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

December 2, 2023

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

44,182,613

 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 January 3, 2024.

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)

December 2, 2023

June 3, 2023

Assets

Current assets:

Cash and cash equivalents

$

361,783

$

292,824

Investment securities available-for-sale

206,045

355,090

Trade and other receivables, net

165,391

120,247

Income tax receivable

33,771

66,966

Inventories

287,270

284,418

Prepaid expenses and other current assets

9,673

5,380

Total current assets

1,063,933

1,124,925

Property, plant & equipment, net

815,468

744,540

Investments in unconsolidated entities

14,370

14,449

Goodwill

45,776

44,006

Intangible assets, net

17,074

15,897

Other long-term assets

10,184

10,708

Total Assets

$

1,966,805

$

1,954,525

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

98,144

$

82,590

Accrued wages and benefits

20,164

38,733

Accrued income taxes payable

8,445

8,288

Dividends payable

5,682

37,130

Accrued expenses and other liabilities

21,352

15,990

Total current liabilities

153,787

182,731

Other noncurrent liabilities

30,571

9,999

Deferred income taxes, net

158,483

152,212

Total liabilities

342,841

344,942

Commitments and contingencies - see Note 10

—

—

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

74,214

72,112

Retained earnings

1,583,071

1,571,112

Accumulated other comprehensive loss, net of tax

(1,614)

(2,886)

Common stock in treasury at cost –

26,078

 shares at December 2, 2023 and

26,077

shares at June 3, 2023

(30,014)

(30,008)

Total Cal-Maine Foods, Inc. stockholders’ equity

1,626,408

1,611,081

Noncontrolling interest in consolidated entity

(2,444)

(1,498)

Total stockholders’ equity

1,623,964

1,609,583

Total Liabilities and Stockholders’ Equity

$

1,966,805

$

1,954,525

See Notes to Condensed Consolidated Financial Statements.

4

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Net sales

$

523,234

$

801,700

$

982,578

$

1,460,044

Cost of sales

432,104

483,851

846,015

924,705

Gross profit

91,130

317,849

136,563

535,339

Selling, general and administrative

76,578

57,952

128,824

111,559

Loss on disposal of fixed assets

318

29

262

62

Operating income

14,234

259,868

7,477

423,718

Other income (expense):

Interest income, net

6,987

1,930

14,333

2,833

Royalty income

301

344

650

772

Equity income (loss) of unconsolidated

entities

29

(987)

(441)

(843)

Other, net

567

1,113

832

1,268

Total other income, net

7,884

2,400

15,374

4,030

Income before income taxes

22,118

262,268

22,851

427,748

Income tax expense

5,540

63,974

5,862

104,320

Net income

16,578

198,294

16,989

323,428

Less: Loss attributable to noncontrolling

interest

(431)

(293)

(946)

(446)

Net income attributable to Cal-Maine Foods,

Inc.

$

17,009

$

198,587

$

17,935

$

323,874

Net income per common share:

Basic

$

0.35

$

4.08

$

0.37

$

6.66

Diluted

$

0.35

$

4.07

$

0.37

$

6.63

Weighted average shares outstanding:

Basic

48,690

48,624

48,691

48,624

Diluted

48,866

48,840

48,854

48,827

See Notes to Condensed Consolidated Financial Statements.

5

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of

Comprehensive Income

(In thousands)

(Unaudited)

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Net income

$

16,578

$

198,294

$

16,989

$

323,428

Other comprehensive income (loss), before

tax:

Unrealized holding gain (loss) on available-

for-sale securities, net of reclassification

adjustments

895

(974)

1,681

(1,971)

Income tax benefit (expense) related to

items of other comprehensive income

(218)

237

(409)

480

Other comprehensive income (loss), net of tax

677

(737)

1,272

(1,491)

Comprehensive income

17,255

197,557

18,261

321,937

Less: Comprehensive loss attributable to the

noncontrolling interest

(431)

(293)

(946)

(446)

Comprehensive income attributable to Cal-

Maine Foods, Inc.

$

17,686

$

197,850

$

19,207

$

322,383

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

December 2, 2023

November 26, 2022

Cash flows from operating activities:

Net income

$

16,989

$

323,428

Depreciation and amortization

39,394

34,729

Deferred income taxes

5,862

(540)

Other adjustments, net

11,407

(12,830)

Net cash provided by operations

73,652

344,787

Cash flows from investing activities:

Purchases of investment securities

(43,569)

(152,365)

Sales and maturities of investment securities

196,104

65,279

Investment in unconsolidated entities

(363)

—

Acquisition of business

(53,746)

—

Purchases of property, plant and equipment

(65,774)

(59,709)

Net proceeds from disposal of property, plant and equipment

150

92

Net cash provided by (used in) investing activities

32,802

(146,703)

Cash flows from financing activities:

Payments of dividends

(37,276)

(78,394)

Purchase of common stock by treasury

(5)

(45)

Principal payments on finance lease

(214)

(94)

Net cash used in financing activities

(37,495)

(78,533)

Net change in cash and cash equivalents

68,959

119,551

Cash and cash equivalents at beginning of period

292,824

59,084

Cash and cash equivalents at end of period

$

361,783

$

178,635

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 June 3, 2023 (the

“2023 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 December 2, 2023 and November 26, 2022 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

The Company has determined that its debt securities are available-for-sale investments. We classify these securities as current

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

on quoted market prices as of the balance sheet date, with unrealized gains and losses recorded in other comprehensive income.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and is

recorded in interest income. 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 allowance for credit losses, limited to the amount

that fair value was less than the amortized cost basis. 

Investments in mutual funds are recorded at fair value and are classified as “Other long-term assets” in the Company’s

Condensed Consolidated Balance Sheets. Unrealized gains and losses for equity securities are recorded in other income

(expenses) as Other, net in the Company’s Condensed Consolidated Statements of Income.

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 Income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of December 2, 2023 and June

3, 2023, reserves for credit losses were $

536

 thousand and $

579

 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.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill is

evaluated for impairment annually by first performing a qualitative assessment to determine whether a quantitative goodwill

8

test is necessary. After assessing the totality of events or circumstances, if we determine it is more likely than not that the fair

value of a reporting unit is less than its carrying amount, then we perform additional quantitative tests to determine the

magnitude of any impairment.

Intangible Assets

Intangible assets are initially recorded at fair value in business acquisitions, which include franchise rights, customer

relationships, non-compete agreements, trademark and right of use intangibles. They are amortized over their estimated useful

lives of 5 to 15 years. The gross cost and accumulated amortization of intangible assets are removed when the recorded

amounts are fully amortized and the asset is no longer in use or the contract has expired. When certain events or changes in

operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability

of the carrying amounts.

Indefinite life assets are recorded at fair value in business acquisitions and represents water rights. They are not amortized, but

are reviewed for impairment at least annually or more frequently if impairment indicators arise.

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. The dividend policy is subject to periodic review by the Board of

Directors.

Business Combinations

The Company applies the acquisition method of accounting, which requires that once control is obtained, all the assets acquired

and liabilities assumed, including amounts attributable to noncontrolling interests, are recorded at their respective fair values at

the date of acquisition. We determine the fair values of identifiable assets and liabilities internally, which requires estimates and

the use of various valuation techniques. When a market value is not readily available, our internal valuation methodology

considers the remaining estimated life of the assets acquired and what management believes is the market value for those assets. 

We typically use the income method approach for intangible assets acquired in a business combination. Significant estimates in

valuing certain intangible assets include, but are not limited to, the amount and timing of future cash flows, growth rates,

discount rates and useful lives. The excess of the purchase price over fair values of identifiable assets and liabilities is recorded

as goodwill.

Loss Contingencies

Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company but

which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal

counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss

contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such

proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well

as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability

can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates a

potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the

nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be

disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the

nature of the guarantee would be disclosed. 

The Company expenses the costs of litigation as they are incurred.

9

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 - Acquisition

Effective

September 30, 2023

, the Company acquired the assets of Fassio Egg Farms, Inc. (“Fassio”), related to its commercial

shell egg production and processing business. Fassio owns and operates commercial shell egg production and processing

facilities with a capacity at the time of acquisition of approximately

1.2

 million laying hens, primarily cage-free, a feed mill,

pullets, a fertilizer production and composting operation and land located in Erda, Utah, outside Salt Lake City. The Company

accounted for the acquisition as a business combination. 

The following table summarizes the consideration paid for Fassio and the amounts of the assets acquired and liabilities assumed

recognized at the acquisition date (in thousands):

Cash consideration paid

$

53,746

Fair value of contingent consideration

1,000

Total estimated purchase consideration

54,746

Recognized amounts of identifiable assets acquired and liabilities assumed

Inventory

$

6,164

Property, plant and equipment

44,540

Intangible assets

2,272

Other long-term assets

143

Liabilities assumed

(143)

Total identifiable net assets

52,976

Goodwill

1,770

$

54,746

Inventory consisted primarily of flock, feed ingredients, packaging, and egg inventory. Flock inventory was valued at carrying

value as management believes that its carrying value best approximates its fair value. Feed ingredients, packaging and egg

inventory were all valued based on market prices as of September 30, 2023. 

Property, plant and equipment were valued utilizing the cost approach which is based on replacement or reproduction costs of

the assets and subtracting any depreciation resulting from physical deterioration and/or functional or economic obsolescence.

Intangible assets consisted primarily of water rights within the property acquired. Water rights were valued using the sales

comparison approach.

Contingent consideration liability was recorded and represents potential future cash payment to the sellers contingent on the

acquired business meeting certain return on profitability milestones over a

three-year

 period, commencing on the date of the

acquisition. The fair value of the contingent consideration is estimated using a discounted cash flow model. Key assumptions

and unobservable inputs that require significant judgement used in the estimate include weighted average cost of capital, egg

prices, projected revenue and expenses over which the contingent considered is measured, and the probability assessments with

respect to the likelihood of achieving the forecasted projections. A range of potential outcomes cannot be reasonably estimated

due to market volatility of egg prices.

Goodwill represents the excess of the purchase price of the acquired business over the acquisition date fair value of the net

assets acquired. Goodwill recorded in connection with the Fassio acquisition is primarily attributable to improved efficiencies

from integrating the assets of Fassio with the operations of the Company. The Company recognized goodwill of $1.8 million as

a result of the acquisition.

10

Note 3 - Investment

Securities

The following represents the Company’s investment securities as of December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

6,141

$

—

$

108

$

6,033

Commercial paper

2,791

—

2

2,789

Corporate bonds

98,202

—

535

97,667

Certificates of deposits

1,125

—

6

1,119

US government and agency obligations

88,470

—

116

88,354

Asset backed securities

10,045

38

—

10,083

Total current investment securities

$

206,774

$

38

$

767

$

206,045

Mutual funds

$

2,190

$

—

$

24

$

2,166

Total noncurrent investment securities

$

2,190

$

—

$

24

$

2,166

June 3, 2023

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,571

$

—

$

275

$

16,296

Commercial paper

56,486

—

77

56,409

Corporate bonds

139,979

—

1,402

138,577

Certificates of deposits

675

—

—

675

US government and agency obligations

101,240

—

471

100,769

Asset backed securities

13,459

—

151

13,308

Treasury bills

29,069

—

13

29,056

Total current investment securities

$

357,479

$

—

$

2,389

$

355,090

Mutual funds

$

2,172

$

—

$

91

$

2,081

Total noncurrent investment securities

$

2,172

$

—

$

91

$

2,081

Available-for-sale

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

196.1

 million and $

65.3

 million during the

twenty-six weeks ended December 2, 2023 and November 26, 2022, respectively. Gross realized gains for the twenty-six weeks

ended December 2, 2023 and November 26, 2022 were $

7

 thousand and $

2

 thousand, respectively. Gross realized losses for the

twenty-six weeks ended December 2, 2023 and November 26, 2022 were $

8

 thousand and $

63

 thousand, respectively. There

were

no

 allowances for credit losses at December 2, 2023 and June 3, 2023.

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 December 2, 2023 are as follows (in thousands):

Estimated Fair Value

Within one year

$

145,788

1-5 years

60,257

Total

$

206,045

Noncurrent 

There were

no

 sales of noncurrent investment securities during the twenty-six weeks ended December 2, 2023 and November

26, 2022.

