10-Q

1

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM

10-Q

☑

 Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

November 26, 2022

or

☐

 Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ____________ to ____________

Commission File Number: 

001-38695

CAL-MAINE FOODS, INC.

(Exact name of registrant as specified in its charter)

Delaware

64-0500378

(State or other jurisdiction of incorporation or organization)

(I.R.S Employer Identification No.)

1052 Highland Colony Pkwy

,

Suite 200

,

Ridgeland

,

Mississippi

39157

(Address of principal executive offices) (Zip Code)

(

601

)

948-6813

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value per share

CALM

The

NASDAQ

 Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☑

 No

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period

that the registrant was required to submit such files).

Yes

☑

 No

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller

reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”,

“smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer

☑

Accelerated filer 

☐

Non – Accelerated filer 

☐

Smaller reporting company 

☐

Emerging growth company 

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended

transition period for complying with any new or revised financial accounting standards provided pursuant to

Section 13(a) of the Exchange Act

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

 No

☑

There were

44,130,149

 shares of Common Stock, $0.01 par value, and

4,800,000

 shares of Class A Common Stock, $0.01 par

value, outstanding as of December 28, 2022.

2

INDEX

Page

Number

Part I.

Financial Information

Item 1.

Item 2.

Item 3.

Item 4.

Part

II.

Other Information

Item 1.

Item 1A.

Item 2.

Item 6.

3

PART I. FINANCIAL

INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except for par value amounts)

(Unaudited)

November 26, 2022

May 28, 2022

Assets

Current assets:

Cash and cash equivalents

$

178,635

$

59,084

Investment securities available-for-sale

200,714

115,429

Trade and other receivables, net

262,964

177,257

Income tax receivable

42,147

42,147

Inventories

280,582

263,316

Prepaid expenses and other current assets

8,968

4,286

Total current assets

974,010

661,519

Property, plant & equipment, net

703,882

677,796

Investments in unconsolidated entities

14,687

15,530

Goodwill

44,006

44,006

Intangible assets, net

17,037

18,131

Other long-term assets

9,818

10,507

Total Assets

$

1,763,440

$

1,427,489

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable and accrued expenses

$

154,624

$

122,331

Accrued income taxes payable

85,723

25,687

Dividends payable

66,202

36,656

Total current liabilities

306,549

184,674

Other noncurrent liabilities

9,410

10,274

Deferred income taxes, net

127,176

128,196

Total liabilities

443,135

323,144

Commitments and contingencies - see Note 9

—

—

Stockholders’ equity:

Common stock ($

0.01

 par value):

Common stock - authorized

120,000

 shares, issued

70,261

 shares

703

703

Class A convertible common stock - authorized and issued

4,800

 shares

48

48

Paid-in capital

70,005

67,989

Retained earnings

1,281,784

1,065,854

Accumulated other comprehensive loss, net of tax

(3,087)

(1,596)

Common stock in treasury at cost –

26,126

 shares at November 26, 2022 and

26,121

shares at May 28, 2022

(28,496)

(28,447)

Total Cal-Maine Foods, Inc. stockholders’ equity

1,320,957

1,104,551

Noncontrolling interest in consolidated entity

(652)

(206)

Total stockholders’ equity

1,320,305

1,104,345

Total Liabilities and Stockholders’ Equity

$

1,763,440

$

1,427,489

See Notes to Condensed Consolidated Financial Statements.

4

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Net sales

$

801,700

$

381,723

$

1,460,044

$

706,709

Cost of sales

483,851

337,976

924,705

656,317

Gross profit

317,849

43,747

535,339

50,392

Selling, general and administrative

57,952

47,780

111,559

94,305

(Gain) loss on disposal of fixed assets

29

(1,968)

62

(2,181)

Operating income (loss)

259,868

(2,065)

423,718

(41,732)

Other income (expense):

Interest income, net

1,930

129

2,833

361

Royalty income

344

278

772

551

Equity income (loss) of unconsolidated

entities

(987)

264

(843)

399

Other, net

1,113

1,862

1,268

7,025

Total other income, net

2,400

2,533

4,030

8,336

Income (loss) before income taxes

262,268

468

427,748

(33,396)

Income tax expense (benefit)

63,974

(677)

104,320

(16,515)

Net income (loss)

198,294

1,145

323,428

(16,881)

Less: Loss attributable to noncontrolling

interest

(293)

(28)

(446)

(28)

Net income (loss) attributable to Cal-Maine

Foods, Inc.

$

198,587

$

1,173

$

323,874

$

(16,853)

Net income (loss) per common share:

Basic

$

4.08

$

0.02

$

6.66

$

(0.34)

Diluted

$

4.07

$

0.02

$

6.63

$

(0.34)

Weighted average shares outstanding:

Basic

48,624

48,857

48,624

48,859

Diluted

48,840

49,016

48,827

48,859

See Notes to Condensed Consolidated Financial Statements.

5

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of

Comprehensive Income (Loss)

(In thousands)

(Unaudited)

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Net income (loss)

$

198,294

 $ 

1,145

 $ 

323,428

 $ 

(16,881)

Other comprehensive income (loss), before

tax:

Unrealized holding loss on available-for-

sale securities, net of reclassification

adjustments

(974)

(355)

(1,971)

(579)

Income tax benefit related to items of other

comprehensive income

237

87

480

141

Other comprehensive loss, net of tax

(737)

(268)

(1,491)

(438)

Comprehensive income (loss)

197,557

877

321,937

(17,319)

Less: Comprehensive loss attributable to the

noncontrolling interest

(293)

(28)

(446)

(28)

Comprehensive income (loss) attributable to

Cal-Maine Foods, Inc.

$

197,850

$

905

$

322,383

$

(17,291)

See Notes to Condensed Consolidated Financial Statements.

6

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

Cash flows from operating activities:

Net income (loss)

$

323,428

$

(16,881)

Depreciation and amortization

34,729

33,969

Deferred income taxes

(540)

(15,995)

Other adjustments, net

(12,830)

(16,585)

Net cash provided by (used in) operations

344,787

(15,492)

Cash flows from investing activities:

Purchases of investment securities

(152,365)

(26,387)

Sales and maturities of investment securities

65,279

67,864

Distributions from unconsolidated entities

—

400

Acquisition of business, net of cash acquired

—

(44,823)

Purchases of property, plant and equipment

(59,709)

(28,647)

Net proceeds from disposal of property, plant and equipment

92

5,338

Net cash used in investing activities

(146,703)

(26,255)

Cash flows from financing activities:

Payments of dividends

(78,394)

—

Purchase of common stock by treasury

(45)

(18)

Principal payments on finance lease

(94)

(106)

Contributions

—

3

Net cash used in financing activities

(78,533)

(121)

Net change in cash and cash equivalents

119,551

(41,868)

Cash and cash equivalents at beginning of period

59,084

57,352

Cash and cash equivalents at end of period

$

178,635

$

15,484

See Notes to Condensed Consolidated Financial Statements.

7

Cal-Maine Foods, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the “Company,”

“we,” “us,” “our”) have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and

in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial

reporting and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 28, 2022 (the

“2022 Annual Report”). These statements reflect all adjustments that are, in the opinion of management, necessary to a fair

statement of the results for the interim periods presented and, in the opinion of management, consist of adjustments of a normal

recurring nature. Operating results for the interim periods are not necessarily indicative of operating results for the entire fiscal

year.

Fiscal Year

The Company’s fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on November 26, 2022 and November 27, 2021 included

13 weeks

 and

26 weeks

, respectively.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates.

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company’s ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported in other comprehensive income until realized. The total of other comprehensive

income for the period is presented as a component of stockholders' equity separately from retained earnings and additional paid-

in capital. The Company regularly evaluates changes to the rating of its debt securities by credit agencies and economic

conditions to assess and record any expected credit losses through the allowance for credit losses, limited to the amount that fair

value was less than the amortized cost basis. The cost basis for realized gains and losses on available-for-sale securities is

determined by the specific identification method. Gains and losses are recognized in other income (expenses) as Other, net in

the Company’s Condensed Consolidated Statements of Operations. Investments in mutual funds are classified as “Other long-

term assets” in the Company’s Condensed Consolidated Balance Sheets.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of November 26, 2022 and

May 28, 2022, reserves for credit losses were $

838

 thousand and $

775

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are assigned an expected loss based on

historical loss information adjusted as needed for economic and other forward-looking factors.

Dividends Payable 

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (

1/3

) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

8

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date.

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the most recent quarter for which a dividend was paid.

Immaterial Error Correction

Effective on May 30, 2021, the Company acquired the remaining

50

% membership interest in Red River Valley Egg Farm,

LLC (“Red River”), including certain liabilities. During the Company’s third quarter of fiscal 2022, management determined

that it had not properly eliminated select intercompany sales and cost of sales transactions between Red River and the

corresponding other wholly -owned subsidiaries of the Company in its first and second quarter 2022 Condensed Consolidated

Statements of Operations. The errors resulted in an overstatement of Net Sales and Cost of Sales of $

6.7

 million in the first

quarter of fiscal 2022 and $

9.2

 million in the second quarter of fiscal 2022. There was

no

 impact to Operating loss, Net income

(loss) or Net income (loss) per share.

We evaluated the errors quantitatively and qualitatively in accordance with Staff Accounting Bulletin

("SAB") No. 99 Materiality, and SAB No. 108 Considering the Effects of Prior Year Misstatements when Quantifying

Misstatements in the Current Year Financial Statements, and determined that the related impact was not material to our

condensed consolidated financial statements for the first or second quarters of fiscal 2022, but that correcting the cumulative

impact of the errors would be relevant to our Condensed Consolidated Statements of Operations for the third quarter

ended February 26, 2022. Accordingly, we have reflected the correction of the immaterial error in fiscal 2022 as a reduction of

Net Sales and Cost of Sales in the accompanying Condensed Consolidated Statements of Operations.

New Accounting Pronouncements and Policies

No new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our

Consolidated Financial Statements.

Note 2 - Investment

Securities

The following represents the Company’s investment securities as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

15,956

$

—

$

276

$

15,680

Commercial paper

33,058

—

53

33,005

Corporate bonds

81,218

—

1,709

79,509

US government and agency obligations

19,111

—

205

18,906

Asset backed securities

13,403

—

340

13,063

Treasury bills

40,644

—

93

40,551

Total current investment securities

$

203,390

$

—

$

2,676

$

200,714

Mutual funds

$

3,472

$

—

$

114

$

3,358

Total noncurrent investment securities

$

3,472

$

—

$

114

$

3,358

9

May 28, 2022

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

10,136

$

—

$

32

$

10,104

Commercial paper

14,940

—

72

14,868

Corporate bonds

74,167

—

483

73,684

Certificates of deposits

1,263

—

18

1,245

US government and agency obligations

2,205

4

—

2,209

Asset backed securities

13,456

—

137

13,319

Total current investment securities

$

116,167

$

4

$

742

$

115,429

Mutual funds

$

3,826

$

—

$

74

$

3,752

Total noncurrent investment securities

$

3,826

$

—

$

74

$

3,752

Available-for-sale

Proceeds from sales and maturities of investment securities available-for-sale were $

65.3

 million and $

67.9

 million during the

twenty-six weeks ended November 26, 2022 and November 27, 2021, respectively. Gross realized gains for the twenty-six

weeks ended November 26, 2022 and November 27, 2021 were $

2

 thousand and $

165

 thousand, respectively. Gross realized

losses for the twenty-six weeks ended November 26, 2022 and November 27, 2021 were $

63

 thousand and $

67

 thousand,

respectively. There were

no

 allowances for credit losses at November 26, 2022 and May 28, 2022.

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or

without penalties. Contractual maturities of current investments at November 26, 2022 are as follows (in thousands):

Estimated Fair Value

Within one year

$

133,867

1-5 years

66,847

Total

$

200,714

Noncurrent 

There were

no

 sales of noncurrent investment securities during the twenty-six weeks ended November 26, 2022. Proceeds from

sales and maturities of noncurrent investment securities were $

453

 thousand during the twenty-six weeks ended November 27,

2021. Gross realized gains for the twenty-six weeks ended November 27, 2021 were $

165

 thousand. There were

no

 realized

losses for the twenty-six weeks ended November 27, 2021.

Note 3 - Fair Value Measurements

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value

hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated,

knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would

be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to

settle the liability with the creditor.

•

Level 1

 - Quoted prices in active markets for identical assets or liabilities

•

Level 2

 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly, including:

◦

Quoted prices for similar assets or liabilities in active markets

◦

Quoted prices for identical or similar assets in non-active markets

◦

Inputs other than quoted prices that are observable for the asset or liability

◦

Inputs derived principally from or corroborated by other observable market data

•

Level 3

 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are

significant to the fair value of the assets or liabilities

10

The disclosures of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents, accounts receivable, and accounts payable:

 The carrying amount approximates fair value due to the

short maturity of these instruments.

Lease obligations:

 The carrying value of the Company’s lease obligations is at its present value which approximates fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of financial assets and

liabilities measured at fair value on a recurring basis as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

15,680

$

—

$

15,680

Commercial paper

—

33,005

—

33,005

Corporate bonds

—

79,509

—

79,509

US government and agency obligations

—

18,906

—

18,906

Asset backed securities

—

13,063

—

13,063

Treasury bills

—

40,551

—

40,551

Mutual funds

3,358

—

—

3,358

Total assets measured at fair value

$

3,358

$

200,714

$

—

$

204,072

May 28, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

10,104

$

—

$

10,104

Commercial paper

—

14,868

—

14,868

Corporate bonds

—

73,684

—

73,684

Certificates of deposits

—

1,245

—

1,245

US government and agency obligations

—

2,209

—

2,209

Asset backed securities

—

13,319

—

13,319

Mutual funds

3,752

—

—

3,752

Total assets measured at fair value

$

3,752

$

115,429

$

—

$

119,181

Investment securities – available-for-sale classified as Level 2 consist of securities with maturities of three months or longer

when purchased. We classified these securities as current because amounts invested are readily available for current operations.

Observable inputs for these securities are yields, credit risks, default rates, and volatility.

Note 4 - Inventories

Inventories consisted of the following as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

May 28, 2022

Flocks, net of amortization

$

156,782

$

144,051

Eggs and egg products

28,343

26,936

Feed and supplies

95,457

92,329

$

280,582

$

263,316

We grow and maintain flocks of layers (mature female chickens), pullets (female chickens, under 18 weeks of age), and

breeders (male and female chickens used to produce fertile eggs to hatch for egg production flocks). Our total flock at

November 26, 2022 and May 28, 2022 consisted of approximately

10.4

 million and

11.5

 million pullets and breeders and

43.7

million and

42.2

 million layers, respectively.

11

Note 5 - Equity

The following reflects equity activity for the thirteen and twenty-six weeks ended November 26, 2022 and November 27, 2021

(in thousands):

Thirteen Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

27, 2022

$

703

$

48

$

(28,495)

$

69,017

$

(2,350)

$

1,149,399

$

(359)

$

1,187,963

Other comprehensive

loss, net of tax

—

—

—

—

(737)

—

—

(737)

Stock compensation

plan transactions

—

—

(1)

988

—

—

—

987

Dividends ($

1.353

per share)

Common

—

—

—

—

—

(59,708)

—

(59,708)

Class A common

—

—

—

—

—

(6,494)

—

(6,494)

Net income (loss)

—

—

—

—

—

198,587

(293)

198,294

Balance at November

26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Thirteen Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

28, 2021

$

703

$

48

$

(27,451)

$

65,044

$

(728)

$

957,951

$

—

$

995,567

Other comprehensive

loss, net of tax

—

—

—

—

(268)

—

—

(268)

Stock compensation

plan transactions

—

—

1

975

—

—

—

976

Contributions

—

—

—

—

—

—

3

3

Net income (loss)

—

—

—

—

—

1,173

(28)

1,145

Balance at

November 27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

$

(25)

$

997,423

12

Twenty-six Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 28,

2022

$

703

$

48

$

(28,447)

$

67,989

$

(1,596)

$

1,065,854

$

(206)

$

1,104,345

Other comprehensive

loss, net of tax

—

—

—

—

(1,491)

—

—

(1,491)

Stock compensation

plan transactions

—

—

(49)

2,016

—

—

—

1,967

Dividends ($

2.206

per share)

Common

—

—

—

—

—

(97,355)

—

(97,355)

Class A common

—

—

—

—

—

(10,589)

—

(10,589)

Net income (loss)

—

—

—

—

—

323,874

(446)

323,428

Balance at

November 26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Twenty-six Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 29,

2021

$ 

703

$ 

48

$ 

(27,433)

$ 

64,044

$ 

(558)

$ 

975,977

$ 

—

$ 

1,012,781

Other comprehensive

loss, net of tax

—

—

—

—

(438)

—

—

(438)

Stock compensation

plan transactions

—

—

(17)

1,975

—

—

—

1,958

Contributions

—

—

—

—

—

—

3

3

Net loss

—

—

—

—

—

(16,853)

(28)

(16,881)

Balance at November

27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

(25)

$

997,423

Note 6 - Net Income (Loss) per Common Share

Basic net income (loss) per share is based on the weighted average Common Stock and Class A Common Stock outstanding.

