Remember Eggflation? Prices Are Plummeting Right Now, New Stat Shows
Portfolio Pulse from Surbhi Jain
Cal-Maine Foods Inc (NASDAQ:CALM), the largest U.S. egg producer, reported a significant drop in egg prices in their Q2 2024 results, with a 49.4% decrease year-over-year. The average selling price for conventional eggs was $1.458 per dozen, down from $2.883 in Q2 2023. This decline in egg prices has led to a 95% reduction in Cal-Maine's operating income, despite a slight increase in total volumes sold. The company remains focused on increasing production of specialty eggs to meet high demand.
January 04, 2024 | 7:04 pm
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Cal-Maine Foods Inc reported a drastic decrease in egg prices and a 95% drop in operating income in Q2 2024. The company is increasing focus on specialty egg production due to high demand.
The significant drop in egg prices directly impacts Cal-Maine's revenue and profitability, as evidenced by the 95% decrease in operating income. The short-term impact is likely negative due to the substantial year-over-year price decline. However, the company's strategic shift towards specialty egg production could mitigate some of the negative effects if demand for these products remains strong.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100