A maker of conventional, cage-free, organic, and pasture-raised eggs, Cal-Maine Foods is the largest egg producer and distributor in the United States, selling brands like Eggland's Best, Farmhouse Eggs, and 4Grain. It grew from founder Fred Adams's 1957 feed-delivery truck in Mississippi and was formed in 1969 by merging Adams Foods with Dairy Fresh Products of California and Maine Egg Farms — the origin of the name "Cal-Maine." It also makes prepared foods like omelets and crepes under the Crepini brand.
10-K · Fiscal year ended May 30, 2026 · SEC filing ↗
Egg prices collapsed 56.5% year over year, compressing gross margin to 17.9% and cutting net income 90%.
The egg price cycle turned sharply against Cal-Maine. fell 53.0% to $667.0 million and contracted 32.6 points to 17.9% as the net average shell egg selling price dropped 56.5% from the HPAI-driven highs of the prior year. The company is now deploying its cash into acquisitions and buybacks to diversify away from the volatile shell egg market.
Key takeaways
The net average shell egg selling price fell 56.5% to $1.766 per dozen, with conventional egg prices down 70.1%, driving a $596.8 million decline in .
contracted to 17.9% from 50.5% a year ago, as the drop in selling prices was only partially offset by flat feed costs; farm production costs per dozen rose 4.4% on higher facility, labor, and repair expenses.
fell 90.1% to $50.5 million, or $1.06 per diluted share, directly tracking the decline in shell egg prices.
Section summaries
Business
Cal-Maine Foods is the largest U.S. egg company, operating three segments: Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods.
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The company revised its reporting structure in Q4 fiscal 2026 to three segments: Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods.
Specialty shell eggs, including cage-free, organic, and pasture-raised, are a strategic focus to meet evolving consumer demand and state regulatory mandates.
Prepared foods rose 441% to $63.6 million, primarily from the Echo Lake Foods acquisition, though integration temporarily reduced production volumes and raised costs.
The company deployed $299.0 million in net cash on acquisitions and repurchased $99.2 million of common stock under its $500 million program, leaving $320.7 million remaining on the authorization.
HPAI-related hen depopulations fell 70.6% to 13.2 million, and the U.S. layer flock grew 2.2%, improving egg supply and pressuring wholesale prices.
What changed
The HPAI outbreak that drove record prices in fiscal 2025 subsided, with industry-wide depopulations falling 70.6% and the U.S. layer flock growing 2.2%, causing the net average shell egg selling price to collapse 56.5% .
The company's own facilities were hit by HPAI in March 2026, resulting in the depopulation of approximately 352,000 pullets at a Maryland facility, after avoiding outbreaks in fiscal 2025.
The company completed the acquisition of Echo Lake Foods for $289.5 million and Creighton Brothers for $129.3 million, deploying $299.0 million in net cash to diversify into prepared foods and expand shell egg production.
The company revised its reporting structure to three segments: Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods, reflecting the strategic shift toward diversification beyond shell eggs.
The company will not pay a cash for the fourth quarter of fiscal 2026 under its variable dividend policy, as cumulative losses to be recovered before a dividend total $35.9 million.
What to watch
The net average shell egg selling price in Q2 fiscal 2026 — whether the 56.5% decline stabilizes near current levels or falls further as the U.S. layer flock continues to rebuild.
The margin trajectory of the prepared foods — whether integration costs at Echo Lake Foods subside and the acquisition begins to deliver the expected diversification benefit as shell egg profitability normalizes.
The pace of share repurchases under the remaining $320.7 million authorization, and whether the company continues to buy back stock as egg prices and the share price decline.
Developments in the consolidated shell egg antitrust class actions and the DOJ investigation, which could result in material financial penalties or changes to industry pricing practices.
The Prepared Foods is expanding capacity by over 30% through mid-2028 via projects at Echo Lake Foods and the Crepini Foods joint venture.
Recent acquisitions include Echo Lake Foods for $289.5M and Creighton Brothers for $129.3M to diversify into prepared foods and expand shell egg production.
Walmart Inc. (including Sam's Club) accounted for 30.0% of consolidated in fiscal 2026, representing significant customer concentration.
The company experienced an HPAI outbreak at a Maryland pullet facility in March 2026, resulting in the of approximately 352,000 .