Diluted net income per share is based on weighted-average common shares outstanding during the relevant period adjusted for

the dilutive effect of share-based awards. Restricted shares of

145

 thousand were antidilutive due to the net loss for the first

twenty-six weeks of fiscal 2022. These shares were not included in the diluted net loss per share calculation.

13

The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net

income (loss) per common share (amounts in thousands, except per share data):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26,

2022

November 27,

2021

November 26,

2022

November 27,

2021

Numerator

Net income (loss)

$

198,294

$

1,145

$

323,428

$

(16,881)

Less: Loss attributable to noncontrolling

interest

(293)

(28)

(446)

(28)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

198,587

$

1,173

$

323,874

$

(16,853)

Denominator

Weighted-average common shares

outstanding, basic

48,624

48,857

48,624

48,859

Effect of dilutive restricted shares

216

159

203

—

Weighted-average common shares

outstanding, diluted

48,840

49,016

48,827

48,859

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

4.08

$

0.02

$

6.66

$

(0.34)

Diluted

$

4.07

$

0.02

$

6.63

$

(0.34)

Note 7 – Revenue from Contracts with Customers

Satisfaction of Performance Obligation

The vast majority of the Company’s revenue is derived from agreements with customers based on the customer placing an order

for products. Pricing for the most part is determined when the Company and the customer agree upon the specific order, which

establishes the contract for that order.

Revenues are recognized in an amount that reflects the net consideration we expect to receive in exchange for the goods. Our

shell eggs are sold at prices related to independently quoted wholesale market prices or formulas related to our costs of

production. The Company’s sales predominantly contain a single performance obligation. We recognize revenue upon

satisfaction of the performance obligation with the customer which typically occurs within days of the Company and the

customer agreeing upon the order.

Returns and Refunds

Some of our contracts include a guaranteed sale clause, pursuant to which we credit the customer’s account for product that the

customer is unable to sell before expiration. The Company records an allowance for returns and refunds by using historical

return data and comparing to current period sales and accounts receivable. The allowance is recorded as a reduction in sales

with a corresponding reduction in trade accounts receivable.

Sales Incentives Provided to Customers

The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current

discount offers (e.g., percentage discounts off current purchases), inducement offers (e.g., offers for future discounts subject to

a minimum current purchase), and other similar offers. Current discount offers, when accepted by customers, are treated as a

reduction to the sales price of the related transaction, while inducement offers, when accepted by customers, are treated as a

reduction to the sales price based on estimated future redemption rates. Redemption rates are estimated using the Company’s

historical experience for similar inducement offers. Current discount and inducement offers are presented as a net amount in

‘‘Net sales.’’

14

Disaggregation of Revenue

The following table provides revenue disaggregated by product category (in thousands):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Conventional shell egg sales

$

541,917

$

221,142

$

967,506

$

403,172

Specialty shell egg sales

227,778

146,917

428,598

279,375

Egg products

28,052

11,401

55,692

20,767

Other

3,953

2,263

8,248

3,395

$

801,700

$

381,723

$

1,460,044

$

706,709

Contract Costs

The Company can incur costs to obtain or fulfill a contract with a customer. If the amortization period of these costs is less than

one year, they are expensed as incurred. When the amortization period is greater than one year, a contract asset is recognized

and is amortized over the contract life as a reduction in net sales. As of November 26, 2022 and May 28, 2022, the balance for

contract assets was immaterial.

Contract Balances

The Company receives payment from customers based on specified terms that are generally less than 30 days from delivery.

There are rarely contract assets or liabilities related to performance under the contract.

Note 8 - Stock Based Compensation

Total stock-based compensation expense was $

2.0

 million for the twenty-six weeks ended November 26, 2022 and November

27, 2021.

Unrecognized compensation expense as a result of non -vested shares of restricted stock outstanding under the Amended and

Restated 2012 Omnibus Long-Term Incentive Plan at November 26, 2022 of $

4.9

 million will be recorded over a weighted

average period of

1.8

 years. Refer to Part II Item 8, Notes to Consolidated Financial Statements and Supplementary Data, Note

16: Stock Compensation Plans in our 2022 Annual Report for further information on our stock compensation plans.

The Company’s restricted share activity for the twenty-six weeks ended November 26, 2022 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 28, 2022

317,844

$

39.12

Vested

(3,240)

38.31

Forfeited

(4,200)

39.44

Outstanding, November 26, 2022

310,404

$

39.12

Note 9 - Commitments and Contingencies

Financial Instruments

The Company maintained standby letters of credit (“LOCs”) totaling $

4.1

 million at November 26, 2022, which were issued

under the Company's senior secured revolving credit facility. The outstanding LOCs are for the benefit of certain insurance

companies and are not recorded as a liability on the consolidated balance sheets.

15

LEGAL PROCEEDINGS

State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC 

On April 23, 2020, the Company and its subsidiary Wharton County Foods, LLC (“WCF”) were named as defendants in State

of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC, Cause No. 2020-25427, in the District

Court of Harris County, Texas. The State of Texas (the “State”) asserted claims based on the Company’s and WCF’s alleged

violation of the Texas Deceptive Trade Practices—Consumer Protection Act, Tex. Bus. & Com. Code §§ 17.41-17.63

(“DTPA”). The State claimed that the Company and WCF offered shell eggs at excessive or exorbitant prices during the

COVID-19 state of emergency and made misleading statements about shell egg prices. The State sought temporary and

permanent injunctions against the Company and WCF to prevent further alleged violations of the DTPA, along with over

$

100,000

 in damages. On August 13, 2020, the court granted the defendants’ motion to dismiss the State’s original petition with

prejudice. On September 11, 2020, the State filed a notice of appeal, which was assigned to the Texas Court of Appeals for the

First District. On August 16, 2022, the appeals court reversed and remanded the case back to the trial court for further

proceedings. On October 31, 2022, the Company and WCF filed a petition for review to the Supreme Court of Texas appealing

the First District court’s decision. On November 30, 2022, the State of Texas waived its response to defendant’s petition for

review. The court has not issued a ruling. Management believes the risk of material loss related to this matter to be remote.

Bell et al. v. Cal-Maine Foods et al. 

On April 30, 2020, the Company was named as one of several defendants in Bell et al. v. Cal-Maine Foods et al., Case No.

1:20-cv-461, in the Western District of Texas, Austin Division. The defendants include numerous grocery stores, retailers,

producers, and farms. Plaintiffs assert that defendants violated the DTPA by allegedly demanding exorbitant or excessive prices

for eggs during the COVID-19 state of emergency. Plaintiffs request certification of a class of all consumers who purchased

eggs in Texas sold, distributed, produced, or handled by any of the defendants during the COVID-19 state of emergency.

Plaintiffs seek to enjoin the Company and other defendants from selling eggs at a price more than 10% greater than the price of

eggs prior to the declaration of the state of emergency and damages in the amount of $

10,000

 per violation, or $

250,000

 for

each violation impacting anyone over 65 years old. On December 1, 2020, the Company and certain other defendants filed a

motion to dismiss the plaintiffs’ amended class action complaint. The plaintiffs subsequently filed a motion to strike, and the

motion to dismiss and related proceedings were referred to a United States magistrate judge. On July 14, 2021, the magistrate

judge issued a report and recommendation to the court that the defendants’ motion to dismiss be granted and the case be

dismissed without prejudice for lack of subject matter jurisdiction. On September 20, 2021, the court dismissed the case without

prejudice. On July 13, 2022, the court denied the plaintiffs’ motion to set aside or amend the judgment to amend their

complaint.

On March 15, 2022, plaintiffs filed a second suit against the Company and several defendants in Bell et al. v. Cal-Maine Foods

et al., Case No. 1:22-cv-246, in the Western District of Texas, Austin Division alleging the same assertions as laid out in the

first complaint. On August 12, 2022, the Company and other defendants in the case filed a motion to dismiss the plaintiffs’

class action complaint. On September 6, 2022, the plaintiffs’ filed their opposition to the motion to dismiss and the Company

and other defendants filed their reply on September 13, 2022. On December 7, 2022, the magistrate judge issued a report and

recommendation to the court that the defendants’ motion to dismiss be granted and the case be dismissed without prejudice for

lack of subject matter jurisdiction. On December 21, 2022, the plaintiffs filed Objections to the Magistrate’s Report and

Recommendation, but the court has not issued a ruling. Management believes the risk of material loss related to both matters to

be remote.

Kraft Foods Global, Inc. et al. v. United Egg Producers, Inc. et al. 

As previously reported, on September 25, 2008, the Company was named as one of several defendants in numerous antitrust

cases involving the United States shell egg industry. The Company settled all of these cases, except for the claims of certain

plaintiffs who sought substantial damages allegedly arising from the purchase of egg products (as opposed to shell eggs). These

remaining plaintiffs are Kraft Food Global, Inc., General Mills, Inc., and Nestle USA, Inc. (the “Egg Products Plaintiffs”) and

The Kellogg Company.

On September 13, 2019, the case with the Egg Products Plaintiffs was remanded from a multi-district litigation proceeding in

the United States District Court for the Eastern District of Pennsylvania, In re Processed Egg Products Antitrust Litigation,

MDL No. 2002, to the United States District Court for the Northern District of Illinois, Kraft Foods Global, Inc. et al. v. United

Egg Producers, Inc. et al., Case No. 1:11-cv-8808, for trial. The Egg Products Plaintiffs allege that the Company and other

defendants violated Section 1 of the Sherman Act, 15. U.S.C. § 1, by agreeing to limit the production of eggs and thereby

illegally to raise the prices that plaintiffs paid for processed egg products. In particular, the Egg Products Plaintiffs are attacking

certain features of the United Egg Producers animal-welfare guidelines and program used by the Company and many other egg

producers. The Egg Products Plaintiffs seek to enjoin the Company and other defendants from engaging in antitrust violations

16

and seek treble money damages. On May 2, 2022, the court set trial for October 24, 2022, but on September 20, 2022, the court

cancelled the trial date due to COVID-19 protocols and converted the trial date to a status hearing to reschedule the jury trial.

On December 8, 2022, the court held a status hearing. The parties subsequently submitted an updated proposed pre-trial

schedule and the Court has set the trial for October 16, 2023.

In addition, on October 24, 2019, the Company entered into a confidential settlement agreement with The Kellogg Company

dismissing all claims against the Company for an amount that did not have a material impact on the Company’s financial

condition or results of operations. On November 11, 2019, a stipulation for dismissal was filed with the court, and on March 28,

2022, the court dismissed the Company with prejudice.

The Company intends to continue to defend the remaining case with the Egg Products Plaintiffs as vigorously as possible based

on defenses which the Company believes are meritorious and provable. Adjustments, if any, which might result from the

resolution of this remaining matter with the Egg Products Plaintiffs have not been reflected in the financial statements. While

management believes that there is still a reasonable possibility of a material adverse outcome from the case with the Egg

Products Plaintiffs, at the present time, it is not possible to estimate the amount of monetary exposure, if any, to the Company

due to a range of factors, including the following, among others: two earlier trials based on substantially the same facts and

legal arguments resulted in findings of no conspiracy and/or damages; this trial will be before a different judge and jury in a

different court than prior related cases; there are significant factual issues to be resolved; and there are requests for damages

other than compensatory damages (i.e., injunction and treble money damages).

State of Oklahoma Watershed Pollution Litigation

On June 18, 2005, the State of Oklahoma filed suit, in the United States District Court for the Northern District of Oklahoma,

against Cal-Maine Foods, Inc. and Tyson Foods, Inc. and affiliates, Cobb-Vantress, Inc., Cargill, Inc. and its affiliate, George’s,

Inc. and its affiliate, Peterson Farms, Inc. and Simmons Foods, Inc. The State of Oklahoma claims that through the disposal of

chicken litter the defendants have polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma.

The complaint seeks injunctive relief and monetary damages, but the claim for monetary damages has been dismissed by the

court. Cal-Maine Foods, Inc. discontinued operations in the watershed. Accordingly, we do not anticipate that Cal-Maine

Foods, Inc. will be materially affected by the request for injunctive relief unless the court orders substantial affirmative

remediation. Since the litigation began, Cal-Maine Foods, Inc. purchased

100

% of the membership interests of Benton County

Foods, LLC, which is an ongoing commercial shell egg operation within the Illinois River Watershed. Benton County Foods,

LLC is not a defendant in the litigation.

The trial in the case began in September 2009 and concluded in February 2010. The case was tried without a jury, and the court

has not yet issued its ruling. Management believes the risk of material loss related to this matter to be remote.

Other Matters

In addition to the above, the Company is involved in various other claims and litigation incidental to its business. Although the

outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that

the final outcome should not have a material effect on the Company’s consolidated results of operations or financial position.

17

ITEM 2. MANAGEMENT’S

DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

The following should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results

of Operations included in Part II Item 7 of the Company’s Annual Report on Form 10-K for its fiscal year ended May 28, 2022

(the “2022 Annual Report”), and the accompanying financial statements and notes included in Part II Item 8 of the 2022 Annual

Report and in

 of this Quarterly Report on Form 10-Q (“Quarterly Report”).

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 egg

business, including estimated future production data, expected construction schedules, projected construction costs, potential

future supply of and demand for our products, potential future corn and soybean price trends, potential future impact on our

business of the COVID-19 pandemic, potential future impact on our business of new legislation, rules or policies, potential

outcomes of legal proceedings, and other projected operating data, including anticipated results of operations and financial

condition. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,”

“hopes,” “may,” “should,” “plans,” “projected,” “contemplates,” “anticipates,” or similar words. Actual outcomes or results

could differ materially from those projected in the forward-looking statements. The forward-looking statements are based on

management’s current intent, belief, expectations, estimates, and projections regarding the Company and its industry. These

statements are not guarantees of future performance and involve risks, uncertainties, assumptions, and other factors that are

difficult to predict and may be beyond our control. The factors that could cause actual results to differ materially from those

projected in the forward-looking statements include, among others, (i) the risk factors set forth in Part I Item 1A of the 2022

Annual Report (ii) the risks and hazards inherent in the shell egg business (including disease, pests, weather conditions, and

potential for product recall), including but not limited to the current outbreak of highly pathogenic avian influenza (“HPAI”)

affecting poultry in the United States (“U.S.”), Canada and other countries that was first detected in commercial flocks in the

U.S. in February 2022, (iii) changes in the demand for and market prices of shell eggs and feed costs, (iv) our ability to predict

and meet demand for cage-free and other specialty eggs, (v) risks, changes, or obligations that could result from our future

acquisition of new flocks or businesses and risks or changes that may cause conditions to completing a pending acquisition not

to be met, (vi) risks relating to the evolving COVID-19 pandemic, including without limitation increased costs and rising

inflation and interest rates, which generally have been exacerbated by Russia’s invasion of Ukraine starting February 2022, (vii)

our ability to retain existing customers, acquire new customers and grow our product mix and (viii) adverse results in pending

litigation matters. Readers are cautioned not to place undue reliance on forward-looking statements because, while we believe

the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that these

forward-looking statements will prove to be accurate. Further, forward-looking statements included herein are only made as of

the respective dates thereof, or if no date is stated, as of the date hereof. Except as otherwise required by law, we disclaim any

intent or obligation to update publicly these forward-looking statements, whether because of new information, future events, or

otherwise.

