Overview

• Cal-Maine Foods, the largest U.S. egg supplier, is under investigation by the Department of Justice for potential antitrust violations related to recent egg price increases.
• The company announced it is cooperating with the DOJ probe but stated it cannot predict the investigation's duration or potential outcomes.
• Egg prices reached record highs earlier this year, driven by a bird flu outbreak that led to the culling of over 166 million birds, primarily egg-laying hens.
• Cal-Maine's fiscal third-quarter net sales nearly doubled to $1.42 billion, attributed to a 121% rise in conventional egg prices, although this fell short of Wall Street expectations.
• Following the announcement of the DOJ investigation, Cal-Maine's stock dropped 4% in after-hours trading, adding to a 12.2% year-to-date decline.