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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,

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

August 30, 2025

☐

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

check

mark

whether

the

registrant: (1)

has

filed

all

reports

required

filed

Section

15(d)

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

☑

☐

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

☑

☐

Indicate by

check mark

whether the registrant

is a large

accelerated filer,

an accelerated

filer, a

non-accelerated filer,

a smaller

reporting

company,

emerging

growth

company.

See

the

definitions

“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

☐

emerging

growth

company,

indicate

check

mark

the

registrant

has

elected

not

use

the

extended

transition

period

for

complying

with

any

new

revised

financial

accounting

standards

provided

pursuant

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

☐

☑

There were

48,499,606

shares of Common Stock, $0.01 par value, outstanding as of October 1, 2025.

Index

INDEX

Page Number

Part I.

Financial Information

Item 1.

Financial Statements

Condensed Consolidated Balance Sheets -

August 30, 2025 and May 31, 2025

Condensed Consolidated Statements of Income -

Thirteen Weeks Ended August 30, 2025 and August 31, 2024

Condensed Consolidated Statements of Comprehensive Income -

Thirteen Weeks Ended August 30, 2025 and August 31, 2024

Condensed Consolidated Statements of Cash Flows -

Thirteen Weeks Ended August 30, 2025 and August 31, 2024

Notes to Condensed Consolidated Financial Statements

Item 2.

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Item 4.

Controls and Procedures

Part II.

Other Information

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 5.

Item 6.

PART

FINANCIAL

INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except for par value amounts)

(Unaudited)

August 30, 2025

May 31, 2025

Assets

Current assets:

Cash and cash equivalents

251,920

499,392

Investment securities available-for-sale

1,001,475

892,708

Trade and other receivables, net

242,848

259,304

Income tax receivable

3,073

13,057

Inventories

328,429

295,670

Prepaid expenses and other current assets

19,109

7,979

Total current

assets

1,846,854

1,968,110

Property, plant &

equipment, net

1,195,545

1,026,684

Investments in unconsolidated entities

10,905

11,095

Goodwill

75,815

46,776

Intangible assets, net

50,444

15,157

Other long-term assets

16,829

16,797

Total Assets

3,196,392

3,084,619

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

108,771

101,033

Accrued wages and benefits

26,328

60,263

Income taxes payable

40,386

—

Dividends payable

66,457

114,163

Accrued expenses and other liabilities

28,009

32,912

Total current

liabilities

269,951

308,371

Other noncurrent liabilities

55,575

55,582

Deferred income taxes, net

168,949

154,651

Total liabilities

494,475

518,604

Commitments and contingencies - see Note 10

—

Stockholders’ equity:

Common stock ($

0.01

par value) - authorized

120,000

shares, issued

75,061

751

Paid-in capital

82,134

80,845

Retained earnings

2,698,811

2,565,928

Accumulated other comprehensive income (loss), net of tax

954

(1,007)

Common stock in treasury at cost –

26,561

shares at August 30, 2025 and

26,567

shares at May 31, 2025

(85,891)

(85,893)

Total Cal-Maine Foods,

Inc. stockholders’ equity

2,696,759

2,560,624

Noncontrolling interest in consolidated entity

5,158

5,391

Total stockholders’

equity

2,701,917

2,566,015

Total Liabilities and Stockholders’

Equity

3,196,392

3,084,619

See Notes to Condensed Consolidated Financial Statements.

Index

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

(Unaudited)

Thirteen Weeks

Ended

August 30, 2025

August 31, 2024

Net sales

922,602

785,871

Cost of sales

611,288

538,653

Gross profit

311,314

247,218

Selling, general and administrative

69,514

61,932

(Gain) loss on involuntary conversions

(7,488)

146

(Gain) loss on disposal of fixed assets

104

(1,817)

Operating income

249,184

186,957

Other income (expense):

Interest income, net

12,850

9,785

Other, net

1,231

1,211

Total other income, net

14,081

10,996

Income before income taxes

263,265

197,953

Income tax expense

64,158

48,363

Net income

199,107

149,590

Less: Loss attributable to noncontrolling interest

(233)

(386)

Net income attributable to Cal-Maine Foods, Inc.

