CAL-MAINE FOODS INC
For the period ended Feb 28, 2026. Filed Apr 1, 2026.
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Feb 28, 2026 · Filed Apr 1, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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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
%
82.1
%
49.5
%
73.0
%
58.2
%
17.9
%
50.5
%
27.0
%
41.8
%
Selling, general and administrative
12.5
%
5.6
%
10.0
%
7.0
%
(Gain) loss on involuntary conversions
(0.1)
%
—
%
(0.3)
%
—
%
(Gain) loss on disposal of fixed assets
0.1
%
—
%
0.1
%
—
%
Operating income
5.4
%
44.9
%
17.2
%
34.8
%
Total other income, net
3.3
%
1.9
%
2.1
%
1.6
%
Income before income
taxes
8.7
%
46.8
%
19.3
%
36.4
%
Income tax expense
1.1
%
10.9
%
4.4
%
8.7
%
7.6
%
35.9
%
14.9
%
27.7
%
Less: Income (loss) attributable to
0.1
%
—
%
—
%
—
%
Net income attributable to Cal-Maine
7.5
%
35.9
%
14.9
%
27.7
%
NET SALES
Total
net sales
for the
fiscal 2026
were $667.0
million, compared to
$1.4 billion
for the
same period
Index
Shell egg sales represented 85.8% and
94.9% of total net
sales for the third
of fiscal 2026 and 2025,
The
shell
egg
offerings,
for
both
branded
and
private-label
include
and
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
2026 and
March 1,
was $2.4
billion
and $3.2
billion,
Shell egg sales represented 85.3% and 94.7% of total net sales for the thirty-nine weeks ended February 28, 2026
and March 1,
2025, respectively.
The table below presents net sales in key
categories (in thousands, except
percentage data):
Shell Eggs
$
572,314
$
1,345,382
(57.5)
%
$
2,011,278
$
2,990,756
(32.8)
%
63,626
11,757
441.2
219,212
31,134
604.1
18,360
49,267
(62.7)
89,998
105,716
(14.9)
Other
12,651
11,279
12.2
38,563
30,621
25.9
Total net sales
$
666,951
$
(53.0)
%
$
$
(25.3)
%
The table below presents an analysis of
our shell egg sales (in thousands, except
percentage data):
Shell egg sales
$
283,173
49.5
%
$
1,016,438
75.6
%
$
1,152,979
57.3
%
$
2,118,065
70.8
%
289,141
50.5
328,944
24.4
%
858,299
42.7
872,691
29.2
Total shell egg sales
$
572,314
100.0
%
$
1,345,382
100.0
%
$
2,011,278
100.0
%
$
2,990,756
100.0
%
Dozens sold
199,035
61.4
%
213,247
64.3
%
600,291
62.3
%
622,833
64.1
%
125,024
38.6
118,148
35.7
363,941
37.7
348,385
35.9
Total dozens sold
324,059
100.0
%
331,395
100.0
%
964,232
100.0
%
971,218
100.0
%
Net average selling price
per dozen
$
1.423
$
4.766
$
1.921
$
3.401
$
2.313
$
2.784
$
2.358
$
2.505
All shell eggs
$
1.766
$
4.060
$
2.086
$
3.079
Shell egg sales
In the
2026, conventional
egg sales
decreased $733.3 million,
or 72.1%, compared
to the
third
fiscal
2025,
due
to
a
70.1%
the
prices
for
eggs,
which
in
a
$665.4 million decrease in net sales,
and a 6.7% decrease in the volume of conventional dozens sold, which resulted
in
a $67.7 million decrease in net sales.
In the third quarter of fiscal 2026, specialty egg sales decreased $39.8 million, or 12.1%, compared to the third quarter
of
fiscal
2025,
due
to
a
16.9%
prices
for
eggs,
which
in
a
$58.9
million
decrease in net sales,
partially offset by a 5.8% increase in the volume of specialty eggs sold, which resulted
in a $19.1
million increase in net sales.
Index
See “Executive Overview” above for additional discussion of factors
impacting shell egg sales for the third quarters of
fiscal 2026 and 2025.
For
the
weeks
ended
28,
2026,
egg
sales
decreased
$965.1
or
45.6%,
the
same period
2025,
due to
a 43.5%
the
prices
for conventional
shell
eggs,
which resulted
in
an $888.4
million
net
sales,
and a
3.6% decrease in
the
volume
of conventional
eggs sold,
which resulted in a $76.7 million
decrease in net sales.
For the thirty-nine weeks ended February 28, 2026, specialty egg
sales decreased $14.4 million, or 1.6%, compared to
primarily due to
a 5.9%
decrease in the
prices for specialty
eggs, which
resulted in a
$53.5
million
net
sales,
offset by
a 4.5%
the
volume
of
specialty eggs
sold,
which
resulted in a $39.0 million increase
in net sales.
