Q1 FY2027
Filed Sep 30, 2026Cal-Maine Foods Reports First Quarter Fiscal 2027 Results
Net sales declined 41.5% and the company reported a gross profit of $403 (in thousands), an operating loss of $82,165 (in thousands), and a net loss attributable to Cal-Maine Foods, Inc. of $58,615 (in thousands), driven primarily by substantially lower conventional shell egg pricing.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 13 Weeks Ended August 29, 2026GAAP | $539.6M | – | (41.5)% |
| Cost of sales, 13 Weeks Ended August 29, 2026GAAP | $539.2M | – | – |
| Gross profit, 13 Weeks Ended August 29, 2026GAAP | $403K | – | (99.9)% |
| Selling, general and administrative expense, 13 Weeks Ended August 29, 2026GAAP | $81.65M | – | – |
| Gain on involuntary conversions, 13 Weeks Ended August 29, 2026GAAP | — | – | – |
| Loss on disposal of fixed assets, 13 Weeks Ended August 29, 2026GAAP | $916K | – | – |
| Operating income (loss), 13 Weeks Ended August 29, 2026GAAP | −$82.17M | – | (133.0)% |
| Operating margin, 13 Weeks Ended August 29, 2026GAAP | (15.2)% | – | – |
| Other income, net, 13 Weeks Ended August 29, 2026GAAP | $7.97M | – | – |
| Income (loss) before income taxes, 13 Weeks Ended August 29, 2026GAAP | −$74.20M | – | – |
| Income tax expense (benefit), 13 Weeks Ended August 29, 2026GAAP | −$17.99M | – | – |
| Net income (loss), 13 Weeks Ended August 29, 2026GAAP | −$56.20M | – | – |
| Income (loss) attributable to noncontrolling interest, 13 Weeks Ended August 29, 2026GAAP | $2.41M | – | – |
| Net income (loss) attributable to Cal-Maine Foods, Inc., 13 Weeks Ended August 29, 2026GAAP | −$58.62M | – | (129.4)% |
| Income (loss) per common share, basic, 13 Weeks Ended August 29, 2026GAAP | $(1.26) | – | – |
| Income (loss) per share, diluted, 13 Weeks Ended August 29, 2026GAAP | $(1.26) | – | (130.6)% |
| Weighted average shares outstanding, basic, 13 Weeks Ended August 29, 2026GAAP | 46.70M | – | – |
| Weighted average shares outstanding, diluted, 13 Weeks Ended August 29, 2026GAAP | 46.70M | – | – |
| Total reportable segments net sales, First Quarter 2027GAAP | $501.6M | – | – |
| Total reportable segments operating income (loss), First Quarter 2027GAAP | −$48.27M | – | – |
| Total reportable segments operating margin, First Quarter 2027GAAP | (9.6)% | – | – |
| Other segment income (loss), First Quarter 2027GAAP | −$8.37M | – | – |
| Unallocated Corporate SG&A, First Quarter 2027GAAP | −$24.61M | – | – |
| Cash and short-term investments, August 29, 2026GAAP | $767.6M | – | – |
| Receivables, net, August 29, 2026GAAP | $285.2M | – | – |
| Inventories, net, August 29, 2026GAAP | $394.7M | – | – |
| Prepaid expenses and other current assets, August 29, 2026GAAP | $24.38M | – | – |
| Current assets, August 29, 2026GAAP | $1.47B | – | – |
| Property, plant and equipment, net, August 29, 2026GAAP | $1.31B | – | – |
| Other noncurrent assets, August 29, 2026GAAP | $229.2M | – | – |
| Total assets, August 29, 2026GAAP | $3.01B | – | – |
| Accounts payable and accrued expenses, August 29, 2026GAAP | $191.1M | – | – |
| Current liabilities, August 29, 2026GAAP | $191.1M | – | – |
| Deferred income taxes and other liabilities, August 29, 2026GAAP | $242.3M | – | – |
| Stockholders' equity, August 29, 2026GAAP | $2.58B | – | – |
| Total liabilities and stockholders' equity, August 29, 2026GAAP | $3.01B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Conventional Shell EggsSales decreased primarily reflecting a 59.3% decrease in average selling price per dozen; volume remained relatively flat, with a reported volume change of (0.7)%. Segment operating loss was $(71,045) (in thousands), versus segment operating income of $168,236 (in thousands), and operating margin was (35.2)% versus 33.8%. | $201.7M | – | (59.5)% |
