Cal-Maine swings to Q1 loss as conventional egg prices plunge

Cal-Maine Foods opened fiscal 2027 with a sharp reversal from last year’s egg-price boom. In a Wednesday morning release furnished on Form 8-K, the largest U.S. egg producer said net sales for the quarter ended Aug. 29 fell 41.5% to $539.6 million, and it swung to a net loss attributable to Cal-Maine of $58.6 million, or $1.26 per diluted share, from net income of $199.3 million, or $4.12 a share, a year earlier. Shares last closed Tuesday at $68.55, up about 1.8% on the session and down roughly 13% year to date.

Gross profit collapsed to $0.4 million from $311.3 million, and the company posted an operating loss of $82.2 million versus operating income of $249.2 million. Management pointed to an abundantly supplied conventional shell egg market after industry layer flock repopulation in fiscal 2026, plus typically softer first-quarter seasonal pricing.

Conventional shell egg sales dropped 59.5% to $201.7 million, driven by a 59.3% decline in average selling price per dozen while volume was roughly flat. That segment swung to a $71.0 million loss from $168.2 million of income. Specialty shell eggs sales fell 14.0% to $236.9 million on lower price and volume, with segment income of $14.9 million versus $64.2 million. Prepared foods sales declined 13.0% to $63.0 million as pounds sold dropped 19.3% amid temporary production reductions for capacity projects, partly offset by a 7.9% higher average price per pound; segment income was $7.8 million versus $13.2 million.

Mix is shifting. Specialty shell eggs and prepared foods together were 54.1% of net sales, up from 37.1%, and prepared foods alone were 11.7% versus 7.8%. CEO Sherman Miller said conventional pricing remains under pressure from industry supply imbalance while demand stays healthy, and that the company is scaling specialty and prepared foods. Cal-Maine also said it acquired additional Eggland’s Best franchise territory in the Northeast and is advancing projects expected to lift prepared foods production capacity more than 60% by the first half of fiscal 2028 versus fiscal 2026 year-end.

On capital return, Cal-Maine bought 66,601 shares for $5.0 million in the quarter under its repurchase program ($315.7 million of the $500 million authorization remained at quarter-end) and another 204,888 shares for $14.9 million after quarter-end. Under its variable dividend policy, it will not pay a cash dividend for the first quarter; cumulative losses to recover before any future dividend stood at $94.5 million as of Aug. 29.

By the numbers

• Net sales: $539.6 million (−41.5% YoY)
• Diluted EPS: −$1.26 vs $4.12
• Operating income (loss): −$82.2 million vs $249.2 million
• Conventional ASP/dozen: −59.3%; specialty + prepared mix: 54.1% of sales
• No Q1 cash dividend; $94.5 million cumulative loss to recover under variable policy
• CALM Tuesday close: $68.55 (+1.8% day; −12.6% YTD)

Sources

1. Cal-Maine Foods, Inc. Form 8-K (Item 2.02), accepted Sept. 30, 2026 6:07:27 a.m. ET, accession 0001562762-26-000111
2. Cal-Maine Foods, Inc. Form 8-K Exhibit 99.1 (earnings press release), accession 0001562762-26-000111

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