During the first three 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 as
well
as reduce
volatility in
our financial
results
historical time periods when wholesale
market prices were
volatile.
Prepared foods sales
In the third quarter of
fiscal 2026, prepared food
sales increased $51.9 million,
compared to the third quarter of
fiscal
an 834.3% increase in pounds
sold which resulted in
a $49.3 million increase in net sales.
The
sales
volume
is
due to
the
of Echo
Lake Foods,
which
was completed
in
the
first
quarter of fiscal 2026 as well as
a nine-fold increase in sales volume at
Crepini.
Prepared
foods
net
sales
$188.1
to
fiscal
2025,
due
to
the
same
reasons
discussed above.
Egg products sales
In the third quarter of fiscal 2026, egg
products sales decreased $30.9 million, or 62.7%, compared to the third quarter
of fiscal 2025, primarily due to a 60.7%
decrease in the net average selling price, resulting in a $31.0 million decrease
in
net
sales,
offset
by
a
3.6%
the
volume
of
egg
products sales,
resulting
in
a
$706
thousand
increase in net sales.
For the thirty-nine weeks ended February
28, 2026, egg products sales decreased
$15.7 million, or 14.9%, compared to
the same period of fiscal 2025, primarily due to a 16.4% decrease in the net average
selling price, resulting in an $18.6
million decrease in net sales, partially
offset by a 6.8% increase in the volume of egg products sales,
resulting in a $6.0
million increase in net sales.
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.
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
$
279,331
$
266,056
5.0
%
$
803,052
$
766,003
4.8
%
Processing, packaging,
and warehouse - shell
eggs
107,788
101,631
6.1
312,851
292,165
7.1
Egg purchases and other
cost of sales
79,517
291,703
(72.7)
355,220
658,182
(46.0)
57,084
12,313
363.6
179,881
34,054
428.2
23,948
29,867
(19.8)
70,064
88,448
(20.8)
Total cost of sales
$
547,668
$
701,570
(21.9)
%
$
1,721,068
$
1,838,852
(6.4)
%
Farm production costs (per
dozen produced)
Feed
$
0.494
$
0.492
0.4
%
$
0.482
$
0.489
(1.4)
%
Other
$
0.456
$
0.418
9.1
%
$
0.454
$
0.420
8.1
%
Total farm production cost
$
0.950
$
0.910
4.4
%
$
0.936
$
0.909
3.0
%
Dozens produced
296,455
293,088
1.1
%
868,715
847,962
2.4
%
Percent produced to sold
91.5%
88.4%
3.5
%
90.1%
87.3%
3.2
%
Farm
production costs
increased 5.0%,
the
2025, primarily
due to
an increase
in
costs
to
run
our
facilities,
specifically
within
labor
and
repairs
and
maintenance,
as
well
as
an
8.7%
in our specialty egg production compared to the same
period in the prior fiscal year.
Processing, packaging and warehouse costs increased
$6.2 million,
compared to the third quarter of fiscal 2025, as our
processing costs
and packing
materials
cost per
dozen increased 6.4%
resulting in
a $6.1
million increase
in
cost of
sales.
Egg
purchases and
other cost
of sales
decreased $212.2
due
to
a
62.7% decrease
in
the
price
of
outside egg purchases compared to the third quarter of fiscal 2025,
which resulted in a $180.7 million decrease in cost
of sales,
and a
12.8% decrease in
the volume
of outside
egg purchases,
2025,
which resulted in a $42.2 million decrease
in cost of sales.
Prepared foods costs increased primarily due
to the increased sales volume which is primarily due to the acquisition of
Echo Lake Foods as well as increased
production at Crepini.
costs increased 4.8%
to a
3.0% increase
in production
costs, which
resulted in
$23.5
million increase in cost of
sales, and a 2.4%
egg production, resulting
in an $18.9
million increase in cost
of sales. This increase was primarily
due to the same reasons as described
above.
Index
Processing, packaging and warehouse increased $20.7
million, as
our processing costs and packing
materials
cost per
dozen increased 5.5% which resulted in
a $15.3 million
increase in cost of sales, as
well as
an increase in the
volume
of eggs processed, which resulted
in $3.6 million increase in cost of sales.
Egg purchases and other cost of sales decreased $303.0 million, compared to the same
prior-year period, primarily due
to a 35.8% decrease in the price of
outside egg purchases,
resulting in a $240.8 million decrease in cost of sales, and a
10.6% decrease in the volume of
outside egg purchases, resulting in a $80.4 million
decrease in cost of sales.