199,340

149,976

Net income per common share:

Basic

4.13

3.08

Diluted

4.12

3.06

Weighted average

shares outstanding:

Basic

48,281

48,761

Diluted

48,424

48,932

See Notes to Condensed Consolidated Financial Statements.

Index

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of

Comprehensive Income

(In thousands)

(Unaudited)

Thirteen Weeks

Ended

August 30, 2025

August 31, 2024

Net income

199,107

149,590

Other comprehensive income, before tax:

Unrealized holding gain on available-for-sale securities, net of reclassification

adjustments

2,586

1,715

Income tax expense related to items of other comprehensive income

(625)

(416)

Other comprehensive income, net of tax

1,961

1,299

Comprehensive income

201,068

150,889

Less: Comprehensive loss attributable to the noncontrolling interest

(233)

(386)

Comprehensive income attributable to Cal-Maine Foods, Inc.

201,301

151,275

See Notes to Condensed Consolidated Financial Statements.

Index

Cal-Maine Foods, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Thirteen Weeks

Ended

August 30, 2025

August 31, 2024

Cash flows from operating activities:

Net income

199,107

149,590

Depreciation and amortization

29,663

22,048

Deferred income taxes

13,682

(14,605)

Other adjustments, net

36,152

(39,581)

Net cash provided by operations

278,604

117,452

Cash flows from investing activities:

Purchases of investment securities

(270,315)

(202,196)

Sales and maturities of investment securities

181,145

209,673

Acquisition of businesses, net of cash acquired

(275,291)

(111,521)

Purchases of property,

plant and equipment

(45,302)

(35,773)

Net proceeds from disposal of property,

plant and equipment

3,946

Net cash used in investing activities

(409,714)

(135,871)

Cash flows from financing activities:

Payments of dividends

(114,163)

(37,758)

Purchase of common stock by treasury

(18)

(34)

Net cash used in financing activities

(114,181)

(37,792)

Net change in cash, cash equivalents and restricted cash

(245,291)

(56,211)

Cash, cash equivalents and restricted cash at beginning of period

499,392

237,878

Cash, cash equivalents and restricted cash at end of period

254,101

181,667

See Notes to Condensed Consolidated Financial Statements.

Index

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

(“Cal-Maine Foods,”

the

“Company,”

“we,”

“us,”

“our”)

have

been

prepared

accordance

with

the

instructions

Form

10-Q

and

Article

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

May

31,

2025

(the

“2025

Annual

Report”).

These

statements

reflect

all

adjustments

that

are,

the

opinion

management,

necessary

fair

statement

the

results

for

the

interim

periods

presented

and,

the

opinion

management,

consist

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

ended on August 30, 2025

and August 31, 2024 included

weeks.

Use of Estimates

The

preparation

of the

condensed

consolidated

financial

statements

conformity

with GAAP

requires

management

make

estimates

and

assumptions

that

affect

the

amounts

reported

the

condensed

consolidated

financial

statements

and

accompanying notes. Actual results could differ from those estimates.

Dividends Payable

Dividends are accrued

at the end of each

quarter according to the Company’s

dividend policy adopted by

its Board of Directors

(“Board”).

The Company

pays a

dividend

to holders

of its

Common Stock

(and, prior

to its

conversion

to Common

Stock on

April

14,

2025

Class

Common

Stock)

quarterly

basis

for

each

quarter

for

which

the

Company

reports

net

income

attributable

Cal-Maine

Foods,

Inc.,

computed

accordance

with

GAAP

amount

equal

one-third

(1/3)

such

quarterly

net

income.

Dividends are

paid

to stockholders

of record

as of

the 60th

day

following

the last

day

such quarter,

except for

the fourth

fiscal quarter.

For the

fourth quarter,

the Company

pays dividends

to stockholders

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

Cal-Maine

Foods,

Inc.,

the

Company

will

not

pay

dividend

for

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.

