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Egg prices in the United States have surged by 50% over the past 12 months, creating a windfall for two major egg producers—Vital Farms and Cal-Maine Foods. While rising food costs have squeezed consumers, investors in these companies have seen remarkable returns, with both stocks outperforming even the biggest names in tech.
RIDGELAND, Miss.--(BUSINESS WIRE)--Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that the Company has acquired certain assets of Deal-Rite Feeds, Inc. and its affiliated entities, including two feed mills, storage facilities, usable grain, vehicles, related equipment and retail feed sales business located in Statesville and Union Grove, North Carolina. The Company is funding the acquisition with available cash on hand. Sherman Miller, president and chief executive officer of Cal-Maine Fo.
Shares of food company Cal-Maine Foods, Inc. (CALM) are up as prices, consumer demand increase.
Cal-Maine Foods' Kansas and Texas facilities are now operational, and recent acquisitions are expected to drive significant capacity and revenue growth in 2025 and beyond. The net average selling price per dozen eggs increased significantly, which, combined with higher production, is likely to boost revenue and free cash flow. Potential tax decreases could benefit CALM due to its consistent positive net income, while minimal exposure to tariffs and strategic acquisitions further strengthen its outlook.
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The near-term outlook for the Zacks Agriculture - Products industry is uncertain. Stocks like WFG, CALM, ANDE and HYFM are braving the industry headwinds.
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Cal-Maine's Q2 FY 2025 results show strong revenue and profit growth from higher egg prices due to avian flu, but these gains are likely short-lived. With $800M in liquidity and no debt, Cal-Maine remains financially healthy and positioned to make acquisitions when flushed with cash. Their operating model can not only point to a large flock sizes but flexibility toward the shift from conventional eggs to specialty.
CalMaine Food's second-quarter fiscal 2025 results reflect the impacts of the higher net average selling price of eggs and robust seasonal demand.
Cal-Maine Foods (CALM) shares gained Wednesday, a day after the biggest U.S. egg producer beat profit and sales estimates on higher prices, holiday season demand, and an acquisition.