Cal-Maine Foods reported third-quarter fiscal 2026 net sales of $667 million, a sharp drop from $1.4 billion during the same period a year earlier, according to its latest financial results. The decline was largely tied to a steep reduction in shell egg prices compared with the elevated levels seen the previous year.
Egg pricing softened steadily throughout the quarter as supply conditions improved following earlier disruptions caused by outbreaks of highly pathogenic avian influenza. Data from the U.S. Department of Agriculture indicated that flock depopulations fell significantly—down more than 70% compared with the prior year—helping restore supply. At the same time, retailers and foodservice buyers resumed more predictable purchasing patterns, which also contributed to easing wholesale prices.
Sales of conventional eggs were particularly affected, falling 72.1% to $283.2 million as average selling prices dropped by 70.1%, alongside a 6.7% decrease in volume sold. Specialty egg sales also declined, though less dramatically, slipping 12.1% to $289.1 million as prices in that segment fell 16.9%.
Despite these declines, the company saw substantial growth in its prepared foods segment. Revenue in that category surged to $63.6 million, driven largely by the acquisition of Echo Lake Foods and a significant increase in sales from its subsidiary Crepini Foods. As a result, specialty eggs and prepared foods together made up 52.9% of total quarterly sales, a notable increase from 24% the year before.
Following the end of the quarter, in March 2026, Cal-Maine expanded further by acquiring Creighton Brothers LLC, which included Crystal Lake LLC. This move is expected to strengthen both its shell egg production and liquid egg processing capabilities, supporting continued growth in prepared foods.
Company leadership emphasized that performance is not solely dependent on fluctuating egg prices but also on how effectively the business manages product mix, pricing strategies, and operational costs across varying market conditions. Looking ahead, executives anticipate a gradual recovery in the prepared foods segment beginning in the fourth quarter, with margins improving toward typical levels over the next couple of fiscal years. The company also expects to boost its prepared foods production capacity by more than 30% within the next 18 to 24 months.