11

Note 4 - 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.

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 December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

6,033

$

—

$

6,033

Commercial paper

—

2,789

—

2,789

Corporate bonds

—

97,667

—

97,667

Certificates of deposits

—

1,119

—

1,119

US government and agency obligations

—

88,354

—

88,354

Asset backed securities

—

10,083

—

10,083

Mutual funds

2,166

—

—

2,166

Total assets measured at fair value

$

2,166

$

206,045

$

—

$

208,211

Liabilities

Contingent consideration

$

—

$

—

$

1,000

$

1,000

Total liabilities measured at fair value

$

—

$

—

$

1,000

$

1,000

June 3, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,296

$

—

$

16,296

Commercial paper

—

56,409

—

56,409

Corporate bonds

—

138,577

—

138,577

Certificates of deposits

—

675

—

675

US government and agency obligations

—

100,769

—

100,769

Asset backed securities

—

13,308

—

13,308

Treasury bills

—

29,056

—

29,056

Mutual funds

2,081

—

—

2,081

Total assets measured at fair value

$

2,081

$

355,090

$

—

$

357,171

12

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.

Contingent consideration classified as Level 3 consists of the potential obligation to pay an earnout to the sellers of Fassio

contingent on the acquired business meeting certain return on profitability milestones over a

three-year

 period, commencing on

the date of the acquisition. The fair value of the contingent consideration is estimated using a discounted cash flow model. Key

assumptions and unobservable inputs that require significant judgement used in the estimate include weighted average cost of

capital, egg prices, projected revenue and expenses over which the contingent considered is measured, and the probability

assessments with respect to the likelihood of achieving the forecasted projections. See further discussion in

Note 5 - Inventories

Inventories consisted of the following as of December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

June 3, 2023

Flocks, net of amortization

$

162,323

$

164,540

Eggs and egg products

30,485

28,318

Feed and supplies

94,462

91,560

$

287,270

$

284,418

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

December 2, 2023 and June 3, 2023 consisted of approximately

10.6

 million and

10.8

 million pullets and breeders and

43.3

million and

41.2

 million layers, respectively.

Note 6 - Equity

The following reflects equity activity for the thirteen weeks ended December 2, 2023 and November 26, 2022 (in thousands):

Thirteen Weeks Ended December 2, 2023

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

September 2, 2023

$

703

$

48

$

(30,014)

$

73,153

$

(2,291)

$

1,571,744

$

(2,013)

$

1,611,330

Other comprehensive

income, net of tax

—

—

—

—

677

—

—

677

Stock compensation

plan transactions

—

—

—

1,061

—

—

—

1,061

Dividends ($

0.116

per share)

Common

—

—

—

—

—

(5,125)

—

(5,125)

Class A common

—

—

—

—

—

(557)

—

(557)

Net income (loss)

—

—

—

—

—

17,009

(431)

16,578

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

13

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 May 28,

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 December 2, 2023

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 June 3,

2023

$

703

$

48

$

(30,008)

$

72,112

$

(2,886)

$

1,571,112

$

(1,498)

$

1,609,583

Other comprehensive

income, net of tax

—

—

—

—

1,272

—

—

1,272

Stock compensation

plan transactions

—

—

(6)

2,102

—

—

—

2,096

Dividends ($

0.122

per share)

Common

—

—

—

—

—

(5,390)

—

(5,390)

Class A common

—

—

—

—

—

(586)

—

(586)

Net income (loss)

—

—

—

—

—

17,935

(946)

16,989

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

14

Twenty-six Weeks Ended November 26, 2022

Cal-Maine Foods, Inc. Stockholders

Common Stock

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrollin

g

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

Contributions

—

—

—

—

—

—

—

—

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

Note 7 - Net Income per Common Share

Basic net income 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. 

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

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

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Numerator

Net income

$

16,578

$

198,294

$

16,989

$

323,428

Less: Loss attributable to

noncontrolling interest

(431)

(293)

(946)

(446)

Net income attributable to Cal-Maine

Foods, Inc.

$

17,009

$

198,587

$

17,935

$

323,874

Denominator

Weighted-average common shares

outstanding, basic

48,690

48,624

48,691

48,624

Effect of dilutive restricted shares

176

216

163

203

Weighted-average common shares

outstanding, diluted

48,866

48,840

48,854

48,827

Net income per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.35

$

4.08

$

0.37

$

6.66

Diluted

$

0.35

$

4.07

$

0.37

$

6.63

15

Note 8 - 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 expected customer returns using historical

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

same period the revenue is recognized.

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 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

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Conventional shell egg sales

$

280,599

$

541,917

$

505,879

$

967,506

Specialty shell egg sales

217,905

227,778

426,586

428,598

Egg products

20,012

28,052

42,235

55,692

Other

4,718

3,953

7,878

8,248

$

523,234

$

801,700

$

982,578

$

1,460,044

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 December 2, 2023 and June 3, 2023, 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 9 - Stock Based Compensation

Total stock-based compensation expense was $

2.1

 and $

2.0

 million for the twenty-six weeks ended December 2, 2023 and

November 26, 2022, respectively.

16

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 December 2, 2023 of $

5.0

 million will be recorded over a weighted

average period of

1.7

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

14 - Stock Compensation Plans in our 2023 Annual Report for further information on our stock compensation plans.

The Company’s restricted share activity for the twenty-six weeks ended December 2, 2023 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, June 3, 2023

294,140

$

43.72

Vested

(305)

37.70

Forfeited

(1,329)

44.68

Outstanding, December 2, 2023

292,506

$

43.72

Note 10 - Commitments and Contingencies

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 appealed the First District Court’s decision to the Supreme Court of

Texas. On September 29, 2023, the Supreme Court of Texas denied the Company’s Petition for Review so the case will be

remanded to the trial court for further proceedings. 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.

17

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 January 9, 2023, the court entered an order and final judgement granting the Company’s motion to

dismiss. 

On February 8, 2023, the plaintiffs appealed the lower court’s judgement to the United States Court of Appeals for the Fifth

Circuit, Case No. 23-50112. The parties filed their respective appellate briefs, but the court has not ruled on these submissions.

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,

until a subsequent settlement was reached as described below, 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 alleged 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 attacked

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

producers. 

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 trial of this case began on October 17, 2023. On December 1, 2023, the jury returned a decision awarding the Egg Products

Plaintiffs $

17.8

 million in damages. If the jury’s decision is ultimately upheld, the defendants would be jointly and severally

liable for treble damages, or $

53.3

 million, subject to credit for the Kellogg settlement described above and certain other

settlements with previous settling defendants, plus the Egg Product Plaintiffs’ reasonable attorneys’ fees. This decision is not

final and remains subject to the defendants’ motion for a directed verdict noted below and appeals by the parties. During our

second fiscal quarter of 2024, we recorded an accrued expense of $

19.6

 million in selling, general and administrative expenses

in the Company’s Condensed Consolidated Statements of Income and classified as other noncurrent liabilities in the

Company’s Condensed Consolidated Balance Sheets. The accrual represents our estimate of the Company’s proportional share

of the reasonably possible ultimate damages award, excluding the Egg Product Plaintiffs’ attorneys’ fees that we believe would

be approximately offset by the credits noted above. We and the other defendants are discussing apportionment, and our accrual

may change in the future based on the outcome of those discussions. Our accrual may also be revised in whole or in part in the

future to the extent we are successful in further proceedings in the litigation. On November 29, 2023, the defendants, including

the Company, filed a motion for judgment as a matter of law in their favor, known as a directed verdict, notwithstanding the

jury’s decision. The Company intends to continue to vigorously defend the claims asserted by the Egg Products Plaintiffs.

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., Cobb-Vantress, Inc., Cargill, Inc., George’s, Inc., Peterson Farms, Inc.

and Simmons Foods, Inc., and certain of their affiliates. The State of Oklahoma claims that through the disposal of chicken

litter the defendants polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma. The complaint

sought injunctive relief and monetary damages, but the claim for monetary damages was dismissed by the court. Cal-Maine

Foods, Inc. discontinued operations in the watershed in or around 2005. 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. We also have a

number of small contract producers that operate in the area.

18

The non-jury trial in the case began in September 2009 and concluded in February 2010. On January 18, 2023, the court entered

findings of fact and conclusions of law in favor of the State of Oklahoma, but no penalties were assessed. The court found the

defendants liable for state law nuisance, federal common law nuisance, and state law trespass. The court also found the

producers vicariously liable for the actions of their contract producers. The court directed the parties to confer in attempt to

reach agreement on appropriate remedies. On June 12, 2023, the court ordered the parties to mediate before the retired Tenth

Circuit Chief Judge Deanell Reece Tacha. On October 26, 2023, the parties filed separate status reports informing the court that

the mediation was unsuccessful. Also on October 26, 2023, the defendants filed a post-trial motion to dismiss and supporting

brief arguing that the case should be dismissed due to the state record before the court, the resulting mootness of the case, and

violation of due process. On November 10, 2023, the State of Oklahoma filed its response in opposition to the motion to

dismiss and on November 17, 2023, the defendants filed their reply. The court has not ruled on the motion. While management

believes there is a reasonable possibility of a material loss from the case, 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:

uncertainties inherent in any assessment of potential costs associated with injunctive relief or other penalties based on a

decision in a case tried over 13 years ago based on environmental conditions that existed at the time, the lack of guidance from

the court as to what might be considered appropriate remedies, the ongoing litigation with the State of Oklahoma and motion to

dismiss before the court, and uncertainty regarding what our proportionate share of any remedy would be, although we believe

that our share compared to the other defendants is small.

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.

Note 11 - Subsequent Events

On December 12, 2023, the Company reported that one of the Company’s facilities in Kansas experienced an outbreak of

highly pathogenic avian influenza (“HPAI”), affecting approximately

684,000

 laying hens. Subsequent to the initial outbreak,

nearby facilities in Kansas experienced an outbreak of HPAI, affecting approximately an additional

842,000

 laying hens and

240,000

 pullets. The total of the combined outbreaks represented

3.3

% of our total flock as of December 2, 2023.

The Company has and continues to follow all guidelines provided by the United States Department of Agriculture (the

“USDA”) and other regulatory agencies to depopulate and sanitize the facilities. As such, Cal-Maine will be eligible to

participate in the USDA indemnity program and other programs designed to compensate for the loss of birds and eggs. The

Company’s plans are to repopulate the facilities and resume normal operations at the facilities within

3

-

5 months

. Due to

volatility in the market prices of eggs and uncertain future supply, demand and other market conditions, an estimate of the net

income effect cannot be reasonably made.

19

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 June 3, 2023

(the “2023 Annual Report”), and the accompanying financial statements and notes included in Part II Item 8 of the 2023 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

and egg products 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 recent resurgence in United States (“U.S.”) commercial table egg layer flocks of the highly

pathogenic avian influenza (“HPAI”) outbreak, potential future impact on our business of inflation and rising interest rates,

potential future impact on our business of new legislation, rules or policies, potential outcomes of legal proceedings , including

loss contingency accruals and factors that may result in changes in the amounts recorded, 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 2023 Annual Report, the risk factors (if any) set forth in Part II Item 1A Risk

Factors and elsewhere in this report as well as those included in other reports we file from time to time with the Securities and

Exchange Commission (the “SEC”) (including our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K), (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 HPAI affecting poultry in the U.S., Canada and other countries that

was first detected in commercial flocks in the U.S. in February 2022 and that first impacted our flock in December 2023, (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 increased costs and higher and potentially further increases in, inflation and interest rates, (vii) our ability to retain existing

customers, acquire new customers and grow our product mix, (viii) adverse results in pending litigation matters, (ix) global

instability, including as a result of the wars in Ukraine and Israel and attacks on shipping in the Red Sea, and (x) any potential

resurgence of COVID-19. 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 and we have one operating and reportable

segment. We are the largest producer and distributor of fresh shell eggs in the U.S. Our total flock of approximately 43.3

million layers and 10.6 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 located primarily 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 do not sell eggs

directly to consumers or set the prices at which eggs are sold to consumers.

20

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.

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

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 global instability that could disrupt the

supply chain.

