Cal-Maine Foods, Inc. reported its financial results for the first quarter ended August 29, 2026. The company, which describes itself as the largest egg company in the United States, posted a net loss of $58.6 million for the period. This compares to a net income of $199.3 million in the prior-year quarter. The loss per share was $1.26, a decrease from earnings of $4.12 per share in the same period last year.
Net sales for the quarter totaled $539.6 million, a decrease of 41.5% compared to the $922.6 million reported in the first quarter of fiscal 2026. The company attributed the decline primarily to lower average selling prices across its segments. Gross profit for the quarter was $403,000, a significant drop from $311.3 million in the prior year.
Operating income was a loss of $82.2 million, compared to income of $249.2 million in the prior year. The company operates three reportable segments: Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods.
- Conventional Shell Eggs: Sales decreased to $201.7 million, down 59.5% from the prior year. The segment reported an operating loss of $71.0 million. The company cited an abundantly supplied market and historically softer seasonal pricing as drivers for the lower prices, which decreased by 59.3% per dozen.
- Specialty Shell Eggs: Sales were $236.9 million, a decrease of 14.0%. The segment generated operating income of $14.9 million, down from $64.2 million in the prior year due to lower selling prices and higher production costs.
- Prepared Foods: Sales were $63.0 million, a decrease of 13.0%. The segment reported operating income of $7.8 million, compared to $13.2 million in the prior year. The company noted temporary production reductions during capacity expansion activities.
Despite the current losses, the company highlighted progress in its strategic execution. Specialty Shell Eggs and Prepared Foods now represent approximately 54% of net sales, up from 37.1% in the prior year. The company also acquired additional territory for its Eggland’s Best franchise in the Northeast market. Management stated that it plans to increase Prepared Foods production capacity by more than 60% by the first half of fiscal 2028.
In terms of capital allocation, Cal-Maine Foods repurchased 66,601 shares of common stock during the quarter for $5.0 million. The company noted that it will not pay a cash dividend for the first quarter of fiscal 2027, as it is not profitable on a cumulative basis from the last profitable quarter. Management is scheduled to host a conference call and webcast on September 30, 2026, at 9:00 a.m. ET.
