Cal-Maine Foods swings to net loss as conventional egg prices fall 59%

Cal-Maine Foods recorded a net loss attributable to the company of $58.6 million for its first quarter of fiscal 2027, ending August 29, 2026, compared with net income of $199.3 million in the same period a year earlier, according to a company-issued press release.

Net sales fell 41.5% to $539.6 million, down from $922.6 million in the prior-year quarter, as average conventional shell egg prices declined sharply following an industry-wide layer flock repopulation during fiscal 2026.

The Conventional Shell Eggs segment was the primary drag on results, posting a segment loss of $71.0 million against income of $168.2 million a year earlier. Average selling prices for conventional shell eggs dropped 59.3% on a per-dozen basis. The Specialty Shell Eggs and Prepared Foods segments also saw lower income, reporting $14.9 million and $7.8 million respectively, pressured by lower prices and higher feed and production costs.

President and CEO Sherman Miller attributed the results to cyclical market conditions. "Conventional Shell Egg pricing remains under pressure from an industry supply imbalance, while underlying demand remains healthy," Miller said.

Despite the quarterly loss, Cal-Maine pointed to a continued shift in its sales mix toward higher-value products. Combined Specialty Shell Eggs and Prepared Foods rose to 54.1% of net sales, up from 37.1% a year earlier. Miller described the quarter as reflecting "the current point in the conventional shell egg cycle and the company's continued shift toward a more diversified earnings model."

The results are notable for feed markets because Cal-Maine is one of the largest egg producers in North America. A significant contraction in its conventional laying operations affects demand for poultry feed ingredients, including corn and soybean meal, while higher feed and production costs continue to weigh on segment profitability even as egg prices have fallen.