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.

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. California, Massachusetts, and Colorado, which collectively represent approximately 16% of the total estimated

U.S. population, have cage-free legislation currently in effect. Oregon, Washington and Nevada have cage-free legislation

going into effect starting January 1, 2024, which represents an additional 5% of the total estimated U.S. population. Although

we do not sell the majority of our eggs in these ten states, these state laws have impacted egg production practices nationally.

A significant number of our customers have announced goals to either exclusively offer cage-free eggs or significantly increase

the volume of cage-free egg sales in the future, subject in most cases to availability of supply, affordability and consumer

demand, among other contingencies. 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

focused on adjusting our cage-free production capacity with a goal of meeting the future needs of our customers in light of

changing state requirements and our customer’s goals. As always, we strive to offer a product mix that aligns with current and

anticipated customer purchase decisions. We are engaging with our customers to help them meet 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. Our volume of cage-free egg sales has continued to increase

and account for a larger share of our product mix. Cage-free egg revenue represented approximately 30.4% of our total net shell

egg revenue for the second quarter of fiscal year 2024. 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 2023 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.”

21

ACQUISITIONS

During the second quarter of fiscal 2024, we acquired the assets of Fassio Egg Farms, Inc. (“Fassio”) related to its commercial

shell egg production and processing business. The assets acquired included commercial shell egg production and processing

facilities with a current capacity of approximately 1.2 million laying hens, primarily cage-free, a feed mill, pullets, a fertilizer

production and composting operation and land located in Erda, Utah, outside Salt Lake City. See further discussion in

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

Following the end of the second quarter, we announced a definitive agreement to acquire from Tyson Foods, Inc. a recently

closed broiler processing plant, hatchery and feed mill located in Dexter, Missouri. We expect to complete the acquisition in

our third fiscal quarter and to repurpose the assets for use in egg and egg products production.

HPAI

Outbreaks of HPAI continue to occur in U.S. poultry flocks. Prior to November 2023, there were no reported significant

outbreaks of HPAI in commercial table egg layer flocks since December 2022. On January 3, 2024, the USDA division of

Animal and Plant Health Inspection Service (“APHIS”) reported that approximately 12.9 million commercial table egg layers

and 1.5 million commercial table egg pullets have been depopulated as a result of HPAI outbreaks since the beginning of

November 2023. 

Cal-Maine Foods experienced HPAI outbreaks within our facilities in Kansas, resulting in depopulation of approximately 1.5

million layers and 240 thousand pullets, or approximately 3.3% of our total flock as of December 2, 2023, subsequent to

period-end. Cal-Maine Foods believes that we can mitigate the loss of production through flock rotations. Cal-Maine Foods

remains dedicated to robust biosecurity programs across our locations; however, no farm is immune from HPAI. HPAI is still

present in the wild bird population and the extent of possible future outbreaks, particularly during the migration seasons, cannot

be predicted. According to the U.S. Centers for Disease Control and Prevention, these detections do not present an immediate

public health concern. For additional information, see the 2023 Annual Report, Part II Item 7 “Management’s Discussion and

Analysis of Financial Condition and Results of Operations – HPAI.” 

We believe the HPAI outbreak will continue to impact the overall supply of eggs until the layer hen flock is fully replenished.

The layer hen flock five-year average for the month of December from 2018 through 2022 is 330.1 million hens. According to

the USDA, the U.S. flock consisted of 321.6 million layers producing table or market type eggs as of December 1, 2023, which

is 2.6% below the five-year average.

EXECUTIVE OVERVIEW

For the second quarter and first two quarters of fiscal 2024, we recorded a gross profit of $91.1 million and $136.6 million,

respectively, compared to $317.8 million and $535.3 million, respectively, for the same periods of fiscal 2023, with the

decreases due primarily to lower conventional shell egg prices. The decrease in gross profit was partially offset by lower feed

ingredient prices in the second quarter and first two quarters of fiscal 2024 compared to the same periods of fiscal 2023. Our

operating income and net income for the second quarter of fiscal 2024 were impacted by a $19.6 million litigation loss

contingency accrual for pending anti-trust litigation, reflected in selling, general and administrative expenses in the Company’s

Condensed Consolidated Statements of Income and classified as accrued expenses and other liabilities in the Company’s

Condensed Consolidated Balance Sheets.

Our net average selling price per dozen for the second quarter of fiscal 2024 was $1.730 compared to $2.709 in the prior-year

period. Conventional egg prices per dozen were $1.458 compared to $2.883 for the prior-year period, and specialty egg prices

per dozen were $2.277 compared to $2.370 for the prior-year period. Conventional egg prices were lower in the second quarter

of fiscal 2024 compared to the prior-year period as the U.S. egg supply started to recover from outbreaks of HPAI. There has

been a resurgence of HPAI starting in November 2023, and although prices rose in November 2023 they remained lower than

comparable 2022 prices. Our net average selling price per dozen for the first two quarters of fiscal 2024 was $1.661 compared

to $2.469 in the prior-year period. Conventional egg prices per dozen were $1.353 compared to $2.631 for the prior-year

period, and specialty egg prices per dozen were $2.277 compared to $2.236 for the prior-year period. The daily average price

for the Urner Barry southeast large index for the second quarter of fiscal 2024 and first two quarters of fiscal 2024 decreased

49.6% and 49.2%, respectively, from the comparable periods in the prior year. For information about historical shell egg prices,

see Part I Item I of our 2023 Annual Report.

Our total dozens sold increased 1.4% to 288.2 million dozen shell eggs for the second quarter of fiscal 2024 compared to 284.1

million dozen for the same period of fiscal 2023. For the year-to-date period, total dozens sold increased slightly from 559.4

million dozen to 561.3 million dozen. For the second quarter of fiscal 2024, conventional dozens sold increased 2.4% and

22

specialty dozens sold decreased 0.4% as compared to the same quarter in fiscal 2023. Demand for specialty eggs decreased in

the second quarter of fiscal 2024 compared to the same prior year period due primarily to the large decrease in prices for

conventional eggs compared to the same prior year period. For the year-to-date period, conventional dozens sold increased

1.7% and specialty dozens sold decreased 2.3% compared to the prior year period.

Our farm production costs per dozen produced for the second quarter and first two quarters of fiscal 2024 decreased 8.0%, or

$0.86, and 4.6%, or $0.05, respectively, compared to the prior year periods, primarily due to lower feed costs. Feed costs per

dozen produced decreased 19.1%, or $0.13, compared to the second quarter of fiscal 2023 primarily due to reduced corn prices,

our primary feed ingredient. For information about historical corn and soybean meal prices, see Part I Item I of our 2023

Annual Report.

RESULTS OF OPERATIONS

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

expressed as a percentage of net sales.

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Net sales

100.0

%

100.0

%

100.0

%

100.0

%

Cost of sales

82.6

%

60.4

%

86.1

%

63.3

%

Gross profit

17.4

%

39.6

%

13.9

%

36.7

%

Selling, general and administrative

14.5

%

7.2

%

13.1

%

7.6

%

Loss on disposal of fixed assets

0.1

%

—

%

—

%

—

%

Operating income

2.8

%

32.4

%

0.8

%

29.1

%

Total other income, net

1.5

%

0.3

%

1.6

%

0.3

%

Income before income taxes

4.3

%

32.7

%

2.4

%

29.4

%

Income tax expense

1.1

%

8.0

%

0.6

%

7.1

%

Net income

3.2

%

24.7

%

1.8

%

22.3

%

Less: Loss attributable to noncontrolling

interest

(0.1)

%

—

%

(0.1)

%

—

%

Net income attributable to Cal-Maine

Foods, Inc.

3.3

%

24.7

%

1.9

%

22.3

%

NET SALES

Total net sales for the second quarter of fiscal 2024 were $523.2 million compared to $801.7 million for the same period of

fiscal 2023.

Net shell egg sales represented 96.2% and 96.5% of total net sales for the second quarters of fiscal 2024 and 2023, respectively.

Shell egg sales classified as “Other” represent sales of miscellaneous byproducts and resale products included with our shell

egg operations. 

Total net sales for the twenty-six weeks ended December 2, 2023 were $982.6 million, compared to $1.46 billion for the

comparable period of fiscal 2023.

Net shell egg sales represented 95.7% and 96.2% of total net sales for the twenty-six weeks ended December 2, 2023 and

November 26, 2022, respectively. 

23

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

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Total net sales

$

523,234

$

801,700

$

982,578

$

1,460,044

Conventional

$

280,599

55.8

%

$

541,917

70.1

%

$

505,879

53.8

%

$

967,506

68.9

%

Specialty

217,905

43.3

%

227,778

29.4

%

426,586

45.4

%

428,598

30.5

%

Egg sales, net

498,504

99.1

%

769,695

99.5

%

932,465

99.2

%

1,396,104

99.4

%

Other

4,718

0.9

%

3,953

0.5

%

7,878

0.8

%

8,248

0.6

%

Net shell egg sales

$

503,222

100.0

%

$

773,648

100.0

%

$

940,343

100.0

%

$

1,404,352

100.0

%

Net shell egg sales as a

percent of total net sales

96.2

%

96.5

%

95.7

%

96.2

%

Dozens sold:

Conventional

192,462

66.8

%

187,976

66.2

%

373,992

66.6

%

367,688

65.7

%

Specialty

95,711

33.2

%

96,110

33.8

%

187,307

33.4

%

191,715

34.3

%

Total dozens sold

288,173

100.0

%

284,086

100.0

%

561,299

100.0

%

559,403

100.0

%

Net average selling price

per dozen:

Conventional

$

1.458

$

2.883

$

1.353

$

2.631

Specialty

$

2.277

$

2.370

$

2.277

$

2.236

All shell eggs

$

1.730

$

2.709

$

1.661

$

2.496

Egg products sales: 

Egg products net sales

$

20,012

$

28,052

$

42,235

$

55,692

Pounds sold

16,998

15,702

36,351

32,204

Net average selling price

per pound

$

1.177

$

1.787

$

1.162

$

1.729

Shell egg net sales

Second Quarter – Fiscal 2024 vs. Fiscal 2023

-

In the second quarter of fiscal 2024, conventional egg sales decreased $261.3 million, or 48.2%, compared to the

second quarter of fiscal 2023, primarily due to a 49.4% decrease in the prices for conventional eggs, which resulted in

a $274.3 million decrease in net sales, partially offset by a 2.4% increase in the volume of conventional eggs sold,

which resulted in a $12.9 million increase in net sales.

-

Conventional egg prices were lower in the second quarter of fiscal 2024 compared to the second quarter of fiscal 2023

as the U.S. egg supply started to recover from outbreaks of HPAI. There has been a resurgence of HPAI starting in

November 2023, and although prices rose in November 2023, they remained lower than comparable 2022 prices.

-

Specialty egg sales decreased $9.9 million, or 4.3%, in the second quarter of fiscal 2024 compared to the second

quarter of fiscal 2023, primarily due to a 3.9% decrease in the prices for specialty eggs, which resulted in a $9.3

million decrease in net sales. 

-

Cage-free egg revenue for the second quarter of fiscal 2024 represented 30.4% of our total net shell egg revenue

versus 18.2% for the same prior year period due to the lower conventional egg prices causing conventional egg

revenue to represent a smaller proportion of our total sales. 

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

-

For the twenty-six weeks ended December 2, 2023, conventional egg sales decreased $461.6 million, or 47.7%,

compared to the same period of fiscal 2023, primarily due to the decrease in the prices for conventional shell eggs.

Changes in prices resulted in a $478.0 million decrease in net sales, partially offset by a 1.7% increase in the volume

of conventional eggs sold, which resulted in a $16.6 million increase in net sales.

24

Egg products net sales

Second Quarter – Fiscal 2024 vs. Fiscal 2023

-

Egg products net sales decreased $8.0 million, or 28.7%, for the second quarter of fiscal 2024 compared to the same

period of fiscal 2023, primarily due to a 34.1% selling price decrease, which had a $10.4 million negative impact on

net sales.

-

Our egg products net average selling price decreased in the second quarter of fiscal 2024, compared to the second

quarter of fiscal 2023 as the supply of shell eggs used to produce egg products increased.

