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In a release dated April 1st 2026 Cal-Maine Foods Inc. (CALM) announced results for the 3rd Quarter of FY 2026 ending February 28th 2026. This review summarizes data provided in the Company release and the concurrently filed SEC 10-Q Report.

Cal-Maine Foods exceeded the analysts’ revenue estimate of $642 million by 3.9 percent achieving $667 million. The consensus estimate for EPS of $0.76 was exceeded by 39.5 percent at $1.06. 

It is noted that market conditions during Q3 2026 were less favorable compared with Q3 2025 resulting in an average Cal-Maine unit revenue of $1.77 per dozen for all eggs, compared to a corresponding price of $4.06 per dozen, a decline of 56.5 percent. Financial results that were above Street consensus for revenue and EPS raised CALM price from the pre-release value of $79.04 at the close on March 31st by 6.0 percent to $83.82 at noon April 1st.

Despite acquiring further-processing enterprises, Cal-Maine still represents a bellwether for the shell egg sector as the only public-quoted company in the U.S. industry, supplying close to 22 percent of domestic shell egg consumption and encompassing all varieties. The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

Notes: $22.2 million ‘other income,’ (including $11.2 million interest earned and $11.7 million patronage presumably E-B) in Q3 FY2026 compared to $27.4 million in Q3 FY2025:

 CALM Trailing P/E =3.6.  Beta = 0.25

52-Week Range in Share Price:  $71.92 to $126.40.   50-day Moving average of $83.45

Market close, Tuesday. March 31st  $79.04 pre-release.

Market noon, Wednesday, April 1st  $83.84

Shareholding distribution:-  92.5 percent of shares held by institutions; 10.0 percent insiders; 13.1 percent of float was short on March 13th

Revenue Comparison Q3 2026 v Q3 2025

Revenue Category.                 Q3 2026.       Q3 2025

Conventional eggs. (%)             42.4.              71.7

Specialty eggs (%).                    43.4.              23.2

Prepared Foods (%).                    9.5.                0.8

Egg products. (%)                        2.8.                3.5

Other (%)                                     1.9.                0.8         

Total (%).                                 100.0.             100.0     

Q3 Value $ million                 $666.9.        $1,417.7

CONTRIBUTION OF CAL-MAINE PRODUCT SEGMENTS TO Q3 REVENUE

Channel Category.                 Q3 2026.           Q3 2025

Retail (%).                                84.1.                   84.6

Foodservice (%).                      14.1.                   14.6

Other (%).                                  1.8.                      0.8         

Total (%).                               100.0.                  100.0

Q3 Value $ million               $666.9.             $1,417.7

CONTRIBUTION OF CAL-MAINE CHANNEL SEGMENTS TO Q3 REVENUE

In reviewing the CALM Q3 FY2026 report and the SEC 10-Q submission the following values represent key data for the most recent Quarter (with Q3 FY2025 and percentage differences in parentheses for comparison):-

Conventional shell-egg sales attained $283.2 million in Q3 2026. This category of shell eggs comprised 42.4 percent of total shell egg revenue. ($572.3 million, in Q3 2025, based on 71.7 percent of revenue. Sales value for conventional shell eggs was down 70.0% reflecting lower average unit value for this category).

• Specialty shell-egg sales attained $289.1 million in Q3 2026. This category of shell eggs comprised 42.4 percent of total shell egg revenue. ($1,345,382 million, in Q3 2025, based on 23.2 percent of revenue. Sales value for specialty shell eggs was down 16.9% reflecting lower average unit value for this category).

• Prepared Foods sales attained $63.6 million in Q3 2026. This category comprised 9.5 percent of total revenue. ($11.7 million, in Q3 2025, based on 0.8 percent of revenue). Sales value for Prepared Foods was up 441% reflecting the contributions of Joint Venture Crepini Foods and recently acquired Echo Lake Foods.

• Egg Product sales attained $18.4 million in Q3 2026. This category comprised 2.8 percent of total revenue. ($49.3 million, in Q3 2026, based on 3.5 percent of total revenue). Sales value for Egg Products was down 62.7% reflecting lower volume of liquids with diversion to higher value egg products.

• Sales to the Retail Channel attained $560.8 million in Q3 2026, comprising 84.1 percent of total revenue ($1,199,697 million in Q3 2025, representing 84.6%) Sales to the Food Service sector attained $94.4 million in Q3 2026, comprising 14.1 percent of segment revenue ($207.3 million in Q3 2025, representing 14.6% of total revenue)

• Dozen shell eggs sold (thousands): 324,059 (331,395; -2.2%)

• Average selling price of all shell eggs: $1.766 per dozen; ($4.060 per dozen;          -56.5%).
• Average selling price of specialty eggs (excluding co-pack): $2.313 cents per dozen; ($2.784 per dozen; -16.9%).

• Average selling price of conventional eggs: $1.423 cents per dozen; ($4.766 cents per dozen; -70.1%).

