Cal-Maine Foods, Inc. (CALM): Business Model Canvas [Dec-2025 Updated]

Honestly, you're probably looking at the egg market and seeing pure volatility, but let's cut through the noise with Cal-Maine Foods, Inc. (CALM). As someone who's mapped out balance sheets for decades, what stands out from their fiscal 2025 is not just surviving but thriving, hitting $4.3 billion in net sales by smartly pivoting. They aren't just selling more eggs; they are defintely doubling down on high-value specialty offerings and prepared foods, which is the real engine behind that number. If you want to see exactly how this industry giant manages feed costs, biosecurity risks, and its massive distribution network-from contract growers to major retailers-dive into the full Business Model Canvas breakdown below; it clearly shows their playbook.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Key Partnerships

You're looking at the network Cal-Maine Foods, Inc. (CALM) relies on to keep those eggs moving from farm to table, especially as they push hard into value-added products. The partnerships here are about scale, specialized production, and managing the biggest input cost.

Joint venture with Crepini Foods for specialty wraps and crepes

The strategic investment in the prepared foods space is cemented through the joint venture, Crepini Foods LLC, where Cal-Maine Foods holds a 51% stake. This partnership is seeing significant capital deployment to scale up ready-to-eat offerings. Management announced a commitment of $7 million to the JV through fiscal 2028. This investment is specifically targeted to add 18 million pounds of production capacity. The goal is substantial, aiming to expand Crepini Foods' volume by more than sevenfold. This aligns with the overall prepared foods expansion, which, alongside the Echo Lake Foods acquisition (closed June 2, 2025), is expected to grow Cal-Maine's total prepared foods capacity by more than 30% in the next 18-24 months.

Partnership Component	Investment/Commitment	Target Capacity Addition	Timeline/Period
Crepini Foods JV Investment	$7 million	18 million pounds	Through fiscal 2028
Echo Lake Foods Scrambled Egg Optimization	$15 million	17 million pounds (annual)	By mid-fiscal 2027
Echo Lake Foods Pancake Line Expansion	$14.8 million	12 million pounds (annual)	By early fiscal 2027

Strategic suppliers for key feed ingredients like corn and soybean meal

Feed is the primary cost component, representing 53.4% of Cal-Maine Foods' fiscal 2025 farm production costs. To manage this, Cal-Maine Foods actively partners with suppliers, often locking in the basis portion of grain purchases several months in advance during harvest season when prices are generally lower. Around April 2025, corn prices were noted near $4.8075 per bushel, with soybeans at $10.35 per bushel. The benefit of these supply strategies was evident in recent quarters; for the third quarter of fiscal 2025, feed costs per dozen dropped 9.6% year-over-year. Even in the fourth quarter of fiscal 2025, feed costs per dozen were down 2.2% compared to the prior year period.

Contract growers for additional free-range layer hen capacity

Cal-Maine Foods relies on contract growers to meet specific customer demands, particularly for specialty eggs. In fiscal 2025, 9.2% of the company's production came from contract producers, with the majority of this being for organic, pasture-raised, and free-range eggs. The company had commitments in place that were set to bring approximately 1.2 million additional free-range hens online by fall 2025. This complements the internal expansion projects, such as the $40 million capital approval in October 2024 aimed at adding capacity for approximately 1.0 million cage-free layer hens by late summer 2025. Specialty eggs, which include these categories, accounted for 35.9% of total shell egg sales in Q4 fiscal 2025.

Licensing agreements for premium brands like Eggland's Best® and Land O'Lakes®.

While specific financial breakdowns for licensing revenue from premium brands aren't explicitly detailed for late 2025, the strategic focus on higher-value products is clear. Specialty eggs, which encompass cage-free, organic, free-range, and nutritionally enhanced varieties, represented 35.9% of total shell egg sales in the fourth quarter of fiscal 2025. Furthermore, specialty eggs accounted for 30.7% of net sales in the first quarter of fiscal 2026 (ended August 30, 2025). This segment, combined with prepared foods, made up nearly 40% of net sales in Q1 fiscal 2026, showing the importance of these premium, often branded, channels.

Logistics and transportation partners for nationwide distribution.