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

-

Egg products net sales decreased $13.5 million, or 24.2%, primarily due to a 32.8% selling price decrease compared to

the first twenty-six weeks of fiscal 2023, which had a $20.6 million negative impact on net sales. 

COST OF SALES

Costs of sales for the second quarter of fiscal 2024 were $432.1 million compared to $483.9 million for the same period of

fiscal 2023. Costs of sales for the year-to-date period were $846.0 million compared to $924.7 million for the prior year period.

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

December 2,

2023

November 26,

2022

%

Change

December 2,

2023

November 26,

2022

%

Change

Cost of Sales:

Farm production

$

258,367

$

276,008

(6.4)

%

$

511,874

$

542,659

(5.7)

%

Processing, packaging, and

warehouse

84,767

83,639

1.3

166,673

165,056

1.0

Egg purchases and other

(including change in

inventory)

71,654

97,973

(26.9)

132,451

166,271

(20.3)

Total shell eggs

414,788

457,620

(9.4)

810,998

873,986

(7.2)

Egg products

17,316

26,231

(34.0)

35,017

50,719

(31.0)

Total

$

432,104

$

483,851

(10.7)

%

$

846,015

$

924,705

(8.5)

%

Farm production costs (per

dozen produced)

Feed

$

0.554

$

0.685

(19.1)

%

$

0.575

$

0.676

(14.9)

%

Other

$

0.431

$

0.386

11.7

%

$

0.435

$

0.383

13.6

%

Total

$

0.985

$

1.071

(8.0)

%

$

1.010

$

1.059

(4.6)

%

Outside egg purchases

(average cost per dozen)

$

2.03

$

3.14

(35.4)

%

$

1.84

$

2.88

(36.1)

%

Dozens produced

265,101

261,358

1.4

%

515,457

519,012

(0.7)

%

Percent produced to sold

92.0%

92.0%

—

%

91.8%

92.8%

(1.1)

%

Farm Production

Second Quarter – Fiscal 2024 vs. Fiscal 2023

-

Feed costs per dozen produced decreased 19.1 % in the second quarter of fiscal 2024 compared to the second quarter of

fiscal 2023. This decrease was primarily due to lower prices for corn, our primary feed ingredient. Basis levels for

corn and soybean meal were lower in our areas of operations compared to our prior year second fiscal quarter. The

decrease in feed cost per dozen resulted in a decrease in cost of sales of $34.7 million for the second quarter of fiscal

2024 compared to the prior period quarter.

25

-

For the second quarter of fiscal 2024, the average Chiago Board of Trade (“CBOT”) daily market price was $4.79 per

bushel for corn and $417 per ton of soybean meal, representing decreases of 29.3% and 1.6%, respectively, as

compared to the average CBOT daily market prices for the second quarter of fiscal 2023. 

-

Other farm production costs increased primarily due to higher flock amortization and facility costs. Flock amortization

increased primarily due to the increased capitalized value of our flocks. This is primarily due to the higher feed costs

incurred during the growing phase of the flocks. 

-

Facility costs increased due primarily to increased labor costs. Labor costs increased 12.5% compared to the second

quarter of fiscal 2023 primarily due to an increase in contract labor in response to labor shortages.

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

-

Feed costs per dozen produced decreased 14.9% in the twenty-six weeks ended December 2, 2023 compared to the

same period of fiscal 2023, primarily due to lower feed ingredient prices. The decrease in feed cost per dozen resulted

in a decrease in cost of sales of $52.1 million compared to the prior year period.

-

For the year-to-date period , the average CBOT daily market price was $5.05 per bushel for corn and $420 per ton for

soybean meal, representing decreases of 24.8% and 4.6%, respectively, compared to the average CBOT daily market

prices for the comparable period in the prior year.

-

Other farm production costs increased due to higher facility costs and flock amortization, for the reasons described

above. 

Current indications for corn project an overall better stocks-to-use ratio implying potentially lower prices in the near term;

however, as long as outside factors remain uncertain (including weather patterns and global supply chain disruptions), volatility

could remain. Soybean meal supply has remained tight relative to demand in the first two quarters of fiscal 2024.

Processing, packaging, and warehouse

Second Quarter – Fiscal 2024 vs. Fiscal 2023

-

Processing, packaging, and warehouse costs increased 1.3% compared to the second quarter of fiscal 2023, primarily

due to an increase in dozens processed in the second quarter of fiscal 2024 compared to the second quarter of fiscal

2023. 

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

-

Processing, packaging, and warehouse costs increased 1.0% compared to the first two quarters of fiscal 2023,

primarily due an increase in labor costs of 4.2% due to wage increases in response to labor shortages, partially offset

by decrease in dozens processed.

Egg purchases and other (including change in inventory)

Second Quarter – Fiscal 2024 vs. Fiscal 2023

-

Costs in this category decreased primarily due to lower shell egg prices as the average cost per dozen of outside egg

purchases decreased 35.4% compared to second quarter of fiscal 2023 . 

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

-

Costs in this category decreased primarily due to lower shell egg prices as the average cost per dozen of outside egg

purchases decreased 36.1% compared to fiscal 2023, partially offset by an increase of 13.0% in dozens purchased.

GROSS PROFIT 

Gross profit for the second quarter of fiscal 2024 was $91.1 million compared to $317.8 million for the same period of fiscal

2023. Gross profit for the twenty-six weeks ended December 2, 2023 was $136.6 million compared to $535.3 million for the

same period of 2023. The decrease for both periods was primarily due to lower conventional egg prices, partially offset by

lower feed ingredient prices.

26

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

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

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

Thirteen Weeks Ended

December 2, 2023

November 26, 2022

$ Change

% Change

Specialty egg expense

$

15,924

$

14,673

$

1,251

8.5

%

Delivery expense

17,706

18,175

(469)

(2.6)

%

Payroll, taxes and benefits

11,076

13,827

(2,751)

(19.9)

%

Stock compensation expense

1,061

987

74

7.5

%

Litigation loss contingency accrual

19,648

—

19,648

 N.M 

Other expenses

11,163

10,290

873

8.5

%

Total

$

76,578

$

57,952

$

18,626

32.1

%

N.M. – Not Meaningful

Second Quarter – Fiscal 2024 vs. Fiscal 2023

Specialty egg expense

-

During the second part of fiscal year 2023, the higher prices for conventional eggs and the comparatively lower prices

for specialty eggs diminished the need to promote specialty eggs . During the second quarter of fiscal year 2024, we

significantly increased promotional programs, resulting in higher advertising fees. This was partially offset by a

decrease in a reduction in franchise fees to Eggland’s Best, Inc. 

Delivery expense

-

The decreased delivery expense is primarily due to a decrease in fuel and contract trucking expenses in the second

quarter of fiscal 2024 compared to the second quarter of fiscal 2023.

Payroll, taxes and benefits expense

-

The decrease in payroll, taxes and benefits expense is due to a decrease in accrued bonuses compared to the second

quarter of fiscal year 2023.

Litigation loss contingency accrual

-

The litigation loss contingency accrual of $19.6 million relates to a jury decision returned on December 1, 2023 in

pending anti-trust litigation. See further discussion in

 of the Notes to

Condensed Consolidated Financial Statements included in this Quarterly Report.

Other expense

-

The increase in other expense is primarily due to increased legal costs incurred compared to the second quarter of

fiscal 2023.

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

$ Change

% Change

Specialty egg expense

$

27,929

$

27,740

$

189

0.7

%

Delivery expense

35,397

38,091

(2,694)

(7.1)

%

Payroll, taxes and benefits

23,142

24,814

(1,672)

(6.7)

%

Stock compensation expense

2,101

2,012

89

4.4

%

Litigation loss contingency accrual

19,648

—

19,648

 N.M. 

Other expenses

20,607

18,902

1,705

9.0

%

Total

$

128,824

$

111,559

$

17,265

15.5

%

N.M. - Not Meaningful

Twenty-six weeks – Fiscal 2024 vs. Fiscal 2023

27

Specialty egg expense

-

Specialty egg expense increased by 0.7%, as advertising expense increased in fiscal 2024 as discussed above and was

offset by the reduction in franchise fees to Eggland’s Best, Inc.

Delivery expense

-

The decreased delivery expense is primarily due to a decrease in fuel and contract trucking expenses in fiscal 2024.

Payroll, taxes and benefits expense

-

The decrease in payroll, taxes and benefits expense is primarily due to a decrease in accrued bonuses in the first two

quarters of fiscal 2024 compared to the prior year period.

Litigation loss contingency accrual

-

The increase relates to the litigation loss contingency accrual discussed above.

Other expenses

-

The increase in other expense is primarily due to increased legal costs incurred in the year-to-date period.

OPERATING INCOME (LOSS)

For the second quarter of fiscal 2024, we recorded operating income of $14.2 million compared to operating income of $259.9

million for the same period of fiscal 2023.

For the twenty-six weeks ended December 2, 2023, we recorded an operating income of $7.5 million compared to an operating

income of $423.7 million for the same period of fiscal 2023.

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 2024, we earned $7.1 million of interest income compared to $2.1 million for the same period

of fiscal 2023. The increase resulted from significantly higher investment balances and higher interest rates. The Company

recorded interest expense of $134 thousand and $143 thousand for the second quarters ended December 2, 2023 and November

26, 2022, respectively.

For the twenty-six weeks ended December 2, 2023, we earned $14.6 million of interest income compared to $3.1 million for the

same period of fiscal 2023. The increase resulted from significantly higher investment balances and higher interest rates. The

Company recorded interest expense of $276 thousand and $291 thousand for the twenty-six weeks ended December 2, 2023

and November 26, 2022, respectively.

INCOME TAXES

For the second quarter of fiscal 2024, pre-tax income was $22.1 million compared to $262.2 million for the same period of

fiscal 2023. We recorded income tax expense of $5.5 million for the second quarter of fiscal 2024, which reflects an effective

tax rate of 25.0%. Income tax expense was $64.0 million for the comparable period of fiscal 2023, which reflects an effective

tax rate of 24.4%. 

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 December 2, 2023, was $17.0 million, or $0.35

per basic and diluted common share, compared to net income attributable to Cal-Maine Foods, Inc. of $198.6 million, or $4.08

per basic and $4.07 per diluted common share for the same period of fiscal 2023.

28

Net income attributable to Cal-Maine Foods, Inc. for the twenty-six weeks ended December 2, 2023, was $17.9 million, or $.37

per basic and diluted common share, compared to net income attributable to Cal-Maine Foods, Inc. of $323.9 million or $6.66

per basic and $6.63 per diluted common share, for the same period of fiscal 2023.

LIQUIDITY AND CAPITAL RESOURCES 

Working Capital and Current Ratio

Our working capital at December 2, 2023 was $910.1 million, compared to $942.2 million at June 3, 2023. The calculation of

working capital is defined as current assets less current liabilities. Our current ratio was 6.9 at December 2, 2023, compared

with 6.2 at June 3, 2023. The current ratio is calculated by dividing current assets by current liabilities.

Cash Flows from Operating Activities

For the twenty-six weeks ended December 2, 2023, $74.0 million in net cash was provided by operating activities, compared to

$344.8 million provided by operating activities for the comparable period in fiscal 2023. The decrease in cash flow from

operating activities resulted primarily from lower selling prices for conventional eggs compared to the prior-year period.

Cash Flows from Investing Activities

For the twenty-six weeks ended December 2, 2023, $32.4 million was provided by investing activities, primarily due to the

sales and maturities of investment securities, partially offset by the acquisition of assets of Fassio Egg Farms, Inc. This

compares to $146.7 million used in investing activities in the same period of fiscal 2023, primarily due to purchases of

investment securities. Sales and maturities of investment securities were $196.1 million in first two quarters of fiscal 2024,

compared to $65.3 million in the first two quarters fiscal 2023. The increase in sales and maturities of investment securities is

primarily due to the maturities of short-term investments during the period. Purchases of property, plant and equipment were

$66.2 million and $59.7 million in the first two quarters of fiscal 2024 and 2023, respectively, primarily reflecting progress on

our construction projects.

Cash Flows from Financing Activities

We paid dividends of $37.3 million for the twenty-six weeks ended December 2, 2023 compared to $78.4 million in the same

prior-year period.