Revenue Recognition

The Company recognizes revenue through the sale of its products

to customers through retail, foodservice and other distribution

channels.

The

majority

the

Company’s

revenue

derived

from

agreements

contracts

with

customers

based

upon

the

customer

ordering

its

products

with

single

performance

obligation

delivering

the

product.

The

Company

believes

the

performance

obligation

met

upon

delivery

and

acceptance

the

product

its

customers,

which

generally

occurs

upon

shipment

or delivery

to a

customer based

the terms

of the

sale. Costs

paid

to third

party brokers

to obtain

agreements are

expensed as the Company’s

agreements are generally less than one year.

Revenues are

recognized in

an amount

that reflects

the net

consideration we

expect to

receive in

exchange for

delivery of

the

products.

The

Company

periodically

offers

sales

incentives

other

programs

such

rebates,

discounts,

coupons,

volume-

based incentives,

guaranteed sales and

other programs.

The Company

records an estimated

allowance for costs

associated with

these programs, which

is recorded as a

reduction in revenue at

the time of sale

using historical trends

and projected redemption

rates

each

program.

The

Company

regularly

reviews

these

estimates

and

any

difference

between

the

estimated

costs

and

actual realization of these programs would be recognized

in the subsequent period.

Index

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.

The

excess

the

purchase

price

over

fair

values

identifiable

assets

and

liabilities

recorded

goodwill.

use

various

models

and

methods

determine

the

fair

values

identifiable

assets

and

liabilities,

such

top-down

and

bottom-up

approach

for

inventory,

cost

method

and

market

approach

for

property,

and

relief-from-royalty

and

multi-period

excess earnings to value

intangibles. 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.

New Accounting Pronouncements and Policies

In December

2023, the

Financial Accounting

Standards Board

(“FASB”)

issued Accounting Standards

Update (“ASU”)

2023-

09,

Income Taxes

(Topic

740) – Improvements to

Income Tax

Disclosures

. This ASU requires that an

entity, on an

annual basis,

disclose

additional

income

tax

information,

primarily

the

rate

reconciliation

and

income

taxes

paid.

The

ASU

intended

to enhance

the transparency

and decision

usefulness of

income tax

disclosures. ASU

2023-09

is effective

for annual

periods

beginning

after

December

15,

2024.

The

Company

currently

evaluating

the

impact

ASU

2023-09

its

consolidated financial statement disclosures.

November

2024,

the

FASB

issued

ASU

2024-03,

Income

Statement

—

Reporting

Comprehensive

Income

—

Expense

Disaggregation Disclosures

(Subtopic 220-40)

. The objective of ASU

2024-03 is to improve disclosures

about a public entity’s

expenses, primarily

through additional

disaggregation of

income statement expenses.

Additionally,

in January

2025, the FASB

further

clarified

the

effective

date

ASU

2024-03

with

the issuance

of ASU

2025-01.

ASU

2024-03 is

effective

for

annual

periods beginning

after December

15, 2026, and

interim periods

within annual

reporting periods

beginning after

December 15,

2027. Early

adoption is permitted

and may

be applied

either on a

prospective or

retrospective basis. The

Company is

currently

evaluating the impact of ASU 2024-03 on its consolidated financial statement disclosures.

There are no

other new accounting

pronouncements

issued or effective

during the fiscal year

that had or

are expected to have

material impact on our consolidated financial statements.

Index

Note 2 - Acquisition

Acquisition of Echo Lake Foods, LLC

Effective

June 2, 2025

, the Company

acquired Echo

Lake Foods, LLC

and certain

related companies

(collectively “Echo

Lake

Foods”). Echo

Lake Foods

is based

in Burlington,

Wisconsin and

produces, packages,

markets and

distributes prepared

foods,

including waffles, pancakes, scrambled eggs, frozen

cooked omelets, egg patties, toast and diced eggs. The Company

accounted

for the acquisition as a business combination.