GENERAL

Cal-Maine Foods, Inc. (the “Company,” “we,” “us,” “our”) is primarily engaged in the production, grading, packaging,

marketing and distribution of fresh shell eggs. Our operations are fully integrated under one operating segment. We are the

largest producer and distributor of fresh shell eggs in the U.S. Our total flock of approximately 43.7 million layers and 10.4

million pullets and breeders is the largest in the U.S. We sell most of our shell eggs to a diverse group of customers, including

national and regional grocery store chains, club stores, companies servicing independent supermarkets in the U.S., food service

distributors, and egg product consumers in states across the southwestern, southeastern, mid-western and mid-Atlantic regions

of the U.S.

Our operating results are materially impacted by market prices for eggs and feed grains (corn and soybean meal), which are

highly volatile, independent of each other, and out of our control. Generally, higher market prices for eggs have a positive

impact on our financial results while higher market prices for feed grains have a negative impact on our financial results.

Although we use a variety of pricing mechanisms in pricing agreements with our customers, we sell most of our conventional

shell eggs based on formulas that consider, in varying ways, independently quoted regional wholesale market prices for shell

eggs or formulas related to our costs of production which include the cost of corn and soybean meal. 

We routinely fill our storage bins during harvest season when prices for feed ingredients are generally lower. To ensure

continued availability of feed ingredients, we may enter into contracts for future purchases of corn and soybean meal, and as

part of these contracts, we may lock-in the basis portion of our grain purchases several months in advance. Basis is the

difference between the local cash price for grain and the applicable futures price. A basis contract is a common transaction in

the grain market that allows us to lock-in a basis level for a specific delivery period and wait to set the futures price at a later

18

date. Furthermore, due to the more limited supply for organic ingredients, we may commit to purchase organic ingredients in

advance to help ensure supply. Ordinarily, we do not enter into long-term contracts beyond a year to purchase corn and soybean

meal or hedge against increases in the prices of corn and soybean meal. Corn and soybean meal are commodities and are

subject to volatile price changes due to weather, various supply and demand factors, transportation and storage costs,

speculators, agricultural, energy and trade policies in the U.S. and internationally and most recently the Russia-Ukraine war.

An important competitive advantage for Cal-Maine Foods is our ability to meet our customers’ evolving needs with a favorable

product mix of conventional and specialty eggs, including cage-free, organic and other specialty offerings, as well as egg

products. We have also enhanced our efforts to provide free-range and pasture-raised eggs that meet consumers’ evolving

choice preferences. While a small part of our current business, the free-range and pasture-raised eggs we produce and sell

represent attractive offerings to a subset of consumers, and therefore our customers, and help us continue to serve as the trusted

provider of quality food choices.

We are also focused on additional ways to enhance its product mix and support new opportunities in the restaurant, institutional

and industrial food products arena. On October 4, 2021, Cal-Maine Foods announced a strategic investment of $18.5 million in

debt and equity in Meadow Creek Foods, LLC (“MeadowCreek”), an egg products operation located in Neosho, Missouri,

focused on offering hard-cooked eggs. Cal-Maine Foods serves as the preferred provider of specialty and conventional eggs for

MeadowCreek to manufacture egg products. On December 13, 2022, our Board of Directors approved an additional $13.8

million investment to expand the Company’s controlling interest and fund additional equipment and working capital needs to

support growth opportunities for MeadowCreek. As demand for hard-cooked eggs continues to grow, the funds will be used for

additional refrigerated storage space and expanded capacity for cooking and packaging to better serve MeadowCreek’s

customers. Due to delays caused by supply chain issues and plans for expansion, MeadowCreek is now expected to be fully

operational by or before March 2023.

The Company has joined in the formation of a new egg farmer cooperative in the western United States. ProEgg, Inc.

(“ProEgg”) is comprised of leading egg production companies, including Cal-Maine Foods, servicing retail and foodservice

shell egg customers in 13 western states. ProEgg is a producer-owned cooperative organized under the Capper-Volstead Act.

Our membership in ProEgg is expected to provide benefits for its customers, including supply chain stability and enhanced

reliability. Initially, Cal-Maine Foods’ customer relationships and customer support are expected to remain the same. At some

point in the future, it is anticipated that each producer member will sell through ProEgg the shell eggs it produces for sale in the

western states covered by the cooperative. Customers would have a single point of contact for their shell egg purchases, as

ProEgg would have a dedicated team to market and sell the members’ combined egg production in the region.

The Company’s top priority in joining as a member of ProEgg is serving our valued customers in this important market region.

During this initial phase, we will continue our work to confirm that our participation in this new cooperative is in the best

interest of our customers and aligns with our long-term interests. This consideration will take place before moving to the next

phase of membership, and we expect this process to be completed on or before the end of our fiscal year 2023.

Retail sales of shell eggs historically have been highest during the fall and winter months and lowest during the summer

months. Prices for shell eggs fluctuate in response to seasonal demand factors and a natural increase in egg production during

the spring and early summer. Historically, shell egg prices tend to increase with the start of the school year and tend to be

highest prior to holiday periods, particularly Thanksgiving, Christmas and Easter. Consequently, and all other things being

equal, we would expect to experience lower selling prices, sales volumes and net income (and may incur net losses) in our first

and fourth fiscal quarters ending in August/September and May/June, respectively. Because of the seasonal and quarterly

fluctuations, comparisons of our sales and operating results between different quarters within a single fiscal year are not

necessarily meaningful comparisons.

HPAI

We are closely monitoring the current outbreak of HPAI that was first detected in commercial flocks in the U.S. in February

2022. Outbreaks in commercial flocks in the U.S. have most recently occurred during each month from September to December

2022. The current HPAI epidemic has surpassed the prior 2014-2015 outbreak in terms of the number of affected hens in the

U.S., and HPAI continues to circulate throughout the wild bird population in the U.S. and abroad. According to the U.S.

Centers for Disease Control and Prevention, these detections do not present an immediate public health concern. There have

been no positive tests for HPAI at any Cal-Maine Foods’ owned or contracted production facility as of December 28, 2022. The

USDA division of Animal and Plant Health Inspection Service (“APHIS”) reported on December 27, 2022 that approximately

43.3 million commercial layer hens and 1.0 million pullets have been depopulated due to HPAI this year. We believe the HPAI

outbreak will continue to exert downward pressure on the overall supply of eggs, and the duration of those effects will depend

19

in part on the timing of replenishment of the U.S. layer hen flock. Prior to the outbreak of HPAI in February 2022, the layer hen

flock five-year average from 2017 through 2021 was comprised of approximately 328 million hens. According to a LEAP

Market Analytics report dated December 8, 2022, the layer hen inventory is not projected to exceed this 328 million mark again

until December of 2023. Layer hen numbers reported by the USDA as of December 1, 2022 were 308.3 million, which

represents a decrease of 5.8% compared with the layer hen inventory a year ago. However, the USDA reported that the hatch

from July 2022 through November 2022 increased 5.8% as compared with the prior-year period.

While no farm is immune from HPAI, we believe we have implemented and continue to maintain robust biosecurity programs

across our locations. We are also working closely with federal, state and local government officials and focused industry groups

to mitigate the risk of this and future outbreaks and effectively manage our response, if needed.

CAGE-FREE EGGS

Ten states have passed legislation or regulations mandating minimum space or cage-free requirements for egg production or

mandated the sale of only cage-free eggs and egg products in their states, with implementation of these laws ranging from

January 2022 to January 2026. These states represent approximately 27% of the U.S. total population according to the 2020

U.S. Census. In California and Massachusetts, which collectively represent 14% of the total U.S. population according to the

2020 U.S. Census, cage-free legislation went into effect January 1, 2022. However, these laws are subject to judicial challenge,

and in October 2022 the Supreme Court of the U.S. heard oral arguments in a case challenging California’s law that requires the

sale of only cage-free eggs in that state. A decision in that case is expected next year. These laws have already affected and, if

upheld, will continue to affect sourcing, production and pricing of eggs (conventional as well as specialty) as the national

demand for cage-free production could be greater than the current supply, which would increase the prices of cage-free eggs,

unless more cage-free production capacity is constructed. Likewise, the national supply for eggs from conventional production

could exceed consumer demand which would decrease the prices of conventional eggs.

A significant number of our customers have previously announce d goals to offer cage-free eggs exclusively on or before 2026,

subject in most cases to availability of supply, affordability and customer demand, among other contingencies. Some of these

customers have recently changed those goals to offer 70% cage-free eggs by the end of 2030. Our customers typically do not

commit to long-term purchases of specific quantities or types of eggs with us, and as a result, it is difficult to accurately predict

customer requirements for cage-free eggs. We are, however, engaging with our customers in an effort to achieve a smooth

transition in meeting their announced goals and needs. We have invested significant capital in recent years to acquire and

construct cage-free facilities, and we expect our focus for future expansion will continue to include cage-free facilities. At the

same time, we understand the importance of our continued ability to provide conventional eggs in order to provide our

customers with a variety of egg choices and to address hunger in our communities. 

For additional information, see the 2022 Annual Report, Part I Item 1, “Business – Specialty Eggs,” “Business – Growth

Strategy” and “Business – Government Regulation,” and the first risk factor in Part I Item 1A, “Risk Factors” under the sub-

heading “Legal and Regulatory Risk Factors.”

EXECUTIVE OVERVIEW

For the second quarter of fiscal 2023, we recorded a gross profit of $317.8 million compared to $43.7 million for the same

period of fiscal 2022, with the increase due primarily to higher shell egg prices, partially offset by the increased cost of feed

ingredients and processing, packaging and warehouse costs.

Our net average selling price per dozen for the second quarter of fiscal 2023 was $2.709 compared to $1.365 in the prior-year

period. Conventional egg prices per dozen were $2.883 compared to $1.151 for the prior-year period, and specialty egg prices

per dozen were $2.370 compared to $1.898 for the prior-year period. Conventional egg prices increased in the second quarter of

fiscal 2023 primarily due to decreased supply caused by the HPAI outbreak combined with good customer demand. See the

discussion under the heading “HPAI” above. The daily average price for the UB southeast large index for the second quarter of

fiscal 2023 increased 154.8% from the comparable period in the prior year, reaching near-record highs. Conventional egg prices

exceeding specialty egg prices has occurred for the past three quarters but is atypical historically. Conventional egg prices

generally respond more quickly to market conditions because we sell the majority of our conventional shell eggs based on

formulas that adjust periodically and take into account, in varying ways, independently quoted regional wholesale market prices

for shell eggs or formulas related to our costs of production. The majority of our specialty eggs are typically sold at prices and

terms negotiated directly with customers and therefore do not fluctuate as much as conventional pricing. For information about

historical shell egg prices, see Part I Item I of our 2022 Annual Report.

Our total dozens sold increased 5.4% to 284.1 million dozen shell eggs for the second quarter of fiscal 2023 compared to 269.6

million dozen for the same period of fiscal 2022. For the second quarter of fiscal 2023, conventional dozens sold decreased

20

2.2% and specialty dozens sold increased 24.1% as compared to the same quarter in fiscal 2022. Demand for specialty eggs

increased in the second quarter of fiscal 2023 compared to the same prior year period due primarily to the higher prices for

conventional eggs. Further, demand for specialty eggs continued to increase as retailers continued to shift to selling cage-free

products and cage-free legislation went into full effect in California and Massachusetts on January 1, 2022.

Our farm production costs per dozen produced for the second quarter of fiscal 2023 increased 22.0%, or $0.193, compared to

the second quarter of fiscal 2022. This increase was primarily due to increased prices for feed ingredients and a higher basis in

corn in most of our production areas, which added to our expense. For the second quarter of fiscal 2023, the average Chicago

Board of Trade (“CBOT”) daily market price was $6.78 per bushel for corn and $423 per ton for soybean meal, representing

increases of 24.8% and 25.5%, respectively, compared to the average daily CBOT prices for the comparable period in the prior

year. For information about historical corn and soybean meal prices, see Part I Item I of our 2022 Annual Report.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, certain items from our Condensed Consolidated Statements of

Operations expressed as a percentage of net sales.

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26,

2022

November 27,

2021

November 26,

2022

November 27,

2021

Net sales

100.0

%

100.0

%

100.0

%

100.0

%

Cost of sales

60.4

%

88.5

%

63.3

%

92.9

%

Gross profit

39.6

%

11.5

%

36.7

%

7.1

%

Selling, general and administrative

7.2

%

12.5

%

7.6

%

13.3

%

(Gain) loss on disposal of fixed assets

—

%

(0.5)

%

—

%

(0.3)

%

Operating income (loss)

32.4

%

(0.5)

%

29.1

%

(5.9)

%

Total other income, net

0.3

%

0.7

%

0.3

%

1.2

%

Income (loss) before income taxes

32.7

%

0.2

%

29.4

%

(4.7)

%

Income tax expense (benefit)

8.0

%

(0.2)

%

7.1

%

(2.3)

%

Net income (loss)

24.7

%

0.4

%

22.3

%

(2.4)

%

NET SALES

Total net sales for the second quarter of fiscal 2023 were a record $801.7 million compared to $381.7 million for the same

period of fiscal 2022.

Net shell egg sales represented 96.5% and 97.0% of total net sales for the second quarters of fiscal 2023 and 2022, respectively.

Shell egg sales classified as “Other” represent sales of hard-cooked eggs and other miscellaneous byproducts included with our

shell egg operations. 

Total net sales for the twenty-six weeks ended November 26, 2022 were $1.46 billion, compared to $706.7 million for the

comparable period of fiscal 2022.

Net shell egg sales represented 96.2% and 97.1% of total net sales for the twenty-six weeks ended November 26, 2022 and

November 27, 2021, respectively. 

21

The table below presents an analysis of our conventional and specialty shell egg sales (in thousands, except percentage data):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Total net sales

$

801,700

$

381,723

$

1,460,044

$

706,709

Conventional

$

541,917

70.1

%

$

221,142

59.7

%

$

967,506

69.0

%

$

403,172

58.8

%

Specialty

227,778

29.4

%

146,917

39.7

%

428,598

30.5

%

279,375

40.7

%

Egg sales, net

769,695

99.5

%

368,059

99.4

%

1,396,104

99.5

%

682,547

99.5

%

Other

3,953

0.5

%

2,263

0.6

%

8,248

0.6

%

3,395

0.5

%

Net shell egg sales

$

773,648

100.0

%

$

370,322

100.0

%

$

1,404,352

100.1

%

$

685,942

100.0

%

Net shell egg sales as a

percent of total net sales

96.5

%

97.0

%

96.2

%

97.1

%

Dozens sold:

Conventional

187,976

66.2

%

192,135

71.3

%

367,688

65.7

%

376,003

71.7

%

Specialty

96,110

33.8

%

77,420

28.7

%

191,715

34.3

%

148,171

28.3

%

Total dozens sold

284,086

100.0

%

269,555

100.0

%

559,403

100.0

%

524,174

100.0

%

Net average selling price

per dozen:

Conventional

$

2.883

$

1.151

$

2.631

$

1.072

Specialty

$

2.370

$

1.898

$

2.236

$

1.885

All shell eggs

$

2.709

$

1.365

$

2.496

$

1.302

Egg products sales: 

Egg products net sales

28,052

11,401

55,692

20,767

Pounds sold

15,702

16,009

32,204

31,278

Net average selling price

per pound

1.787

0.712

1.729

0.664

Shell egg net sales

Second Quarter – Fiscal 2023 vs. Fiscal 2022

-

In the second quarter of fiscal 2023, conventional egg sales increased $320.8 million, or 145.0%, compared to the

second quarter of fiscal 2022, primarily due to the increase in the price s for conventional shell eggs, slightly offset by

a decrease in volume of conventional shell eggs sold. Changes in prices resulted in a $325.6 million increase and the

change in volume resulted in a $4.8 million decrease in net sales, respectively.