• Differential benefiting specialty eggs over conventional eggs: $0.89 per dozen;   (-$1.982 cents per dozen.)

• Specialty eggs as a proportion of volume sold: 38.6%; (35.7%; -8.1%)

• Specialty eggs as a proportion of sales value: 50.5%; (24.4%; +107.0 %)

• Proportion of eggs sold that were produced by Cal-Maine and their contract flocks in Q2 2026: 91.5% (88.4%; +3.5%).

• Cost of purchased eggs: $2.88 per dozen reflecting 27.6 million dozen valued at $79.5 million

• Feed cost 49.4 cents per dozen (including specialty and breeder diets) (49.2 cents per dozen, down 0.4%)

The Q3-2026 10-Q report contained the following statements on pricing:-

“The majority of our conventional eggs are priced and sold under frameworks that generally utilize market-based formulas tied to independently quoted regional wholesale market quotes. The majority of our specialty eggs are sold under frameworks that do not utilize market-based formulas, although we do have some customers that prefer market-based pricing for cage-free eggs. As a result, specialty egg prices typically do not fluctuate as much as conventional pricing”.

“During first quarter fiscal 2026, a higher proportion of our conventional eggs were sold on a hybrid pricing model that takes into account both our cost of production as well as wholesale market prices, instead of solely market-based pricing, in response to customer demand. We believe the hybrid pricing arrangement may help some customers better plan and manage their businesses and reinforces our role as a trusted supplier. Although hybrid pricing may reduce our profitability when egg prices are high, compared to pure market-based pricing, it could enhance our profitability when egg prices are low, and lead to reduced volatility in our financial results. A majority of our conventional eggs continue to be priced and sold under frameworks that generally utilize market-based formulas tied to independently quoted regional wholesale market quotes”.

The top three customers in FY 2025 represented 49.2 percent of sales value, with Walmart and Sam’s Club comprising 33.6 percent

Derived Q3 FY 2026 production costs for all categories of shell eggs expressed as cents per dozen (rounded) comprised:-

• Feed               49.4
• Production.    45.61
• Nest run.        95.0
• Packing          33.2
• Delivery.          8.6
• Marketing.       4.8
• Overhead.      12.42      

Notes: 1.0 Provision for pullet depreciation, is presumably included in the ‘production’ expense category

           2.0 Includes General and Administration expenses

           3.0 Divisor 322.6 million dozen sold

Cal-Maine Foods maintained a flock of 48.0 million hens on February 28th 2025 reflecting acquisitions and growth, with 14.3 million pullets plus parent breeders representing under two percent of the total flock. 

• Effective May 31st 2025 production capacities comprised1:-

• Hens: 51.8 million on 49 farms
• Pullets:14.3 million on 37 farms.
• Packing: 22,490 cph in 50 plants.
• Hatching: 356,300 pullet chicks per week in 2 facilities.
• Parent breeders: 215,000 hens.
• Feed : 1,000 tons per hour in 30 plants.
• Egg products: 72,700 lbs. per hour. 

1. To be updated after release of FY 2026 Annual Report

The following observations relate to the comparison of Q3 2026 with the corresponding Q3 2025:-

• Cal-Maine Foods was not affected by the HPAI epornitic during FY 2025. The Company reported the loss of 350,000 pullets in early March 2026 (Q4) on a farm in Maryland acquired from ISE in 2025. Management is applying appropriate biosecurity precautions as noted in the Analysts’ call.

• Comparing Q3 2026 with Q3 2025, gross profit was negatively impacted by lower unit revenue for conventional eggs but with minimal effect on specialty eggs. The average 4.4 percent higher feed cost to 49.4 cents per dozen. Cal-Maine recorded a 9.1 percent higher value for the ‘other farm production’ cost category including labor, consumables and maintenance.
• In a market characterized by low unit prices for conventional shell-eggs, the relative contribution of specialty eggs is more important to net earnings in contrast to an up-market for conventional eggs.

The Q3 press release repeated comments from previous reports noting “Significant progress on proactive steps to add production capacity and help mitigate the egg supply shortage across the country”, including:

• A 2.0% increase in the average number of layer hens during Q3 2026 compared to the prior-year quarter, reflecting repopulation of flocks and both organic and expansion by acquisition.
• A 13.0% increase in the Company’s breeder flocks during Q3 FY 2026 compared to the end of the prior-year quarter.
• A 42% increase in total chicks hatched during Q3 2026 compared to the prior-year quarter.
• Continued progress on ongoing organic expansion projects that are expected to add approximately 1.1 million cage-free layer hens and 250,000 pullets and contract production of 1.2 million free-range layer hens during FY 2026.
• Acquisitions over Q1 through Q3 amounted to $299 million.

• Clean Eggs LLC in Texas with a capacity of 667,000 hens with extensive acreage, pullet rearing and packing was purchased for $23.7 million representing a hen-equivalent value of $35.
•  Creighton Bros. in Indiana with 3.2 million hens, pullet rearing, feed mill, packing and extensive acreage for $129 million representing a hen-equivalent value of $39. 