Pending

the

finalization

the

Company’s

valuation,

the

following

table

summarizes

the

consideration

paid

for

Echo

Lake

Foods and the amounts of assets acquired and liabilities assumed recognized

at the acquisition date (in thousands):

Cash consideration paid

275,406

Recognized amounts of identifiable assets acquired and liabilities assumed

Cash

115

Investment securities available-for-sale

14,147

Accounts receivable

31,923

Inventories

21,601

Prepaid expenses and other current assets

3,131

Property, plant &

equipment

151,697

Intangible assets

36,800

259,414

Accounts payable and other current liabilities

(13,047)

Total identifiable

net assets

246,367

Goodwill

29,039

275,406

Cash and

accounts receivable

acquired

along with

liabilities assumed

were valued

at their

carrying value

which approximates

fair value due to the short maturity of these instruments.

Inventories consisted

primarily of

raw materials,

supplies and

finished goods.

Raw materials

and supplies

were valued

at their

carrying value as

management believes that

their carrying value

best approximates their

fair value. Finished

goods were valued

using both the bottom-up and top-down approach. The

bottom-up approach measures the value of inventory as the value created

by the

target company

(i.e., the

costs incurred,

profit realized,

and tangible

and intangible

assets utilized)

pre-acquisition date.

The top-down

approach measures

the value

of inventory

as the

incremental

inventory value

created by

the market

participant

buyer as part

of its selling

effort to an

end customer (i.e.,

the costs that

will be incurred,

the profit that

will be realized,

and the

tangible and intangible assets that will be utilized) post-acquisition date.

Property,

plant and

equipment were

valued

utilizing

the cost

approach

and

market approach.

Machinery

and equipment

were

valued

utilizing

the

cost

approach

which

based

replacement

reproduction

costs

the

assets

and

subtracting

any

depreciation resulting from

physical deterioration and/or

functional or economic

obsolescence. Land and

buildings were valued

utilizing the market approach by using a real estate valuation.

Intangible assets

consisted primarily

of customer

relationships and

a trade name.

Customer relationships

were valued using

the

multi-period excess earnings method and the trade name was valued

using the relief-from-royalty method.

Goodwill

represents

the

excess

the

purchase

price

the

acquired

business

over

the

acquisition

date

fair

value

the

net

assets acquired.

Goodwill

recorded

connection

with

the Echo

Lake

Foods

acquisition is

primarily

attributable

to projected

synergies

from integrating

the operations

of Echo

Lake Foods

with the

operations of

the Company.

The Company

recognized

goodwill of $

29.0

million as a result of the acquisition, all of which is deductible for tax purposes.

Index

The Company

recorded

transaction costs

594

thousand and

6.6

million

in the

first quarter

fiscal 2026

and fiscal

year

2025, respectively,

as a result of the Echo Lake Foods acquisition.

Note 3 - Investment

Securities Available-for-Sale

The following

represents the

Company’s

investment securities

available-for-sale as

of August

30, 2025

and May

31, 2025

(in

thousands):

August 30, 2025

Amortized

Cost

Unrealized

Gains

Unrealized

Losses

Estimated

Fair Value

Municipal bonds

22,072

—

22,140

Commercial paper

81,527

—

81,504

Corporate bonds

536,273

2,120

—

538,393

Certificates of deposits

4,960

—

4,968

US government and agency obligations

245,019

—

245,084

Treasury bills

109,288

—

109,386

Total current

investment securities

999,139

2,359

1,001,475

May 31, 2025

Amortized

Cost

Unrealized

Gains

Unrealized

Losses

Estimated

Fair Value

Municipal bonds

21,695

—

21,698

Commercial paper

90,880

—

90,830

Corporate bonds

431,378

130

—

431,508

Certificates of deposits

5,200

—

5,194

US government and agency obligations

240,655

—

260

240,395

Treasury bills

103,119

—

103,083

Total current

investment securities

892,927

133

352

892,708

Actual maturities

may differ

from contractual

maturities as some

borrowers have

the right to

call or prepay

obligations with

without penalties. Contractual maturities of current investment securities

at August 30, 2025 are as follows (in thousands):

