CAL-MAINE FOODS INC (CALM) Business

BUSINESS

Our Business

We are the largest producer and distributor of shell eggs in the United States. Our mission is to be the most sustainable producer

and

reliable

supplier

of

consistent,

high

quality

fresh

shell

eggs,

egg

products

and

prepared

foods

in

the

United

States.

Our

operating approach is built around operational

excellence, a "Culture of Sustainability" and

creating value for our stockholders,

customers, team

members and

communities. We

sell most

of our

products throughout

much of

the United

States (“U.S.”)

and

aim

to

maintain

efficient,

state-of-the-art

operations

located

close

to

our

customers.

We

were

founded

in

1957

and

are

headquartered in Ridgeland,

Mississippi.

The Company has

one operating and

one reporting segment,

which is the

production, packaging, marketing

and distribution of

shell eggs, egg

products and prepared

foods. Our integrated

operations consist

of hatching chicks,

growing and

maintaining flocks

5

of pullets, layers and breeders,

manufacturing feed, and producing,

processing, packaging, and distributing

shell eggs. Layers are

mature female chickens,

pullets are female

chickens usually less

than 18 weeks

of age, and

breeders are male

and female chickens

used to

produce fertile

eggs to

be hatched

for egg

production flocks.

Our total

flock as

of May

31, 2025

consisted of

approximately

48.3 million layers and 11.5 million pullets and breeders.

Many of our customers rely on us to provide most of their

shell egg needs, including specialty and conventional eggs. Specialty

eggs encompass

a broad

range of

products. We

classify cage-free,

organic, brown,

free-range, pasture-raised

and nutritionally

enhanced eggs as specialty

eggs for accounting and

reporting purposes. We classify all other shell

eggs as conventional products.

While we report separate sales information for these egg types, there are many cost factors that are not specifically available for

conventional or

specialty eggs

due to

the nature

of egg

production. We

manage our

operations and

allocate resources

to these

types of eggs on a consolidated basis based on the demands of our customers.

We believe that one

of our important

competitive advantages

is our ability

to meet our

customers’ evolving

needs with a

favorable

product mix of conventional

and specialty eggs, including

cage-free, organic, brown, free-range,

pasture-raised and nutritionally-

enhanced eggs, as well as

egg products and prepared foods.

While a small part of

our current business, demand for

the free-range

and pasture-raised eggs we produce and sell continues to grow. They represent attractive offerings to a subset of consumers, and

therefore our

customers, and

help us

continue to

serve as

the trusted

provider of

quality food

choices. We

have expanded

our

prepared foods

product offerings,

including with

our strategic

investment in

Crepini Foods,

LLC in

September 2024,

and our

acquisition of Echo Lake Foods, LLC (formerly Echo Lake Foods, Inc.) and certain related companies (collectively “Echo Lake

Foods”) subsequent to the end of our 2025 fiscal year.

Throughout

the

Company’s

history,

we

have

acquired

other

businesses

in

our

industry.

Since

1989,

we

have

acquired

and

integrated 25 businesses. Subsequent to the end of our 2025 fiscal year,

we acquired our 26

th

business when we purchased Echo

Lake

Foods.

For

information

on

our

recent

acquisitions,

refer

to

Part II. Item 7. Management’s Discussion and Analysis of

Financial Condition and Results of Operations - Acquisitions

and Part

II. Item

8. Notes

to Consolidated

Financial Statements,

Note 17 - Subsequent Events

.

When

we

use

“we,”

“us,”

“our,”

or

the

“Company”

in

this

report,

we

mean

Cal-Maine

Foods,

Inc.

and

our

consolidated

subsidiaries, unless

otherwise indicated

or the

context otherwise

requires. The

Company’s

fiscal year-end

is

on

the Saturday

closest to May 31. Our

fiscal year 2025 ended May

31, 2025, and the

first three fiscal quarters of

fiscal 2025 ended August 31,

2024, November 30, 2024, and March 1, 2025. All references herein to a fiscal year means our fiscal year and all references to a

year mean a calendar year.

Industry Background

According to the

U.S. Department of

Agriculture (“USDA”) Agricultural

Marketing Service, in

2024 approximately 71%

of table

eggs produced in the U.S. were sold as shell eggs, with 57% sold through food-at-home outlets such

as grocery and convenience

stores, 12%

sold to

food-away-from home

channels such

as restaurants

and 2%

exported. The

USDA estimated

that in

2024

approximately 29% of eggs produced in

the U.S. were sold as egg

products (shell eggs broken and sold

in liquid, frozen, or dried

form) to institutions

(e.g. companies

producing baked

goods). For

information about

egg producers

in the

U.S., see

“Competition”

below.

Our industry has been greatly impacted by several outbreaks of highly pathogenic avian influenza (“HPAI”) in recent years. For

additional information regarding HPAI and its impact on our industry and business, see

Part I. Item 1A. Risk Factors

and

Part II.