Cal-Maine Foods, as the largest egg company in the United States operating in 39 states and Puerto Rico, depends on a vast network of logistics partners. The company honors long-standing pricing frameworks with valued customers, which implies established, reliable distribution channels are in place to ensure product delivery. The integration of acquisitions like Echo Lake Foods, which serves a blue-chip customer base, further relies on these external transportation partners to maintain supply reliability across the expanded prepared foods footprint.

Finance: draft 13-week cash view by Friday.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Key Activities

You're looking at the core engine of Cal-Maine Foods, Inc. as of late 2025, which is all about massive scale and strategic moves to lock in growth and stability. The key activities are centered on high-volume production, deep integration, and smart acquisitions to manage the volatility inherent in the commodity egg market.

Large-scale production and processing of shell eggs

The sheer volume of product moved defines this activity. For fiscal year 2025, Cal-Maine Foods, Inc. reported net sales of $4.3 billion and net income of $1.2 billion. This was supported by selling approximately 1.3 billion dozen eggs annually during fiscal 2025. To keep that pipeline full, the company increased its average number of layer hens during the fourth quarter of fiscal 2025 by 18 percent compared to the prior-year quarter.

Vertical integration: breeding, hatching, feed milling, and packaging

Controlling the supply chain from the start is crucial for Cal-Maine Foods, Inc. This deep integration helps manage costs and ensures supply, especially when the market is tight. The company actively worked to bolster its upstream capabilities in late 2025.

Here's a look at the growth in the breeding and hatching side during the fourth quarter of fiscal 2025:

Metric	Q4 FY2025 Change vs. Prior Year	Source of Capacity
Breeder Flock Number	Increased by 48 percent	Internal Growth/Recovery
Total Chicks Hatched	Increased by 56 percent	Internal Growth/Recovery

Also, Cal-Maine Foods, Inc. added production support by integrating recently acquired assets, including feed mills from Deal-Rite Feeds, Inc.

Strategic acquisitions like Echo Lake Foods to expand prepared foods

Moving into value-added products is a clear strategic activity to reduce exposure to volatile shell egg pricing. The acquisition of Echo Lake Foods closed on June 2, 2025. This was an all-cash transaction valued at approximately $258 million, resulting in an effective purchase price of nearly $230 million after accounting for a tax benefit of about $28 million. Echo Lake Foods brought in annual revenues of approximately $240 million in 2024, with a five-year compound annual growth rate of about 10 percent. Management projects an estimated potential $15 million in annual synergies from this deal.

Managing biosecurity protocols against Highly Pathogenic Avian Influenza (HPAI)

Defending the flock against HPAI is a non-negotiable, high-cost activity. The industry saw significant depopulation, with 40.2 million commercial layer hens depopulated in calendar year 2024, and an additional 39.0 million through May 2025. Cal-Maine Foods, Inc. faces elevated costs specifically for biosecurity measures to prevent such outbreaks. The resulting reduced national shell egg supply due to HPAI was the primary driver for the inflated shell egg prices experienced throughout fiscal 2025.

Ongoing organic expansion to add cage-free layer hen capacity

Cal-Maine Foods, Inc. is actively investing capital to meet shifting customer demand for cage-free and free-range options. The board approved $40 million in new capital projects in October 2024 to expand cage-free capabilities. The company is executing on several fronts to increase this capacity:

• Expected addition of approximately 1.1 million cage-free layer hens through organic projects.
• Expected addition of 250,000 pullets from ongoing organic expansion.
• Commitments to contract the production of approximately 1.2 million additional free-range layer hens by fall 2025.

Finance: draft 13-week cash view by Friday.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Key Resources

You're looking at the core assets that let Cal-Maine Foods, Inc. operate at scale. These aren't just line items on a balance sheet; they are the physical and intellectual foundation of their market dominance.

The physical footprint is extensive, giving Cal-Maine Foods, Inc. a massive advantage in distribution and redundancy. As of the end of fiscal 2025, the company maintained an impressive network of 49 production facilities and 49 processing and packaging facilities across the country. This broad operational base helps them service a fragmented industry where logistics matter a great deal.

The sheer scale of the flock is a primary resource, though it fluctuates. As of May 31, 2025, the total flock consisted of approximately 48.3 million layers along with 11.5 million pullets and breeders. To support this, Cal-Maine Foods, Inc. also saw a 48% increase in its breeder flocks by the end of the fourth quarter of fiscal 2025 compared to the prior-year quarter. Honestly, managing that many birds is a feat in itself.