As of December 2, 2023, cash increased $69.0 million since June 3, 2023, compared to an increase of $119.6 million during the

same period of fiscal 2023.

Credit Facility

We had no long-term debt outstanding at December 2, 2023 or June 3, 2023. 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 December 2, 2023, no amounts were borrowed under the Credit

Facility. We have $4.3 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 Consolidated Financial Statements and Supplementary Data, Note 10 -

Credit Facility included in our 2023 Annual Report for further information regarding our long-term debt.

Dividends

In accordance with our variable dividend policy, we will pay a cash dividend totaling approximately $5.7 million, or

approximately $0.116 per share to holders of our common and Class A common stock with respect to our second fiscal quarter

of 2024. The amount paid per share will vary based on the number of outstanding shares on the record date. The dividend is

payable on February 15, 2024 to holders of record on January 31, 2024. 

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 December 2, 2023 (in thousands):

29

Project(s) Type

Projected 

Completion

Projected Cost

Spent as of

December 2, 2023

Remaining

Projected Cost

Cage-Free Layer & Pullet Houses

Fiscal 2025

54,702

36,370

18,332

Feed Mill

Fiscal 2025

10,486

2,486

8,000

Cage-Free Layer & Pullet Houses

Fiscal 2026

78,982

59,000

19,982

Cage-Free Layer & Pullet Houses

Fiscal 2027

56,732

29,334

27,398

$

200,902

$

127,190

$

73,712

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. 

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

2023 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 thirteen weeks ended December 2, 2023 from

the information provided in Part II Item 7A, Quantitative and Qualitative Disclosures About Market Risk in our 2023 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 December 2, 2023 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 December 2, 2023

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

30

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 2023 Annual

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

Data, Note 16 - 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 2023 Annual Report, except as

reported herein in Part I Item 2 under the heading “HPAI.”

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

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

quarter of fiscal 2024.

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.

31

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: 

January 3, 2024

/s/ Max P. Bowman

Max P. Bowman

Vice President, Chief Financial Officer

(Principal Financial Officer)

໿

Date: 

January 3, 2024

/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:

January 3, 2024

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:

January 3, 2024

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

December 2, 2023 (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:

January 3, 2024

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 02, 2023	Jan. 03, 2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 02, 2023
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	--06-01
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000016160
Common Stock [Member]
Entity Common Stock, Shares Outstanding		44,182,613
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		4,800,000

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 02, 2023	Jun. 03, 2023
Current assets:
Cash and cash equivalents	$ 361,783	$ 292,824
Investment securities available-for-sale	206,045	355,090
Trade and other receivables, net	165,391	120,247
Income tax receivable	33,771	66,966
Inventories	287,270	284,418
Prepaid expenses and other current assets	9,673	5,380
Total current assets	1,063,933	1,124,925
Property, plant & equipment, net	815,468	744,540
Investments in unconsolidated entities	14,370	14,449
Goodwill	45,776	44,006
Intangible assets, net	17,074	15,897
Other long-term assets	10,184	10,708
Total Assets	1,966,805	1,954,525
Current liabilities:
Trade accounts payable	98,144	82,590
Accrued wages and benefits	20,164	38,733
Accrued income taxes payable	8,445	8,288
Dividends payable	5,682	37,130
Accrued expenses and other liabilities	21,352	15,990
Total current liabilities	153,787	182,731
Other noncurrent liabilities	30,571	9,999
Deferred income taxes, net	158,483	152,212
Total liabilities	342,841	344,942
Commitments and contingencies - see Note 10
Stockholders' equity:
Paid-in capital	74,214	72,112
Retained earnings	1,583,071	1,571,112
Accumulated other comprehensive loss, net of tax	(1,614)	(2,886)
Common stock in treasury at cost - 26,078 shares at December 2, 2023 and 26,077 shares at June 3, 2023	(30,014)	(30,008)
Total Cal-Maine Foods, Inc. stockholders' equity	1,626,408	1,611,081
Noncontrolling interest in consolidated entity	(2,444)	(1,498)
Total stockholders' equity	1,623,964	1,609,583
Total Liabilities and Stockholders' Equity	1,966,805	1,954,525
Common Stock [Member]
Stockholders' equity:
Common stock ($0.01 par value):	703	703
Class A Convertible Common Stock [Member]
Stockholders' equity:
Common stock ($0.01 par value):	$ 48	$ 48

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 02, 2023	Jun. 03, 2023
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)	26,078,000	26,077,000
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 Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022
Condensed Consolidated Statements of Income [Abstract]
Net sales	$ 523,234	$ 801,700	$ 982,578	$ 1,460,044
Cost of sales	432,104	483,851	846,015	924,705
Gross profit	91,130	317,849	136,563	535,339
Selling, general and administrative	76,578	57,952	128,824	111,559
Loss on disposal of fixed assets	318	29	262	62
Operating income	14,234	259,868	7,477	423,718
Other income (expense):
Interest income, net	6,987	1,930	14,333	2,833
Royalty income	301	344	650	772
Equity income (loss) of unconsolidated entities	29	(987)	(441)	(843)
Other, net	567	1,113	832	1,268
Total other income, net	7,884	2,400	15,374	4,030
Income before income taxes	22,118	262,268	22,851	427,748
Income tax expense	5,540	63,974	5,862	104,320
Net income	16,578	198,294	16,989	323,428
Less: Loss attributable to noncontrolling interest	(431)	(293)	(946)	(446)
Net income attributable to Cal-Maine Foods, Inc.	$ 17,009	$ 198,587	$ 17,935	$ 323,874
Net income per common share:
Basic (in dollars per share)	$ 0.35	$ 4.08	$ 0.37	$ 6.66
Diluted (in dollars per share)	$ 0.35	$ 4.07	$ 0.37	$ 6.63
Weighted average shares outstanding:
Basic (in shares)	48,690	48,624	48,691	48,624
Diluted (in shares)	48,866	48,840	48,854	48,827

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022
Condensed Consolidated Statements of Comprehensive Income [Abstract]
Net income	$ 16,578	$ 198,294	$ 16,989	$ 323,428
Other comprehensive income (loss), before tax:
Unrealized holding gain (loss) on available-for-sale securities, net of reclassification adjustments	895	(974)	1,681	(1,971)
Income tax benefit (expense) related to items of other comprehensive income	(218)	237	(409)	480
Other comprehensive Income (loss), net of tax	677	(737)	1,272	(1,491)
Comprehensive income	17,255	197,557	18,261	321,937
Less: Comprehensive loss attributable to the noncontrolling interest	(431)	(293)	(946)	(446)
Comprehensive income attributable to Cal-Maine Foods, Inc.	$ 17,686	$ 197,850	$ 19,207	$ 322,383

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022
Cash flows from operating activities:
Net income	$ 16,989	$ 323,428
Depreciation and amortization	39,394	34,729
Deferred income taxes	5,862	(540)
Other adjustments, net	11,407	(12,830)
Net cash provided by operations	73,652	344,787
Cash flows from investing activities:
Purchases of investment securities	(43,569)	(152,365)
Sales and maturities of investment securities	196,104	65,279
Investment in unconsolidated entities	(363)	0
Acquisition of business	(53,746)	0
Purchases of property, plant and equipment	(65,774)	(59,709)
Net proceeds from disposal of property, plant and equipment	150	92
Net cash provided by (used in) investing activities	32,802	(146,703)
Cash flows from financing activities:
Payments of dividends	(37,276)	(78,394)
Purchase of common stock by treasury	(5)	(45)
Principal payments on finance lease	(214)	(94)
Net cash used in financing activities	(37,495)	(78,533)
Net change in cash and cash equivalents	68,959	119,551
Cash and cash equivalents at beginning of period	292,824	59,084
Cash and cash equivalents at end of period	$ 361,783	$ 178,635

XML

Summary of Significant Accounting Policies

6 Months Ended

Dec. 02, 2023

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 June 3, 2023 (the

“2023 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 December 2, 2023 and November 26, 2022 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

The Company has determined that its debt securities are available-for-sale investments. We classify these securities as current

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

on quoted market prices as of the balance sheet date, with unrealized gains and losses recorded in other comprehensive income.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and is

recorded in interest income. 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 allowance for credit losses, limited to the amount

that fair value was less than the amortized cost basis. 

Investments in mutual funds are recorded at fair value and are classified as “Other long-term assets” in the Company’s

Condensed Consolidated Balance Sheets. Unrealized gains and losses for equity securities are recorded in other income

(expenses) as Other, net in the Company’s Condensed Consolidated Statements of Income.

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 Income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of December 2, 2023 and June

3, 2023, reserves for credit losses were $

536

 thousand and $

579

 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.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill is

evaluated for impairment annually by first performing a qualitative assessment to determine whether a quantitative goodwill

test is necessary. After assessing the totality of events or circumstances, if we determine it is more likely than not that the fair

value of a reporting unit is less than its carrying amount, then we perform additional quantitative tests to determine the

magnitude of any impairment.

Intangible Assets

Intangible assets are initially recorded at fair value in business acquisitions, which include franchise rights, customer

relationships, non-compete agreements, trademark and right of use intangibles. They are amortized over their estimated useful

lives of 5 to 15 years. The gross cost and accumulated amortization of intangible assets are removed when the recorded

amounts are fully amortized and the asset is no longer in use or the contract has expired. When certain events or changes in

operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability

of the carrying amounts.

Indefinite life assets are recorded at fair value in business acquisitions and represents water rights. They are not amortized, but

are reviewed for impairment at least annually or more frequently if impairment indicators arise.

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. The dividend policy is subject to periodic review by the Board of

Directors.

Business Combinations

The Company applies the acquisition method of accounting, which requires that once control is obtained, all the assets acquired

and liabilities assumed, including amounts attributable to noncontrolling interests, are recorded at their respective fair values at

the date of acquisition. We determine the fair values of identifiable assets and liabilities internally, which requires estimates and

the use of various valuation techniques. When a market value is not readily available, our internal valuation methodology

considers the remaining estimated life of the assets acquired and what management believes is the market value for those assets. 

We typically use the income method approach for intangible assets acquired in a business combination. Significant estimates in

valuing certain intangible assets include, but are not limited to, the amount and timing of future cash flows, growth rates,

discount rates and useful lives. The excess of the purchase price over fair values of identifiable assets and liabilities is recorded

as goodwill.

Loss Contingencies

Certain conditions may exist as of the date the financial statements are issued that may result in a loss to the Company but

which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal

counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss

contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such

proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well

as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability

can be estimated, the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates a

potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the

nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be

disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the

nature of the guarantee would be disclosed. 

The Company expenses the costs of litigation as they are incurred.

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

Acquisition

6 Months Ended

Dec. 02, 2023

Acquisition [Abstract]

Acquisition

Note 2 - Acquisition

Effective

September 30, 2023

, the Company acquired the assets of Fassio Egg Farms, Inc. (“Fassio”), related to its commercial

shell egg production and processing business. Fassio owns and operates commercial shell egg production and processing

facilities with a capacity at the time of acquisition of approximately

1.2

 million laying hens, primarily cage-free, a feed mill,

pullets, a fertilizer production and composting operation and land located in Erda, Utah, outside Salt Lake City. The Company

accounted for the acquisition as a business combination. 

The following table summarizes the consideration paid for Fassio and the amounts of the assets acquired and liabilities assumed

recognized at the acquisition date (in thousands):

Inventory consisted primarily of flock, feed ingredients, packaging, and egg inventory. Flock inventory was valued at carrying

value as management believes that its carrying value best approximates its fair value. Feed ingredients, packaging and egg

inventory were all valued based on market prices as of September 30, 2023. 

Property, plant and equipment were valued utilizing the cost approach which is based on replacement or reproduction costs of

the assets and subtracting any depreciation resulting from physical deterioration and/or functional or economic obsolescence.

Intangible assets consisted primarily of water rights within the property acquired. Water rights were valued using the sales

comparison approach.

