Cal-Maine Foods, Inc. engages in the production, grading, packing, marketing, and distribution of fresh shell eggs. The firm operates farms, processing plants, hatcheries, feed mills, warehouses, offices and other properties. It markets shell eggs to national and regional grocery store chains, club stores, foodservice distributors, and egg product manufacturers. The company was founded by Fred R. Adams Jr. in 1957 and is headquartered in Jackson, MS.
Market prices of wholesale shell eggs are volatile and decreases in these prices can adversely impact our results of operations.
A decline in consumer demand for shell eggs can negatively impact our business.
Feed costs are volatile and increases in these costs can adversely impact our results of operations.
Our acquisition growth strategy subjects us to various risks.
Failure to comply with applicable governmental regulations, including environmental regulations, could harm our operating results, financial condition, and reputation. Further, we may incur significant costs to comply with any such regulations.
Shell eggs and shell egg products are susceptible to microbial contamination, and we may be required to or voluntarily recall contaminated products.
Our business is highly competitive.
Pressure from animal rights groups regarding the treatment of animals may subject us to additional costs to conform our practices to comply with developing standards or subject us to marketing costs to defend challenges to our current practices and protect our image with our customers.
We are dependent on our management team, and the loss of any key member of this team may adversely affect the implementation of our business plan in a timely manner.
Sales, or the availability for sale, of substantial amounts of our Common Stock could adversely affect the market price of our Common Stock.
Current and future litigation could expose us to significant liabilities and adversely affect our business reputation.
Impairment in the carrying value of goodwill or other assets could negatively affect our results of operations or net worth.
The loss of any registered trademark or other intellectual property could enable other companies to compete more effectively with us.
Extreme weather, natural disasters or other events beyond our control could negatively impact our business.
Failure of our information technology systems or software, or a security breach of those systems, could adversely affect our day-to-day operations and decision making processes and have an adverse effect on our performance.
We currently participate in several joint ventures and may participate in other joint ventures in the future. We could be adversely affected if any of our joint venture partners are unable or unwilling to fulfill their obligations or if we have disagreements with any of our joint venture partners that are not satisfactorily resolved.