-

Conventional egg prices increased in the second quarter of fiscal 2023 primarily due to decreased supply caused by the

HPAI outbreak, discussed above, while we experienced continued good customer demand (and typical seasonal

consumer demand).

-

As a result of the independently quoted wholesale market prices for conventional eggs reaching near-record highs, the

average selling price for conventional eggs exceeded the average selling price for specialty eggs in the second quarter

of fiscal 2023, which has occurred for the past three quarters but is atypical historically. Conventional egg prices

generally respond more quickly to market conditions as we sell the majority of our conventional shell eggs based on

formulas that adjust periodically and take into account, in varying ways, independently quoted regional wholesale

market prices for shell eggs or formulas related to our costs of production. The majority of our specialty eggs are

typically sold at prices and terms negotiated directly with customers and therefore do not fluctuate as much as

conventional pricing. 

-

Specialty egg sales increased $80.9 million, or 55.0%, in the second quarter of fiscal 2023 compared to the second

quarter of fiscal 2022, primarily due to a 24.9% increase in the prices for specialty eggs, which resulted in a $45.4

million increase in net sales and a 24.1% increase in the volume of specialty eggs sold, which resulted in a $35.5

million increase in net sales. 

22

-

Net average selling price of specialty eggs increased in response to rising feed and other input costs as well as current

market conditions due to HPAI.

-

Demand for specialty eggs increased as conventional egg prices rose. Our sales volume benefited as we produced 11%

more specialty eggs in the second quarter of fiscal 2023 versus the prior-year period, through use of our higher cage-

free production capacity and better utilization of that capacity.

-

Cage-free egg sales for the second quarter of fiscal 2023 represented 18.2% of our total net shell egg sales versus

22.4% for the same prior year period due to the higher conventional egg prices. Cage-free dozens sold increased

47.4% in the second quarter of fiscal 2023 as compared to the second quarter of fiscal 2022.

Twenty-six weeks – Fiscal 2023 vs. Fiscal 2022

-

For the twenty-six weeks ended November 26, 2022, conventional egg sales increased $564.3 million or 140.0%

compared to the same period of fiscal 2022, primarily due to the increase in the prices for conventional shell eggs,

slightly offset by the decrease in the volume of conventional eggs sold. Changes in prices resulted in a $573.2 million

increase and the change in volume resulted in a $9.0 million decrease in net sales, respectively.

-

Specialty egg sales increased $149.2 million, or 53.4%, for the twenty-six weeks ended November 26, 2022 compared

to the same period of fiscal 2022, primarily due to a 29.4% increase in the volume of specialty dozens sold. The

volume of specialty dozens sold increased mainly due to the higher conventional egg prices. Change in volume

resulted in a $82.1 million increase and changes in specialty egg price resulted in a $67.3 million increase in net sales,

respectively. 

Egg products net sales

Second Quarter – Fiscal 2023 vs. Fiscal 2022

-

Egg products net sales increased $16.7 million or 146.0% for the second quarter of fiscal 2023 compared to the same

period of fiscal 2022, primarily due to a 151.0% selling price increase, which had a $16.9 million positive impact on

net sales.

-

Our egg products net average selling price increased in the second quarter of fiscal 2023, compared to the second

quarter of fiscal 2022 as the supply of shell eggs used to produce egg products decreased due to the HPAI outbreak

that started in February 2022. 

Twenty-six weeks – Fiscal 2023 vs. Fiscal 2022

-

Egg products net sales increased $34.9 million or 168.2%, primarily due to a 160.4% selling price increase compared

to the first twenty-six weeks of fiscal 2022, which had a $34.3 million positive impact on net sales.

-

Our egg products net average selling price increased in the twenty-six weeks ended November 26, 2022, compared to

the same period in fiscal 2022 as the supply of shell eggs used to produce egg products decreased due to the HPAI

outbreak that started in February 2022.

COST OF SALES

Costs of sales for the second quarter of fiscal 2023 were $483.9 million compared to $338.0 million for the same period of

fiscal 2022. 

Cost of sales consists of costs directly related to producing, processing and packing shell eggs, purchases of shell eggs from

outside producers, processing and packing of liquid and frozen egg products and other non-egg costs. Farm production costs are

those costs incurred at the egg production facility, including feed, facility, hen amortization and other related farm production

costs.

23

The following table presents the key variables affecting our cost of sales (in thousands, except cost per dozen data):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26,

2022

November 27,

2021

%

Change

November 26,

2022

November 27,

2021

%

Change

Cost of Sales:

Farm production

$

276,008

$

221,971

24.3

%

$

542,659

$

429,466

26.4

%

Processing, packaging,

and warehouse

83,639

69,474

20.4

165,056

134,533

22.7

Egg purchases and other

(including change in

inventory)

97,973

36,859

165.8

166,271

74,832

122.2

Total shell eggs

457,620

328,304

39.4

873,986

638,831

36.8

Egg products

26,231

9,672

171.2

50,719

17,486

190.1

Total

$

483,851

$

337,976

43.2

%

$

924,705

$

656,317

40.9

%

Farm production costs

(per dozen produced)

Feed

$

0.685

$

0.529

29.5

%

$

0.676

$

0.537

25.9

%

Other

$

0.386

$

0.349

10.6

%

$

0.383

$

0.351

9.1

%

Total

$

1.071

$

0.878

22.0

%

$

1.059

$

0.888

19.3

%

Outside egg purchases

(average cost per dozen)

$

3.14

$

1.56

101.3

%

$

2.88

$

1.45

98.6

%

Dozens produced

261,358

256,786

1.8

%

519,012

493,244

5.2

%

Percent produced to sold

92.0%

95.3%

(3.5)

%

92.8%

94.1%

(1.4)

%

Farm Production

Second Quarter – Fiscal 2023 vs. Fiscal 2022

-

Feed costs per dozen produced increased 29.5% in the second quarter of fiscal 2023 compared to the second quarter of

fiscal 2022. This increase was primarily due to increased prices for corn, our primary feed ingredient.

-

For the second quarter of fiscal 2023, the average daily CBOT market price was $6.78 per bushel for corn and $423

per ton of soybean meal representing increases of 24.8% and 25.5%, respectively, as compared to the average daily

CBOT prices for the second quarter of fiscal 2022. 

-

Other farm production costs increased due to higher facility and flock amortization, primarily from higher feed costs,

which began to rise in our third quarter of fiscal 2021 due to increased prices discussed above, and which remained

high in the second quarter of fiscal 2023. Feed costs are capitalized in our flocks during pullet production and

increased our amortization expense.

Twenty-six weeks – Fiscal 2023 vs. Fiscal 2022

-

Feed costs per dozen produced increased 25.9% in the twenty-six weeks ended November 26, 2022 compared to the

same period of fiscal 2021, primarily due to higher feed ingredient prices.

-

Other farm production costs increased due to higher facility and flock amortization, primarily from higher feed costs,

which began to rise in our third quarter of fiscal 2021 due to increased prices discussed above, and which remained

high in the second quarter of fiscal 2023. Feed costs are capitalized in our flocks during pullet production and

increased our amortization expense.

Supplies of corn and soybean remained tight relative to demand in the second quarter of fiscal 2023, as evidenced by a low

stock-to-use ratio for corn, as a result of weather-related shortfalls in production and yields, ongoing disruptions related to the

COVID-19 global pandemic and the Russia-Ukraine war and its impact on the export markets . Additionally, basis levels for

corn ran significantly higher in our area of operations compared to our prior year second fiscal quarter, adding to our expense.

24

For fiscal 2023, we expect continued corn and soybean upward pricing pressures and further market volatility to affect feed

costs. 

Processing, packaging, and warehouse

Second Quarter – Fiscal 2023 vs. Fiscal 2022

-

Cost of packaging materials increased 38.3 % compared to the second quarter of fiscal 2022 due to rising inflation and

labor costs.

-

Labor costs increased 49.2% due to wage increases and increased use of contract labor in response to labor shortages .

-

Dozens processed increased 5.4% compared to the second quarter of fiscal 2022, which resulted in a $4.0 million

increase in costs.

Twenty-six weeks – Fiscal 2023 vs. Fiscal 2022

-

Cost of packaging materials increased 26.7% compared to the twenty-six weeks ended November 27, 2021 due to

rising inflation and labor costs.

-

Labor costs increased 30.3% due to wage increases in response to labor shortages, primarily due to the pandemic and

its effects.

-

Dozens processed increased 7.0% compared to the twenty-six weeks ended November 27, 2021, which resulted in a

$9.9 million increase in costs.

Egg purchases and other (including change in inventory)

Second Quarter – Fiscal 2023 vs. Fiscal 2022

-

Costs in this category increased primarily due to higher egg prices as well as an increase in the volume of outside egg

purchases, causing the percentage of produced to sold to decrease to 92.0% from 95.3%.

Twenty-six weeks – Fiscal 2023 vs. Fiscal 2022

-

Costs in this category increased primarily due to higher egg prices as well as an increase in the volume of outside egg

purchases, as our percentage of produced to sold decreased to 92.8% from 94.1%.

GROSS PROFIT 

Gross profit for the second quarter of fiscal 2023 was $317.8 million compared to $43.7 million for the same period of fiscal

2022. The increase of $274.1 million was primarily due to higher egg prices as well as the increased volume of specialty eggs

sold, partially offset by the increased cost of feed ingredients and processing, packaging and warehouse costs.

Gross profit for the twenty-six weeks ended November 26, 2022 was $535.3 million compared to $50.4 million for the same

period of fiscal 2022. The increase of $484.9 million was primarily due to higher egg prices as well as the increased volume of

specialty eggs sold, partially offset by the increased cost of feed ingredients and processing, packaging and warehouse costs.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

Selling, general, and administrative expenses ("SGA") include costs of marketing, distribution, accounting and corporate

overhead. The following table presents an analysis of our SGA expenses (in thousands):

Thirteen Weeks Ended

November 26, 2022

November 27, 2021

$ Change

% Change

Specialty egg expense

$

14,673

$

14,262

$

411

2.9

%

Delivery expense

18,175

14,395

3,780

26.3

%

Payroll, taxes and benefits

13,827

11,303

2,524

22.3

%

Stock compensation expense

987

975

12

1.2

%

Other expenses

10,290

6,845

3,445

50.3

%

Total

$

57,952

$

47,780

$

10,172

21.3

%

25

Second Quarter – Fiscal 2023 vs. Fiscal 2022

Specialty egg expense

-

Specialty egg expense, which includes franchise fees, advertising and promotion costs, generally aligns with specialty

egg volumes, which were up 24.1% for the second quarter of fiscal 2023 compared to the same period of fiscal 2022.

However, our specialty egg expense only increased by 2.9%, primarily due to increased sales to other Eggland’s Best,

Inc. (“EB”) franchisees, including unconsolidated affiliates, Specialty Eggs, LLC and Southwest Specialty Eggs, LLC.

These franchisees were responsible for the franchise fees, advertising and promotion costs associated with those sales,

which resulted in reduced costs for us. 

Delivery expense

-

The increased delivery expense is primarily due to the increase in contract trucking.

Payroll, taxes and benefits expense

-

The increase in payroll, taxes and benefits expense is due to an increase in the accrual for anticipated performance-

based bonuses.

Other expense

-

The increase in other expense is primarily due to increased legal expenses of approximately $2.6 million in the second

quarter of fiscal 2023 compared to the second quarter of fiscal 2022.

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

$ Change

% Change

Specialty egg expense

$

27,740

$

27,977

$

(237)

(0.8)

%

Delivery expense

38,091

28,331

9,760

34.4

%

Payroll, taxes and benefits

24,814

21,242

3,572

16.8

%

Stock compensation expense

2,012

1,976

36

1.8

%

Other expenses

18,902

14,779

4,123

27.9

%

Total

$

111,559

$

94,305

$

17,254

18.3

%

Twenty-six weeks – Fiscal 2022 vs. Fiscal 2021

Specialty egg expense

-

Specialty egg expense, which includes franchise fees, advertising and promotion costs, generally aligns with specialty

egg volumes, which were up 29.4% for fiscal 2023 compared to fiscal 2022. However, our specialty egg expense

decreased by 0.8%, primarily due to increased sales to other Eggland’s Best, Inc. (“EB”) franchisees, including

unconsolidated affiliates, Specialty Eggs, LLC and Southwest Specialty Eggs, LLC. Additionally, the higher prices for

conventional eggs and the comparatively lower prices for specialty eggs diminished the need to promote specialty

eggs; as a result, EB temporarily reduced the related franchise fees for certain specialty egg products to encourage

continued production of these products.

Delivery expense

-

The increased delivery expense is primarily due to the increase in fuel and labor costs for both our fleet and contract

trucking.

Payroll, taxes and benefits expense

-

The increase in payroll, taxes and benefits expense is primarily due to an increase in the accrual for anticipated

performance-based bonuses and increased wages for all employees due to the inflationary market.

Other expenses

-

The increase in other expense is primarily due to increased legal expenses of approximately $3.5 million.

OPERATING INCOME (LOSS)

For the second quarter of fiscal 2023, we recorded operating income of $259.9 million compared to operating loss of $2.1

million for the same period of fiscal 2022.

26

For the twenty-six weeks ended November 26, 2022, we recorded an operating income of $423.7 million compared to an

operating loss of $41.7 million for the same period of fiscal 2022.

OTHER INCOME (EXPENSE) 

Total other income (expense) consists of items not directly charged or related to operations, such as interest income and

expense, royalty income, equity income or loss of unconsolidated entities, and patronage income, among other items.

For the second quarter of fiscal 2023, we earned $2.1 million of interest income compared to $207 thousand for the same period

of fiscal 2022. The increase resulted from significantly higher investment balances. The Company recorded interest expense of

$143 thousand and $78 thousand for the second quarters ended November 26, 2022 and November 27, 2021, respectively.

For the twenty-six weeks ended November 26, 2022, we earned $3.1 million of interest income compared to $497 million for

the same period of fiscal 2022. The increase resulted from significantly higher investment balances. The Company recorded

interest expense of $291 thousand and $136 thousand for the twenty-six weeks ended November 26, 2022 and November 27,

2021, respectively.

Other, net for the second quarter ended November 26, 2022, was income of $1.1 million compared to income of $1.9 million

for the same period of fiscal 2022. 

Other, net for the twenty-six weeks ended November 26, 2022, was income of $1.3 million compared to income of $7.0 million

for the same period of fiscal 2022. The majority of the decrease is due to our acquisition in fiscal 2022 of the remaining 50%

membership interest in Red River Valley Egg Farm, LLC (“Red River”) as we recognized a $4.5 million gain due to the

remeasurement of our equity investment, along with the $1.4 million payment received in fiscal 2022 related to review and

adjustment of our various marketing agreements.

INCOME TAXES

For the second quarter of fiscal 2023, pre-tax income was $262.2 million compared to $468 thousand for the same period of

fiscal 2022. We recorded income tax expense of $64 million for the second quarter of fiscal 2023, which reflects an effective

tax rate of 24.4%. We recorded an income tax benefit of $677 thousand in the prior year period which includes a $520

thousand discrete tax benefit related to the Internal Revenue Service (IRS) adjustments associated with the Company’s

previously recognized research and development tax benefits. 

For the twenty-six weeks ended November 26, 2022, pre-tax income was $427.7 million compared to a pre-tax loss of $33.4

million for the same period of fiscal 2022. We recorded income tax expense of $104.3 million which reflects an effective tax

rate of 24.4%. We recorded an income tax benefit of $16.5 million in the prior year period, which includes the discrete tax

benefit of $8.3 million in connection with the Red River acquisition. Excluding the discrete tax benefit, income tax benefit for

the comparable period of fiscal 2022 was $8.2 million with an adjusted effective tax rate of 24.6%.

