Cal-Maine Foods reported a $58.6 million net loss, or $1.26 per diluted share, for the fiscal first quarter ended Aug. 29, 2026, compared with net income of $199.3 million, or $4.12 per share, a year earlier. The loss exceeded the Wall Street estimate of 64 cents per share, while net sales fell 41.5% to $539.6 million, below the $574.8 million consensus estimate. The company attributed the deterioration to low conventional wholesale egg prices, an industry supply imbalance following flock repopulation, higher feed and other input costs, and investments made before prepared foods reach their full earnings contribution. Because much of Cal-Maine's conventional business is priced behind the market, daily changes in the Urner Barry benchmark flow into realized prices with a lag. Management said it is not attempting to identify the exact bottom of the egg cycle but expects supply-demand conditions to gradually stabilize. Specialty Shell Eggs and Prepared Foods represented 54.1% of sales, up from 37.1% a year earlier, although both businesses posted lower sales and earnings. Prepared Foods capacity is expected to increase more than 60% by the first half of fiscal 2028 from the end of fiscal 2026, supported by new pancake, scrambled egg and Crepini capacity. Cal-Maine withheld its variable dividend and said the $94.5 million cumulative loss recorded as of Aug. 29 must be recovered before payments can resume. Shares were down 2.64% at $66.74 at the time of publication on Wednesday.