Core Insights - Cal-Maine Foods reported a significant decline in net sales and profits for the second quarter and first half of fiscal 2026, attributed to lower egg prices and sales volume [5][9][12] - The company is focusing on diversifying its sales mix, particularly increasing the share of specialty eggs and prepared foods, which are expected to enhance earnings predictability over time [5][8][15] Second Quarter Fiscal 2026 Highlights - Net sales were $769.5 million, down 19.4% from $954.7 million in the prior year [9] - Shell egg sales accounted for 84.4% of total net sales, a decrease of 1,030 basis points [5] - Specialty eggs represented 44.0% of total shell egg sales, an increase of 1,230 basis points [5] - Prepared foods sales surged to $71.7 million, up 586.4% compared to $10.4 million in the same quarter last year [10] - Gross profit was $207.4 million, down 41.8%, with a gross profit margin of 27.0% [11] First Half of Fiscal 2026 Highlights - Total net sales were $1.692 billion, down 2.8% from $1.741 billion [12] - Shell egg sales represented 85.0% of total net sales, down 950 basis points [5] - Specialty egg sales increased by 4.7%, with prepared foods sales reaching $155.6 million, up 702.9% [13] - Gross profit was $518.7 million, down 14.0%, with a gross profit margin of 30.7% [14] Strategic Execution Highlights - The company announced a $36 million investment to centralize and expand prepared foods production, increasing capacity by over 30% in the next two years [5] - Acquired Clean Egg, LLC production assets to expand specialty and free-range egg capacity [5] - Breeder flocks grew by 12.7%, and total chicks hatched rose by 65.1% [5] Share Repurchase and Dividend Payment - During the quarter, Cal-Maine Foods repurchased 846,037 shares for a total of $74.8 million, with $375.2 million remaining under the current repurchase authorization [16] - A cash dividend of approximately $0.72 per share will be paid on February 12, 2026, to shareholders of record on January 28, 2026 [17]