Company Overview - Cal-Maine Foods is the number one U S producer and distributor of fresh eggs [10] - The company's mission is to be the most sustainable producer and reliable supplier of consistent, high-quality fresh eggs and egg products in the United States [13] - Cal-Maine Foods has a premier diverse, integrated asset base, including 29 feed mills, 2 breeding facilities, 2 hatcheries, 49 production facilities, 49 processing & packaging facilities, and 5 egg product facilities [24] - The company has a capacity of approximately 81 million eggs per hour [24] - Shell eggs account for 953% of Cal-Maine Foods' total revenue [26] Market Dynamics and Strategies - 97% of U S households purchase eggs [44] - 71% of U S consumers are increasing protein intake [60] - Conventional eggs maintain a leading retail market share [70] - The top five producers own approximately 37% of the U S layer hen flock [73] Financial Performance and Capital Allocation - Cal-Maine Foods' net income for FYTD Q3 2025 is $878 million [38] - The company has paid over $292 million in dividends since FY2000 [103] - Cal-Maine Foods is acquiring Echo Lake Foods for $258 million Enterprise Value [122]

Investor Presentation November 2023 © Cal-Maine Foods. All rights reserved. SECTION 1 Company Overview CAL-MAINE FOODS | INVESTOR PRESENTATION | NOVEMBER 2023 2 Forward-looking statements and use of non-GAAP financial measures Forward‐Looking and Cautionary Statements This report contains numerous forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act") relating to our shell e ...

Core Viewpoint - Cal-Maine Foods is experiencing stock price fluctuations influenced by recent events in the egg market, particularly a salmonella scare leading to a significant egg recall, which has implications for supply and pricing dynamics in the industry [1][3][4]. Group 1: Market Impact - The August Egg Company announced a voluntary recall of 20.4 million eggs due to salmonella concerns, affecting multiple brands across nine states [3]. - Following the recall, Cal-Maine Foods benefited as it was not involved in the recall, leading to a nearly 4% increase in its stock price from the recall date until recently [4]. - However, as concerns over supply deficits diminish, Cal-Maine's stock has started to decline, closing down 2.5% on a day with no clear news catalyst [1][4]. Group 2: Investment Perspective - Current shareholders may be disappointed with the recent price decline, but this presents a buying opportunity for new investors, making the stock cheaper [5]. - Cal-Maine's stock is valued at a low 5 times trailing-12-month earnings, with analyst forecasts suggesting earnings of over $8 per share next year, resulting in an attractive forward price-to-earnings ratio of 12 [6]. - The stock also offers a generous 6.6% dividend yield, enhancing its attractiveness for potential investors, especially if egg prices remain high [7].

Group 1: Cal-Maine Foods (CALM) Expansion and Strategy - Cal-Maine Foods is advancing a $60 million expansion plan to increase capacity for 1.1 million cage-free layer hens and 250,000 pullets by the end of 2025, aligning with consumer demand for cage-free eggs [1][9] - The company is scaling its cage-free operations through organic investments and acquisitions, converting existing facilities to cage-free environments [2] - Recent acquisitions have significantly boosted CALM's cage-free hen count, including the acquisition of Red River Valley Egg Farm and Fassio Egg Farms, adding nearly 4 million cage-free hens since 2022 [3][9] Group 2: Market Position and Financial Performance - Cage-free eggs accounted for approximately 29.5% of CALM's total net shell egg sales in fiscal year 2024, supporting premium pricing and long-term growth [4][9] - CALM's stock performance has been strong, gaining 68.1% over the past year compared to a 9.2% decline in the industry [8] - The forward 12-month price/earnings (P/E) ratio for CALM is 17.84X, higher than the industry's 11.32X [10] Group 3: Earnings Estimates - The Zacks Consensus Estimate for Cal-Maine's fiscal 2025 earnings is $22.73 per share, reflecting a year-over-year increase of 299.5%, while the estimate for fiscal 2026 indicates a 74.9% decline to $5.71 [11]

Group 1 - Cal-Maine Foods (NASDAQ: CALM) is identified as a suitable investment opportunity due to its alignment with specific investment strategies [1] - The investor emphasizes a focus on under-the-radar small caps with asymmetric upside and low-beta stocks that have potential for meaningful growth [1] - The approach includes pairing long positions with targeted short positions to manage risk and capitalize on market mispricing [1] Group 2 - The investor has a beneficial long position in Cal-Maine Foods, indicating confidence in the company's future performance [2] - The article reflects the author's independent opinions and is not influenced by external compensation [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]