Here's a quick look at some of the key quantitative assets Cal-Maine Foods, Inc. brought into the latter half of 2025:

Resource Category	Specific Metric/Asset	Value as of Late FY2025
Production Footprint	Production Facilities	49
Processing Footprint	Processing/Packaging Facilities	49
Flock Size (Layers)	Total Layers (as of May 31, 2025)	48.3 million hens
Financial Strength	Long-Term Debt	Zero
Vertical Integration	Feed Mills (Pre-Acquisitions)	27
Production Mix	Company-owned production percentage of total shell eggs sold (FY2025)	90.8%

Financially, the balance sheet provides incredible flexibility, which is rare in this sector. Cal-Maine Foods, Inc. carries zero long-term debt as of fiscal 2025, a position that gives management the freedom to act decisively on opportunities without the pressure of immediate debt servicing. This strength is underpinned by robust operating cash flow, with Net Cash From Continuing Operating Activities around $413.0 million in Q4 2025.

The company bolsters its core egg business through strategic integration and brand equity. Key resources include its portfolio of owned and licensed brands, such as Eggland's Best® and Farmhouse Eggs®. Furthermore, Cal-Maine Foods, Inc. has been actively acquiring capabilities, integrating processing facilities from ISE America, Inc. and feed mills from Deal-Rite Feeds, Inc. during fiscal 2025. They also expanded into prepared foods by acquiring Echo Lake Foods subsequent to the fiscal year end. These moves solidify their vertically integrated model.

You should review the latest capital expenditure plans to see how they are deploying this zero-debt structure for future growth:

• Expected addition from organic projects: approximately 1.1 million cage-free layer hens.
• Contract commitments for additional free-range hens by fall 2025: approximately 1.2 million.
• Investment to expand egg products processing in Blackshear, Georgia: US$15 million.

Finance: draft 13-week cash view by Friday.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Value Propositions

Largest, most reliable supply of fresh shell eggs in the U.S.

Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the United States, holding a 16% market share in the fragmented industry. The company operates with 75% more layer hens than its nearest U.S. competitor. For the fiscal year ended May 31, 2025, Cal-Maine Foods sold 1.283 billion dozen eggs. The operational scale is supported by 49 production facilities and a capacity to process 8.1 million eggs per hour. As of a recent snapshot, the company maintains 48.3 million laying hens.

The scale of operations translates directly into supply reliability, which is a core value proposition for large-scale customers.

Metric	Value (FY2025 or Q1 FY2026)	Context
Total Annual Net Sales (FY2025)	$4.3 billion	Record-setting fiscal year performance
Total Layer Hens Maintained	48.3 million	Indicates massive scale of production base
Total Dozens Sold (FY2025)	1.283 billion dozen	Demonstrates consistent volume capability
Production Facilities	49	Supports broad geographic distribution and supply reliability

Broad specialty egg portfolio: cage-free, organic, brown, and free-range.

The portfolio is a significant growth engine, capturing consumer preference shifts. Specialty eggs accounted for 27.6% of fiscal 2025 revenue. In the first quarter of fiscal 2026, specialty egg sales reached $283.5 million, representing 30.7% of net sales for that quarter. Specialty egg volume growth was 16.0% in the fourth quarter of fiscal 2025.

• Cage-Free, Organic, Brown, Free-Range categories offered.
• Specialty Eggs accounted for 30.7% of Q1 FY2026 net sales.
• Specialty Egg Sales in Q1 FY2026: $283.5 million.
• Organic expansion projects expected to add approximately 1.1 million cage-free layer hens.

Diversification into prepared foods like pre-cooked egg patties and omelets.

This diversification, bolstered by the acquisition of Echo Lake Foods, reduces reliance on conventional shell egg sales. Prepared foods contributed 9.1% of net sales in the first quarter of fiscal 2026. Sales in this segment skyrocketed by 839.1% in Q1 FY2026 compared to Q1 FY2025, reaching $83.9 million. Cal-Maine Foods is investing in this segment to strengthen mid-cycle earnings.

The company is launching a $15 million expansion at Echo Lake Foods to add 17 million pounds of annual scrambled egg production by mid-fiscal 2027. This follows a previously announced $14.8 million high-speed pancake line project, adding 12 million pounds by early fiscal 2027.

Consistent quality and food safety across a massive, integrated operation.

