Cal-Maine Foods reported a sharp drop in fourth-quarter and full-year results as egg prices fell from last year’s elevated levels and the company pushed further into specialty eggs and prepared foods.
For the fourth quarter ended May 30, 2026, net sales fell to $552.6 million from $1.10 billion a year earlier, a decline of 49.9%. Gross profit dropped to $34.1 million from $531.5 million, while operating swung to a loss of $58.8 million from income of $435.9 million. Net loss attributable to Cal-Maine was $35.9 million, compared with net income of $342.5 million in the prior-year quarter. Diluted loss per share was $0.76 versus earnings of $7.01 a year earlier.
For fiscal 2026, net sales fell 31.7% to $2.91 billion from $4.26 billion. Gross profit declined 63.7% to $672.0 million, operating income fell 77.2% to $350.2 million, and net income attributable to Cal-Maine dropped 74.0% to $316.7 million. Diluted earnings per share fell to $6.63 from $24.95.
The conventional shell egg business was the biggest drag. Fourth-quarter sales in that segment fell to $210.8 million from $702.1 million, with average selling price per dozen down 70.9%. Full-year conventional shell egg sales fell to $1.35 billion from $2.76 billion, and average price per dozen dropped 50.9%. The segment posted a fourth-quarter operating loss of $40.6 million, versus operating income of $370.5 million a year earlier.
Specialty shell egg sales declined less sharply. Fourth-quarter sales fell to $239.7 million from $305.1 million, while full-year sales slipped to $1.07 billion from $1.15 billion. Average selling price per dozen fell 16.5% in the quarter and 9.5% for the year. The segment still generated $17.5 million of operating income in the quarter and $181.5 million for the year, both below prior-year levels.
Prepared foods continued to expand. Fourth-quarter sales jumped to $60.4 million from $1.6 million a year earlier, and full-year sales rose to $244.8 million from $4.1 million. The segment posted operating income of $8.8 million in the quarter and $33.9 million for the year, compared with a loss of $0.6 million in the prior-year quarter and a loss of $2.1 million for the prior year.
Mix shifted further toward higher-value businesses. Prepared foods accounted for 10.9% of fourth-quarter net sales, up from a negligible share a year earlier, while specialty shell eggs and prepared foods together made up 53.0% of net sales in the quarter. For the full year, prepared foods accounted for 8.4% of net sales, and specialty shell eggs plus prepared foods reached 44.4%.
The company also repurchased 396,083 shares in the quarter for $30.1 million. It ended the period with $320.7 million remaining under its $500 million repurchase authorization.
After the fiscal year ended, Cal-Maine added more Eggland’s Best franchise territory in the Northeast and announced a $54 million investment to expand prepared foods capacity. The new investment is expected to add about 30% incremental production capacity beginning in the first half of fiscal 2028. Combined with previously announced expansions, prepared foods capacity is projected to rise by more than 60% from the end of fiscal 2026 through the first half of fiscal 2028. Following these announcements, the company's shares moved -3.16%, and are now trading at a price of $84.495. For the full picture, make sure to review CAL-MAINE FOODS INC's 8-K report.