Core Insights - Cal-Maine Foods, Inc. (CALM) and Tyson Foods (TSN) are leading U.S. producers in protein-based food products, with CALM focusing on eggs and TSN on meat [1] - Both companies operate in the essential food sector, benefiting from commodity price fluctuations and consumer staple demand [1] Company Overview - Cal-Maine, based in Ridgeland, MS, has a market capitalization of $4.6 billion and is the largest producer and distributor of fresh shell eggs in the U.S. [2] - Tyson, located in Springdale, AR, has a market capitalization of $19.4 billion and operates in four segments: Beef, Pork, Chicken, and Prepared Foods [3] Financial Performance - In Q3 fiscal 2025, CALM reported earnings per share (EPS) of $10.38, up from $3.00 in the same quarter last year, with revenues increasing 102% year-over-year to $1.42 billion [5] - Tyson's Q2 fiscal 2025 revenues were $13 billion, with EPS of $0.92, reflecting a 48% increase due to cost relief and efficiency gains in the Chicken segment [10][11] Market Trends - The demand for eggs remains strong as they are considered a cost-effective source of high-quality protein, with increasing consumer preference for cage-free and pasture-raised options [7] - Tyson is experiencing strong consumer demand for protein, particularly in its Chicken segment, which has shown improved efficiencies and rising volumes [15] Strategic Initiatives - Cal-Maine is investing in organic and bolt-on growth, focusing on cage-free and prepared egg products, with plans to complete $60 million in capital projects to increase production capacity [8][9] - Tyson is modernizing and expanding capacity while enhancing its brands, focusing on operational excellence and waste reduction, particularly in Prepared Foods [15] Valuation and Investment Outlook - Cal-Maine is trading at a forward earnings multiple of 17.79X, while Tyson is at 13.23X, indicating Tyson may offer a more attractive valuation [19] - The Zacks Consensus Estimate for Cal-Maine's fiscal 2025 earnings is $22.73 per share, a 299.5% increase year-over-year, while Tyson's estimate is $3.90 per share, a 25.81% rise [16][17] - In the past year, Cal-Maine's stock has gained 67%, contrasting with Tyson's 3.5% decline [18]

Core Insights - Cal-Maine Foods, Inc. (CALM) reported a significant increase in gross profit for Q3 of fiscal 2025, reaching $716 million, which is more than three times the profit from the previous year, resulting in a gross margin of 50.5% [1][10] - The increase in gross margin is attributed to higher egg prices and lower feed ingredient costs, particularly for corn and soybean meal, which have seen a decline in prices [1][4][10] Financial Performance - The gross margin for Cal-Maine Foods has shown consistent growth throughout fiscal 2025, increasing from 31% in Q1 to 50.5% in Q3, driven by higher egg prices and reduced feed costs [3] - Farm production costs per dozen eggs decreased by 5.7% year over year, primarily due to favorable pricing for key feed ingredients [2][10] - Feed costs per dozen fell by 9.6% year over year, mainly due to lower soybean meal prices [2] Market Trends - Soybean futures recently rose above $10.65 per bushel, but are still 8.3% lower than the previous year, while corn futures have dropped to around $4.30 per bushel, down 3.55% year over year [4] - The reduction in feed costs is expected to continue benefiting Cal-Maine Foods' gross margin performance, even if egg prices decrease as avian flu risks lessen [4] Strategic Initiatives - Cal-Maine Foods has made strategic acquisitions to further reduce production costs, including the purchase of feed mills and storage facilities, allowing for more efficient internal production and transportation of feed [5] Industry Impact - Tyson Foods and Pilgrim's Pride, which also rely on corn and soybean meal for feed, have benefited from lower feed costs, leading to significant savings in their cost of sales [6][8] - Tyson Foods reported savings of approximately $895 million in fiscal 2024 due to reduced feed costs, with additional savings in fiscal 2025 [7] Valuation and Estimates - Cal-Maine Foods is currently trading at a forward 12-month price/earnings (P/E) ratio of 17.62X, compared to the industry average of 11.45X [11] - The Zacks Consensus Estimate for Cal-Maine Foods' fiscal 2025 earnings is $22.73 per share, indicating a year-over-year increase of 299.5%, while the estimate for fiscal 2026 shows a decline of 74.9% [12]

Core Insights - Cal-Maine Foods, Inc. (CALM) achieved record shell egg sales of 331.4 million dozen in Q3 of fiscal 2025, a 10.2% increase year over year due to higher seasonal demand and consumer stockpiling amid severe weather [1][9] - Year-to-date sales reached 971.2 million dozen, reflecting a 17% increase compared to the previous year, driven by production capacity expansion and organic growth [2][9] - The company is on track to complete expansion projects that will add approximately 1.1 million cage-free layer hens and 250,000 pullets, along with a new egg processing facility projected to add 1.2 million free-range hens by year-end [4] Sales Performance - CALM's sales volumes increased by 13% in Q1 to 310 million dozen and by 10% in Q2 to 330 million dozen, indicating strong demand throughout fiscal 2025 [2] - Vital Farms, Inc. (VITL) reported a 1.3% revenue growth in Q1 2025, driven by increased demand for existing products and new offerings [5] - Post Holdings, Inc. (POST) experienced a 2.8% volume increase in its Foodservice segment in Q2 2025, although it faced declines in egg and potato volumes [7] Future Outlook - Vital Farms anticipates accelerated year-over-year net revenue growth in the latter half of the year due to supply chain investments [6] - CALM's investments in biosecurity technology and training are crucial for maintaining stable production levels amid avian flu threats [4] Financial Metrics - CALM's current forward 12-month price/earnings (P/E) ratio stands at 16.61X, compared to the industry average of 10.43 [10] - The Zacks Consensus Estimate for CALM's fiscal 2025 earnings is $22.73 per share, indicating a significant year-over-year increase of 299.5%, while the estimate for fiscal 2026 shows a decline of 74.9% to $5.71 [11][14]