Estimated Fair Value

Within one year

472,795

1-5 years

528,680

Total

1,001,475

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

paid

transfer

the

liability

new

obligor

transaction

between

such

parties,

not

the

amount

that

would

be paid

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

Index

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 our

financial assets and

liabilities

that

are

required

measured

fair

value

recurring

basis

August

30,

2025

and

May

31,

2025

(in

thousands):

August 30, 2025

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

—

22,140

—

22,140

Commercial paper

—

81,504

—

81,504

Corporate bonds

—

538,393

—

538,393

Certificates of deposits

—

4,968

—

4,968

US government and agency obligations

—

245,084

—

245,084

Treasury bills

—

109,386

—

109,386

Total assets measured at fair

value

—

1,001,475

—

1,001,475

Liabilities

Contingent consideration

—

21,500

Total liabilities measured

at fair value

—

21,500

May 31, 2025

Level 1

Level 2

Level 3

Balance

Assets

Municipal bonds

—

21,698

—

21,698

Commercial paper

—

90,830

—

90,830

Corporate bonds

—

431,508

—

431,508

Certificates of deposits

—

5,194

—

5,194

US government and agency obligations

—

240,395

—

240,395

Treasury bills

—

103,083

—

103,083

Total assets measured at fair

value

—

892,708

—

892,708

Liabilities

Contingent consideration

—

21,500

Total liabilities measured

at fair value

—

21,500

Investment securities – available-for-sale are all classified as Level 2 and consist of

securities with maturities of three months or

longer

when

purchased.

classified

these

securities

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

Fassio Egg

Farms, Inc.

(“Fassio”) contingent

on the

acquired

business meeting

certain return

on profitability

milestones over

three-year

period that

commenced on the

date of the acquisition

in the second

quarter of fiscal

2024. The fair

value of the

contingent consideration is

estimated using a discounted

cash flow model. Key assumptions

and unobservable inputs that require

significant judgment used

in the

estimate include

weighted average

cost of

capital, egg

prices, projected

revenue and

expenses over

the period

for which

the

contingent

consideration

measured,

and

the

probability

assessments

with

respect

the

likelihood

achieving

the

forecasted

projections. There

were

adjustments to

the fair

value of

contingent consideration

recorded in

the thirteen

weeks

ended August 30, 2025.

Index

Note 5 - Inventories

Inventories consisted of the following as of August 30, 2025 and May 31,

2025 (in thousands):

August 30, 2025

May 31, 2025

Flocks, net of amortization

168,968

166,507

Feed and supplies

107,165

99,188

Raw materials and finished goods inventory

52,296

29,975

328,429

295,670

grow

and

maintain

flocks

layers

(mature

female

chickens),

pullets

(female

chickens,

under

weeks

age),

and

breeders (male

and female

chickens used

to produce

fertile eggs

to hatch

for egg

production flocks).

Our total

flock at

August

30, 2025 and May

31, 2025 consisted of

approximately

11.1

million and

11.5

million pullets and breeders

and

48.5

million and

48.3

million layers, respectively.

Note 6 - Equity

The following reflects equity activity for the thirteen weeks ended

August 30, 2025 and August 31, 2024 (in thousands):

Thirteen Weeks

Ended August 30, 2025

Cal-Maine Foods, Inc. Stockholders

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Capital

Comp. Gain (Loss)

Earnings

Interest

Total

Balance at May 31, 2025

751

(85,893)

80,845

(1,007)

2,565,928

5,391

2,566,015

Other comprehensive

income, net of tax

—

1,961

—

1,961

Stock compensation plan

transactions

—

1,289

—

1,291

Dividends ($

1.371

per share)

—

(66,457)

—

(66,457)

Net income (loss)

—

199,340

(233)

199,107

Balance at August 30, 2025

751

(85,891)

82,134

954

2,698,811

5,158

2,701,917

Thirteen Weeks

Ended August 31, 2024

Cal-Maine Foods, Inc. Stockholders

Class A

Treasury

Paid In

Accum. Other

Retained

Noncontrolling

Amount

Capital

Comp. Loss

Earnings

Interest

Total

Balance at June 1,

2024

703

(31,597)