| Specialty Shell EggsSales decreased reflecting a 10.7% decrease in average selling price per dozen and a 3.8% decrease in volume. Segment operating income was $14,937 (in thousands), versus $64,196 (in thousands), and operating margin was 6.3% versus 23.3%. | $236.9M | – | (14.0)% |
| Prepared FoodsSales decreased reflecting a 19.3% decrease in pounds sold related primarily to temporary production reductions during capacity expansion and network optimization activities, partially offset by a 7.9% increase in average selling price per pound. Segment operating income was $7,842 (in thousands), versus $13,221 (in thousands), and operating margin was 12.4% versus 18.3%. | $62.99M | – | (13.0)% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Through the first half of fiscal 2028 outlook
- NotePrepared Foods production capacity is expected to increase more than 60% by the first half of fiscal 2028, compared to fiscal 2026 year-end.
Capital returns
- Repurchased 66,601 shares of common stock during the first quarter of fiscal 2027 for a total of $5.0 million.
- The share repurchase program permits repurchases of up to $500 million; $315.7 million remained available as of the end of the first quarter of fiscal 2027.
- Subsequent to the end of the first quarter, repurchased 204,888 shares for $14.9 million.
- Will not pay a cash dividend with respect to the first quarter of fiscal 2027.
- As of August 29, 2026, the cumulative loss to be recovered before payment of any future dividend under the variable dividend policy was $94.5 million.
What drove it
- An abundantly supplied egg market followed industry layer flock repopulation during fiscal 2026.
- Historically softer first-quarter seasonal pricing and increased egg supply resulted in substantially lower conventional shell egg prices.
- Hybrid and cost-plus pricing arrangements with certain customers partially mitigated the effect of lower conventional shell egg market prices.
- Specialty Shell Eggs and Prepared Foods accounted for 54.1% of net sales, compared with 37.1%.
- Prepared Foods accounted for 11.7% of net sales, compared with 7.8%.
- The company acquired additional Eggland’s Best® franchise territory in the Northeast, expanding its distribution footprint and Specialty Shell Eggs penetration.
Concerns
- Conventional Shell Eggs average selling price per dozen decreased 59.3%, while the segment reported an operating loss of $(71,045) (in thousands).
- Specialty Shell Eggs faced lower selling prices and higher cost per dozen from increased feed and production costs.
- Prepared Foods pounds sold decreased 19.3% due primarily to temporary production reductions during capacity expansion and network optimization activities.
- The company stated it cannot precisely predict when the conventional shell egg market will begin to rebalance.
- The company will not pay a cash dividend for the first quarter of fiscal 2027 under its variable dividend policy.
What to watch
- Timing of a conventional shell egg market rebalance.
- Execution of Prepared Foods capacity expansion and network optimization projects.
- Prepared Foods production capacity growth expected to exceed 60% by the first half of fiscal 2028 compared with fiscal 2026 year-end.
- Conversion of Specialty Shell Eggs and Prepared Foods mix growth into earnings contribution.
- Changes in feed and production costs and shell egg market prices.
Balance sheet and cash flow
- Cash and short-term investments were $767,592 (in thousands) as of August 29, 2026, compared with $924,057 (in thousands) as of May 30, 2026.
- Total assets were $3,013,379 (in thousands) as of August 29, 2026, compared with $3,107,570 (in thousands) as of May 30, 2026.
