrual for
anticipated employee bonuses compared
to the prior year period.
Index
$ Change
Delivery expense
$
52,445
$
44,730
$
7,715
17.2
%
Marketing expense
29,148
29,426
(278)
(0.9)
%
Other general and administrative
70,808
65,409
5,399
8.3
%
Total
$
152,401
$
139,565
$
12,836
9.2
%
Delivery
expense
increased 17.2%
in
fiscal
2026,
fiscal
This
increase was
due
to
the
acquisition of Echo Lake Foods.
In fiscal 2026, other general and
administrative expenses increased 8.3% in fiscal 2026
compared to fiscal 2025. This
increase was primarily due to the same
reasons as described above.
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
a weather-related event
that occurred in fiscal 2021.
OPERATING INCOME
For
the
second
quarter
of
fiscal
2026,
we
recorded
income
of
$123.9
to
income
of
$278.1 million for the same period of
For the
ended November 29, 2025,
we recorded operating income
of $373.1
compared to operating
income of $465.0 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 second quarter of fiscal 2026,
we earned $12.5 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.
The
Company
recorded interest
expense
of
$201
thousand
and $150
thousand
for
the
second quarters
ended
29,
2025 and November 30, 2024, respectively.
For the twenty-six weeks ended November 29, 2025, we earned $25.5 million of interest income compared to $19.9 million for
the same
period of fiscal
2025, primarily due to
higher average cash and
cash equivalents and investment
securities available-
for-sale balances. The Company recorded
interest expense of $351 thousand and $310 thousand for the twenty-six weeks ended
November 29, 2025 and November
30, 2024, respectively.
INCOME TAXES
For
the
second
quarter
of
fiscal
2026,
our
pre-tax
income
was
$136.1
$289.0
million
for
the
second
quarter of fiscal 2025. Income
tax expense of $33.2
million was recorded for second
quarter 2026 with
an effective tax rate
of
24.4%. For the second quarter 2025, income
tax expense was $70.6 million with
an effective tax rate
of 24.4%.
For the
ended November 29,
2025, pre-tax
income was
$399.3 million,
$486.9 million
for the
- Income tax
expense of $97.3
million was recorded for
the twenty-six
weeks ended November
29,
2025,
with
an effective
tax
rate of
24.4%. For
the
income tax
expense was
$119.0
million
with an
effective tax rate of 24.4%.
Items causing our effective tax rate to
differ from the federal statutory income tax rate of
21% are state income taxes, offset
by
certain federal tax credits and
certain items included in
income or loss for
financial reporting purposes that
are not included in
Index
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
Foods,
Inc.
for
the
second
quarter ended
29,
was
$102.8
or
$2.14 per
basic and $2.13
per diluted common share,
compared to net
income attributable to Cal-Maine Foods,
Inc. of
$219.1
million, or $4.49 per basic and $4.47 per
diluted common share,
for the same period of fiscal
attributable to Cal-Maine Foods,
Inc. for the
twenty-six weeks ended
November 29, 2025,
was $302.1 million,
or
$6.27 per
basic and $6.26
per diluted common share,
compared to net
income attributable to Cal-Maine
of $369.0
million or $7.57 per basic and $7.54 per
diluted common share, for the same
period of fiscal 2025.
LIQUIDITY AND CAPITAL RESOURCES
Working Capital and Current Ratio
Our working
capital was
$1.5
billion
at
2025,
$1.7
billion
at
May 31,
The calculation
of
working capital is defined as current assets less current liabilities. Our current ratio was 8.0 at November 29, 2025 compared to
6.4 at
May 31, 2025.
The increase in
our current ratio
is primarily due
to a
decrease in dividends
payables with respect to
our
second quarter 2026. The current
ratio is calculated by dividing current assets by current
liabilities.
Cash Flows from Operating Activities
For the twenty-six weeks ended November 29, 2025, $373.4 million in net cash was provided by operating
activities, compared
to
$240.2
million
provided by
operating activities
for the
comparable period
in
The increase
in
cash flow
from
activities
from
an
in
cash
collections
from
and
the
addition
of
Echo
Lake
Foods.
Cash Flows from Investing Activities
For
the
weeks
ended
29,
2025,
$246.0
million
was
used
in
investing
activities,
due
to
the
acquisitions of
Foods and
Clean Egg
and purchases
of
investment securities, compared
to
$247.4 million
used in
investing activities in the same period of fiscal 2025. Purchases
of investment securities were $345.4 million during the twenty-
six weeks
ended November 29, 2025,
and sales and maturities
of investment securities
were $490.4 million during
the period.
Sales
and
maturities
of
securities
were
$426.5
million
in
the
period
while
purchases
of
securities were $501.6 million
during the period. Cash paid
for business acquisitions,
net of cash acquired, was $299.0
million
in
the
ended November
29, 2025,
the
Foods and
Clean Egg
acquisitions, and
$111.5
the prior-year period,
related to the
ISE acquisition. Purchases of
property, plant
and equipment were
$92.1 million
and $65.6 million in fiscal 2026 and 2025,
respectively, primarily reflecting progress on our
construction projects.
Cash Flows from Financing Activities
For the twenty-six weeks ended November
29, 2025, $255.4 million was used in financing
activities, primarily due to dividends
paid of $180.5 million in
fiscal 2026, compared to $87.8 million in
the same prior-year period. Purchases of common
stock by
treasury were $74.9
million
during the
ended November
29, 2025,
due
to the
repurchase of
common stock
under the Company’s share repurchase
Net Change in Cash and Cash Equivalents
As of November 29, 2025,
cash,
cash equivalents and restricted
cash decreased $128.0 million
since May 31, 2025,
to a decrease of $97.6 million during the same period of fiscal
- The decrease is primarily due to the cash paid for the
Echo
Lake Foods acquisition during the first quarter
of fiscal 2026 and higher dividends paid with respect
to our first quarter of fiscal
Credit Facility
On
15,
2021,
we
entered into
a
credit
agreement that
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 November
29,
Index
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.
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
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
and general market and
economic conditions.
During the twenty-six
weeks
ended November 29, 2025, the Company repurchased 846,037 shares or approximately $74.8 million under the program. As of
the
end
of
the
second
quarter
of
fiscal
2026,
we
had
remaining
authorization
to
purchase up
to
$375.2
million
under
the
repurchase program. See
Part II. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
for further information.
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 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
policy,
we
will
pay
a
cash
totaling
approximately
$34.3
or
approximately $0.719 per share,
to holders of our Common Stock with respect
to our second quarter of fiscal
- The amount
paid per share will vary based on the number of outstanding shares on the record date. The dividend is payable on February 12,
2026, to holders of record
on January 28, 2026.
Material Cash Requirements
Material cash requirements
for operating activities primarily consist
of feed ingredients,
processing, packaging and warehouse
costs,
employee
related
costs,
maintenance
capital
expenditures
and
other
general
expenses.
Our
cash
requirements for growth capital expenditures consist
primarily of our construction projects
to increase our production
capacity
of prepared foods and cage-free shell
egg production. 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
Statements included in this Quarterly
Report.
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
estimates identified in
our
2025 Annual Report.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.