Right now, the most-hated company in America right now doesn’t make opioids, weapons, or student loan statements. It makes eggs… and no, I’m not kidding. In short, Cal-Maine Foods is the egg Goliath you’ve never heard of until your grocery bill started looking like it had a zero too many. These guys are the undisputed heavyweight champs of America’s breakfast economy with 50 million hens pumping out one in every five eggs sold in the U.S. Meaning, when the dang bird flu wipes out flocks nationwide and demand doesn’t flinch, it means prices go vertical and Cal-Main starts cashin’ checks while snapping’ your bank accounts neck. 

(Source: Giphy) 

Simply put, egg prices have tripled while Cal-Main’s stock has skyrocketed over the last year (58.66%). And it’s not hard to see why: net income last quarter came in at $508.5 million–and now, Sherman Miller, the CEO with egg-shaped desk décor and an American flag looming behind his monitor like a Fox News backdrop, is doing his best “I’m just a humble farmer” impression while sitting on a $1 billion cash pile. No debt. No earnings calls. No sh*ts given. 

However, all good things may/could come to an end as the U.S. government just kicked off an investigation into whether Cal-Maine and friends have been playing a little fast and loose with the supply game. The DOJ wants to know why egg prices look like they’re being set by a cartel with a protein fetish. And the shocking part about it? This isn’t Cal-Main’s first rodeo with investigations. In fact, Cal-Maine’s already been hit with lawsuits alleging price-gouging during Covid, and a federal jury in Chicago recently decided they helped restrict egg supply back in the early 2000s to juice prices. Kraft Heinz and Kellogg got a $53M check out of that one.

(Source: Wall Street Journal) 

Still, Miller says the real crime is that people are looking for a villain, and apparently, his face fits the poster. “We don’t control the power to lower egg prices,” he says, which is technically true if you ignore the part where they control 20% of the market and quietly buy eggs from rivals on private exchanges that help set industry benchmarks. Totally normal, definitely not manipulative behavior. Sounds legit. 

However, critics say those purchases gouge prices across the board. Cal-Maine says it’s just trying to keep shelves stocked and avoid having to bulldoze mountains of unsold eggs when demand cools. The truth is probably somewhere between “capitalist efficiency” and “legalized supply manipulation.”

(Source: Giphy) 

But, but, but…. Still, this company isn’t some coastal tech unicorn bleeding cash for eyeballs. It’s a Mississippi-based family-run operation that doesn’t believe in debt, doesn’t talk to analysts, and doesn’t give a damn if you think $8 eggs are an act of economic terrorism. They’re expanding, adding 1.1 million cage-free hens and 250,000 pullets in 2025. Meanwhile, they’ve boosted their flock by 14% and chick hatching by 24% year-over-year. 

Wall Street, of course, is doing the math. BMO slapped a “Market Perform” tag on Cal-Maine with a $100 price target and a side note that this whole situation makes for a “tough setup” at current levels. Translation: the easy money’s been made, but earnings might stay inflated through 2026 thanks to the fact that the “all food is expensive now” issue. Additionally, the USDA is trying to play catch-up with biosecurity funding and import strategies, and everyone’s screaming for a vaccine that doesn’t exist. Supply chains are still bipolar. The bird flu is still causing havoc. And consumers? They’re slowly but surely transforming into Karens while rage-scrolling through $7.99 price tags wondering why their omelet now costs more than their car insurance.

(Source: Yahoo Finance) 

In the end, the real winner of all this is Cal-Maine who is laughing all the way to the feed mill. And unless the DOJ shows up with something stronger than a subpoena and a frown, it’s going to stay that way. Which is Eggxactly the kind of capitalism and market euphoria Cal-Maine’s investors ordered. Meaning, if you haven’t been keeping an eye on Cal-Maine lately, you might want to start. Of course, do what you will with this information and place your bets accordingly. Until next time, friends… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News does not hold positions in companies mentioned in the article.