Our effective tax rate differs from the federal statutory income tax rate due to state income taxes, certain federal tax credits and

certain items included in income for financial reporting purposes that are not included in taxable income for income tax

purposes, including tax exempt interest income, certain nondeductible expenses and net income or loss attributable to our

noncontrolling interest.

NET INCOME ATTRIBUTABLE TO CAL-MAINE FOODS, INC.

Net income attributable to Cal-Maine Foods, Inc. for the second quarter ended November 26, 2022, was $198.6 million, or

$4.08 per basic and $4.07 per diluted common share, compared to net income attributable to Cal-Maine Foods, Inc. of $1.2

million or $0.02 per basic and diluted common share for the same period of fiscal 2022.

Net income attributable to Cal-Maine Foods, Inc. for the twenty-six weeks ended November 26, 2022, was $323.9 million, or

$6.66 per basic and $6.63 per diluted share, compared to net loss of $16.9 million or $0.34 per basic and diluted share for the

same period of fiscal 2022.

27

LIQUIDITY AND CAPITAL RESOURCES 

Working Capital and Current Ratio

Our working capital at November 26, 2022 was $667.5 million, compared to $476.8 million at May 28, 2022. The calculation

of working capital is defined as current assets less current liabilities. Our current ratio was 3.2 at November 26, 2022, compared

with 3.6 at May 28, 2022. The current ratio is calculated by dividing current assets by current liabilities.

Cash Flows from Operating Activities

For the twenty-six weeks ended November 26, 2022, $344.8 million in net cash was provided by operating activities, compared

to $15.5 million used by operating activities for the comparable period in fiscal 2022. The increase in cash flow from operating

activities resulted primarily from higher selling prices for conventional and specialty eggs as well as increased volume of

specialty egg sales, partially offset by increased costs of feed ingredients and processing, packaging and warehouse costs

compared to the prior-year period..

Cash Flows from Investing Activities

We continue to invest in our facilities, with $59.7 million used to purchase property, plant and equipment for the twenty-six

weeks ended November 26, 2022, compared to $28.6 million in the same period of fiscal 2022. Purchases of investments were

$152.4 million in the second quarter of fiscal 2023, compared to $26.4 million in fiscal 2022. The increase in purchases of

investments is primarily due to the increased cash provided by operating activities noted above. 

Cash Flows from Financing Activities

We paid dividends of $78.4 million for the twenty-six weeks ended November 26, 2022 compared to no dividends for the prior

year period.

As of November 26, 2022, cash increased $119.6 million since May 28, 2022, compared to a decrease of $41.9 million during

the same period of fiscal 2022.

Credit Facility

We had no long-term debt outstanding at November 26, 2022 or May 28, 2022. On November 15, 2021, we entered into a

credit agreement that provides for a senior secured revolving credit facility (the “Credit Facility”), in an initial aggregate

principal amount of up to $250 million with a five-year term. As of November 26, 2022, no amounts were borrowed under the

Credit Facility. We have $4.1 million in outstanding standby letters of credit, issued under our Credit Facility for the benefit of

certain insurance companies. Refer to Part II Item 8, Notes to the Financial Statements, Note 10 – Credit Facility included in

our 2022 Annual Report for further information regarding our long-term debt.

Material Cash Requirements

We continue to monitor the increasing demand for cage-free eggs and to engage with our customers in efforts to achieve a

smooth transition toward their announced timelines for cage-free egg sales. The following table presents material construction

projects approved as of November 26, 2022 (in thousands):

Project(s) Type

Projected 

Completion

Projected Cost

Spent as of November

26, 2022

Remaining

Projected Cost

Cage-Free Layer & Pullet Houses/Processing

Facility

Fiscal 2023

$

131,932

117,056

14,876

Cage-Free Layer & Pullet Houses

Fiscal 2023

24,640

23,325

1,315

Cage-Free Layer & Pullet Houses

Fiscal 2024

42,591

2,057

40,534

Cage-Free Layer & Pullet Houses

Fiscal 2025

95,806

22,526

73,280

$

294,969

$

164,964

$

130,005

We believe our current cash balances, investments, cash flows from operations, and Credit Facility will be sufficient to fund our

current cash needs for at least the next 12 months. 

28

IMPACT OF RECENTLY ISSUED/ADOPTED ACCOUNTING STANDARDS

For information on changes in accounting principles and new accounting policies, see

 of the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report.

CRITICAL ACCOUNTING ESTIMATES 

Critical accounting estimates are those estimates made in accordance with U.S. generally accepted accounting principles that

involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our

financial condition or results of operations. There have been no changes to our critical accounting estimates identified in our

2022 Annual Report.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our exposure to market risk during the twenty-six weeks ended November 26, 2022

from the information provided in Part II Item 7A Quantitative and Qualitative Disclosures About Market Risk in our 2022

Annual Report.

ITEM 4. CONTROLS

AND

PROCEDURES

Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed

by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time

periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include,

without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that

we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive

and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding

required disclosure. Based on an evaluation of our disclosure controls and procedures conducted by our Chief Executive Officer

and Chief Financial Officer, together with other financial officers, such officers concluded that our disclosure controls and

procedures were effective as of November 26, 2022 at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the quarter ended November 26, 2022

that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

29

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Refer to the discussion of certain legal proceedings involving the Company and/or its subsidiaries in (i) our 2022 Annual

Report, Part I Item 3 Legal Proceedings, and Part II Item 8, Notes to Consolidated Financial Statements and Supplementary

Data, Note 18: Commitments and Contingencies, and (ii) in this Quarterly Report in

of the Notes to Condensed Consolidated Financial Statements, which discussions are incorporated herein by reference.

ITEM 1A. RISK

FACTORS

There have been no material changes in the risk factors previously disclosed in the Company’s 2022 Annual Report.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no purchases of our Common Stock made by or on behalf of our Company or any affiliated purchaser during the

second quarter of fiscal 2023.

ITEM 6. EXHIBITS

Exhibits

No.

Description

3.1

Second Amended and Restated Certificate of Incorporation of the Registrant (incorporated by reference to

Exhibit 3.1 in the Registrant’s Form 8-K, filed July 20, 2018)

3.2

Composite Bylaws of the Company (incorporated by reference to Exhibit 3.2 in the Registrant’s Form 10-Q

for the quarter ended March 2, 2013, filed April 5, 2013)

31.1*

Rule 13a-14(a) Certification of the Chief Executive Officer

31.2*

Rule 13a-14(a) Certification of the Chief Financial Officer

32**

Section 1350 Certification of the Chief Executive Officer and the Chief Financial Officer

101.SCH*+

Inline XBRL Taxonomy Extension Schema Document

101.CAL*+

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*+

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*+

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*+

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*

Filed herewith as an Exhibit. 

**

Furnished herewith as an Exhibit.

+

Submitted electronically with this Quarterly Report.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned, thereunto duly authorized.

CAL-MAINE FOODS, INC.

(Registrant)

Date: 

December 28, 2022

/s/ Max P. Bowman

Max P. Bowman

Vice President, Chief Financial Officer

(Principal Financial Officer)

໿

Date: 

December 28, 2022

/s/ Matthew S. Glover

Matthew S. Glover

Vice President – Accounting

(Principal Accounting Officer)

໿

EX-31.1

Exhibit 31.1

1

Certification

Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Sherman L. Miller, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Cal-Maine Foods, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this

report based on such evaluation; and

(d)

 Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the

registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has

materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report

financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant’s internal control over financial reporting.

/s/ Sherman L. Miller

Sherman L. Miller

President and Chief Executive Officer

Date:

December 28, 2022

EX-31.2

Exhibit 31.2

1

Certification

Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Max P. Bowman, certify that

1.

I have reviewed this Quarterly Report on Form 10-Q of Cal-Maine Foods, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances under which such statements were made, not

misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in

all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods

presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed

under our supervision, to ensure that material information relating to the registrant, including its consolidated

subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is

being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by

this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the

registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has

materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

and

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and

report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the

registrant’s internal control over financial reporting.

/s/ Max P. Bowman

Max P. Bowman

Vice President and Chief Financial Officer

Date:

December 28, 2022

EX-32

Exhibit 32

1

Certifications Pursuant to 18 U.S.C. §1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of

2002, we, the undersigned Chief Executive Officer and Chief Financial Officer of Cal-Maine Foods, Inc. (the “Company”),

hereby certify, based on our knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended

November 26, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange

Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

/s/ Sherman L. Miller

Sherman L. Miller

President and Chief Executive Officer

/s/ Max P. Bowman

Max P. Bowman

Vice President and Chief Financial Officer

Date:

December 28, 2022

XML

Document and Entity Information - shares	6 Months Ended
	Nov. 26, 2022	Dec. 28, 2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 26, 2022
Document Transition Report	false
Entity File Number	001-38695
Entity Registrant Name	CAL-MAINE FOODS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	64-0500378
Entity Address, Address Line One	1052 Highland Colony Pkwy
Entity Address Address Line 2	Suite 200
Entity Address, City or Town	Ridgeland
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39157
City Area Code	601
Local Phone Number	948-6813
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	CALM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--06-03
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000016160
Common Stock [Member]
Entity Common Stock, Shares Outstanding		44,130,149
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		4,800,000

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 26, 2022	May 28, 2022
Current assets:
Cash and cash equivalents	$ 178,635	$ 59,084
Investment securities available-for-sale	200,714	115,429
Trade and other receivables, net	262,964	177,257
Income tax receivable	42,147	42,147
Inventories	280,582	263,316
Prepaid expenses and other current assets	8,968	4,286
Total current assets	974,010	661,519
Property, plant & equipment, net	703,882	677,796
Investments in unconsolidated entities	14,687	15,530
Goodwill	44,006	44,006
Intangible assets, net	17,037	18,131
Other long-term assets	9,818	10,507
Total Assets	1,763,440	1,427,489
Current liabilities:
Accounts payable and accrued expenses	154,624	122,331
Accrued income taxes payable	85,723	25,687
Dividends payable	66,202	36,656
Total current liabilities	306,549	184,674
Other noncurrent liabilities	9,410	10,274
Deferred income taxes, net	127,176	128,196
Total liabilities	443,135	323,144
Commitments and contingencies - see Note 9
Stockholders' equity:
Paid-in capital	70,005	67,989
Retained earnings	1,281,784	1,065,854
Accumulated other comprehensive loss, net of tax	(3,087)	(1,596)
Common stock in treasury at cost - 26,126 shares at November 26, 2022 and 26,121 shares at May 28, 2022	(28,496)	(28,447)
Total Cal-Maine Foods, Inc. stockholders' equity	1,320,957	1,104,551
Noncontrolling interest in consolidated entity	(652)	(206)
Total stockholders' equity	1,320,305	1,104,345
Total Liabilities and Stockholders' Equity	1,763,440	1,427,489
Common Stock [Member]
Stockholders' equity:
Common stock	703	703
Class A Convertible Common Stock [Member]
Stockholders' equity:
Common stock	$ 48	$ 48

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Nov. 26, 2022	May 28, 2022
Common Stock [Member]
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	120,000,000	120,000,000
Common stock, shares issued (in shares)	70,261,000	70,261,000
Common stock in treasury (in shares)	26,126,000	26,121,000
Class A Convertible Common Stock [Member]
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	4,800,000	4,800,000
Common stock, shares issued (in shares)	4,800,000	4,800,000

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 801,700	$ 381,723	$ 1,460,044	$ 706,709
Cost of sales	483,851	337,976	924,705	656,317
Gross profit	317,849	43,747	535,339	50,392
Selling, general and administrative	57,952	47,780	111,559	94,305
(Gain) loss on disposal of fixed assets	29	(1,968)	62	(2,181)
Operating income (loss)	259,868	(2,065)	423,718	(41,732)
Other income (expense):
Interest income, net	1,930	129	2,833	361
Royalty income	344	278	772	551
Equity income (loss) of unconsolidated entities	(987)	264	(843)	399
Other, net	1,113	1,862	1,268	7,025
Total other income, net	2,400	2,533	4,030	8,336
Income (loss) before income taxes	262,268	468	427,748	(33,396)
Income tax expense (benefit)	63,974	(677)	104,320	(16,515)
Net income (loss)	198,294	1,145	323,428	(16,881)
Less: Loss attributable to noncontrolling interest	(293)	(28)	(446)	(28)
Net income (loss) attributable to Cal-Maine Foods, Inc.	$ 198,587	$ 1,173	$ 323,874	$ (16,853)
Net income (loss) per common share:
Basic (in dollars per share)	$ 4.08	$ 0.02	$ 6.66	$ (0.34)
Diluted (in dollars per share)	$ 4.07	$ 0.02	$ 6.63	$ (0.34)
Weighted average shares outstanding:
Basic (in shares)	48,624	48,857	48,624	48,859
Diluted (in shares)	48,840	49,016	48,827	48,859

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021
Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income (loss)	$ 198,294	$ 1,145	$ 323,428	$ (16,881)
Other comprehensive income (loss), before tax:
Unrealized holding loss on available-for-sale securities, net of reclassification adjustments	(974)	(355)	(1,971)	(579)
Income tax benefit related to items of other comprehensive income	237	87	480	141
Other comprehensive loss, net of tax	(737)	(268)	(1,491)	(438)
Comprehensive income (loss)	197,557	877	321,937	(17,319)
Less: Comprehensive loss attributable to the noncontrolling interest	(293)	(28)	(446)	(28)
Comprehensive income (loss) attributable to Cal-Maine Foods, Inc.	$ 197,850	$ 905	$ 322,383	$ (17,291)

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021
Cash flows from operating activities:
Net income (loss)	$ 323,428	$ (16,881)
Depreciation and amortization	34,729	33,969
Deferred income taxes	(540)	(15,995)
Other adjustments, net	(12,830)	(16,585)
Net cash provided by (used in) operations	344,787	(15,492)
Cash flows from investing activities:
Purchases of investment securities	(152,365)	(26,387)
Sales and maturities of investment securities	65,279	67,864
Distributions from unconsolidated entities	0	400
Acquisition of business, net of cash acquired	0	(44,823)
Purchases of property, plant and equipment	(59,709)	(28,647)
Net proceeds from disposal of property, plant and equipment	92	5,338
Net cash used in investing activities	(146,703)	(26,255)
Cash flows from financing activities:
Payments of dividends	(78,394)	0
Purchase of common stock by treasury	(45)	(18)
Principal payments on finance lease	(94)	(106)
Contributions	0	3
Net cash used in financing activities	(78,533)	(121)
Net change in cash and cash equivalents	119,551	(41,868)
Cash and cash equivalents at beginning of period	59,084	57,352
Cash and cash equivalents at end of period	$ 178,635	$ 15,484

XML

Summary of Significant Accounting Policies

6 Months Ended

Nov. 26, 2022

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the “Company,”

“we,” “us,” “our”) have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and

in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial

reporting and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 28, 2022 (the

“2022 Annual Report”). These statements reflect all adjustments that are, in the opinion of management, necessary to a fair

statement of the results for the interim periods presented and, in the opinion of management, consist of adjustments of a normal

recurring nature. Operating results for the interim periods are not necessarily indicative of operating results for the entire fiscal

year.

Fiscal Year

The Company’s fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on November 26, 2022 and November 27, 2021 included

13 weeks

 and

26 weeks

, respectively.

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates.

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company’s ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported in other comprehensive income until realized. The total of other comprehensive

income for the period is presented as a component of stockholders' equity separately from retained earnings and additional paid-

in capital. The Company regularly evaluates changes to the rating of its debt securities by credit agencies and economic

conditions to assess and record any expected credit losses through the allowance for credit losses, limited to the amount that fair

value was less than the amortized cost basis. The cost basis for realized gains and losses on available-for-sale securities is

determined by the specific identification method. Gains and losses are recognized in other income (expenses) as Other, net in

the Company’s Condensed Consolidated Statements of Operations. Investments in mutual funds are classified as “Other long-

term assets” in the Company’s Condensed Consolidated Balance Sheets.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of November 26, 2022 and

May 28, 2022, reserves for credit losses were $

838

 thousand and $

775

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are assigned an expected loss based on

historical loss information adjusted as needed for economic and other forward-looking factors.