76,371

(1,773)

1,756,395

(3,104)

1,797,043

Other comprehensive

income, net of tax

—

1,299

—

1,299

Stock compensation

plan transactions

—

(35)

1,132

—

1,097

Dividends ($

1.019

per

share)

Common

—

(45,075)

—

(45,075)

Class A common

—

(4,891)

—

(4,891)

Net income (loss)

—

149,976

(386)

149,590

Balance at August 31,

2024

703

(31,632)

77,503

(474)

1,856,405

(3,490)

1,899,063

Note 7 - Net Income per Common Share

Basic net

income per

share attributable

to Cal-Maine

Foods, Inc.

is based

on the

weighted average

shares of

Common Stock

(and when

they were

outstanding shares

of Class

A Common

Stock) outstanding.

All shares

of Class

A Common

Stock were

Index

converted into

Common Stock

on April

14, 2025.

Diluted net

income per

share attributable

to Cal-Maine

Foods, Inc.

is based

on weighted-average

shares of

Common Stock

outstanding during

the relevant

period adjusted

for the

dilutive effect

of share-

based awards.

The

following

table

provides

reconciliation

the

numerators

and

denominators

used

determine

basic

and

diluted

net

income per common share attributable to Cal-Maine Foods, Inc.

(amounts in thousands, except per share data):

Thirteen Weeks

Ended

August 30, 2025

August 31, 2024

Numerator

Net income

199,107

149,590

Less: Loss attributable to noncontrolling interest

(233)

(386)

Net income attributable to Cal-Maine Foods, Inc.

199,340

149,976

Denominator

Weighted-average

common shares outstanding, basic

48,281

48,761

Effect of dilutive restricted shares

143

171

Weighted-average

common shares outstanding, diluted

48,424

48,932

Net income per common share attributable to Cal-Maine Foods, Inc.

Basic

4.13

3.08

Diluted

4.12

3.06

Note 8 - Stock Based Compensation

Total

stock-based compensation

expense was

1.3

million and

1.1

million for

the thirteen

weeks ended

August 30,

2025 and

August 31, 2024, respectively.

Unrecognized

compensation expense

as a

result of

non-vested shares

of equity-based

awards outstanding

under the

Amended

and

Restated 2012

Omnibus Long-Term

Incentive

Plan at

August

30,

2025

of $

8.0

million will

be recorded

over a

weighted

average period of

2.0

years. Refer to Part

II Item 8,

Notes to Consolidated

Financial Statements and

Supplementary Data, Note

13 – Stock-Based Compensation in our 2025 Annual Report for further

information on our stock compensation plans.

The Company’s equity-based award

activity for the thirteen weeks ended August 30, 2025 was as follows:

Number of

Weighted

Average Grant

Date Fair Value

Outstanding, May 31, 2025

212,717

66.93

Granted

13,518

101.14

Vested

(529)

54.10

Forfeited

(793)

73.93

Outstanding, August 30, 2025

224,913

68.99

Index

Note 9 – Segment Reporting

The Company has

one

operating and

one

reportable segment, which is

the production, packaging, marketing

and distribution of

shell eggs,

prepared foods and egg products. The Company is managed on a consolidated basis.

The Company’s

operating segment

is determined

on the

basis of

our organizational

structure and

information that

is regularly

reviewed by

our Chief

Operating Decision Maker

(“CODM”). The

Company’s

CODM is Sherman

Miller, President

and Chief

Executive Officer.

The CODM reviews net income,

which is reported on the

Condensed Consolidated Statements of

Income, to

assess the

performance of,

and make

decisions on

how to

allocate resources

to, the

segment. The

CODM utilizes

consolidated

expense information

regularly provided

in the CODM

package in

order to

assist with assessing

performance and

deciding how

allocate

resources,

which

align

with

the

consolidated

expense

CAL-MAINE FOODS INC 10-Q