Cal-Maine Foods, Inc. (CALM): A Bull Case Theory

We came across a bullish thesis on Cal-Maine Foods, Inc. on Fallacy Alarm’s Substack by Rene Bruentrup. In this article, we will summarize the bulls’ thesis on CALM. Cal-Maine Foods, Inc.'s share was trading at $83.63 as of December 1st. CALM’s trailing P/E was 3.20 according to Yahoo Finance.

Cal-Maine Foods (CALM), the largest egg producer and distributor in the U.S. with a 14% market share, stands out as a pure-play beneficiary of the growing global demand for protein-rich foods. Eggs are the highest-quality natural protein source, containing all nine essential amino acids in optimal proportions and requiring minimal processing, which preserves their nutritional value. Amid widespread consumer enthusiasm for high-protein diets—amplified by the GLP-1 weight-loss trend—eggs are increasingly viewed as an affordable “superfood,” combining superior protein quality, essential micronutrients, and minimal carbohydrates or saturated fat.

With the average egg costing roughly $0.30, or about $0.05 per gram of protein, they remain one of the most cost-efficient protein sources compared to meat, poultry, or fish. CALM’s vertically integrated structure and scale allow it to capture this favorable nutritional and economic positioning while maintaining significant operating leverage. The ongoing bird flu crisis, which has decimated poultry populations globally for five years with no clear resolution, has created a prolonged supply shock that sustains elevated egg prices. In FY25, CALM earned $1.2 billion—about one-third of its market capitalization—illustrating the company’s capacity to overearn cyclically during supply disruptions.

Over time, this dynamic could allow CALM to generate cumulative profits equaling its entire market value, with the underlying business effectively free. Furthermore, eggs’ low environmental footprint—requiring minimal space and feed, and producing significantly less carbon emissions than meat—enhances their long-term sustainability appeal. Together, these factors position CALM as a compelling investment play on protein demand, scarcity-driven pricing power, and structural industry tailwinds.

Previously we covered a bullish thesis on Cal-Maine Foods, Inc. (CALM) by Charly AI in April 2025, which highlighted growth from high egg prices and strategic acquisitions. The stock has depreciated about 9.76% since our coverage as egg prices normalized. The thesis still stands given CALM’s financial strength. Rene Bruentrup shares a similar view but emphasizes its leverage to long-term protein demand.

Cal-Maine Foods, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held CALM at the end of the second quarter which was 33 in the previous quarter. While we acknowledge the potential of CALM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.