The vertically integrated model-controlling breeding, hatching, feed milling, production, and processing-is key to quality control. The company has 3 breeding facilities, 2 hatcheries, and 27 feed mills. Furthermore, there have been no recalls related to Highly Pathogenic Avian Influenza (HPAI) associated with eggs currently in the market.

Price stability through contract-based pricing for some customers.

While market prices fluctuate, contract-based pricing provides a layer of revenue predictability. For fiscal year 2025, net income attributable to Cal-Maine Foods was $1.2 billion, translating to diluted earnings per share (EPS) of $24.95. The net sales for Q1 FY2026 were $922.6 million. The company's strong financial health, including a robust balance sheet with zero long-term debt, supports its ability to offer stable supply agreements.

For Q2 FY2025, the company paid a cash dividend of approximately $1.49 per share based on its variable dividend policy, which pays one-third of quarterly net income.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Customer Relationships

You're managing relationships in a market where supply shocks, like the Highly Pathogenic Avian Influenza (HPAI) outbreaks, can send prices soaring, so Cal-Maine Foods, Inc.'s approach to its customers is critical for stability. As the largest producer and distributor of fresh shell eggs in the United States, its customer relationships are segmented by volume, product type, and partnership depth.

Dedicated sales teams managing relationships with major retailers and foodservice.

Given that Cal-Maine Foods, Inc. sells most of its shell eggs to national and regional grocery store chains, managing these accounts requires dedicated, high-level attention. The company's scale-operating with a 16% market share in a fragmented industry-means these relationships are foundational to its business. This dedicated management is key to navigating volatile pricing environments, such as the one seen in fiscal 2025 where net sales hit $4.3 billion.

High-volume, transactional relationships with grocery chains and wholesalers.

The core of the shell egg business is built on moving massive quantities reliably. In the second quarter of fiscal 2025 alone, Cal-Maine Foods, Inc. sold a record 329.8 million dozens of shell eggs. This volume is split between conventional and specialty products, reflecting the transactional nature of supplying staple goods to large buyers. For instance, conventional egg sales in Q2 FY2025 totaled 209.6 million dozens.

Here's a quick look at how volume breaks down across key segments for Q2 FY2025:

Customer/Product Type	Volume (Millions of Dozens)	Fiscal Year 2025 Net Sales (Q2)
Total Shell Eggs Sold	329.8	$954.7 million
Specialty Eggs Sold	120.2	(Included in Total)
Conventional Eggs Sold	209.6	(Included in Total)

The company honored long-standing pricing frameworks with valued customers during the third quarter of fiscal 2025, suggesting that while the market was tight, established partners received priority and predictable terms.

Long-term, strategic partnerships with Quick Service Restaurants (QSRs).

The move into prepared foods signals a shift toward deeper, more strategic partnerships, often involving QSRs and foodservice providers who need consistent, value-added components. The acquisition of Echo Lake Foods, Inc. in fiscal 2025, a company with approximately $240 million in 2024 revenues, directly targets this segment. Cal-Maine Foods, Inc. is investing $15 million in a network optimization project at Echo Lake Foods to add 17 million pounds of annual scrambled egg production by mid-fiscal 2027, showing a commitment to scaling up for these specific partners.

Brand building and consumer trust via licensed premium brands.

Consumer trust is built through recognized quality, especially in the specialty category, which is a major growth engine. Specialty egg volumes saw over 25% quarterly growth in Q2 FY2025, reaching 120.2 million dozens sold. This is supported by a branded portfolio that includes licensed premium names:

• Eggland's Best®
• Land O'Lakes®
• Farmhouse Eggs®
• 4Grain®
• Sunups®
• MeadowCreek Foods®
• Crepini®

The focus on cage-free and organic production aligns with evolving consumer preferences, which is a key part of maintaining that trust. This focus helped drive record specialty egg sales in Q2 FY2025.

Direct communication on product safety and supply chain integrity.

When the industry faced severe supply constraints due to HPAI, Cal-Maine Foods, Inc. used its vertically integrated structure-operating 49 production facilities and 27 feed mills-to communicate reliability. The company proactively communicated steps taken to mitigate supply shortages, such as increasing its layer hen stock by 18% and its breeder flocks by 48% in Q4 FY2025 compared to the prior year. This transparency about capacity expansion and recovery from facility shutdowns in Kansas and Texas is essential for reassuring customers about supply integrity.

