Cal-Maine Plunges as Shoppers Switch to Fancier, Specialty Eggs

(Bloomberg) -- Cal-Maine Foods Inc., the top US egg producer, is noticing a major trend in the market: consumers are shifting to fancier varieties that they consider to be more sustainable. 

Think cage free, pasture raised and organic. The specialty varieties are now becoming the default when it comes to egg buying for many Americans. While that’s boosting sales for Cal-Maine in those segments, conventional eggs are still by far the bigger part of the business for the company and the consumer pivot has been a drag.

Cal-Maine shares fell as much as 7.9% to the lowest intraday price since April on Wednesday. The company reported quarterly earnings that missed estimates, with its conventional egg segment coming in far below analyst expectations. 

The shift to specialty eggs reflects a broader trend among US consumers who are increasingly going for organic, premium and sustainable foods — as seen in growing demand for fancier butter. Egg prices have surged in the past few years, driven up by the supply impact from bird flu. Since Americans are already facing higher expenses across the board in the egg aisle, any added costs for specialty varieties seems easier to take on.

And because of the quirks of egg pricing and long-term contracts, sometimes specialty varieties can be cheaper than conventional ones, according to a report from agriculture lender CoBank. Conventional white shell eggs were advertised at supermarkets at $2.87 a dozen, above the $2.64 price for non-organic, cage-free white shell eggs, according to a US Department of Agriculture report on Friday.

M&A Outlook

Given the shift in consumer demand, Mississippi-based Cal-Maine is looking to meet the moment with more investments and possible deals.

Chief Executive Officer Sherman Miller said on an earnings call that the specialty segments, which are already accounting for a larger chunk of its sales, are expected to “continue to improve the quality of our earnings.” Expansion in those categories “of course has a strong M&A component embedded in it,” he added.

The company will also continue to invest in cage-free and pasture-raised production, “and the customer will be our guide on the pace and scale that we do that at,” Miller said.

While revenue in Cal-Maine’s conventional egg segment grew 4.4% year-over-year on comparatively higher prices, analysts had expected a bigger bump after bird flu outbreaks sent prices surging earlier in the year. Conventional egg sales of $505.9 million missed analyst expectations by 13%.

Meanwhile, specialty eggs accounted for 36% of egg sales, a 130-basis point increase. Miller said on the earnings call that he expects that share to continue growing. The segment, as well as prepared foods like pancakes and pre-cooked omelets, accounted for nearly 40% of the company’s net sales in the first quarter.

“Cal-Maine is the largest egg producer in the United States with significant scale and vertical integration that delivers efficiency, lower cost and supply reliability,” Miller said. “But scale alone is not enough.”

More stories like this are available on bloomberg.com

©2025 Bloomberg L.P.