• Added production support through the integration of recently acquired assets”

In commenting on Q3 results Sherman Miller CEO and president stated, “The shell egg market in the third quarter provided an important real-time test of our strategy. Periods of egg price softness highlighted that our performance is not simply a function of spot market conditions, but of how effectively we manage mix, pricing structures, costs, and capital across the cycle. Despite materially lower egg prices compared to the historic levels seen in the prior year, our diversified portfolio and operational execution enabled us to deliver solid results and maintain momentum. In our view, this reinforces the resilience of the model we are building that we expect will lead to more durable normalized earnings power”

Miller continued, “We believe the recent decline in wholesale egg prices reflects improved supply following prior-year HPAI disruptions, during our last fiscal quarter, depopulations reported by the USDA were down 70.6% and the average national layer flock increased 2.2%, year over year. In parallel, more stable purchasing patterns across retail and foodservice have contributed to lower wholesale prices, while retail pricing continues to adjust more gradually”.

He concluded “At the same time, we continue to invest in strengthening the long-term structure of the business. The acquisition of certain assets of Creighton Brothers and Crystal Lake advances several elements of our strategy simultaneously: expanding the scale and geographic reach of our shell egg platform, increasing internal sourcing capabilities for egg-based ingredients, and enhancing our ability to support the growth of our prepared foods business. By integrating shell egg production, egg products, and prepared foods more tightly within our value chain, we believe we can improve supply security, increase operational efficiency, and reinforce the economics of our prepared foods platform. Deploying capital into assets that deepen these structural advantages is central to our disciplined capital allocation framework”

Extracts from the 10-Q provided insight into Cal-Maine pricing and marketing including:-

“Our operating results are materially impacted by market prices for eggs and feed grains (corn and soybean meal), which are highly volatile, independent of each other, and out of our control. Generally, higher market prices for eggs have a positive impact on our financial results while higher market prices for feed grains have a negative impact on our financial results. Our pricing for shell eggs is negotiated with our customers on individual terms. We sell our shell eggs at prices based on formulas that take into account, in varying ways, independently quoted regional wholesale market prices for shell eggs, formulas related to our costs of production, such as grain-based and variations of cost-plus arrangements, or hybrid models including cost of production and wholesale market prices”.

“Almost all of our conventional eggs are priced and sold under frameworks that generally utilize market-based formulas tied to independently quoted regional wholesale market quotes or utilize the hybrid models described above. The majority of our specialty eggs are sold under frameworks that do not utilize market-based formulas and instead are based on cost of production, although we do have some customers that prefer market-based pricing for cage-free eggs. As a result, specialty egg prices typically do not fluctuate as much as conventional pricing. We do not sell eggs directly to consumers or set the prices at which eggs are sold to consumers”.

“During the first two quarters of fiscal 2026, a higher proportion of our conventional eggs were sold on a hybrid pricing model that takes into account both our cost of production as well as wholesale market prices, instead of solely market-based pricing, in

response to customer demand. We believe the hybrid pricing arrangement may help some customers better plan and manage their businesses and reinforces our role as a trusted supplier. Although hybrid pricing may reduce our profitability when egg prices are high, compared to pure market-based pricing, it could enhance our profitability when egg prices are low, and lead to reduced volatility in our financial results”.

With respect to production systems and the rate of transition to cage-free housing the Company Q-10 stated “We are focused on adjusting our cage-free production capacity with a goal of meeting the future needs of our customers in light of changing state requirements and our customers’ goals. As always, we strive to offer a product mix that aligns with current and anticipated customer purchase decisions. We are engaging with our customers to help them meet their announced goals and needs. We have invested significant capital in recent years to acquire and construct cage-free facilities, and we expect our focus for future expansion will continue to include cage-free facilities. Our volume of cage-free egg sales has continued to increase and account for a larger share of our product mix”.

“In Q3 of FY 2026, cage-free egg revenue represented approximately a third of our total shell egg revenue, compared to 23.4% in the Q3 of FY 2025. At the same time, we understand the importance of our continued ability to provide conventional eggs in order to provide our customers with a variety of egg choices and to address hunger in

our communities”.

As of April 14th Cal-Maine Foods ceased to be a “controlled company” with conversion of Class A shares to common stock. As part of the buy-back program the Company purchased shares to the value of $50 million from entities representing the Founder family. Future additional purchases valued at $450 million have been authorized by the Board.

Cal Maine Foods has expanded by purchase of existing integrated production facilities but has extended acquisitions to value-added products over the past two years.

The 10-Q Report filed on October 1st 2025 documented approved capital investment of $257.3 million for FY 2026. Provisions comprised a feed mill (3.8% of proposed capital expenditure); Egg products equipment (7.6%); Expansion of prepared Foods (5.8%) and new cage-free housing and conversions (82.8%). Of this total $210.2 million (81.7%) was committed with $47.1 million to be expended. There was no update of these values for Q3 2026