- Stockholders' equity was $2,579,947 (in thousands) as of August 29, 2026, compared with $2,640,532 (in thousands) as of May 30, 2026.
Analysis
Cal-Maine Foods reported a sharply weaker first quarter of fiscal 2027 as the conventional shell egg cycle moved from the elevated pricing of the prior-year period to an abundantly supplied market. Net sales were $539,607 (in thousands), down 41.5%, and gross profit fell to $403 (in thousands) from $311,314 (in thousands). The decline carried through to an operating loss of $(82,165) (in thousands) and a net loss attributable to Cal-Maine Foods, Inc. of $(58,615) (in thousands), compared with operating income of $249,184 (in thousands) and net income attributable to Cal-Maine Foods, Inc. of $199,340 (in thousands) in the comparable period.
Conventional Shell Eggs was the principal earnings pressure. Segment sales fell 59.5%, primarily due to a 59.3% decrease in average selling price per dozen, while the reported volume change was (0.7)%. The segment moved to an operating loss of $(71,045) (in thousands) and a (35.2)% operating margin. The company said lower outside egg purchase costs only partially offset lower market prices. Specialty Shell Eggs also declined, with sales down 14.0% on lower pricing and volume, while higher feed and production costs pressured cost per dozen.
The sales mix continued to shift toward categories management identifies as more diversified. Specialty Shell Eggs and Prepared Foods combined represented 54.1% of net sales compared with 37.1%, while Prepared Foods accounted for 11.7% compared with 7.8%. That mix shift did not prevent a Prepared Foods sales decline of 13.0%, as pounds sold fell 19.3% amid temporary production reductions for capacity expansion and network optimization. Higher average selling price per pound of 7.9% partially offset the volume impact, and the segment remained profitable with operating income of $7,842 (in thousands).
Capital allocation remained active despite the quarterly loss. The company repurchased 66,601 shares for $5.0 million during the quarter and 204,888 shares for $14.9 million after quarter-end, with $315.7 million remaining under the authorization as of quarter-end. It will not pay a first-quarter cash dividend, and the stated cumulative loss to be recovered before future dividend payments was $94.5 million. Cash and short-term investments were $767,592 (in thousands) at August 29, 2026.
The outlook provides no financial revenue, margin, expense, or tax-rate guidance. Management instead identified the timing of a conventional egg-market rebalance and the timing of greater Prepared Foods earnings contribution as the key variables. Its stated operational target is more than 60% Planned growth in Prepared Foods capacity through the first half of fiscal 2028 compared with fiscal 2026 year-end. The immediate focus is whether pricing conditions stabilize and whether capacity investments begin to support improved Prepared Foods volume, efficiency, and earnings contribution.
Management, verbatim
Our first-quarter results reflect both the current point in the conventional shell egg cycle and the continued evolution of Cal-Maine Foods’ earnings model. Conventional Shell Egg pricing remains under pressure from an industry supply imbalance, while underlying demand remains healthy.
Sherman Miller, president and chief executive officer of Cal-Maine Foods
At the same time, Specialty Shell Eggs and Prepared Foods now represent approximately 54% of our net sales, demonstrating the progress we have made in broadening our business.
Sherman Miller, president and chief executive officer of Cal-Maine Foods
Current earnings reflect a difficult point in the commodity cycle while we are simultaneously investing ahead of growth, and we do not believe that fully reflects the through-cycle earnings power we are building.
Sherman Miller, president and chief executive officer of Cal-Maine Foods
Not in the filing
stated, not guessed- Non-GAAP financial metrics, including non-GAAP revenue, gross profit, operating income, net income, and EPS, were not reported.
- GAAP gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Debt balance was not reported.
- Formal quantitative revenue guidance was not reported.
- Formal quantitative gross-margin guidance was not reported.
- Formal quantitative operating-expense guidance was not reported.
- Formal quantitative tax-rate guidance was not reported.
- Prior-period outlook was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.