Prepared foods costs increased
primarily due to the same reasons described
above..
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
for the
2026 was
$119.3 million,
compared to $716.1
million for
The decrease was primarily driven by 56.5%
lower net average selling prices
for shell eggs partially offset
by a decrease in the
price and volume of outside egg purchases,
as our percent produced
to sold increased 3.5% to 91.5%.
Gross
profit
for
the
weeks
ended
28,
was
$638.0
$1.3
billion
for
the
same
period of 2025.
The decrease was primarily driven by 32.3% 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 2.4%, 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 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):
$ Change
$
27,749
$
23,476
$
4,273
18.2
%
Marketing expense
15,424
11,240
4,184
37.2
%
Other general and administrative expenses
40,131
45,251
(5,120)
(11.3)
%
Total
$
83,304
$
79,967
$
3,337
4.2
%
increased 18.2%,
the
third
due to
the
acquisition of
Echo Lake Foods and increased
contract trucking costs.
Marketing
expense
37.2%,
to
the
prior
fiscal
year
period,
due
a
54.8%
in
franchise fees.
Franchise
fees increased
as specialty
dozens sold
increased 5.8%.
In
the
prior fiscal
year
period the
higher prices for conventional eggs compared to
specialty eggs diminished the need to
promote specialty eggs; during
which time,
EB temporarily reduced the related franchise fees for certain specialty egg brands to
encourage continued
production of these branded eggs.
In the
fiscal 2026, other
general and administrative
expenses decreased 11.3%,
compared to the
prior
year period,
to a
reduction in
the accrual for
anticipated employee bonuses
the prior
year
period.
In addition,
there was
an increase
in
the
adjustment
to
the
earnout liability
recorded in
the
prior
period.
This
was
offset
by
professional
and
legal
fees
as
well
as
amortization
of
intangible assets acquired related
to acquisitions during the current
fiscal year.
Index
$ Change
$
80,194
$
68,206
$
11,988
17.6
%
Marketing expense
44,572
40,666
3,906
9.6
%
Other general and administrative
110,939
110,660
0.3
%
Total
$
235,705
$
219,532
$
16,173
7.4
%
Delivery
expense
17.6%
in
fiscal
2026,
to
fiscal
2025,
due
to
the
same
reasons
as
described above
In
fiscal
2026,
marketing
expense
9.6%,
to
fiscal
2025,
due
to
the
same
reasons
as
described above.
Other
general
and
administrative
were
relatively
flat,
to
fiscal
During
fiscal
2026,
we
incurred higher professional and legal fees
primarily related to our acquisitions
made during the current fiscal year
as
well
as increased
amortization of
intangible
assets acquired
which was
offset by
a
reduced charge
in
the
change in
earnout
liability
recorded
in
the
prior
fiscal
year
period
and
a
reduction
in
the
accrual
for
anticipated
employee
bonuses compared to the prior fiscal year
period.
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
we recorded operating
income of
$35.9 million,
compared to operating
income of
$635.7
million for the same period of fiscal 2025.
For
2026,
we recorded
operating income
of $409.0
income of $1.1 billion for the same period of
OTHER INCOME (EXPENSE)
Total
other
income
(expense)
consists
of
items
not
directly
charged
or
related
to
operations,
such
as
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 third
quarter of fiscal 2026, we earned $11.4
million of
interest income compared to $12.8
million for the same
period
lower average cash and
cash equivalents and
investment securities available-for-sale balances.
recorded interest expense of
$156 thousand
and $146
thousand for
28, 2026
and March 1, 2025, respectively.
February 28, 2026, we
earned $36.9 million
of interest income compared to $32.6
million for
period of fiscal
higher average cash and
cash equivalents and investment
securities available-
for-sale balances. The Company recorded
interest expense of $507 thousand and $457 thousand for the thirty-nine weeks ended
February 28, 2026 and March 1, 2025, respectively.
INCOME TAXES
For the third
quarter of fiscal 2026, our
pre-tax income was
$58.2 million,
compared to $663.0 million
for the third quarter
of
Income tax
expense of
$7.1 million
was recorded for
the
2026 with
an effective
tax
rate of
12.1%.
This includes the discrete tax benefit of $8.2 million associated with the fiscal 2025 provision-to-return adjustments. Excluding
Index
the
discrete
tax
benefit,
income
tax
expense
was
$15.3
million
with
an
adjusted effective
tax
rate
of
26.2%.
For
the
third
quarter 2025, income tax expense
was $154.9 million with an effective
tax rate of 23.4%.
February 28, 2026,
pre-tax income was $457.5
million, compared to $1.1
billion for the
same
Income tax
expense of $104.4
million was
recorded for the
ended February 28,
with
an
effective
tax
rate
of
22.8%.