Contingent consideration liability was recorded and represents potential future cash payment to the sellers contingent on the

acquired business meeting certain return on profitability milestones over a

three-year

 period, commencing on the date of the

acquisition. The fair value of the contingent consideration is estimated using a discounted cash flow model. Key assumptions

and unobservable inputs that require significant judgement used in the estimate include weighted average cost of capital, egg

prices, projected revenue and expenses over which the contingent considered is measured, and the probability assessments with

respect to the likelihood of achieving the forecasted projections. A range of potential outcomes cannot be reasonably estimated

due to market volatility of egg prices.

Goodwill represents the excess of the purchase price of the acquired business over the acquisition date fair value of the net

assets acquired. Goodwill recorded in connection with the Fassio acquisition is primarily attributable to improved efficiencies

from integrating the assets of Fassio with the operations of the Company. The Company recognized goodwill of $1.8 million as

a result of the acquisition.

Cash consideration paid

$

53,746

Fair value of contingent consideration

1,000

Total estimated purchase consideration

54,746

Recognized amounts of identifiable assets acquired and liabilities assumed

Inventory

$

6,164

Property, plant and equipment

44,540

Intangible assets

2,272

Other long-term assets

143

Liabilities assumed

(143)

Total identifiable net assets

52,976

Goodwill

1,770

$

54,746

XML

Investment Securities

6 Months Ended

Dec. 02, 2023

Investments Securities [Abstract]

Investment Securities

Note 3 - Investment

Securities

The following represents the Company’s investment securities as of December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

6,141

$

—

$

108

$

6,033

Commercial paper

2,791

—

2

2,789

Corporate bonds

98,202

—

535

97,667

Certificates of deposits

1,125

—

6

1,119

US government and agency obligations

88,470

—

116

88,354

Asset backed securities

10,045

38

—

10,083

Total current investment securities

$

206,774

$

38

$

767

$

206,045

Mutual funds

$

2,190

$

—

$

24

$

2,166

Total noncurrent investment securities

$

2,190

$

—

$

24

$

2,166

June 3, 2023

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,571

$

—

$

275

$

16,296

Commercial paper

56,486

—

77

56,409

Corporate bonds

139,979

—

1,402

138,577

Certificates of deposits

675

—

—

675

US government and agency obligations

101,240

—

471

100,769

Asset backed securities

13,459

—

151

13,308

Treasury bills

29,069

—

13

29,056

Total current investment securities

$

357,479

$

—

$

2,389

$

355,090

Mutual funds

$

2,172

$

—

$

91

$

2,081

Total noncurrent investment securities

$

2,172

$

—

$

91

$

2,081

Available-for-sale

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

196.1

 million and $

65.3

 million during the

twenty-six weeks ended December 2, 2023 and November 26, 2022, respectively. Gross realized gains for the twenty-six weeks

ended December 2, 2023 and November 26, 2022 were $

7

 thousand and $

2

 thousand, respectively. Gross realized losses for the

twenty-six weeks ended December 2, 2023 and November 26, 2022 were $

8

 thousand and $

63

 thousand, respectively. There

were

no

 allowances for credit losses at December 2, 2023 and June 3, 2023.

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 December 2, 2023 are as follows (in thousands):

Estimated Fair Value

Within one year

$

145,788

1-5 years

60,257

Total

$

206,045

Noncurrent 

There were

no

 sales of noncurrent investment securities during the twenty-six weeks ended December 2, 2023 and November

26, 2022.

XML

Fair Value Measurements

6 Months Ended

Dec. 02, 2023

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4 - 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.

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 December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

6,033

$

—

$

6,033

Commercial paper

—

2,789

—

2,789

Corporate bonds

—

97,667

—

97,667

Certificates of deposits

—

1,119

—

1,119

US government and agency obligations

—

88,354

—

88,354

Asset backed securities

—

10,083

—

10,083

Mutual funds

2,166

—

—

2,166

Total assets measured at fair value

$

2,166

$

206,045

$

—

$

208,211

Liabilities

Contingent consideration

$

—

$

—

$

1,000

$

1,000

Total liabilities measured at fair value

$

—

$

—

$

1,000

$

1,000

June 3, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,296

$

—

$

16,296

Commercial paper

—

56,409

—

56,409

Corporate bonds

—

138,577

—

138,577

Certificates of deposits

—

675

—

675

US government and agency obligations

—

100,769

—

100,769

Asset backed securities

—

13,308

—

13,308

Treasury bills

—

29,056

—

29,056

Mutual funds

2,081

—

—

2,081

Total assets measured at fair value

$

2,081

$

355,090

$

—

$

357,171

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.

Contingent consideration classified as Level 3 consists of the potential obligation to pay an earnout to the sellers of Fassio

contingent on the acquired business meeting certain return on profitability milestones over a

three-year

 period, commencing on

the date of the acquisition. The fair value of the contingent consideration is estimated using a discounted cash flow model. Key

assumptions and unobservable inputs that require significant judgement used in the estimate include weighted average cost of

capital, egg prices, projected revenue and expenses over which the contingent considered is measured, and the probability

assessments with respect to the likelihood of achieving the forecasted projections. See further discussion in

XML

Inventories

6 Months Ended

Dec. 02, 2023

Inventories [Abstract]

Inventories

Note 5 - Inventories

Inventories consisted of the following as of December 2, 2023 and June 3, 2023 (in thousands):

December 2, 2023

June 3, 2023

Flocks, net of amortization

$

162,323

$

164,540

Eggs and egg products

30,485

28,318

Feed and supplies

94,462

91,560

$

287,270

$

284,418

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

December 2, 2023 and June 3, 2023 consisted of approximately

10.6

 million and

10.8

 million pullets and breeders and

43.3

million and

41.2

 million layers, respectively.

XML

Equity

6 Months Ended

Dec. 02, 2023

Equity [Abstract]

Equity

Note 6 - Equity

The following reflects equity activity for the thirteen weeks ended December 2, 2023 and November 26, 2022 (in thousands):

Thirteen Weeks Ended December 2, 2023

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

September 2, 2023

$

703

$

48

$

(30,014)

$

73,153

$

(2,291)

$

1,571,744

$

(2,013)

$

1,611,330

Other comprehensive

income, net of tax

—

—

—

—

677

—

—

677

Stock compensation

plan transactions

—

—

—

1,061

—

—

—

1,061

Dividends ($

0.116

per share)

Common

—

—

—

—

—

(5,125)

—

(5,125)

Class A common

—

—

—

—

—

(557)

—

(557)

Net income (loss)

—

—

—

—

—

17,009

(431)

16,578

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

Twenty-six Weeks Ended December 2, 2023

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 June 3,

2023

$

703

$

48

$

(30,008)

$

72,112

$

(2,886)

$

1,571,112

$

(1,498)

$

1,609,583

Other comprehensive

income, net of tax

—

—

—

—

1,272

—

—

1,272

Stock compensation

plan transactions

—

—

(6)

2,102

—

—

—

2,096

Dividends ($

0.122

per share)

Common

—

—

—

—

—

(5,390)

—

(5,390)

Class A common

—

—

—

—

—

(586)

—

(586)

Net income (loss)

—

—

—

—

—

17,935

(946)

16,989

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

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 May 28,

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

Noncontrollin

g

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

Contributions

—

—

—

—

—

—

—

—

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

XML

Net Income per Common Share

6 Months Ended

Dec. 02, 2023

Net Income per Common Share [Abstract]

Net Income per Common Share

Note 7 - Net Income per Common Share

Basic net income 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. 

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

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

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Numerator

Net income

$

16,578

$

198,294

$

16,989

$

323,428

Less: Loss attributable to

noncontrolling interest

(431)

(293)

(946)

(446)

Net income attributable to Cal-Maine

Foods, Inc.

$

17,009

$

198,587

$

17,935

$

323,874

Denominator

Weighted-average common shares

outstanding, basic

48,690

48,624

48,691

48,624

Effect of dilutive restricted shares

176

216

163

203

Weighted-average common shares

outstanding, diluted

48,866

48,840

48,854

48,827

Net income per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.35

$

4.08

$

0.37

$

6.66

Diluted

$

0.35

$

4.07

$

0.37

$

6.63

XML

Revenue from Contracts with Customers

6 Months Ended

Dec. 02, 2023

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

Note 8 - 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 expected customer returns using historical

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

same period the revenue is recognized.

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 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

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Conventional shell egg sales

$

280,599

$

541,917

$

505,879

$

967,506

Specialty shell egg sales

217,905

227,778

426,586

428,598

Egg products

20,012

28,052

42,235

55,692

Other

4,718

3,953

7,878

8,248

$

523,234

$

801,700

$

982,578

$

1,460,044

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 December 2, 2023 and June 3, 2023, 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

Dec. 02, 2023

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 9 - Stock Based Compensation

Total stock-based compensation expense was $

2.1

 and $

2.0

 million for the twenty-six weeks ended December 2, 2023 and

November 26, 2022, respectively.

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 December 2, 2023 of $

5.0

 million will be recorded over a weighted

average period of

1.7

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

14 - Stock Compensation Plans in our 2023 Annual Report for further information on our stock compensation plans.

The Company’s restricted share activity for the twenty-six weeks ended December 2, 2023 follows:

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, June 3, 2023

294,140

$

43.72

Vested

(305)

37.70

Forfeited

(1,329)

44.68

Outstanding, December 2, 2023

292,506

$

43.72

XML

Commitments and Contingencies

6 Months Ended

Dec. 02, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 10 - Commitments and Contingencies

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 appealed the First District Court’s decision to the Supreme Court of

Texas. On September 29, 2023, the Supreme Court of Texas denied the Company’s Petition for Review so the case will be

remanded to the trial court for further proceedings. 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 January 9, 2023, the court entered an order and final judgement granting the Company’s motion to

dismiss. 

On February 8, 2023, the plaintiffs appealed the lower court’s judgement to the United States Court of Appeals for the Fifth

Circuit, Case No. 23-50112. The parties filed their respective appellate briefs, but the court has not ruled on these submissions.

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,

until a subsequent settlement was reached as described below, 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 alleged 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 attacked

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

producers. 

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 trial of this case began on October 17, 2023. On December 1, 2023, the jury returned a decision awarding the Egg Products

Plaintiffs $

17.8

 million in damages. If the jury’s decision is ultimately upheld, the defendants would be jointly and severally

liable for treble damages, or $

53.3

 million, subject to credit for the Kellogg settlement described above and certain other

settlements with previous settling defendants, plus the Egg Product Plaintiffs’ reasonable attorneys’ fees. This decision is not

final and remains subject to the defendants’ motion for a directed verdict noted below and appeals by the parties. During our

second fiscal quarter of 2024, we recorded an accrued expense of $

19.6

 million in selling, general and administrative expenses

in the Company’s Condensed Consolidated Statements of Income and classified as other noncurrent liabilities in the

Company’s Condensed Consolidated Balance Sheets. The accrual represents our estimate of the Company’s proportional share

of the reasonably possible ultimate damages award, excluding the Egg Product Plaintiffs’ attorneys’ fees that we believe would

be approximately offset by the credits noted above. We and the other defendants are discussing apportionment, and our accrual

may change in the future based on the outcome of those discussions. Our accrual may also be revised in whole or in part in the

future to the extent we are successful in further proceedings in the litigation. On November 29, 2023, the defendants, including

the Company, filed a motion for judgment as a matter of law in their favor, known as a directed verdict, notwithstanding the

jury’s decision. The Company intends to continue to vigorously defend the claims asserted by the Egg Products Plaintiffs.

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., Cobb-Vantress, Inc., Cargill, Inc., George’s, Inc., Peterson Farms, Inc.

and Simmons Foods, Inc., and certain of their affiliates. The State of Oklahoma claims that through the disposal of chicken

litter the defendants polluted the Illinois River Watershed. This watershed provides water to eastern Oklahoma. The complaint

sought injunctive relief and monetary damages, but the claim for monetary damages was dismissed by the court. Cal-Maine

Foods, Inc. discontinued operations in the watershed in or around 2005. 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. We also have a

number of small contract producers that operate in the area.

