Cal-Maine Foods, Inc. (CALM): history, ownership, mission, how it works & makes money

A Brief History of Cal-Maine Foods, Inc. (CALM)

Founding and Early Years

Cal-Maine Foods, Inc. was established in 1969 in Jackson, Mississippi. It began as a small egg production company, primarily focusing on the southeastern region of the United States.

In its formative years, Cal-Maine primarily sourced its eggs from local farms, quickly expanding its operations to become a significant player in the egg industry.

Expansion and Growth

By the late 1970s, Cal-Maine Foods had tripled its production capabilities, producing approximately 1.5 million eggs daily. The company grew through strategic acquisitions and partnerships, establishing itself as a leader in the egg production market.

In the early 1990s, Cal-Maine Foods went public and began trading on the NASDAQ under the symbol CALM.

Financial Performance

For the fiscal year 2022, Cal-Maine Foods reported revenues of approximately $1.74 billion. The company's net income for the same period was around $326 million, showcasing a significant growth from the previous year.

Recent Developments

In recent years, Cal-Maine has focused on expanding its product lines, which include specialty eggs like organic and cage-free options. As of late 2022, approximately 50% of its total eggs sold were categorized as specialty eggs.

Market Position and Share

Cal-Maine Foods is recognized as the largest producer and distributor of eggs in the United States, controlling about 20% of the U.S. egg market as of 2023. The company's extensive network includes operations in 15 states across the nation.

Sustainability Initiatives

The company has implemented various sustainability initiatives, aiming for a 100% cage-free egg production system by 2025. Cal-Maine Foods emphasizes environmental responsibility and animal welfare in its operational practices.

Stock Performance

As of October 2023, Cal-Maine Foods’ stock was trading at approximately $62.34, with a market capitalization of around $3 billion. The company’s strong financial performance has led to consistent dividends for its shareholders.

A Who Owns Cal-Maine Foods, Inc. (CALM)

Ownership Structure

Cal-Maine Foods, Inc. operates primarily in the egg production sector. As of the latest available data, Cal-Maine Foods' ownership is characterized by a mix of institutional investors and individual stakeholders. The company's stock is traded publicly under the ticker symbol CALM on the NASDAQ exchange.

Top Shareholders

The following table lists the top shareholders of Cal-Maine Foods, along with the percentage of shares they own as of September 2023:

Insider Ownership

Insider ownership represents a significant portion of Cal-Maine Foods' equity. The following table provides details on the top insiders and their percentage of ownership:

Market Capitalization

As of October 2023, Cal-Maine Foods, Inc. has a market capitalization of approximately $1.6 billion.

Financial Performance

Cal-Maine Foods has reported the following financial figures for the fiscal year ending in May 2023:

Stock Performance

As of October 2023, Cal-Maine Foods, Inc. shares traded at approximately $55.50. The stock has experienced a year-to-date return of around 25%.

Conclusion on Ownership Trends

The ownership of Cal-Maine Foods is indicative of a balanced structure, with institutional investors holding a significant stake, complemented by insider ownership, providing stability and insight into the company's governance.

Cal-Maine Foods, Inc. (CALM) Mission Statement

Company Overview

Cal-Maine Foods, Inc. is the largest producer and distributor of shell eggs in the United States, with a significant presence in the egg market. The company operates in 15 states and sells its products under various brand names, including Cal-Maine, Egg-Land's Best, and Land O'Lakes.

Mission Statement

Cal-Maine Foods, Inc. is committed to producing high-quality eggs while maintaining rigorous safety standards and sustainability practices. The mission of the company is to provide nutritious and affordable egg products that meet consumer demands and enhance the well-being of customers.

Core Values

• Quality: Ensuring the highest standards in egg production and processing.
• Integrity: Conducting business with honesty and transparency.
• Innovation: Continuously improving processes and products.
• Sustainability: Committed to environmentally friendly practices.

Financial Performance

As of the latest fiscal year 2023, Cal-Maine Foods reported the following financial highlights:

Market Position

Cal-Maine Foods maintains a strong position in the industry, controlling over 20% of the U.S. shell egg market. The company leverages its extensive distribution network to reach a wide range of customers, including retail, foodservice, and industrial clients.

Commitment to Sustainability

The company prioritizes sustainability through various initiatives, including:

• Reducing greenhouse gas emissions by 25% by 2030.
• Implementing water conservation measures across all facilities.
• Utilizing cage-free production systems.
• Committing to sustainable feed sourcing.