Our business and results of operations are subject to numerous risks and uncertainties, many of which are beyond our control. The following is a description of the known factors that have or may in the future materially affect our business, financial condition or results of oper…
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Our business
and results
of operations
are subject
to numerous
risks and
uncertainties,
many of which
are beyond
our control.
The
following
is
a description
of
the
known
factors
that
have
or
may
in
the
future
materially
affect
our
business,
financial
condition or
results of operations.
They should
be considered
carefully, in
addition to
the information
set forth
elsewhere in
this
Annual
Report
on Form
10-K, including
under
Part II.
Cal-Maine operates 179 owned facilities across 22 states, with shell egg and prepared foods capacity detailed by type as of May 30, 2026.
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The company's headquarters is in Ridgeland, Mississippi, and it operates facilities across 22 states.
Facilities are well maintained, with ongoing investments focused on expanding prepared foods and specialty shell egg capacity.
Many facilities serve both Conventional Shell Egg and Specialty Shell Egg segments, making separate assignment impractical.
The shell egg production network includes 51 houses with capacity for 57.0 million layers and processing plants handling 702,600 dozen eggs per hour.
Prepared Foods manufacturing consists of 5 facilities, including one owned by majority-owned joint venture Crepini Foods, with 25,700 pounds per hour capacity.
The company owns approximately 34.2 thousand acres of land with no material mortgages or liens.
Refer to the description of certain legal proceedings under Part II. Item 8. Notes to the Consolidated Financial Statements, Note 16 – Commitments and Contingencies , which discussion is incorporated herein by reference.
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Refer to
the description
of certain legal
proceedings under
Part II.
Item 8.
Notes to the
Consolidated
Financial
Statements,
Note
16 – Commitments and Contingencies
, which discussion is incorporated
herein by reference.
This section details risk factors affecting the company, including volatile egg prices, HPAI outbreaks, feed costs, and customer concentration.
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Wholesale shell egg market prices are volatile and cyclical, directly impacting from market-based pricing formulas and potentially leading to customer renegotiations.
Feed costs, primarily corn and soybean meal, are the largest production cost element and are subject to volatility from weather, global supply, and geopolitical conflicts.
Outbreaks of highly pathogenic avian influenza (HPAI) can cause significant flock , reducing egg supply and increasing prices, with a recent outbreak in March 2026 affecting 352,000 pullets.
The top three customers accounted for 43.1% of in fiscal 2026, with Walmart Inc. alone representing 30.0%, posing a significant concentration risk.
The company is subject to antitrust litigation and investigations related to egg pricing, including a settled DOJ civil investigative demand and ongoing class action lawsuits alleging price fixing.
Pressure from animal rights groups and state legislation is accelerating demand for cage-free eggs, requiring significant to increase production capacity.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks are commodity prices (eggs, corn, soybean meal) and fixed-income securities; no interest-rate hedges are used.
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The company's main exposure is to conventional shell egg prices, which fluctuate significantly beyond its control.
Feed costs are sensitive to corn and soybean meal prices; a $0.84/bushel corn change and $76.50/ton soybean meal change can move feed cost per dozen by $0.03.
The company may enter into contracts for future feed purchases up to one year but ordinarily does not use long-term contracts or hedge feed price increases.
No amounts were outstanding on the $250 million variable-rate in fiscal 2026, and the company does not use interest-rate derivatives.
The $816.8 million fixed-income portfolio had an effective maturity of 11.3 months and net of approximately $953 thousand.
Credit risk is concentrated with Walmart Inc. (including Sam's Club), which represented 26.2% of net at year-end.
The Company has a $250M undrawn credit facility, a $500M share repurchase program with $320.7M remaining, and no dividend due to cumulative losses.
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As of May 30, 2026, no amounts were borrowed under the $250 million senior secured , with only $5.9 million in outstanding .
Under the $500 million program approved in February 2025, the Company repurchased 1,571,950 shares in fiscal 2026, leaving $320.7 million in remaining authorization.
The Company will not pay a cash for the fourth quarter of fiscal 2026 under its variable dividend policy, as cumulative losses to be recovered before a dividend total $35.9 million.
of $97.1 million passed its annual qualitative test, and a quantitative test following a reorganization also found no impairment.
A litigation of $4.0 million was accrued in fiscal 2026, compared to $19.6 million in fiscal 2024 and none in fiscal 2025.