CALM's Strategic Cage-Free Expansion Sets It for Solid Market Gains

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]