Cal-Maine Foods, Inc. CALM is selling a record number of eggs, thanks to the egg shortage. This Zacks Rank #1 (Strong Buy) has soaring earnings. But is it too late to buy the stock?

Cal-Maine Foods is the largest producer and distributor of fresh shell eggs in the United States. It produces, grades, packages, and distributes fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised, and nutritionally enhanced eggs.

Cal-Maine Foods Saw Record Egg Sales in the Fiscal Second Quarter of 2025

On Jan 7, 2025, Cal-Maine Foods reported its fiscal second quarter 2025 results. Net sales jumped to $954.7 million from $523.2 million the prior year due to an increase in net average selling price of shell eggs as well as an increase in total dozens sold.

The average selling price per dozen rose to $2.74 from $1.73 the prior year due to the egg shortage which is the result of recent outbreaks of highly pathogenic avian influenza (“HPAI”), otherwise known as the bird flu.

Additionally, feed cost fell 12.8% to $0.483 from $0.554 in fiscal 2024.

It was nearly ideal conditions for Cal-Maine Foods as it also saw strong egg demand, especially ahead of the Thanksgiving holiday.

It sold 329.8 million dozens shell eggs, up from 288.2 million in the year ago period. Sales of conventional eggs were 209.6 million dozens, up 8.9% from 192.5 million last year.

Specialty egg sales boomed, jumping 25% to 120.2 million dozens from 95.7 million dozens the prior year.

Cal-Maine Makes Strategic Investments During the Egg Shortage

As bird flu kills more chickens, and eggs remain in low supply but big demand, Cal-Maine continued to make strategic investments to expand its operations.

As of Jan 7, 2025, it had about $60 million in new capital projects that would expand its cage-free capacity. The projects include the addition of five new cage-free layer houses and two pullet houses across the company’s locations in Florida, Georgia, Utah, and Texas.

When those projects are completed, Cal-Maine Foods expects capacity for about 1.1 million cage-free layer hens and 250,000 pullets by late summer 2025.

It’s also spending $15 million to expand its egg products processing facility in Blackshear, Georgia, to add extended shelf-life liquid egg products.

Cal-Maine Foods also expected that is processing plant and hatchery in Dexter, Missouri, will be online in the fiscal third quarter of 2025.

Analyst Is Bullish on Cal-Maine Foods' Fiscal 2025 Earnings

Zacks only has one earnings estimate on Cal-Maine Foods and it is for the full year. But that analyst was bullish thirty days ago, as the fiscal 2025 Zacks Consensus jumped to $15.59 from $8.54 during that time.

That is earnings growth of 174% as it made $5.69 in fiscal 2024.

Egg prices continue to rise as shortages continue. In calendar 2024, 38.4 million commercial layer hens and 1.8 million pullets were depopulated due to the bird flu.

Here’s what it looks like on the price and consensus chart. 2022 was the last time there was a big surge in egg prices.

Image Source: Zacks Investment Research

Cal-Maine Foods Paid Out a Big Variable Dividend in Feb 2025

Call-Maine Foods has a variable dividend policy which states that for each quarter in which the company reports net income, it pays a cash dividend to shareholders in an amount equal to one-third of such quarterly income.

The fiscal second quarter dividend was $1.49 per share. It was payable on Feb 13, 2025 to holders of record as of Jan 29, 2025.

Shares Soar Over the Last Year

Cal-Maine Foods is in a cyclical industry. Investors have piled into the stock in the last year as egg prices have risen, and so have earnings and dividends.

Image Source: Zacks Investment Research

But it looks like some investors are taking gains off the table.

The stock is cheap, with earnings at these levels. It trades at 7x. But when earnings fall again, the stock will not be as cheap.

For investors looking for a way to invest in record egg prices, Cal-Maine Foods should be on your short list.

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