Cal-Maine Foods reports net loss in Q4 FY26 due to low egg prices
Cal-Maine Foods reported a Q4 FY26 net loss of $35.9 million, compared to net income of $342.5 million in the prior year, due to historically low egg prices. Net sales fell 49.9% to $552.6 million. The company announced a $54 million investment to expand Prepared Foods capacity by 30% in the first half of fiscal 2028 and acquired additional Eggland’s Best franchise territory in the Northeast.
*this image is generated using AI for illustrative purposes only.
Cal-Maine Foods reported a net loss of $35.9 million for the fourth quarter of fiscal 2026, a significant decline from net income of $342.5 million in the prior-year period, as historically low egg prices impacted profitability. Net sales for the quarter decreased 49.9% to $552.6 million. For the full fiscal year, net sales fell 31.7% to $2,911.6 million, and net income dropped 74.0% to $316.7 million.
Sherman Miller, president and chief executive officer, attributed the challenging quarter to industry oversupply that drove wholesale shell egg prices to historically low inflation-adjusted levels. He stated that the sustained trough pricing environment demonstrates the resilience built through the company's strategic actions, highlighting the meaningful upside opportunity as initiatives mature.
Strategic Developments
The company is advancing its strategy to diversify earnings and reduce reliance on market-based pricing. In the fourth quarter, Specialty Shell Eggs and Prepared Foods combined accounted for 53.0% of net sales. Cal-Maine Foods announced a new $54 million investment to expand Prepared Foods production capacity, expected to add approximately 30% incremental production beginning in the first half of fiscal 2028. This investment builds on previously announced organic and acquisition-driven growth, targeting a total capacity increase of over 60% from the end of fiscal 2026 through the first half of fiscal 2028.
Subsequent to the fiscal year-end, the company acquired additional Eggland’s Best franchise territory in the Northeast, expanding its distribution footprint in Maine, Massachusetts, New Hampshire, Rhode Island, and select areas in Vermont, New York, and Connecticut. This expansion is expected to increase Specialty Shell Egg volume by approximately 5% annually.
Segment Performance
Cal-Maine Foods implemented a new operating segment structure effective in the fourth quarter, comprising Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods.
| Segment | Q4 FY26 Sales ($000) | Q4 FY25 Sales ($000) | Q4 FY26 Operating Income (Loss) ($000) | Q4 FY25 Operating Income ($000) |
|---|---|---|---|---|
| Conventional Shell Eggs | 210,765 | 702,069 | (40,587) | 370,499 |
| Specialty Shell Eggs | 239,731 | 305,142 | 17,538 | 87,129 |
| Prepared Foods | 60,403 | 1,565 | 8,820 | (647) |
| Total Reportable Segments | 510,899 | 1,008,776 | (14,229) | 456,981 |
Conventional Shell Eggs volume increased 3.1% in the fourth quarter, but the average selling price per dozen decreased 70.9%. Specialty Shell Eggs volume decreased 5.9% in the quarter, with the average selling price per dozen falling 16.5%. Prepared Foods results reflected continued execution of network optimization initiatives, driving sequential margin improvement.
Capital Allocation and Outlook
Cal-Maine Foods repurchased 396,083 shares of its common stock during the fourth quarter for a total of $30.1 million. The repurchase program permits the company to repurchase up to $500 million, of which $320.7 million remains available.
Pursuant to its variable dividend policy, the company will not pay a cash dividend for the fourth quarter. As of May 30, 2026, the total cumulative loss to be recovered before the payment of any future dividends was $35.9 million.
Looking ahead, management noted that market prices have strengthened recently, increasing by more than 90% in only a few weeks. Early indications point to an improving supply-demand balance and a more constructive egg pricing environment heading into the fall.
What specific timeline is expected for the industry supply-demand balance to fully correct given the recent 90% price surge?
How will the $54 million investment in Prepared Foods capacity alter the company's revenue mix by fiscal 2028?
Will the company accelerate its share repurchase pace now that cumulative losses have been recovered?
16
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
