Cal-Maine Foods, the US’s largest egg producer, saw its shares plummet more than 4% in after-hours trading following a notice from the US Department of Justice’s antitrust division that it is under investigation. The company had received a notice last month about an investigation into alleged price increases during the bird flu epidemic.
Egg prices have skyrocketed, with one dozen Grade A eggs costing $5.90 on average in February, up 10.4% from the same period last year. Cal-Maine’s sales nearly doubled to $1.42 billion in its fiscal third quarter, largely due to higher egg prices, averaging $4.06 per dozen.
However, the company’s quarterly performance fell short of Wall Street’s forecast. Its net income more than tripled to $508.5 million but missed analysts’ expectations by a small margin. Cal-Maine attributed this to increased production and mitigating the effects of bird flu, including improving feed costs.
The antitrust investigation raises concerns about the company’s market position as it provides around 20% of the nation’s eggs. As egg prices continue to surge, Cal-Maine’s performance will be closely watched by investors and regulators alike.
Source: https://edition.cnn.com/2025/04/09/business/egg-prices-antitrust-cal-maine-foods/index.html