The non-jury trial in the case began in September 2009 and concluded in February 2010. On January 18, 2023, the court entered

findings of fact and conclusions of law in favor of the State of Oklahoma, but no penalties were assessed. The court found the

defendants liable for state law nuisance, federal common law nuisance, and state law trespass. The court also found the

producers vicariously liable for the actions of their contract producers. The court directed the parties to confer in attempt to

reach agreement on appropriate remedies. On June 12, 2023, the court ordered the parties to mediate before the retired Tenth

Circuit Chief Judge Deanell Reece Tacha. On October 26, 2023, the parties filed separate status reports informing the court that

the mediation was unsuccessful. Also on October 26, 2023, the defendants filed a post-trial motion to dismiss and supporting

brief arguing that the case should be dismissed due to the state record before the court, the resulting mootness of the case, and

violation of due process. On November 10, 2023, the State of Oklahoma filed its response in opposition to the motion to

dismiss and on November 17, 2023, the defendants filed their reply. The court has not ruled on the motion. While management

believes there is a reasonable possibility of a material loss from the case, 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:

uncertainties inherent in any assessment of potential costs associated with injunctive relief or other penalties based on a

decision in a case tried over 13 years ago based on environmental conditions that existed at the time, the lack of guidance from

the court as to what might be considered appropriate remedies, the ongoing litigation with the State of Oklahoma and motion to

dismiss before the court, and uncertainty regarding what our proportionate share of any remedy would be, although we believe

that our share compared to the other defendants is small.

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

Subsequent Events

6 Months Ended

Dec. 02, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 11 - Subsequent Events

On December 12, 2023, the Company reported that one of the Company’s facilities in Kansas experienced an outbreak of

highly pathogenic avian influenza (“HPAI”), affecting approximately

684,000

 laying hens. Subsequent to the initial outbreak,

nearby facilities in Kansas experienced an outbreak of HPAI, affecting approximately an additional

842,000

 laying hens and

240,000

 pullets. The total of the combined outbreaks represented

3.3

% of our total flock as of December 2, 2023.

The Company has and continues to follow all guidelines provided by the United States Department of Agriculture (the

“USDA”) and other regulatory agencies to depopulate and sanitize the facilities. As such, Cal-Maine will be eligible to

participate in the USDA indemnity program and other programs designed to compensate for the loss of birds and eggs. The

Company’s plans are to repopulate the facilities and resume normal operations at the facilities within

3

-

5 months

. Due to

volatility in the market prices of eggs and uncertain future supply, demand and other market conditions, an estimate of the net

income effect cannot be reasonably made.

XML

Summary of Significant Accounting Policies (Policy)

6 Months Ended

Dec. 02, 2023

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 June 3, 2023 (the

“2023 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 December 2, 2023 and November 26, 2022 included

13 weeks

 and

26 weeks

, respectively.

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

The Company has determined that its debt securities are available-for-sale investments. We classify these securities as current

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

on quoted market prices as of the balance sheet date, with unrealized gains and losses recorded in other comprehensive income.

The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity and is

recorded in interest income. 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 allowance for credit losses, limited to the amount

that fair value was less than the amortized cost basis. 

Investments in mutual funds are recorded at fair value and are classified as “Other long-term assets” in the Company’s

Condensed Consolidated Balance Sheets. Unrealized gains and losses for equity securities are recorded in other income

(expenses) as Other, net in the Company’s Condensed Consolidated Statements of Income.

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 Income. Interest and dividends on securities classified as available-for-sale are recorded in interest income.

Trade Receivables

Trade Receivables 

Trade receivables are stated at their carrying values, which include a reserve for credit losses. As of December 2, 2023 and June

3, 2023, reserves for credit losses were $

536

 thousand and $

579

 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.

Goodwill

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the identifiable net assets acquired. Goodwill is

evaluated for impairment annually by first performing a qualitative assessment to determine whether a quantitative goodwill

test is necessary. After assessing the totality of events or circumstances, if we determine it is more likely than not that the fair

value of a reporting unit is less than its carrying amount, then we perform additional quantitative tests to determine the

magnitude of any impairment.

Intangible Assets

Intangible Assets

Intangible assets are initially recorded at fair value in business acquisitions, which include franchise rights, customer

relationships, non-compete agreements, trademark and right of use intangibles. They are amortized over their estimated useful

lives of 5 to 15 years. The gross cost and accumulated amortization of intangible assets are removed when the recorded

amounts are fully amortized and the asset is no longer in use or the contract has expired. When certain events or changes in

operating conditions occur, asset lives may be adjusted and an impairment assessment may be performed on the recoverability

of the carrying amounts.

Indefinite life assets are recorded at fair value in business acquisitions and represents water rights. They are not amortized, but

are reviewed for impairment at least annually or more frequently if impairment indicators arise.

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. The dividend policy is subject to periodic review by the Board of

Directors.

Business Combinations

Business Combinations

The Company applies the acquisition method of accounting, which requires that once control is obtained, all the assets acquired

and liabilities assumed, including amounts attributable to noncontrolling interests, are recorded at their respective fair values at

the date of acquisition. We determine the fair values of identifiable assets and liabilities internally, which requires estimates and

the use of various valuation techniques. When a market value is not readily available, our internal valuation methodology

considers the remaining estimated life of the assets acquired and what management believes is the market value for those assets. 

We typically use the income method approach for intangible assets acquired in a business combination. Significant estimates in

valuing certain intangible assets include, but are not limited to, the amount and timing of future cash flows, growth rates,

discount rates and useful lives. The excess of the purchase price over fair values of identifiable assets and liabilities is recorded

as goodwill.

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.

XML

Fair Value Measurements (Policy)

6 Months Ended

Dec. 02, 2023

Fair Value Measurements [Abstract]

Fair Value Measurement

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.

XML

Acquisition (Tables)

6 Months Ended

Dec. 02, 2023

Acquisition [Abstract]

Summary of Consideration Paid for Fassio and Amounts of Assets Acquired and Liabilities Assumed

Cash consideration paid

$

53,746

Fair value of contingent consideration

1,000

Total estimated purchase consideration

54,746

Recognized amounts of identifiable assets acquired and liabilities assumed

Inventory

$

6,164

Property, plant and equipment

44,540

Intangible assets

2,272

Other long-term assets

143

Liabilities assumed

(143)

Total identifiable net assets

52,976

Goodwill

1,770

$

54,746

XML

Investment Securities (Tables)

6 Months Ended

Dec. 02, 2023

Investments Securities [Abstract]

Schedule Of Investment Securities

December 2, 2023

Amortized

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

6,141

$

—

$

108

$

6,033

Commercial paper

2,791

—

2

2,789

Corporate bonds

98,202

—

535

97,667

Certificates of deposits

1,125

—

6

1,119

US government and agency obligations

88,470

—

116

88,354

Asset backed securities

10,045

38

—

10,083

Total current investment securities

$

206,774

$

38

$

767

$

206,045

Mutual funds

$

2,190

$

—

$

24

$

2,166

Total noncurrent investment securities

$

2,190

$

—

$

24

$

2,166

June 3, 2023

Amortized 

Cost

Unrealized 

Gains

Unrealized

Losses

Estimated 

Fair Value

Municipal bonds

$

16,571

$

—

$

275

$

16,296

Commercial paper

56,486

—

77

56,409

Corporate bonds

139,979

—

1,402

138,577

Certificates of deposits

675

—

—

675

US government and agency obligations

101,240

—

471

100,769

Asset backed securities

13,459

—

151

13,308

Treasury bills

29,069

—

13

29,056

Total current investment securities

$

357,479

$

—

$

2,389

$

355,090

Mutual funds

$

2,172

$

—

$

91

$

2,081

Total noncurrent investment securities

$

2,172

$

—

$

91

$

2,081

Schedule Of Contractual Maturities Of Investment Securities

Estimated Fair Value

Within one year

$

145,788

1-5 years

60,257

Total

$

206,045

XML

Fair Value Measurements (Tables)

6 Months Ended

Dec. 02, 2023

Fair Value Measurements [Abstract]

Schedule Of Assets Measured At Fair Value On A Recurring Basis

December 2, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

6,033

$

—

$

6,033

Commercial paper

—

2,789

—

2,789

Corporate bonds

—

97,667

—

97,667

Certificates of deposits

—

1,119

—

1,119

US government and agency obligations

—

88,354

—

88,354

Asset backed securities

—

10,083

—

10,083

Mutual funds

2,166

—

—

2,166

Total assets measured at fair value

$

2,166

$

206,045

$

—

$

208,211

Liabilities

Contingent consideration

$

—

$

—

$

1,000

$

1,000

Total liabilities measured at fair value

$

—

$

—

$

1,000

$

1,000

June 3, 2023

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

$

—

$

16,296

$

—

$

16,296

Commercial paper

—

56,409

—

56,409

Corporate bonds

—

138,577

—

138,577

Certificates of deposits

—

675

—

675

US government and agency obligations

—

100,769

—

100,769

Asset backed securities

—

13,308

—

13,308

Treasury bills

—

29,056

—

29,056

Mutual funds

2,081

—

—

2,081

Total assets measured at fair value

$

2,081

$

355,090

$

—

$

357,171

XML

Inventories (Tables)

6 Months Ended

Dec. 02, 2023

Inventories [Abstract]

Schedule of Inventories

December 2, 2023

June 3, 2023

Flocks, net of amortization

$

162,323

$

164,540

Eggs and egg products

30,485

28,318

Feed and supplies

94,462

91,560

$

287,270

$

284,418

XML

Equity (Tables)

6 Months Ended

Dec. 02, 2023

Equity [Abstract]

Summary of Equity Activity

Thirteen Weeks Ended December 2, 2023

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

September 2, 2023

$

703

$

48

$

(30,014)

$

73,153

$

(2,291)

$

1,571,744

$

(2,013)

$

1,611,330

Other comprehensive

income, net of tax

—

—

—

—

677

—

—

677

Stock compensation

plan transactions

—

—

—

1,061

—

—

—

1,061

Dividends ($

0.116

per share)

Common

—

—

—

—

—

(5,125)

—

(5,125)

Class A common

—

—

—

—

—

(557)

—

(557)

Net income (loss)

—

—

—

—

—

17,009

(431)

16,578

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

Twenty-six Weeks Ended December 2, 2023

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 June 3,

2023

$

703

$

48

$

(30,008)

$

72,112

$

(2,886)

$

1,571,112

$

(1,498)

$

1,609,583

Other comprehensive

income, net of tax

—

—

—

—

1,272

—

—

1,272

Stock compensation

plan transactions

—

—

(6)

2,102

—

—

—

2,096

Dividends ($

0.122

per share)

Common

—

—

—

—

—

(5,390)

—

(5,390)

Class A common

—

—

—

—

—

(586)

—

(586)

Net income (loss)

—

—

—

—

—

17,935

(946)

16,989

Balance at December

2, 2023

$

703

$

48

$

(30,014)

$

74,214

$

(1,614)

$

1,583,071

$

(2,444)

$

1,623,964

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 May 28,

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

Noncontrollin

g

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

Contributions

—

—

—

—

—

—

—

—

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

XML

Net Income per Common Share (Tables)

6 Months Ended

Dec. 02, 2023

Net Income per Common Share [Abstract]

Computation of Basic and Diluted Net Income Per Share

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Numerator

Net income

$

16,578

$

198,294

$

16,989

$

323,428

Less: Loss attributable to

noncontrolling interest

(431)

(293)

(946)

(446)

Net income attributable to Cal-Maine

Foods, Inc.

$

17,009

$

198,587

$

17,935

$

323,874

Denominator

Weighted-average common shares

outstanding, basic

48,690

48,624

48,691

48,624

Effect of dilutive restricted shares

176

216

163

203

Weighted-average common shares

outstanding, diluted

48,866

48,840

48,854

48,827

Net income per common share

attributable to Cal-Maine Foods, Inc.