Core Insights - Cal-Maine Foods, Inc. (CALM) has experienced a significant price increase of 66.6% over the past year, contrasting with a 15.8% decline in the industry [1] - The Basic Materials sector has decreased by 3.5%, while the S&P 500 has gained 11.6% during the same period [1] Price Performance - CALM has outperformed poultry-related stocks such as Post Holdings, Inc. (POST), Pilgrim's Pride Corporation (PPC), and Vital Farms, Inc. (VITL) [3] Valuation Metrics - CALM is currently trading at a forward P/E ratio of 17.08X, which is a premium compared to the industry average of 10.19X [6][8] - Vital Farms trades at a higher P/E of 23.15X, while Post Holdings and Pilgrim's Pride are trading at lower multiples of 15.21X and 8.92X, respectively [10] Earnings Estimates - Earnings estimates for CALM have been revised downward over the past 60 days, with the fiscal 2025 estimate at $22.73 per share, indicating a year-over-year increase of 299.5%, while the fiscal 2026 estimate is $5.71, suggesting a decline of 74.9% [13] Market Dynamics - Recent declines in egg prices, from $6.23 in March to $3.34 in June, may impact CALM's sales and margins [6][17] - The U.S. Department of Agriculture reported that outbreaks of highly pathogenic avian influenza (HPAI) led to the depopulation of millions of birds, initially driving egg prices to record highs [15] Strategic Initiatives - CALM is investing $60 million in capital projects to increase its cage-free egg production capacity by 1.1 million hens and 250,000 pullets [18] - The acquisition of ISE America's assets last year added 1 million cage-free laying hens, while the purchase of Deal-Rite Feeds, Inc. aimed to reduce production costs [19] - The company is diversifying its product portfolio by investing in Meadowcreek Foods and Crepini Foods, and acquiring Echo Lake Foods, which focuses on ready-to-eat egg products [20] Profitability Metrics - CALM's return on equity (ROE) stands at 48.72%, significantly higher than the industry average of 11.96% and the S&P 500's 32.01% [22] Final Assessment - Despite CALM's successful expansion and product diversification, moderating egg prices and downward earnings revisions suggest that selling the stock may be prudent at this time [23]

Industry Overview - Cal-Maine Foods, Inc. (CALM) and Vital Farms, Inc. (VITL) are significant players in the egg industry, adapting to changing consumer preferences for ethical and sustainable farming practices [1] - Egg prices have surged due to supply disruptions from avian influenza, with 40.2 million birds depopulated in 2024 and an additional 33.5 million in 2025 [4] - Despite recent price declines, demand for eggs remains strong, particularly for cage-free and pasture-raised options, driven by health and ethical considerations [5] Company Profiles Cal-Maine Foods - Based in Ridgeland, MS, Cal-Maine Foods has a market capitalization of $4.6 billion and is the largest producer and distributor of fresh shell eggs in the U.S. [2] - In Q3 fiscal 2025, CALM reported earnings per share of $10.38, up from $3.00 year-over-year, with revenues increasing 102% to $1.42 billion [7] - The company is investing $60 million in capital projects to expand cage-free production capacity, anticipating compliance with new legislation in 10 states by 2030 [8] - Recent acquisitions, including Echo Lake Foods, are expected to enhance production capacity and lower costs [10] Vital Farms - Vital Farms, based in Austin, TX, has a market capitalization of $1.5 billion and is a leading brand of pasture-raised eggs in the U.S. [3] - In Q1 fiscal 2025, VITL reported a 9.6% revenue increase to $148 million, but earnings declined 14% to 37 cents due to increased investments in crew members [11] - The company is expanding its supply chain, with 450 family farmers and products available in 26,000 retail stores [12] - VITL aims to reach $1 billion in net revenues by 2027, with an adjusted EBITDA margin target of 12-14% [15] Financial Comparisons - The Zacks Consensus Estimate for CALM's fiscal 2025 earnings is $22.73, indicating a 299.5% year-over-year increase, while VITL's estimate is $1.25, reflecting a 5.9% rise [16][17] - CALM's stock has gained 57.6% over the past year, contrasting with VITL's 18% decline [20] - CALM has a forward earnings multiple of 16.00, while VITL's is 24.59 [21] - CALM's return on equity stands at 48.72%, significantly higher than VITL's 19.53% [23] - CALM offers a dividend yield of 14.7%, whereas VITL does not pay dividends [24] Investment Outlook - Cal-Maine Foods is positioned for long-term growth through capacity expansion and product diversification, while Vital Farms focuses on brand awareness and customer reach [26] - CALM is rated Zacks Rank 1 (Strong Buy) with a Value Score of A, making it a more compelling investment compared to VITL, which has a Zacks Rank 3 (Hold) and a Value Score of C [27]