Summary of Cal-Maine Foods, Inc.

Business Overview

• Industry Position: Largest producer and distributor of shell eggs in the United States.
• Mission: To be the most sustainable producer and reliable supplier of high-quality, fresh shell eggs, egg products, and prepared foods.
• Headquarters: Ridgeland, Mississippi.
• Founded: 1957.

Operations

• Segments: Operates in one segment focused on production, packaging, marketing, and distribution of shell eggs and related products.
• Vertical Integration: Involves hatching chicks, raising and maintaining flocks (layers, pullets, breeders), manufacturing feed, and producing/processing eggs.
• Flock Size (as of May 31, 2025):
  • Layers: ~48.3 million (largest in US)
  • Pullet and Breeders: ~11.5 million
• Facilities:
  • Owns 50 processing and packaging plants across 49 facilities.
  • 37 pullet farms, 49 shell egg farms, 2 breeder farms, 2 hatcheries, 30 feed mills.
  • Land: Approximately 33,200 acres.
• Employees:
  • Total: 3,828 employees.
  • Egg production, processing, marketing: 3,064 employees.
  • Feed mill operations: 231 employees.
  • Administrative: 533 employees.
  • Part-time: 3.8%; temporary and contingent workers: ~1,975.
  • Unionized: 43 employees.

Product Offerings

• Shell Eggs:

  • Conventional and Specialty (including cage-free, organic, brown, free-range, pasture-raised, nutritionally enhanced).
  • Customers rely on the company to supply most of their shell egg needs, including both conventional and specialty categories.
  • Egg sales for fiscal year 2025: $4.02 billion (94.3% of total sales).
  • Dozens sold (2025): ~1.28 billion.
  • Average price per dozen (2025): $3.134.

• Branded Eggs:

  • Member of Eggland’s Best cooperative.
  • Brands include Egg-Land’s Best®, Land O’ Lakes®, Farmhouse Eggs®, 4-Grain®, Sunups®, and Sunny Meadow®.
  • Market share in branded eggs: Approximately 50% of EB-branded eggs and 46% of Land O’ Lakes® branded eggs nationally.

• Egg Products & Prepared Foods:

  • Liquid and frozen eggs, including cooked options like hard-cooked eggs, egg wraps, protein pancakes, crepes, and wrap-ups.
  • Notable recent investments:
    • Crepini Foods LLC (investment of ~$6.75 million, 51% stake, product line includes egg wraps and protein pancakes).
    • Acquired Echo Lake Foods (June 2025, ~$258 million, based in Wisconsin, produces waffles, pancakes, cooked eggs, omelets, egg patties, diced eggs).

Financials (Fiscal Year 2025)

• Revenue: $4.26 billion
• Gross Profit: $1.85 billion (43.4% margin)
• Net Income Attributable to Company: $1.22 billion (~28.6% net profit margin)
• Net Income per Share: $25.04 (basic), $24.95 (diluted)
• Average Shell Egg Price: $3.134 per dozen
• Egg Dozens Sold: ~1.28 billion (up 11.8% from prior year)

Customer Base

• Key customers: Primarily retail (86%) including grocery chains, club stores, independent supermarkets.
• Largest customer: Walmart Inc. (including Sam’s Club), accounting for approximately 33.6% of net sales in FY2025.
• Top three customers accounted for around 49.2%-50.1% of net sales in FY2025.

Business Strategy

• Focuses on organic growth, acquisitions, and diversified product offerings.
• Expanding cage-free and specialty egg capacity due to changing consumer preferences and regulations.
• Engages in sustainability initiatives and animal welfare programs.
• Maintains extensive distribution across 40 states, Puerto Rico, and international markets.

Key Highlights

• Reached net sales of $4.3 billion, a significant increase from $2.3 billion in FY2024.
• Gross profit increased sharply to $1.85 billion from $542 million.
• Significant investments in capacity expansion, including cage-free facilities and acquisitions.
• Operates with a substantial workforce and owns multiple key production and processing assets.