A year ago, Cal-Maine Foods took in $39.5 million in quarterly earnings. This time, $323 million. (Getty Images)
You already know that egg prices have reached very high levels due to the bird flu, which has caused millions of chickens to die.
But that won’t make you feel easy when I share that the nation’s largest producer of eggs, Cal-Maine Foods, just reported a massive quarterly profit increase.
how huge? Try 718% higher.
What does that mean in dollars? A year ago, Cal Maine had $39.5 million in quarterly earnings. This time, $323 million.
Sherman Miller, the company’s president and chief executive officer, called the latest returns a “solid performance,” which deserves some sort of accolades for undervaluing.
“Our results reflect a dynamic market environment with high average selling prices and favorable demand,” he said he said in a statement.
If you feel this is a replay of the record oil companies’ reported earnings amid rising gas prices, you’d be right.
This is why some advocate taxing windfall profits during such extraordinary external forces.
These are examples of companies that are ahead of market trends without doing anything special or innovative to enhance shareholder value.
They are just lucky.
And who pays? Consumers, of course, who watch helplessly as a massive transfer of wealth takes place.
There are certainly booms and busts in all markets, earnings cycles and setbacks.
But a profit increase of more than 700% over a three-month period? This is just crazy.
“We have worked hard to respond to the challenging operating environment, aiming for optimal management of every aspect of our business under our control,” said Miller.
This is undoubtedly true.
But think of it this way: if a slot machine crashes and keeps paying, does that mean that the user is a particularly skilled and skilled gambler?
No, it means the slot machine is broken.
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