Dividends Payable 

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (

1/3

) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date.

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the most recent quarter for which a dividend was paid.

Immaterial Error Correction

Effective on May 30, 2021, the Company acquired the remaining

50

% membership interest in Red River Valley Egg Farm,

LLC (“Red River”), including certain liabilities. During the Company’s third quarter of fiscal 2022, management determined

that it had not properly eliminated select intercompany sales and cost of sales transactions between Red River and the

corresponding other wholly -owned subsidiaries of the Company in its first and second quarter 2022 Condensed Consolidated

Statements of Operations. The errors resulted in an overstatement of Net Sales and Cost of Sales of $

6.7

 million in the first

quarter of fiscal 2022 and $

9.2

 million in the second quarter of fiscal 2022. There was

no

 impact to Operating loss, Net income

(loss) or Net income (loss) per share.

We evaluated the errors quantitatively and qualitatively in accordance with Staff Accounting Bulletin

("SAB") No. 99 Materiality, and SAB No. 108 Considering the Effects of Prior Year Misstatements when Quantifying

Misstatements in the Current Year Financial Statements, and determined that the related impact was not material to our

condensed consolidated financial statements for the first or second quarters of fiscal 2022, but that correcting the cumulative

impact of the errors would be relevant to our Condensed Consolidated Statements of Operations for the third quarter

ended February 26, 2022. Accordingly, we have reflected the correction of the immaterial error in fiscal 2022 as a reduction of

Net Sales and Cost of Sales in the accompanying Condensed Consolidated Statements of Operations.

New Accounting Pronouncements and Policies

No new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our

Consolidated Financial Statements.

XML

Investment Securities

6 Months Ended

Nov. 26, 2022

Investments Securities [Abstract]

Investment Securities

Note 2 - Investment

Securities

The following represents the Company’s investment securities as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

15,956

$

—

$

276

$

15,680

Commercial paper

33,058

—

53

33,005

Corporate bonds

81,218

—

1,709

79,509

US government and agency obligations

19,111

—

205

18,906

Asset backed securities

13,403

—

340

13,063

Treasury bills

40,644

—

93

40,551

Total current investment securities

$

203,390

$

—

$

2,676

$

200,714

Mutual funds

$

3,472

$

—

$

114

$

3,358

Total noncurrent investment securities

$

3,472

$

—

$

114

$

3,358

May 28, 2022

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

10,136

$

—

$

32

$

10,104

Commercial paper

14,940

—

72

14,868

Corporate bonds

74,167

—

483

73,684

Certificates of deposits

1,263

—

18

1,245

US government and agency obligations

2,205

4

—

2,209

Asset backed securities

13,456

—

137

13,319

Total current investment securities

$

116,167

$

4

$

742

$

115,429

Mutual funds

$

3,826

$

—

$

74

$

3,752

Total noncurrent investment securities

$

3,826

$

—

$

74

$

3,752

Available-for-sale

Proceeds from sales and maturities of investment securities available-for-sale were $

65.3

 million and $

67.9

 million during the

twenty-six weeks ended November 26, 2022 and November 27, 2021, respectively. Gross realized gains for the twenty-six

weeks ended November 26, 2022 and November 27, 2021 were $

2

 thousand and $

165

 thousand, respectively. Gross realized

losses for the twenty-six weeks ended November 26, 2022 and November 27, 2021 were $

63

 thousand and $

67

 thousand,

respectively. There were

no

 allowances for credit losses at November 26, 2022 and May 28, 2022.

Actual maturities may differ from contractual maturities as some borrowers have the right to call or prepay obligations with or

without penalties. Contractual maturities of current investments at November 26, 2022 are as follows (in thousands):

Estimated Fair Value

Within one year

$

133,867

1-5 years

66,847

Total

$

200,714

Noncurrent 

There were

no

 sales of noncurrent investment securities during the twenty-six weeks ended November 26, 2022. Proceeds from

sales and maturities of noncurrent investment securities were $

453

 thousand during the twenty-six weeks ended November 27,

2021. Gross realized gains for the twenty-six weeks ended November 27, 2021 were $

165

 thousand. There were

no

 realized

losses for the twenty-six weeks ended November 27, 2021.

XML

Fair Value Measurements

6 Months Ended

Nov. 26, 2022

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3 - Fair Value Measurements

The Company is required to categorize both financial and nonfinancial assets and liabilities based on the following fair value

hierarchy. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated,

knowledgeable, and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would

be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to

settle the liability with the creditor.

•

Level 1

 - Quoted prices in active markets for identical assets or liabilities

•

Level 2

 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either

directly or indirectly, including:

◦

Quoted prices for similar assets or liabilities in active markets

◦

Quoted prices for identical or similar assets in non-active markets

◦

Inputs other than quoted prices that are observable for the asset or liability

◦

Inputs derived principally from or corroborated by other observable market data

•

Level 3

 - Unobservable inputs for the asset or liability that are supported by little or no market activity and that are

significant to the fair value of the assets or liabilities

The disclosures of fair value of certain financial assets and liabilities that are recorded at cost are as follows:

Cash and cash equivalents, accounts receivable, and accounts payable:

 The carrying amount approximates fair value due to the

short maturity of these instruments.

Lease obligations:

 The carrying value of the Company’s lease obligations is at its present value which approximates fair value.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of financial assets and

liabilities measured at fair value on a recurring basis as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

15,680

$

—

$

15,680

Commercial paper

—

33,005

—

33,005

Corporate bonds

—

79,509

—

79,509

US government and agency obligations

—

18,906

—

18,906

Asset backed securities

—

13,063

—

13,063

Treasury bills

—

40,551

—

40,551

Mutual funds

3,358

—

—

3,358

Total assets measured at fair value

$

3,358

$

200,714

$

—

$

204,072

May 28, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

10,104

$

—

$

10,104

Commercial paper

—

14,868

—

14,868

Corporate bonds

—

73,684

—

73,684

Certificates of deposits

—

1,245

—

1,245

US government and agency obligations

—

2,209

—

2,209

Asset backed securities

—

13,319

—

13,319

Mutual funds

3,752

—

—

3,752

Total assets measured at fair value

$

3,752

$

115,429

$

—

$

119,181

Investment securities – available-for-sale classified as Level 2 consist of securities with maturities of three months or longer

when purchased. We classified these securities as current because amounts invested are readily available for current operations.

Observable inputs for these securities are yields, credit risks, default rates, and volatility.

XML

Inventories

6 Months Ended

Nov. 26, 2022

Inventories [Abstract]

Inventories

Note 4 - Inventories

Inventories consisted of the following as of November 26, 2022 and May 28, 2022 (in thousands):

November 26, 2022

May 28, 2022

Flocks, net of amortization

$

156,782

$

144,051

Eggs and egg products

28,343

26,936

Feed and supplies

95,457

92,329

$

280,582

$

263,316

We grow and maintain flocks of layers (mature female chickens), pullets (female chickens, under 18 weeks of age), and

breeders (male and female chickens used to produce fertile eggs to hatch for egg production flocks). Our total flock at

November 26, 2022 and May 28, 2022 consisted of approximately

10.4

 million and

11.5

 million pullets and breeders and

43.7

million and

42.2

 million layers, respectively.

XML

Equity

6 Months Ended

Nov. 26, 2022

Equity [Abstract]

Equity

Note 5 - Equity

The following reflects equity activity for the thirteen and twenty-six weeks ended November 26, 2022 and November 27, 2021

(in thousands):

Thirteen Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

27, 2022

$

703

$

48

$

(28,495)

$

69,017

$

(2,350)

$

1,149,399

$

(359)

$

1,187,963

Other comprehensive

loss, net of tax

—

—

—

—

(737)

—

—

(737)

Stock compensation

plan transactions

—

—

(1)

988

—

—

—

987

Dividends ($

1.353

per share)

Common

—

—

—

—

—

(59,708)

—

(59,708)

Class A common

—

—

—

—

—

(6,494)

—

(6,494)

Net income (loss)

—

—

—

—

—

198,587

(293)

198,294

Balance at November

26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Twenty-six Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 28,

2022

$

703

$

48

$

(28,447)

$

67,989

$

(1,596)

$

1,065,854

$

(206)

$

1,104,345

Other comprehensive

loss, net of tax

—

—

—

—

(1,491)

—

—

(1,491)

Stock compensation

plan transactions

—

—

(49)

2,016

—

—

—

1,967

Dividends ($

2.206

per share)

Common

—

—

—

—

—

(97,355)

—

(97,355)

Class A common

—

—

—

—

—

(10,589)

—

(10,589)

Net income (loss)

—

—

—

—

—

323,874

(446)

323,428

Balance at

November 26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Thirteen Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

28, 2021

$

703

$

48

$

(27,451)

$

65,044

$

(728)

$

957,951

$

—

$

995,567

Other comprehensive

loss, net of tax

—

—

—

—

(268)

—

—

(268)

Stock compensation

plan transactions

—

—

1

975

—

—

—

976

Contributions

—

—

—

—

—

—

3

3

Net income (loss)

—

—

—

—

—

1,173

(28)

1,145

Balance at

November 27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

$

(25)

$

997,423

Twenty-six Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 29,

2021

$ 

703

$ 

48

$ 

(27,433)

$ 

64,044

$ 

(558)

$ 

975,977

$ 

—

$ 

1,012,781

Other comprehensive

loss, net of tax

—

—

—

—

(438)

—

—

(438)

Stock compensation

plan transactions

—

—

(17)

1,975

—

—

—

1,958

Contributions

—

—

—

—

—

—

3

3

Net loss

—

—

—

—

—

(16,853)

(28)

(16,881)

Balance at November

27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

(25)

$

997,423

XML

Net Income (Loss) per Common Share

6 Months Ended

Nov. 26, 2022

Net Income (Loss) per Common Share [Abstract]

Net Income (Loss) per Common Share

Note 6 - Net Income (Loss) per Common Share

Basic net income (loss) per share is based on the weighted average Common Stock and Class A Common Stock outstanding.

Diluted net income per share is based on weighted-average common shares outstanding during the relevant period adjusted for

the dilutive effect of share-based awards. Restricted shares of

145

 thousand were antidilutive due to the net loss for the first

twenty-six weeks of fiscal 2022. These shares were not included in the diluted net loss per share calculation.

The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net

income (loss) per common share (amounts in thousands, except per share data):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26,

2022

November 27,

2021

November 26,

2022

November 27,

2021

Numerator

Net income (loss)

$

198,294

$

1,145

$

323,428

$

(16,881)

Less: Loss attributable to noncontrolling

interest

(293)

(28)

(446)

(28)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

198,587

$

1,173

$

323,874

$

(16,853)

Denominator

Weighted-average common shares

outstanding, basic

48,624

48,857

48,624

48,859

Effect of dilutive restricted shares

216

159

203

—

Weighted-average common shares

outstanding, diluted

48,840

49,016

48,827

48,859

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

4.08

$

0.02

$

6.66

$

(0.34)

Diluted

$

4.07

$

0.02

$

6.63

$

(0.34)

XML

Revenue from Contracts with Customers

6 Months Ended

Nov. 26, 2022

Revenue from Contract with Customers [Abstract]

Revenue from Contract with Customers

Note 7 – Revenue from Contracts with Customers

Satisfaction of Performance Obligation

The vast majority of the Company’s revenue is derived from agreements with customers based on the customer placing an order

for products. Pricing for the most part is determined when the Company and the customer agree upon the specific order, which

establishes the contract for that order.

Revenues are recognized in an amount that reflects the net consideration we expect to receive in exchange for the goods. Our

shell eggs are sold at prices related to independently quoted wholesale market prices or formulas related to our costs of

production. The Company’s sales predominantly contain a single performance obligation. We recognize revenue upon

satisfaction of the performance obligation with the customer which typically occurs within days of the Company and the

customer agreeing upon the order.

Returns and Refunds

Some of our contracts include a guaranteed sale clause, pursuant to which we credit the customer’s account for product that the

customer is unable to sell before expiration. The Company records an allowance for returns and refunds by using historical

return data and comparing to current period sales and accounts receivable. The allowance is recorded as a reduction in sales

with a corresponding reduction in trade accounts receivable.

Sales Incentives Provided to Customers

The Company periodically provides incentive offers to its customers to encourage purchases. Such offers include current

discount offers (e.g., percentage discounts off current purchases), inducement offers (e.g., offers for future discounts subject to

a minimum current purchase), and other similar offers. Current discount offers, when accepted by customers, are treated as a

reduction to the sales price of the related transaction, while inducement offers, when accepted by customers, are treated as a

reduction to the sales price based on estimated future redemption rates. Redemption rates are estimated using the Company’s

historical experience for similar inducement offers. Current discount and inducement offers are presented as a net amount in

‘‘Net sales.’’

Disaggregation of Revenue

The following table provides revenue disaggregated by product category (in thousands):

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Conventional shell egg sales

$

541,917

$

221,142

$

967,506

$

403,172

Specialty shell egg sales

227,778

146,917

428,598

279,375

Egg products

28,052

11,401

55,692

20,767

Other

3,953

2,263

8,248

3,395

$

801,700

$

381,723

$

1,460,044

$

706,709

Contract Costs

The Company can incur costs to obtain or fulfill a contract with a customer. If the amortization period of these costs is less than

one year, they are expensed as incurred. When the amortization period is greater than one year, a contract asset is recognized

and is amortized over the contract life as a reduction in net sales. As of November 26, 2022 and May 28, 2022, the balance for

contract assets was immaterial.

Contract Balances

The Company receives payment from customers based on specified terms that are generally less than 30 days from delivery.

There are rarely contract assets or liabilities related to performance under the contract.

XML

Stock Based Compensation

6 Months Ended

Nov. 26, 2022

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 8 - Stock Based Compensation

Total stock-based compensation expense was $

2.0

 million for the twenty-six weeks ended November 26, 2022 and November

27, 2021.

Unrecognized compensation expense as a result of non -vested shares of restricted stock outstanding under the Amended and

Restated 2012 Omnibus Long-Term Incentive Plan at November 26, 2022 of $

4.9

 million will be recorded over a weighted

average period of

1.8

 years. Refer to Part II Item 8, Notes to Consolidated Financial Statements and Supplementary Data, Note

16: Stock Compensation Plans in our 2022 Annual Report for further information on our stock compensation plans.

The Company’s restricted share activity for the twenty-six weeks ended November 26, 2022 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 28, 2022

317,844

$

39.12

Vested

(3,240)

38.31

Forfeited

(4,200)

39.44

Outstanding, November 26, 2022

310,404

$

39.12

XML

Commitments and Contingencies

6 Months Ended

Nov. 26, 2022

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 9 - Commitments and Contingencies

Financial Instruments

The Company maintained standby letters of credit (“LOCs”) totaling $

4.1

 million at November 26, 2022, which were issued

under the Company's senior secured revolving credit facility. The outstanding LOCs are for the benefit of certain insurance

companies and are not recorded as a liability on the consolidated balance sheets.

LEGAL PROCEEDINGS

State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC 

On April 23, 2020, the Company and its subsidiary Wharton County Foods, LLC (“WCF”) were named as defendants in State

of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC, Cause No. 2020-25427, in the District

Court of Harris County, Texas. The State of Texas (the “State”) asserted claims based on the Company’s and WCF’s alleged

violation of the Texas Deceptive Trade Practices—Consumer Protection Act, Tex. Bus. & Com. Code §§ 17.41-17.63

(“DTPA”). The State claimed that the Company and WCF offered shell eggs at excessive or exorbitant prices during the

COVID-19 state of emergency and made misleading statements about shell egg prices. The State sought temporary and

permanent injunctions against the Company and WCF to prevent further alleged violations of the DTPA, along with over

$

100,000

 in damages. On August 13, 2020, the court granted the defendants’ motion to dismiss the State’s original petition with

prejudice. On September 11, 2020, the State filed a notice of appeal, which was assigned to the Texas Court of Appeals for the

First District. On August 16, 2022, the appeals court reversed and remanded the case back to the trial court for further

proceedings. On October 31, 2022, the Company and WCF filed a petition for review to the Supreme Court of Texas appealing

the First District court’s decision. On November 30, 2022, the State of Texas waived its response to defendant’s petition for

review. The court has not issued a ruling. Management believes the risk of material loss related to this matter to be remote.