Finance: draft 13-week cash view by Friday.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Channels

You're looking at how Cal-Maine Foods, Inc. gets its product-from shell eggs to prepared foods-into the hands of the end user as of late 2025. The distribution strategy is built on scale, leveraging its position as the largest producer and distributor of fresh shell eggs in the United States.

The primary channels are segmented by product type, reflecting the company's push toward higher-value offerings. For the first quarter of fiscal 2026, ended August 30, 2025, shell eggs still made up the bulk of the revenue, but specialty eggs and the newly integrated prepared foods segment are growing their share significantly.

Here's the quick math on the sales mix for Q1 Fiscal 2026:

Product Category	Net Sales (Q1 FY2026)	Percentage of Total Net Sales (Q1 FY2026)
Total Net Sales	$922.6 million	100.0%
Shell Egg Sales	$789.4 million	85.6%
Conventional Egg Sales	$505.9 million	54.8%
Specialty Egg Sales	$283.5 million	30.7%
Prepared Foods Sales	$83.9 million	9.1%
Specialty Eggs and Prepared Foods Combined	N/A	39.8%

Direct sales to major national and regional grocery retailers form the backbone for the conventional and specialty shell egg volume. The company sold a record 1.3 billion dozen eggs annually in Fiscal 2025, much of which moves through these large retail contracts. The specialty egg segment, which includes cage-free, organic, and other types, saw sales of $283.5 million in Q1 FY2026, indicating strong retail pull for these premium products.

Foodservice distributors supplying restaurants and institutions are a key target, especially for the prepared foods line. Following the acquisition of Echo Lake Foods, which closed on June 2, 2025, prepared foods sales reached $83.9 million in Q1 FY2026, with Echo Lake contributing $70.5 million of that total. This directly targets the foodservice channel, including quick service restaurants mentioned in company commentary.

Wholesalers and egg brokers are still critical for conventional egg sales, which totaled $505.9 million in Q1 FY2026. These channels help move the high-volume conventional product efficiently across the broad market.

Leveraging existing distribution for new prepared foods products is a stated strategy. The company explicitly noted that the Echo Lake Foods acquisition provides an opportunity to leverage existing distribution channels to expand reach in retail and foodservice customers. This means the established shell egg logistics network is being used to push the newer, higher-margin prepared items.

For delivery, Cal-Maine Foods relies on its vertically integrated operations. The company maintains a comprehensive operational footprint across the United States, which supports its distribution capabilities. While specific fleet numbers aren't public, the structure implies significant control over the supply chain, from its 49 processing and packaging facilities to the final delivery point, which helps manage product integrity and timing for its customers.

The company is actively expanding capacity to meet demand across these channels, with commitments for approximately 1.2 million additional free-range hens by fall 2025, which will feed directly into the specialty egg channel.

• The total layer hen flock size as of a Fiscal 2025 snapshot was 48.3 million.
• Specialty eggs and prepared foods combined accounted for 39.8% of net sales in Q1 FY2026.
• Conventional egg sales were $505.9 million in Q1 FY2026.
• The company achieved $4.3 billion in net sales for the full Fiscal Year 2025.

Finance: draft the Q2 FY2026 channel contribution analysis by end of next week.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Customer Segments

You're looking at the core buyers for the largest shell egg producer in the United States, and the numbers from Fiscal Year 2025 show a clear shift toward value-added products, even as the bulk of the business remains in traditional channels. The sheer scale of Cal-Maine Foods, Inc. means its customer base is broad, spanning from the largest grocery giants to specialized food preparers.

The company's total net sales for the fiscal year ending May 31, 2025, hit $4.3 billion, demonstrating the massive volume moving through these segments. The customer base is segmented by the type of product they purchase, which directly correlates with the end-user market.

Here is a breakdown of the revenue composition for the full Fiscal Year 2025, which helps map the importance of these customer groups:

Customer/Product Group	FY 2025 Revenue Contribution	FY 2025 Financial Data Point
Conventional Shell Eggs (Retail/Foodservice)	66.9%	Conventional Egg Sales
Specialty Eggs (Premium/Value-Added)	27.6%	Specialty Egg Sales
Egg Product Manufacturers/Breakers (Implied Industrial Use)	Remaining Percentage (Approx. 5.5%)	Calculated Remainder

The segments that align with your outline are served through these product categories. For instance, large national and regional supermarket chains are the primary buyers of the conventional shell eggs, which made up the bulk of the business. However, the growth story is clearly in the premium and prepared categories.

