Overview of Cal-Maine Foods’ Financial Performance

Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the United States. The company’s operations are fully integrated, with a total flock of approximately 48.9 million layers and 12.3 million pullets and breeders, the largest in the U.S.

For the third quarter of fiscal 2025, Cal-Maine reported strong financial results. Net sales were $1.4 billion, up 101.6% from the prior-year quarter, driven by a 99.0% increase in shell egg sales and a 180.5% increase in egg products sales. Gross profit was $716.1 million, compared to $218.6 million in the same period of fiscal 2024.

The company’s operating income for the third quarter was $635.7 million, up from $162.8 million in the prior-year quarter. Net income attributable to Cal-Maine Foods was $508.5 million, or $10.42 per basic and $10.38 per diluted common share, compared to $146.7 million, or $3.01 per basic and $3.00 per diluted common share, in the third quarter of fiscal 2024.

Table 1. Key Financial Metrics

Metric	Q3 FY2025	Q3 FY2024	Change
Net Sales	$1.4 billion	$703.1 million	+101.6%
Gross Profit	$716.1 million	$218.6 million	+227.7%
Operating Income	$635.7 million	$162.8 million	+290.2%
Net Income Attributable to Cal-Maine	$508.5 million	$146.7 million	+246.7%
Earnings per Share (Basic)	$10.42	$3.01	+246.5%
Earnings per Share (Diluted)	$10.38	$3.00	+246.0%

Revenue and Profit Trends

The significant increase in net sales was primarily driven by higher net average selling prices for shell eggs, particularly conventional eggs, as well as an increase in total dozens sold. Conventional egg sales increased 145.7% compared to the prior-year quarter, while specialty egg sales increased 25.4%.

The company’s net average selling price per dozen for all shell eggs was $4.060 in the third quarter of fiscal 2025, up from $2.247 in the same period of fiscal 2024. Conventional egg prices per dozen were $4.766, compared to $2.152 in the prior-year quarter, while specialty egg prices per dozen were $2.784, up from $2.415.

The increase in gross profit was primarily due to the higher net average selling prices, as well as lower feed costs. Farm production costs per dozen produced decreased 5.7% compared to the third quarter of fiscal 2024, driven by a 9.6% decrease in feed costs per dozen. However, the company’s egg purchases and other cost of sales increased 128.0% due to higher shell egg prices and an increase in dozens purchased to supply customers during the higher seasonal demand cycle.

Strengths and Weaknesses

A key strength of Cal-Maine Foods is its position as the largest producer and distributor of fresh shell eggs in the U.S., with a diverse customer base that includes national and regional grocery store chains, club stores, foodservice distributors, and egg product customers. The company’s fully integrated operations and state-of-the-art facilities located close to customers provide an operational advantage.

Another strength is Cal-Maine’s ability to meet evolving customer needs with a favorable mix of branded and private-label products, including conventional and specialty eggs such as cage-free, organic, brown, free-range, pasture-raised, and nutritionally-enhanced. The company has invested significantly in recent years to acquire and construct cage-free facilities, and it expects its future expansion to continue to focus on cage-free production.

A potential weakness is the company’s exposure to volatile market prices for eggs and feed grains, which are independent of each other and out of its control. While Cal-Maine uses various pricing frameworks and contracts to manage these fluctuations, the impact on its financial results can be significant.

The company is also facing challenges related to the ongoing outbreaks of highly pathogenic avian influenza (HPAI) in the U.S. poultry flock, which have resulted in the depopulation of millions of commercial layer hens and pullets. While Cal-Maine has invested heavily in biosecurity measures, no farm is immune to HPAI, and the extent of possible future outbreaks cannot be predicted.

Outlook and Future Considerations

Looking ahead, Cal-Maine is taking proactive steps to help mitigate the tight egg supply situation across the country. The company has increased its average number of layer hens by 14% and its total chicks hatched by 24% during the third quarter of fiscal 2025 compared to the prior-year quarter. The company’s breeder flocks have also increased by 33% as of the end of the third fiscal quarter of 2025.

Cal-Maine is also continuing to invest in expansion projects, including the expected completion in calendar 2025 of approximately $60 million in ongoing expansion projects within its current operations that are expected to add approximately 1.1 million cage-free layer hens and 250,000 pullets. The company also successfully converted a new egg processing facility and hatchery in Dexter, Missouri, which is projected to add additional capacity of 1.2 million free-range hens by calendar year-end.

The company’s recent acquisitions, including the assets of Deal-Rite Foods, ISE America, and Fassio Egg Farms, have also expanded its production capacity and geographic reach, particularly in the Northeast and Mid-Atlantic states.

However, the company faces ongoing challenges related to changing state regulations and customer demands for cage-free eggs. Ten states have passed legislation or regulations mandating minimum space or cage-free requirements for egg production or the sale of only cage-free eggs and egg products. While Cal-Maine is focused on adjusting its cage-free production capacity to meet these evolving needs, it must also balance the importance of continuing to provide conventional eggs to address hunger in its communities and offer customers a variety of egg choices.

Additionally, the company is subject to the risk of global instability, including the potential impact of the war in Ukraine, conflicts in Israel and surrounding areas, and attacks on shipping in the Red Sea, which could disrupt supply chains and affect its business.

Overall, Cal-Maine Foods’ strong financial performance in the third quarter of fiscal 2025 was driven by favorable market conditions, including higher egg prices and lower feed costs. The company’s strategic investments in expansion and acquisitions, as well as its focus on meeting evolving customer demands, position it well for the future. However, the company must continue to navigate the challenges posed by volatile market conditions, regulatory changes, and global instability to maintain its industry-leading position.