Bell et al. v. Cal-Maine Foods et al. 

On April 30, 2020, the Company was named as one of several defendants in Bell et al. v. Cal-Maine Foods et al., Case No.

1:20-cv-461, in the Western District of Texas, Austin Division. The defendants include numerous grocery stores, retailers,

producers, and farms. Plaintiffs assert that defendants violated the DTPA by allegedly demanding exorbitant or excessive prices

for eggs during the COVID-19 state of emergency. Plaintiffs request certification of a class of all consumers who purchased

eggs in Texas sold, distributed, produced, or handled by any of the defendants during the COVID-19 state of emergency.

Plaintiffs seek to enjoin the Company and other defendants from selling eggs at a price more than 10% greater than the price of

eggs prior to the declaration of the state of emergency and damages in the amount of $

10,000

 per violation, or $

250,000

 for

each violation impacting anyone over 65 years old. On December 1, 2020, the Company and certain other defendants filed a

motion to dismiss the plaintiffs’ amended class action complaint. The plaintiffs subsequently filed a motion to strike, and the

motion to dismiss and related proceedings were referred to a United States magistrate judge. On July 14, 2021, the magistrate

judge issued a report and recommendation to the court that the defendants’ motion to dismiss be granted and the case be

dismissed without prejudice for lack of subject matter jurisdiction. On September 20, 2021, the court dismissed the case without

prejudice. On July 13, 2022, the court denied the plaintiffs’ motion to set aside or amend the judgment to amend their

complaint.

On March 15, 2022, plaintiffs filed a second suit against the Company and several defendants in Bell et al. v. Cal-Maine Foods

et al., Case No. 1:22-cv-246, in the Western District of Texas, Austin Division alleging the same assertions as laid out in the

first complaint. On August 12, 2022, the Company and other defendants in the case filed a motion to dismiss the plaintiffs’

class action complaint. On September 6, 2022, the plaintiffs’ filed their opposition to the motion to dismiss and the Company

and other defendants filed their reply on September 13, 2022. On December 7, 2022, the magistrate judge issued a report and

recommendation to the court that the defendants’ motion to dismiss be granted and the case be dismissed without prejudice for

lack of subject matter jurisdiction. On December 21, 2022, the plaintiffs filed Objections to the Magistrate’s Report and

Recommendation, but the court has not issued a ruling. Management believes the risk of material loss related to both matters to

be remote.

Kraft Foods Global, Inc. et al. v. United Egg Producers, Inc. et al. 

As previously reported, on September 25, 2008, the Company was named as one of several defendants in numerous antitrust

cases involving the United States shell egg industry. The Company settled all of these cases, except for the claims of certain

plaintiffs who sought substantial damages allegedly arising from the purchase of egg products (as opposed to shell eggs). These

remaining plaintiffs are Kraft Food Global, Inc., General Mills, Inc., and Nestle USA, Inc. (the “Egg Products Plaintiffs”) and

The Kellogg Company.

On September 13, 2019, the case with the Egg Products Plaintiffs was remanded from a multi-district litigation proceeding in

the United States District Court for the Eastern District of Pennsylvania, In re Processed Egg Products Antitrust Litigation,

MDL No. 2002, to the United States District Court for the Northern District of Illinois, Kraft Foods Global, Inc. et al. v. United

Egg Producers, Inc. et al., Case No. 1:11-cv-8808, for trial. The Egg Products Plaintiffs allege that the Company and other

defendants violated Section 1 of the Sherman Act, 15. U.S.C. § 1, by agreeing to limit the production of eggs and thereby

illegally to raise the prices that plaintiffs paid for processed egg products. In particular, the Egg Products Plaintiffs are attacking

certain features of the United Egg Producers animal-welfare guidelines and program used by the Company and many other egg

producers. The Egg Products Plaintiffs seek to enjoin the Company and other defendants from engaging in antitrust violations

and seek treble money damages. On May 2, 2022, the court set trial for October 24, 2022, but on September 20, 2022, the court

cancelled the trial date due to COVID-19 protocols and converted the trial date to a status hearing to reschedule the jury trial.

On December 8, 2022, the court held a status hearing. The parties subsequently submitted an updated proposed pre-trial

schedule and the Court has set the trial for October 16, 2023.

In addition, on October 24, 2019, the Company entered into a confidential settlement agreement with The Kellogg Company

dismissing all claims against the Company for an amount that did not have a material impact on the Company’s financial

condition or results of operations. On November 11, 2019, a stipulation for dismissal was filed with the court, and on March 28,

2022, the court dismissed the Company with prejudice.

The Company intends to continue to defend the remaining case with the Egg Products Plaintiffs as vigorously as possible based

on defenses which the Company believes are meritorious and provable. Adjustments, if any, which might result from the

resolution of this remaining matter with the Egg Products Plaintiffs have not been reflected in the financial statements. While

management believes that there is still a reasonable possibility of a material adverse outcome from the case with the Egg

Products Plaintiffs, at the present time, it is not possible to estimate the amount of monetary exposure, if any, to the Company

due to a range of factors, including the following, among others: two earlier trials based on substantially the same facts and

legal arguments resulted in findings of no conspiracy and/or damages; this trial will be before a different judge and jury in a

different court than prior related cases; there are significant factual issues to be resolved; and there are requests for damages

other than compensatory damages (i.e., injunction and treble money damages).

State of Oklahoma Watershed Pollution Litigation

On June 18, 2005, the State of Oklahoma filed suit, in the United States District Court for the Northern District of Oklahoma,

against Cal-Maine Foods, Inc. and Tyson Foods, Inc. and affiliates, Cobb-Vantress, Inc., Cargill, Inc. and its affiliate, George’s,

Inc. and its affiliate, Peterson Farms, Inc. and Simmons Foods, Inc. The State of Oklahoma claims that through the disposal of

chicken litter the defendants have polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma.

The complaint seeks injunctive relief and monetary damages, but the claim for monetary damages has been dismissed by the

court. Cal-Maine Foods, Inc. discontinued operations in the watershed. Accordingly, we do not anticipate that Cal-Maine

Foods, Inc. will be materially affected by the request for injunctive relief unless the court orders substantial affirmative

remediation. Since the litigation began, Cal-Maine Foods, Inc. purchased

100

% of the membership interests of Benton County

Foods, LLC, which is an ongoing commercial shell egg operation within the Illinois River Watershed. Benton County Foods,

LLC is not a defendant in the litigation.

The trial in the case began in September 2009 and concluded in February 2010. The case was tried without a jury, and the court

has not yet issued its ruling. Management believes the risk of material loss related to this matter to be remote.

Other Matters

In addition to the above, the Company is involved in various other claims and litigation incidental to its business. Although the

outcome of these matters cannot be determined with certainty, management, upon the advice of counsel, is of the opinion that

the final outcome should not have a material effect on the Company’s consolidated results of operations or financial position.

XML

Summary of Significant Accounting Policies (Policy)

6 Months Ended

Nov. 26, 2022

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited condensed consolidated financial statements of Cal-Maine Foods, Inc. and its subsidiaries (the “Company,”

“we,” “us,” “our”) have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and

in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial

reporting and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended May 28, 2022 (the

“2022 Annual Report”). These statements reflect all adjustments that are, in the opinion of management, necessary to a fair

statement of the results for the interim periods presented and, in the opinion of management, consist of adjustments of a normal

recurring nature. Operating results for the interim periods are not necessarily indicative of operating results for the entire fiscal

year.

Fiscal Year

Fiscal Year

The Company’s fiscal year ends on the Saturday closest to May 31. Each of the three-month periods and year-to-date periods

ended on November 26, 2022 and November 27, 2021 included

13 weeks

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and

assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results

could differ from those estimates.

Investment Securities

Investment Securities

Our investment securities are accounted for in accordance with ASC 320, “Investments - Debt and Equity Securities” (“ASC

320”). The Company considers all its debt securities for which there is a determinable fair market value, and there are no

restrictions on the Company’s ability to sell within the next 12 months, as available-for-sale. We classify these securities as

current, because the amounts invested are available for current operations. Available-for-sale securities are carried at fair value,

with unrealized gains and losses reported in other comprehensive income until realized. The total of other comprehensive

income for the period is presented as a component of stockholders' equity separately from retained earnings and additional paid-

in capital. The Company regularly evaluates changes to the rating of its debt securities by credit agencies and economic

conditions to assess and record any expected credit losses through the allowance for credit losses, limited to the amount that fair

value was less than the amortized cost basis. The cost basis for realized gains and losses on available-for-sale securities is

determined by the specific identification method. Gains and losses are recognized in other income (expenses) as Other, net in

the Company’s Condensed Consolidated Statements of Operations. Investments in mutual funds are classified as “Other long-

term assets” in the Company’s Condensed Consolidated Balance Sheets.

Trade Receivables

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of November 26, 2022 and

May 28, 2022, reserves for credit losses were $

838

 thousand and $

775

 thousand, respectively. The Company extends credit to

customers based on an evaluation of each customer's financial condition and credit history. Collateral is generally not required.

The Company minimizes exposure to counter party credit risk through credit analysis and approvals, credit limits, and

monitoring procedures. In determining our reserve for credit losses, receivables are assigned an expected loss based on

historical loss information adjusted as needed for economic and other forward-looking factors.

Immaterial Error Correction

Immaterial Error Correction

Effective on May 30, 2021, the Company acquired the remaining

50

% membership interest in Red River Valley Egg Farm,

LLC (“Red River”), including certain liabilities. During the Company’s third quarter of fiscal 2022, management determined

that it had not properly eliminated select intercompany sales and cost of sales transactions between Red River and the

corresponding other wholly -owned subsidiaries of the Company in its first and second quarter 2022 Condensed Consolidated

Statements of Operations. The errors resulted in an overstatement of Net Sales and Cost of Sales of $

6.7

 million in the first

quarter of fiscal 2022 and $

9.2

 million in the second quarter of fiscal 2022. There was

no

 impact to Operating loss, Net income

(loss) or Net income (loss) per share.

We evaluated the errors quantitatively and qualitatively in accordance with Staff Accounting Bulletin

("SAB") No. 99 Materiality, and SAB No. 108 Considering the Effects of Prior Year Misstatements when Quantifying

Misstatements in the Current Year Financial Statements, and determined that the related impact was not material to our

condensed consolidated financial statements for the first or second quarters of fiscal 2022, but that correcting the cumulative

impact of the errors would be relevant to our Condensed Consolidated Statements of Operations for the third quarter

ended February 26, 2022. Accordingly, we have reflected the correction of the immaterial error in fiscal 2022 as a reduction of

Net Sales and Cost of Sales in the accompanying Condensed Consolidated Statements of Operations.

New Accounting Pronouncements and Policies

New Accounting Pronouncements and Policies

No new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our

Consolidated Financial Statements.

Dividends Payable

Dividends Payable 

We accrue dividends at the end of each quarter according to the Company’s dividend policy adopted by its Board of Directors.

The Company pays a dividend to shareholders of its Common Stock and Class A Common Stock on a quarterly basis for each

quarter for which the Company reports net income attributable to Cal-Maine Foods, Inc. computed in accordance with GAAP

in an amount equal to one-third (

1/3

) of such quarterly income. Dividends are paid to shareholders of record as of the 60th day

following the last day of such quarter, except for the fourth fiscal quarter. For the fourth quarter, the Company pays dividends

to shareholders of record on the 65th day after the quarter end. Dividends are payable on the 15th day following the record date.

Following a quarter for which the Company does not report net income attributable to Cal-Maine Foods, Inc., the Company will

not pay a dividend for a subsequent profitable quarter until the Company is profitable on a cumulative basis computed from the

date of the most recent quarter for which a dividend was paid.

Immaterial Error Correction

Effective on May 30, 2021, the Company acquired the remaining

50

% membership interest in Red River Valley Egg Farm,

LLC (“Red River”), including certain liabilities. During the Company’s third quarter of fiscal 2022, management determined

that it had not properly eliminated select intercompany sales and cost of sales transactions between Red River and the

corresponding other wholly -owned subsidiaries of the Company in its first and second quarter 2022 Condensed Consolidated

Statements of Operations. The errors resulted in an overstatement of Net Sales and Cost of Sales of $

6.7

 million in the first

quarter of fiscal 2022 and $

9.2

 million in the second quarter of fiscal 2022. There was

no

 impact to Operating loss, Net income

(loss) or Net income (loss) per share.

We evaluated the errors quantitatively and qualitatively in accordance with Staff Accounting Bulletin

("SAB") No. 99 Materiality, and SAB No. 108 Considering the Effects of Prior Year Misstatements when Quantifying

Misstatements in the Current Year Financial Statements, and determined that the related impact was not material to our

condensed consolidated financial statements for the first or second quarters of fiscal 2022, but that correcting the cumulative

impact of the errors would be relevant to our Condensed Consolidated Statements of Operations for the third quarter

ended February 26, 2022. Accordingly, we have reflected the correction of the immaterial error in fiscal 2022 as a reduction of

Net Sales and Cost of Sales in the accompanying Condensed Consolidated Statements of Operations.

New Accounting Pronouncements and Policies

No new accounting pronouncement issued or effective during the fiscal year had or is expected to have a material impact on our

Consolidated Financial Statements.

XML

Investment Securities (Tables)

6 Months Ended

Nov. 26, 2022

Investments Securities [Abstract]

Schedule Of Investment Securities

November 26, 2022

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

15,956

$

—

$

276

$

15,680

Commercial paper

33,058

—

53

33,005

Corporate bonds

81,218

—

1,709

79,509

US government and agency obligations

19,111

—

205

18,906

Asset backed securities

13,403

—

340

13,063

Treasury bills

40,644

—

93

40,551

Total current investment securities

$

203,390

$

—

$

2,676

$

200,714

Mutual funds

$

3,472

$

—

$

114

$

3,358

Total noncurrent investment securities

$

3,472

$

—

$

114

$

3,358

May 28, 2022

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

10,136

$

—

$

32

$

10,104

Commercial paper

14,940

—

72

14,868

Corporate bonds

74,167

—

483

73,684

Certificates of deposits

1,263

—

18

1,245

US government and agency obligations

2,205

4

—

2,209

Asset backed securities

13,456

—

137

13,319

Total current investment securities

$

116,167

$

4

$

742

$

115,429

Mutual funds

$

3,826

$

—

$

74

$

3,752

Total noncurrent investment securities

$

3,826

$

—

$

74

$

3,752

Schedule Of Contractual Maturities Of Investment Securities

Estimated Fair Value

Within one year

$

133,867

1-5 years

66,847

Total

$

200,714

XML

Fair Value Measurements (Tables)

6 Months Ended

Nov. 26, 2022

Fair Value Measurements [Abstract]

Schedule Of Assets Measured At Fair Value On A Recurring Basis

November 26, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

15,680

$

—

$

15,680

Commercial paper

—

33,005

—

33,005

Corporate bonds

—

79,509

—

79,509

US government and agency obligations

—

18,906

—

18,906

Asset backed securities

—

13,063

—

13,063

Treasury bills

—

40,551

—

40,551

Mutual funds

3,358

—

—

3,358

Total assets measured at fair value

$

3,358

$

200,714

$

—

$

204,072

May 28, 2022

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

10,104

$

—

$

10,104

Commercial paper

—

14,868

—

14,868

Corporate bonds

—

73,684

—

73,684

Certificates of deposits

—

1,245

—

1,245

US government and agency obligations

—

2,209

—

2,209

Asset backed securities

—

13,319

—

13,319

Mutual funds

3,752

—

—

3,752

Total assets measured at fair value

$

3,752

$

115,429

$

—

$

119,181

XML

Inventories (Tables)

6 Months Ended

Nov. 26, 2022

Inventories [Abstract]