The focus on specialty and prepared foods is accelerating. Looking at the first quarter of fiscal 2026 (ending August 30, 2025), the diversification is evident:

• Shell egg sales represented 85.6% of total net sales for the quarter.
• Specialty eggs alone accounted for 30.7% of net sales in that same quarter.
• Prepared foods sales reached $83.9 million, up 839.1% year-over-year, largely due to the acquisition of Echo Lake Foods, which closed on June 2, 2025.
• Specialty eggs and prepared foods combined accounted for nearly 40% of net sales in the first quarter of fiscal 2026.

Large national and regional supermarket chains (e.g., Walmart, Kroger)

These customers drive the volume for conventional shell eggs. While specific customer names aren't broken out in the financials, the sheer scale of Cal-Maine Foods, Inc. as the largest producer means these chains are critical. They rely on the company's scale to ensure consistent supply, which is vital given the industry-wide supply constraints experienced through FY2025.

Consumers seeking premium/specialty eggs (cage-free, organic)

This segment is the clear growth engine. The company saw specialty egg volume increase by 16.0% in the fourth quarter of fiscal 2025. This directly serves consumers demanding cage-free, organic, and nutritionally enhanced options. The company is actively adding capacity, with ongoing projects expected to add approximately 1.1 million cage-free layer hens. This shows a direct investment to satisfy this customer preference.

Egg product manufacturers and breakers (industrial use)

This group purchases eggs for further processing into liquid, dried, or frozen egg products. While the direct sales figure isn't isolated, the growth in the prepared foods segment suggests that Cal-Maine Foods, Inc. is increasingly capturing this value internally, especially after acquiring Echo Lake Foods, which had annual revenues of approximately $240 million in 2024.

Retail and foodservice customers for prepared egg products

This segment is now significantly bolstered by the acquisition of Echo Lake Foods, Inc. This move expands Cal-Maine Foods, Inc.'s reach into ready-to-eat formats like pre-cooked patties, omelets, and waffles, serving both retail shelves and foodservice operators like QSRs. The $83.9 million in prepared foods sales in Q1 FY2026 is a concrete number representing this customer base.

Foodservice and institutional customers (QSRs, schools, hospitals)

These customers are served through both bulk shell egg sales and the newly expanded prepared foods line. The acquisition of Echo Lake Foods explicitly mentions expanding strategic customer relationships with quick service restaurant and other foodservice customers. The company's operational footprint, with 49 processing and packaging facilities, supports the distribution network required to service these high-volume, often time-sensitive, institutional buyers.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Cost Structure

The Cost Structure for Cal-Maine Foods, Inc. is heavily influenced by input commodity prices, significant fixed asset base, and ongoing strategic capital deployment.

Feed Costs

Feed costs represent a major variable cost component for Cal-Maine Foods, Inc. While the specific figure of $\text{\$0.490}$ per dozen for FY2025 was not confirmed in the latest reports, the trend shows significant favorable commodity pricing for key feed ingredients throughout the fiscal year ended May 31, 2025.

The year-over-year percentage changes in feed costs per dozen for the fiscal 2025 quarters were:

• First Quarter FY2025: down 17.3% compared to Q1 FY2024.
• Second Quarter FY2025: down 12.8% compared to Q2 FY2024.
• Third Quarter FY2025: down 9.6% compared to Q3 FY2024.
• Fourth Quarter FY2025: down 2.2% compared to Q4 FY2024.

The total Farm production Cost of Sales for the fiscal year ended May 31, 2025, reached $\text{\$1,035,638}$ thousand.

Fixed Costs and Facility Base

Cal-Maine Foods, Inc. maintains a substantial fixed cost base driven by its extensive operational footprint. The company operates 49 Shell Egg Production facilities across the United States.

This fixed base also includes other critical infrastructure:

• 30 Feed Mills.
• 2 Hatcheries.
• 50 Processing and Packaging locations.

Labor and Facility Costs

Labor and facility costs are embedded within the overall farm production costs, reflecting the vertically integrated nature of Cal-Maine Foods, Inc.'s operations. For the fourth quarter of fiscal 2025, these costs contributed to facility costs offsetting the benefit of favorable commodity pricing. The total farm production costs for the full fiscal year 2025 were $\text{\$1,035,638}$ thousand.