Basic

$

0.35

$

4.08

$

0.37

$

6.66

Diluted

$

0.35

$

4.07

$

0.37

$

6.63

XML

Revenue from Contracts with Customers (Tables)

6 Months Ended

Dec. 02, 2023

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue

Thirteen Weeks Ended

Twenty-six Weeks Ended

December 2, 2023

November 26, 2022

December 2, 2023

November 26, 2022

Conventional shell egg sales

$

280,599

$

541,917

$

505,879

$

967,506

Specialty shell egg sales

217,905

227,778

426,586

428,598

Egg products

20,012

28,052

42,235

55,692

Other

4,718

3,953

7,878

8,248

$

523,234

$

801,700

$

982,578

$

1,460,044

XML

Stock Based Compensation (Tables)

6 Months Ended

Dec. 02, 2023

Stock Based Compensation [Abstract]

Summary of Equity Award Activity

Number of

Shares

Weighted

Average Grant

Date Fair Value

Outstanding, June 3, 2023

294,140

$

43.72

Vested

(305)

37.70

Forfeited

(1,329)

44.68

Outstanding, December 2, 2023

292,506

$

43.72

XML

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022	Jun. 03, 2023
Summary of Significant Accounting Policies [Abstract]
Fiscal period duration	91 days	91 days	182 days	182 days
Reserves for credit losses	$ 536		$ 536		$ 579
Percentage of net income loss used to compute accrued dividends			33.33%

XML

Acquisition (Narrative) (Details) $ in Thousands, Layers in Millions		6 Months Ended
	Sep. 30, 2023 USD ($) Layers	Dec. 02, 2023 USD ($)	Jun. 03, 2023 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 45,776	$ 44,006
Fassio Egg Farms, Inc. [Member]
Business Acquisition [Line Items]
Effective date of acquisition		Sep. 30, 2023
Layer capacity | Layers	1.2
Contingent consideration measurement period		3 years
Goodwill	$ 1,770

XML

Acquisition (Summary of Consideration Paid for Fassio and Amounts of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 02, 2023	Jun. 03, 2023
Business Acquisition [Line Items]
Goodwill		$ 45,776	$ 44,006
Fassio Egg Farms, Inc. [Member]
Business Acquisition [Line Items]
Cash consideration paid	$ 53,746
Fair value of contingent consideration	1,000
Total estimated purchase price	54,746
Inventory	6,164
Property, plant and equipment	44,540
Intangible assets	2,272
Other long-term assets	143
Liabilities assumed	(143)
Total identifiable net assets	52,976
Goodwill	1,770
Total identifiable net assets and goodwill	$ 54,746

XML

Investment Securities (Narrative) (Details) - USD ($)	6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Jun. 03, 2023
Investments Securities [Abstract]
Proceeds from sale of available-for-sale securities, current	$ 196,100,000	$ 65,300,000
Proceeds from sale of available-for-sale securities, noncurrent	0	0
Gross realized gains on sales of available-for-sale securities, current	7,000	2,000
Gross realized losses on sales of available-for-sale securities, current	8,000	$ 63,000
Allowance for credit losses	$ 0		$ 0

XML

Investment Securities (Schedule of Investment Securities) (Details) - USD ($) $ in Thousands	Dec. 02, 2023	Jun. 03, 2023
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	$ 206,774	$ 357,479
Unrealized Gains, Current	38	0
Unrealized Losses, Current	767	2,389
Estimated Fair Value, Current	206,045	355,090
Amortized Cost, Noncurrent	2,190	2,172
Unrealized Gains, Noncurrent	0	0
Unrealized Losses, Noncurrent	24	91
Estimated Fair Value, Noncurrent	2,166	2,081
Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	6,141	16,571
Unrealized Gains, Current	0	0
Unrealized Losses, Current	108	275
Estimated Fair Value, Current	6,033	16,296
Commercial Paper [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	2,791	56,486
Unrealized Gains, Current	0	0
Unrealized Losses, Current	2	77
Estimated Fair Value, Current	2,789	56,409
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	98,202	139,979
Unrealized Gains, Current	0	0
Unrealized Losses, Current	535	1,402
Estimated Fair Value, Current	97,667	138,577
Certificates of Deposits [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	1,125	675
Unrealized Gains, Current	0	0
Unrealized Losses, Current	6	0
Estimated Fair Value, Current	1,119	675
US Government and Agency Obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	88,470	101,240
Unrealized Gains, Current	0	0
Unrealized Losses, Current	116	471
Estimated Fair Value, Current	88,354	100,769
Asset Backed Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current	10,045	13,459
Unrealized Gains, Current	38	0
Unrealized Losses, Current	0	151
Estimated Fair Value, Current	10,083	13,308
Treasury Bills [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Current		29,069
Unrealized Gains, Current		0
Unrealized Losses, Current		13
Estimated Fair Value, Current		29,056
Mutual Funds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost, Noncurrent	2,190	2,172
Unrealized Gains, Noncurrent	0	0
Unrealized Losses, Noncurrent	24	91
Estimated Fair Value, Noncurrent	$ 2,166	$ 2,081

XML

Investment Securities (Schedule of Contractual Maturities of Investment Securities) (Details) - USD ($) $ in Thousands	Dec. 02, 2023	Jun. 03, 2023
Investments Securities [Abstract]
Within one year	$ 145,788
1-5 years	60,257
Total	$ 206,045	$ 355,090

XML

Fair Value Measurements (Narrative) (Details)	6 Months Ended
	Dec. 02, 2023
Fassio Egg Farms, Inc. [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration measurement period	3 years

XML

Fair Value Measurements (Schedule of Assets Measured at Fair Value on A Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 02, 2023	Jun. 03, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 208,211	$ 357,171
Liabilities measured at fair value	1,000
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	2,166	2,081
Liabilities measured at fair value	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	206,045	355,090
Liabilities measured at fair value	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Liabilities measured at fair value	1,000
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	6,033	16,296
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	6,033	16,296
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	2,789	56,409
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	2,789	56,409
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	97,667	138,577
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	97,667	138,577
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	1,119	675
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	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	1,119	675
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	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	88,354	100,769
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	88,354	100,769
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	10,083	13,308
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	10,083	13,308
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		29,056
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		29,056
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	2,166	2,081
Mutual Funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	2,166	2,081
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

XML

Inventories (Narrative) (Details) pullet_and_breeder in Millions, Layers in Millions, $ in Millions	Dec. 02, 2023 Layers pullet_and_breeder	Jun. 03, 2023 USD ($)
Inventories [Abstract]
Pullets and breeders	10.6	10.8
Layers	43.3	41.2

XML

Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 02, 2023	Jun. 03, 2023
Inventories [Abstract]
Flocks, net of amortization	$ 162,323	$ 164,540
Eggs and egg products	30,485	28,318
Feed and supplies	94,462	91,560
Total inventories	$ 287,270	$ 284,418

XML

Equity (Summary of Equity Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022
Beginning balance	$ 1,611,330	$ 1,187,963	$ 1,609,583	$ 1,104,345
Other comprehensive income (loss), net of tax	677	(737)	1,272	(1,491)
Stock compensation plan transactions	1,061	987	2,096	1,967
Net income (loss)	16,578	198,294	16,989	323,428
Ending balance	$ 1,623,964	$ 1,320,305	$ 1,623,964	$ 1,320,305
Dividends per common share (in dollars per share)	$ 0.116	$ 1.353	$ 0.122	$ 2.206
Common Stock [Member]
Beginning balance	$ 703	$ 703	$ 703	$ 703
Ending balance	703	703	703	703
Treasury Stock [Member]
Beginning balance	(30,014)	(28,495)	(30,008)	(28,447)
Stock compensation plan transactions		(1)	(6)	(49)
Ending balance	(30,014)	(28,496)	(30,014)	(28,496)
Paid In Capital [Member]
Beginning balance	73,153	69,017	72,112	67,989
Stock compensation plan transactions	1,061	988	2,102	2,016
Ending balance	74,214	70,005	74,214	70,005
Accum. Other Comp. Loss [Member]
Beginning balance	(2,291)	(2,350)	(2,886)	(1,596)
Other comprehensive income (loss), net of tax	677	(737)	1,272	(1,491)
Ending balance	(1,614)	(3,087)	(1,614)	(3,087)
Retained Earnings [Member]
Beginning balance	1,571,744	1,149,399	1,571,112	1,065,854
Net income (loss)	17,009	198,587	17,935	323,874
Ending balance	1,583,071	1,281,784	1,583,071	1,281,784
Noncontrolling Interest [Member]
Beginning balance	(2,013)	(359)	(1,498)	(206)
Net income (loss)	(431)	(293)	(946)	(446)
Ending balance	(2,444)	(652)	(2,444)	(652)
Common Stock [Member]
Dividends	(5,125)	(59,708)	(5,390)	(97,355)
Common Stock [Member] | Retained Earnings [Member]
Dividends	(5,125)	(59,708)	(5,390)	(97,355)
Class A Common Stock [Member]
Dividends	(557)	(6,494)	(586)	(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	$ (557)	$ (6,494)	$ (586)	$ (10,589)

XML

Net Income 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
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022
Net Income per Common Share [Abstract]
Net income	$ 16,578	$ 198,294	$ 16,989	$ 323,428
Less: Loss attributable to noncontrolling interest	(431)	(293)	(946)	(446)
Net income attributable to Cal-Maine Foods, Inc.	$ 17,009	$ 198,587	$ 17,935	$ 323,874
Denominator
Weighted-average common shares outstanding, basic (in shares)	48,690	48,624	48,691	48,624
Effect of dilutive restricted shares (in shares)	176	216	163	203
Weighted-average common shares outstanding, diluted (in shares)	48,866	48,840	48,854	48,827
Net income per common share attributable to Cal-Maine Foods, Inc.
Basic (in dollars per share)	$ 0.35	$ 4.08	$ 0.37	$ 6.66
Diluted (in dollars per share)	$ 0.35	$ 4.07	$ 0.37	$ 6.63

XML

Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022	Dec. 02, 2023	Nov. 26, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 523,234	$ 801,700	$ 982,578	$ 1,460,044
Conventional shell egg sales [Member]
Disaggregation of Revenue [Line Items]
Net sales	280,599	541,917	505,879	967,506
Specialty shell egg sales [Member]
Disaggregation of Revenue [Line Items]
Net sales	217,905	227,778	426,586	428,598
Egg products [Member]
Disaggregation of Revenue [Line Items]
Net sales	20,012	28,052	42,235	55,692
Other [Member]
Disaggregation of Revenue [Line Items]
Net sales	$ 4,718	$ 3,953	$ 7,878	$ 8,248

XML

Stock Based Compensation (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 02, 2023	Nov. 26, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 5.0
Weighted average period of unrecognized compensation expense	1 year 8 months 12 days
Stock based compensation expense	$ 2.1	$ 2.0

XML

Stock Based Compensation (Summary of Equity Award Activity) (Details)	6 Months Ended
	Dec. 02, 2023 $ / 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	294,140
Number of Shares, Vested (in shares) | shares	(305)
Number of Shares, Forfeited (in shares) | shares	(1,329)
Number of Shares, Outstanding, Ending Balance (in shares) | shares	292,506
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	$ 43.72
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | $ / shares	37.70
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | $ / shares	44.68
Weighted Average Grant Date Fair Value, Outstanding, Ending Balance (in dollars per share) | $ / shares	$ 43.72

XML

Commitments and Contingencies (Narrative) (Details)			3 Months Ended	6 Months Ended
	Dec. 01, 2023 USD ($)	Apr. 23, 2020 $ / Claim	Dec. 02, 2023 USD ($)	Dec. 02, 2023 USD ($)
Benton County Foods [Member]
Loss Contingencies [Line Items]
Ownership interest			100.00%	100.00%
Kraft Foods Global, Inc. et al. v. United Egg Producers, Inc. et al [Member]
Loss Contingencies [Line Items]
Amount awarded to other party	$ 17,800,000
Treble damages	$ 53,300,000
Settlement accrual			$ 19,600,000
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

XML

Subsequent Events (Narrative) (Details)			6 Months Ended
	Dec. 18, 2023 Layers pullet_and_breeder	Dec. 12, 2023 Layers	Dec. 02, 2023
Subsequent Event [Line Items]
Percentage of flock affected by avian influenza			3.30%
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of laying hens affected by avian influenza | Layers	842,000	684,000
Number of pullets affected by avian influenza | pullet_and_breeder	240,000
Subsequent Event [Member] | Minimum [Member]
Subsequent Event [Line Items]
Amount of time to return facilities affected by avian influenza to operating status	3 months
Subsequent Event [Member] | Maximum [Member]
Subsequent Event [Line Items]
Amount of time to return facilities affected by avian influenza to operating status	5 months