Schedule of Inventories

November 26, 2022

May 28, 2022

Flocks, net of amortization

$

156,782

$

144,051

Eggs and egg products

28,343

26,936

Feed and supplies

95,457

92,329

$

280,582

$

263,316

XML

Equity (Tables)

6 Months Ended

Nov. 26, 2022

Equity [Abstract]

Summary of Equity Activity

Thirteen Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

27, 2022

$

703

$

48

$

(28,495)

$

69,017

$

(2,350)

$

1,149,399

$

(359)

$

1,187,963

Other comprehensive

loss, net of tax

—

—

—

—

(737)

—

—

(737)

Stock compensation

plan transactions

—

—

(1)

988

—

—

—

987

Dividends ($

1.353

per share)

Common

—

—

—

—

—

(59,708)

—

(59,708)

Class A common

—

—

—

—

—

(6,494)

—

(6,494)

Net income (loss)

—

—

—

—

—

198,587

(293)

198,294

Balance at November

26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Twenty-six Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 28,

2022

$

703

$

48

$

(28,447)

$

67,989

$

(1,596)

$

1,065,854

$

(206)

$

1,104,345

Other comprehensive

loss, net of tax

—

—

—

—

(1,491)

—

—

(1,491)

Stock compensation

plan transactions

—

—

(49)

2,016

—

—

—

1,967

Dividends ($

2.206

per share)

Common

—

—

—

—

—

(97,355)

—

(97,355)

Class A common

—

—

—

—

—

(10,589)

—

(10,589)

Net income (loss)

—

—

—

—

—

323,874

(446)

323,428

Balance at

November 26, 2022

$

703

$

48

$

(28,496)

$

70,005

$

(3,087)

$

1,281,784

$

(652)

$

1,320,305

Thirteen Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at August

28, 2021

$

703

$

48

$

(27,451)

$

65,044

$

(728)

$

957,951

$

—

$

995,567

Other comprehensive

loss, net of tax

—

—

—

—

(268)

—

—

(268)

Stock compensation

plan transactions

—

—

1

975

—

—

—

976

Contributions

—

—

—

—

—

—

3

3

Net income (loss)

—

—

—

—

—

1,173

(28)

1,145

Balance at

November 27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

$

(25)

$

997,423

Twenty-six Weeks Ended November 27, 2021

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Amount

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at May 29,

2021

$ 

703

$ 

48

$ 

(27,433)

$ 

64,044

$ 

(558)

$ 

975,977

$ 

—

$ 

1,012,781

Other comprehensive

loss, net of tax

—

—

—

—

(438)

—

—

(438)

Stock compensation

plan transactions

—

—

(17)

1,975

—

—

—

1,958

Contributions

—

—

—

—

—

—

3

3

Net loss

—

—

—

—

—

(16,853)

(28)

(16,881)

Balance at November

27, 2021

$

703

$

48

$

(27,450)

$

66,019

$

(996)

$

959,124

(25)

$

997,423

XML

Net Income (Loss) per Common Share (Tables)

6 Months Ended

Nov. 26, 2022

Net Income (Loss) per Common Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26,

2022

November 27,

2021

November 26,

2022

November 27,

2021

Numerator

Net income (loss)

$

198,294

$

1,145

$

323,428

$

(16,881)

Less: Loss attributable to noncontrolling

interest

(293)

(28)

(446)

(28)

Net income (loss) attributable to Cal-

Maine Foods, Inc.

$

198,587

$

1,173

$

323,874

$

(16,853)

Denominator

Weighted-average common shares

outstanding, basic

48,624

48,857

48,624

48,859

Effect of dilutive restricted shares

216

159

203

—

Weighted-average common shares

outstanding, diluted

48,840

49,016

48,827

48,859

Net income (loss) per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

4.08

$

0.02

$

6.66

$

(0.34)

Diluted

$

4.07

$

0.02

$

6.63

$

(0.34)

XML

Revenue from Contracts with Customers (Tables)

6 Months Ended

Nov. 26, 2022

Revenue from Contract with Customers [Abstract]

Disaggregation of Revenue

Thirteen Weeks Ended

Twenty-six Weeks Ended

November 26, 2022

November 27, 2021

November 26, 2022

November 27, 2021

Conventional shell egg sales

$

541,917

$

221,142

$

967,506

$

403,172

Specialty shell egg sales

227,778

146,917

428,598

279,375

Egg products

28,052

11,401

55,692

20,767

Other

3,953

2,263

8,248

3,395

$

801,700

$

381,723

$

1,460,044

$

706,709

XML

Stock Based Compensation (Tables)

6 Months Ended

Nov. 26, 2022

Stock Based Compensation [Abstract]

Summary of Equity Award Activity

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, May 28, 2022

317,844

$

39.12

Vested

(3,240)

38.31

Forfeited

(4,200)

39.44

Outstanding, November 26, 2022

310,404

$

39.12

XML

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021	May 28, 2022	May 30, 2021
Significant Accounting Policies [Line Items]
Fiscal period duration	91 days	91 days	182 days	182 days
Reserves for credit losses	$ 838,000		$ 838,000		$ 775,000
Percentage of net income loss used to compute accrued dividends			33.33%
Cost of sales	483,851,000	$ 337,976,000	$ 924,705,000	$ 656,317,000
Operating Income Loss	259,868,000	(2,065,000)	423,718,000	(41,732,000)
Net income (loss)	198,294,000	1,145,000	323,428,000	(16,881,000)
Red River Valley Egg Farm Llc [Member]
Significant Accounting Policies [Line Items]
Business acquisition, percentage of voting interest acquired						50.00%
Revision of Prior Period, Error Correction, Adjustment [Member]
Significant Accounting Policies [Line Items]
Cost of sales	9,200,000			6,700,000
Operating Income Loss			0	0
Net income (loss)			0	0
Retained Earnings [Member]
Significant Accounting Policies [Line Items]
Net income (loss)	$ 198,587,000	$ 1,173,000	$ 323,874,000	$ (16,853,000)

XML

Investment Securities (Narrative) (Details) - USD ($)	6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	May 28, 2022
Investments Securities [Abstract]
Proceeds from sale of available-for-sale securities, current	$ 65,300,000	$ 67,900,000
Proceeds from sale of available-for-sale securities, noncurrent	0	453,000
Gross realized gains on sales of available-for-sale securities, current	2,000	165,000
Gross realized gains on sales of available-for-sale securities, noncurrent		165,000
Gross realized losses on sales of available-for-sale securities, current	63,000	67,000
Gross realized losses on sales of available-for-sale securities, noncurrent		$ 0
Allowance for credit losses	$ 0		$ 0

XML

Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands	Nov. 26, 2022	May 28, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	$ 203,390	$ 116,167
Unrealized Gains, Current	0	4
Unrealized Losses, Current	2,676	742
Estimated Fair Value, Current	200,714	115,429
Amortized Cost, Noncurrent	3,472	3,826
Unrealized Gains, Noncurrent	0	0
Unrealized Losses, Noncurrent	114	74
Estimated Fair Value, Noncurrent	3,358	3,752
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	15,956	10,136
Unrealized Gains, Current	0	0
Unrealized Losses, Current	276	32
Estimated Fair Value, Current	15,680	10,104
Commercial Paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	33,058	14,940
Unrealized Gains, Current	0	0
Unrealized Losses, Current	53	72
Estimated Fair Value, Current	33,005	14,868
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	81,218	74,167
Unrealized Gains, Current	0	0
Unrealized Losses, Current	1,709	483
Estimated Fair Value, Current	79,509	73,684
Certificates of Deposits [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current		1,263
Unrealized Gains, Current		0
Unrealized Losses, Current		18
Estimated Fair Value, Current		1,245
US Government and Agency Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	19,111	2,205
Unrealized Gains, Current	0	4
Unrealized Losses, Current	205	0
Estimated Fair Value, Current	18,906	2,209
Asset Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	13,403	13,456
Unrealized Gains, Current	0	0
Unrealized Losses, Current	340	137
Estimated Fair Value, Current	13,063	13,319
Treasury Bills [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	40,644
Unrealized Gains, Current	0
Unrealized Losses, Current	93
Estimated Fair Value, Current	40,551
Mutual Funds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Noncurrent	3,472	3,826
Unrealized Gains, Noncurrent	0	0
Unrealized Losses, Noncurrent	114	74
Estimated Fair Value, Noncurrent	$ 3,358	$ 3,752

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Investment Securities (Schedule of Contractual Maturities of Investment Securities) (Details) - USD ($) $ in Thousands	Nov. 26, 2022	May 28, 2022
Investments Securities [Abstract]
Within one year	$ 133,867
1-5 years	66,847
Total	$ 200,714	$ 115,429

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Fair Value Measurements (Schedule of Assets Measured at Fair Value on A Recurring Basis) (Details) - USD ($) $ in Thousands	Nov. 26, 2022	May 28, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 204,072	$ 119,181
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	3,358	3,752
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	200,714	115,429
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,680	10,104
Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	15,680	10,104
Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	33,005	14,868
Commercial Paper [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Commercial Paper [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	33,005	14,868
Commercial Paper [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	79,509	73,684
Corporate Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Corporate Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	79,509	73,684
Corporate Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Certificates of Deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		1,245
Certificates of Deposits [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		0
Certificates of Deposits [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		1,245
Certificates of Deposits [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		0
US Government and Agency Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	18,906	2,209
US Government and Agency Obligations [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
US Government and Agency Obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	18,906	2,209
US Government and Agency Obligations [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Asset Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	13,063	13,319
Asset Backed Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Asset Backed Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	13,063	13,319
Asset Backed Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Treasury Bills [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	40,551
Treasury Bills [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0
Treasury Bills [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	40,551
Treasury Bills [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0
Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	3,358	3,752
Mutual Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	3,358	3,752
Mutual Funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Mutual Funds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 0

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Inventories (Narrative) (Details) pullet_and_breeder in Millions, Layers in Millions	Nov. 26, 2022 Layers pullet_and_breeder	May 28, 2022 Layers pullet_and_breeder
Inventories [Abstract]
Pullets and breeders | pullet_and_breeder	10.4	11.5
Layers | Layers	43.7	42.2

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Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Nov. 26, 2022	May 28, 2022
Inventories [Abstract]
Flocks, net of amortization	$ 156,782	$ 144,051
Eggs and egg products	28,343	26,936
Feed and supplies	95,457	92,329
Total inventories	$ 280,582	$ 263,316

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Equity (Summary of Equity Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021
Beginning balance	$ 1,187,963	$ 995,567	$ 1,104,345	$ 1,012,781
Other comprehensive loss, net of tax	(737)	(268)	(1,491)	(438)
Stock compensation plan transactions	987	976	1,967	1,958
Contributions		3		3
Net income (loss)	198,294	1,145	323,428	(16,881)
Ending balance	$ 1,320,305	997,423	$ 1,320,305	997,423
Dividends per common share (in dollars per share)	$ 1.353		$ 2.206
Common Stock [Member]
Beginning balance	$ 703	703	$ 703	703
Ending balance	703	703	703	703
Treasury Stock [Member]
Beginning balance	(28,495)	(27,451)	(28,447)	(27,433)
Stock compensation plan transactions	(1)	1	(49)	(17)
Ending balance	(28,496)	(27,450)	(28,496)	(27,450)
Paid In Capital [Member]
Beginning balance	69,017	65,044	67,989	64,044
Stock compensation plan transactions	988	975	2,016	1,975
Ending balance	70,005	66,019	70,005	66,019
Accum. Other Comp. Loss [Member]
Beginning balance	(2,350)	(728)	(1,596)	(558)
Other comprehensive loss, net of tax	(737)	(268)	(1,491)	(438)
Ending balance	(3,087)	(996)	(3,087)	(996)
Retained Earnings [Member]
Beginning balance	1,149,399	957,951	1,065,854	975,977
Net income (loss)	198,587	1,173	323,874	(16,853)
Ending balance	1,281,784	959,124	1,281,784	959,124
Noncontrolling Interest [Member]
Beginning balance	(359)	0	(206)	0
Contributions		3		3
Net income (loss)	(293)	(28)	(446)	(28)
Ending balance	(652)	(25)	(652)	(25)
Common Stock [Member]
Dividends	(59,708)		(97,355)
Common Stock [Member] | Retained Earnings [Member]
Dividends	(59,708)		(97,355)
Class A Common Stock [Member]
Dividends	(6,494)		(10,589)
Class A Common Stock [Member] | Common Stock [Member]
Beginning balance	48	48	48	48
Ending balance	48	$ 48	48	$ 48
Class A Common Stock [Member] | Retained Earnings [Member]
Dividends	$ (6,494)		$ (10,589)

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Net Income (Loss) per Common Share (Narrative) (Details) shares in Thousands	6 Months Ended
	Nov. 27, 2021 shares
Net Income (Loss) per Common Share [Abstract]
Antidilutive restricted shares	145

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Net Income (Loss) per Common Share (Computation of Basic and Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021
Net Income (Loss) per Common Share [Abstract]
Net income (loss)	$ 198,294	$ 1,145	$ 323,428	$ (16,881)
Less: Loss attributable to noncontrolling interest	(293)	(28)	(446)	(28)
Net income (loss) attributable to Cal-Maine Foods, Inc.	$ 198,587	$ 1,173	$ 323,874	$ (16,853)
Denominator
Weighted-average common shares outstanding, basic (in shares)	48,624	48,857	48,624	48,859
Effect of dilutive restricted shares (in shares)	216	159	203	0
Weighted-average common shares outstanding, diluted (in shares)	48,840	49,016	48,827	48,859
Net income (loss) per common share attributable to Cal-Maine Foods, Inc.
Basic (in dollars per share)	$ 4.08	$ 0.02	$ 6.66	$ (0.34)
Diluted (in dollars per share)	$ 4.07	$ 0.02	$ 6.63	$ (0.34)

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Revenue from Contract with Customer (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021	Nov. 26, 2022	Nov. 27, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 801,700	$ 381,723	$ 1,460,044	$ 706,709
Conventional shell egg sales [Member]
Disaggregation of Revenue [Line Items]
Net sales	541,917	221,142	967,506	403,172
Specialty shell egg sales [Member]
Disaggregation of Revenue [Line Items]
Net sales	227,778	146,917	428,598	279,375
Egg products [Member]
Disaggregation of Revenue [Line Items]
Net sales	28,052	11,401	55,692	20,767
Other [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 3,953	$ 2,263	$ 8,248	$ 3,395

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Stock Based Compensation (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Nov. 26, 2022	Nov. 27, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 4.9
Weighted average period of unrecognized compensation expense	1 year 9 months 18 days
Stock based compensation expense	$ 2.0	$ 2.0

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Stock Based Compensation (Summary of Equity Award Activity) (Details)	6 Months Ended
	Nov. 26, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Number of Shares, Outstanding, Beginning Balance (in shares) | shares	317,844
Number of Shares, Vested (in shares) | shares	(3,240)
Number of Shares, Forfeited (in shares) | shares	(4,200)
Number of Shares, Outstanding, Ending Balance (in shares) | shares	310,404
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Outstanding, Beginning Balance (in dollars per share) | $ / shares	$ 39.12
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares	38.31
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	39.44
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares	$ 39.12

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Commitments and Contingencies (Narrative) (Details)		6 Months Ended
	Apr. 23, 2020 USD ($)	Nov. 26, 2022 USD ($) $ / Claim	Feb. 26, 2022
Credit Agreement [Member] | Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Amount outstanding | $		$ 4,100,000
Benton County Foods [Member]
Loss Contingencies [Line Items]
Ownership interest			100.00%
Pending Litigation | State of Texas v. Cal-Maine Foods, Inc. d/b/a Wharton; and Wharton County Foods, LLC [Member]
Loss Contingencies [Line Items]
Damages sought | $	$ 100,000
Pending Litigation | Bell et al. v. Cal-Maine Foods et al. [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Damages sought per claim | $ / Claim		10,000
Pending Litigation | Bell et al. v. Cal-Maine Foods et al. [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Damages sought per claim | $ / Claim		250,000