Future Goals

Cal-Maine Foods aims to enhance its product offerings and expand its market reach. Key goals include:

• Introduction of new egg product lines to meet changing consumer preferences.
• Expansion into international markets.
• Ongoing investment in technology and infrastructure to improve efficiency.

Recent Developments

In the most recent quarter, Cal-Maine Foods experienced a significant increase in sales volume, leading to a 12% growth in year-over-year revenue. The heightened demand for egg products during economic fluctuations contributed to this positive trend.

How Cal-Maine Foods, Inc. (CALM) Works

Company Overview

Cal-Maine Foods, Inc. is the largest producer and marketer of shell eggs in the United States. The company operates approximately 50 production facilities across the country and markets its products under several brand names, including Cal-Maine, Eggland's Best, and Land O'Lakes.

Production and Operations

• Annual egg production: Approximately 1.5 billion dozen eggs.
• Key states of operation: Arkansas, Mississippi, Texas, New Mexico, and Utah.
• Number of hens in production: Around 40 million hens.
• Type of eggs produced: Conventional, cage-free, organic, and omega-3 enriched eggs.

Financial Performance

As of the fiscal year ending May 28, 2023, Cal-Maine Foods reported the following key financial figures:

Market Position

Cal-Maine Foods holds a significant market share in the U.S. egg industry, accounting for approximately 20% of the total U.S. egg production.

Distribution Channels

• Retail: Supermarkets, grocery stores, and convenience stores.
• Food Service: Restaurants, hotels, and catering services.
• Export: International markets.

Recent Developments

In 2023, Cal-Maine Foods expanded its operations with the acquisition of additional layer farms, increasing its production capacity by approximately 1 million hens.

Sustainability Initiatives

• Transitioning to cage-free housing for all hens by 2025.
• Reduction of greenhouse gas emissions: Targeting a 25% reduction by 2030.
• Investment in renewable energy: Solar power initiatives in production facilities.

Competitive Landscape

Cal-Maine Foods competes with several major companies in the egg production industry, including:

• WH Group
• Michael Foods
• Rose Acre Farms
• Rembrandt Foods

Stock Performance

As of October 2023, Cal-Maine Foods' stock (CALM) trades at approximately $61.25 per share, with a market capitalization of around $3.75 billion.

How Cal-Maine Foods, Inc. (CALM) Makes Money

Overview of Revenue Sources

Cal-Maine Foods, Inc. primarily generates revenue through the sale of shell eggs and egg products. The company is the largest producer and marketer of shell eggs in the United States, catering to a wide variety of customers including food service operations, grocery stores, and other food distributors.

Sales of Shell Eggs

In the fiscal year 2023, Cal-Maine Foods reported total revenues of approximately $1.5 billion. The majority of this revenue, around $1.3 billion, came from the sale of shell eggs. The average selling price per dozen shell eggs varied significantly, influenced by factors such as feed prices and market demand.

Production Capacity and Efficiency

Cal-Maine operates more than 50 facilities across the United States. The total production capacity reaches approximately 16 million eggs per day. The company continuously invests in technology and efficiency improvements to maintain its competitive edge in the industry.

Market Trends and Pricing

The U.S. egg market has shown significant volatility in pricing due to factors such as feed costs, avian influenza outbreaks, and consumer demand for organic and cage-free eggs. In 2023, organic and cage-free egg sales were approximately 30% of total shell egg sales, indicating a shift in consumer preferences.

Revenue from Egg Products

In addition to shell eggs, Cal-Maine also markets egg products, including liquid eggs and dry egg products. In fiscal year 2023, revenues from egg products contributed approximately $200 million to total revenues. The diversification into value-added products helps stabilize revenue against fluctuating shell egg prices.

Cost Structure

Cal-Maine’s cost structure is significantly impacted by feed costs, which typically account for around 60% of total production costs. The fluctuation of corn and soybean meal prices directly affects profitability. For instance, feed costs increased by approximately 25% in 2022 compared to the previous year due to supply chain disruptions.

Strategic Initiatives

The company has been focusing on sustainability and animal welfare initiatives. Investments in cage-free facilities are projected to cost around $100 million over the next few years as they transition toward meeting consumer demands for ethical egg production.

Conclusion on Financial Performance

Overall, Cal-Maine Foods, Inc.'s business model capitalizes on both volume and price strategies in a fluctuating market. The consistent revenue from shell egg sales, combined with strategic diversification into egg products, positions the company as a formidable player in the agricultural sector.