This
the
discrete
tax
benefit
of
$8.2
million
associated
with
the
fiscal
provision-to-return adjustments.
Excluding the
discrete tax
benefit, income
tax
expense was
$112.6
million with
an adjusted
effective tax rate of 24.6%.
For the same period
fiscal 2025, income tax expense was $273.9 million
with an effective tax rate
of 23.8%.
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
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 third quarter ended February 28, 2026 was $50.5 million, or $1.07 per
basic and $1.06 per diluted common share, compared to
net income attributable to Cal-Maine Foods, Inc. of
$508.5 million,
or
$10.42 per basic and $10.38 per diluted
common share,
for the same period of fiscal 2025.
Inc. for
2026, was
$352.6 million,
or
$7.37 per
basic and $7.34
per diluted common share,
compared to net
income attributable to Cal-Maine
of $877.6
million or $17.99 per basic and
$17.92 per diluted common share, for
the same period of fiscal
LIQUIDITY AND CAPITAL RESOURCES
Working Capital and Current Ratio
Our
working
capital
was
$1.5
billion
at
28,
2026,
$1.7
billion
at
May
31,
The
calculation
of
working capital is defined as
current assets less current liabilities.
Our current ratio was
8.2 at
6.4 at
May 31,
- The increase
in our
current ratio is
to a
decrease in dividends
payable with
respect to
our
third quarter 2026. The current
ratio is calculated by dividing current
assets by current liabilities.
Cash Flows from Operating Activities
February 28, 2026, $476.9
net cash was provided by
operating activities, compared
to
$811.7
million provided
by operating
activities for
the
comparable period
in
The decrease
in
cash
flow from
operating activities resulted primarily from a decrease
in cash collections from customers as a result of decreased
prices of shell
eggs compared to the prior fiscal year
period.
Cash Flows Used in Investing Activities
For
the
28,
2026, $266.5
million
was used
in
investing activities,
primarily relating
to
the
acquisitions of
Foods and
Clean Egg
and purchases
of
investment securities, compared
to
$385.1 million
used in
investing activities in the
same period of fiscal 2025.
Purchases of investment securities were $503.7 million
during the thirty-
nine
weeks
ended
28,
2026,
and
sales
and
maturities
of
securities
were
$659.7
million.
Sales
and
maturities of investment
securities were $654.4
million in the
prior fiscal year
period while purchases of
investment securities
were $813.1
million
during
the
period. Cash
paid
for business
acquisitions,
net
of cash
acquired, was
$299.0
million
in
the
thirty-nine weeks ended February 28, 2026,
related to the Echo Lake
Foods and Clean
Egg acquisitions, and
$116.2 million in
the prior-year period, related
to the ISE acquisition. Purchases of property, plant and equipment were
$123.7 million and $115.4
million in fiscal 2026
and 2025, respectively, primarily reflecting progress
on our construction projects.
Cash Flows Used in Financing Activities
For the thirty-nine weeks ended February 28,
2026, $315.8 million
was used in financing activities, primarily due to
dividends
paid
of
$214.8
million
in
fiscal
2026,
$167.2 million
used in
financing activities
in
the
same
prior
period. Purchases
of common
stock
by
treasury were
$101.0
million
during the
28,
2026,
primarily due to the repurchase
of common stock under the Company’s share repurchase
program.
Index
Net Change in Cash and Cash Equivalents
As of February 28, 2026,
cash,
cash equivalents and restricted cash decreased $105.3 million since May 31, 2025, compared to
an increase of $259.4 million during the same period of fiscal 2025. The
decrease is primarily due to decreased cash collections
from customers as a
result of decreased prices of
shell eggs compared to the
prior year as
well as the use
of cash
for the Echo
Lake Foods and Clean Egg acquisitions
completed during fiscal 2026.
Credit Facility
On
15,
2021,
we
entered into
a
credit
agreement that
for
a senior
secured revolving
credit
(the
“Credit Facility”), in an initial aggregate
principal amount of up to $250 million with a five-year
term. As of February 28, 2026,
no
amounts
were borrowed
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 shares of our 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
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.
During
the
weeks
ended
28,
2026,
the
Company
repurchased
1,175,867
shares
or
$99.2
million
under
the
program. As
of the
end of
the
2026, we
had remaining
authorization to
purchase up
to
$350.8 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
$16.8
or
approximately $0.355 per
share,
to holders
of our
common stock
with respect to
our third
- The
amount
paid
per share
will
vary based
on the
number of
outstanding shares
on the
record date.
The dividend
is payable
on
May 14,
2026, to holders of record
on April 29, 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
material
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.
Index
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.