Capital Expenditures for Conversion and Expansion

Significant capital expenditures are required to meet evolving customer demand and regulatory requirements, particularly for cage-free production. The company approved major projects in late 2024 and early 2025 to expand its prepared foods platform as well.

Key capital investment figures related to expansion and conversion include:

Project Type	Approved/Committed Amount	Capacity/Scope Detail	Target Completion/Update
Cage-Free Layer Houses	$\text{\$40}$ million approved October 4, 2024	Capacity for approximately 1.0 million cage-free layer hens	Late summer 2025
Free-Range Commitments	Not specified as CapEx	Commitments for approximately 1.2 million additional free-range hens	Fall 2025
Dexter, MO Facility Conversion	Part of ongoing CapEx	Remodel and repurpose former Tyson Foods facilities for shell egg production	Progress noted in Q2/Q3 FY2025
Blackshear, GA Processing Expansion	$\text{\$15}$ million investment	To add extended shelf-life liquid egg products capacity	Update provided in Q2 FY2025
Echo Lake Foods Optimization	$\text{\$15}$ million planned investment	Expected to add 17 million pounds of annual scrambled egg output	By mid-fiscal 2027

Acquisition and Integration Costs

The acquisition of Echo Lake Foods, Inc. represents a strategic cost outlay to diversify the product mix away from volatile shell egg pricing. The transaction was announced during the third quarter of fiscal 2025.

The financial details of the acquisition are:

• Initial announced purchase price: approximately $\text{\$258}$ million.
• Final purchase price after a $\text{\$28}$ million tax benefit: $\text{\$230}$ million.
• The deal was funded using existing cash reserves.

This acquisition is expected to be at least mid-single digit accretive to Cal-Maine Foods' earnings starting in fiscal 2026.

Cal-Maine Foods, Inc. (CALM) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Cal-Maine Foods, Inc. as of late 2025, focusing on the most recent hard numbers we have from their record Q1 Fiscal 2026 results. Honestly, the story here is clear: diversification is driving growth beyond just the commodity shell egg market.

The company posted $4.3 billion in total net sales for the full fiscal year 2025. That was a massive jump from the prior year, largely due to higher egg prices and increased volume sold, partly fueled by the effects of highly pathogenic avian influenza (HPAI) on the national supply.

For the first quarter of fiscal 2026, net sales hit $922.6 million. Here is how that revenue broke down by major segment for that quarter:

Revenue Stream Component	Q1 FY2026 Amount (Millions USD)	Context/Detail
Total Net Sales	$922.6	Overall top line for the quarter.
Total Shell Egg Sales	$789.4	Total revenue from all shell eggs.
Conventional Shell Egg Sales	$505.9	The largest volume driver component of shell eggs.
Specialty Shell Egg Sales	$283.5	Sales from premium/differentiated eggs.
Prepared Foods Sales (Total)	$83.9	Includes Echo Lake Foods contribution.
Echo Lake Foods Contribution to Net Sales	$70.5	Specific contribution from the acquired prepared foods business in Q1 FY2026.
Other Sales (Calculated Residual)	$49.3	The remainder of net sales after accounting for shell eggs and total prepared foods ($922.6M - $789.4M - $83.9M).

You can see the shift in focus clearly when you look at the mix within the shell egg category for Q1 FY2026. The conventional product is still the base, but specialty is growing its share significantly. The prepared foods segment, bolstered by the recent acquisition, is now a material contributor to the total revenue base.

Here are the key statistical points defining these revenue streams for Q1 FY2026:

• Conventional shell egg sales volume was relatively flat, with revenue growth driven by higher conventional egg selling prices.
• Specialty shell egg sales accounted for 35.9% of total shell egg sales for the quarter.
• Specialty egg sales improved by 10.4%, driven by a 7.5% increase in sales volume.
• The acquisition of Echo Lake Foods added $70.5 million in sales to the prepared foods segment in Q1 FY2026.
• Specialty eggs and prepared foods combined represented 39.8% of Cal-Maine Foods' total net sales for the quarter.

The company is actively using acquisitions, like Echo Lake Foods, to move into the value-added food space, which is less exposed to the volatile commodity pricing of loose shell eggs. That acquisition is defintely paying off early. Finance: draft 13-week cash view by Friday.