Cal-Maine Foods, the country's largest egg producer, reported that “revenue doubled and profits surged 718% last quarter” because of increased egg prices, according to CNN.
The report said the quarter lasted 13 weeks, ending on Feb. 25. Cal-Maine’s fiscal highlights for thequarter included:
- High egg prices drove $997.5 million in quarterly net sales.
- The quarterly net income was $323.2 million.
- The company was able to provide $107.7 million in dividends to its stockholders — $2.20 per share.
Reuters said the Mississippi-based food company controls about 20% of the nation's egg market, earning seven times more this quarter than a year ago. Cal-Maine’s average selling price for a dozen eggs went from $1.61 to $3.30 in a year.
According to Forbes, after an avian flu outbreak killed millions of chickens from competing egg producers, Cal-Maine reported that none of its hens had tested positive for the flu. So Cal-Maine was able to sell 291,000 cartons at a higher price and enjoy a 1.3% increase in unit sales, when compared to last year’s quarter.
Outrage over prices
Multiple news sources online reported Cal-Maine was accused of price gouging after it raised egg prices.
Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif., wrote in a letter to Cal-Maine CEO Adolphus Baker, “American families working to put food on the table deserve to know whether the increased prices they are paying for eggs represent a legitimate response to reduced supply or out-of-control corporate greed.”
The Deseret News previously reported that farmers and distributors were negatively impacted by egg prices. “CNBC reported that egg distributors are saying the price increase has hurt their business. One farmer told the outlet that chicken feed prices were up $14,000 per month, which contributed to the rising price of eggs.”
CNN said while egg prices have dropped slightly, according to a government inflation report from February, the prices are still 55% higher than they were last year.
Forbes reported that analysts predict a decline of 28% in quarterly revenue and 50% in profits by next quarter for Cal-Maine, which is still considerably high compared to levels recorded before 2022.