| Segment Reporting |
Note 9 – Segment Reporting The Company previously managed its business as one operating and reportable segment. Effective in the fourth quarter of fiscal 2026, the Company revised its internal reporting to change the manner in which its business is managed, which reflects a focus on managing its operations based on the Company’s product categories rather than on a consolidated basis. As a result, the three reportable segments: Conventional Shell Eggs, Specialty Shell Eggs, and Prepared Foods. The Company’s remaining operations, which include co-pack shell eggs, egg products, hard -cooked eggs and other business activities, are not reportable segments, as defined by the applicable accounting standard. All prior fiscal year periods have been recast to reflect the new reportable segments. The Conventional Shell Eggs segment consists primarily of the production, grading, packaging, marketing and distribution of shell eggs sold as conventional shell eggs, which includes our brands Sunups® and Sunny Meadow®.
The Specialty Shell Eggs segment consists primarily of the production, grading, packaging, marketing and distribution of shell eggs sold as cage-free, nutritionally enhanced, organic, brown, pasture -raised and free-range eggs. This segment includes our brands ® and 4Grain® as well as branded products from our membership of Eggland’s Best, Inc. cooperative which includes Land O’ Lakes®. The Prepared Foods segment consists primarily of the production, packaging, marketing and distribution of prepared foods offerings such as pre-cooked egg patties, omelets, folded and scrambled egg formats, pancakes, waffles, and specialty wraps. This segment includes our brands Van’s® Crepini®. The Company’s operating segments are determined on the basis of our organizational structure and information that is regularly reviewed by our Chief Operating Decision Maker (“CODM”). The Company’s CODM is Sherman Miller, President and Chief Executive Officer. Segment income is utilized during our forecasting process to assess profitability, strategic initiatives and capital investments. The CODM primarily compares actual performance of segment sales and segment income to prior period results and periodic forecasts to assist with assessing performance and deciding how to allocate resources. The accounting policies of the segments are generally the same as those presented in Note 1 - Summary of Significant Accounting Policies in the 2026 Annual Report. Segment selling, general and administrative (“SG&A”) expenses represents direct costs associated with each segment for marketing, delivery and employee costs. Other – segment income represents the total segment income from other operating segments such as co-pack shell egg, egg products, hard -cooked eggs and other business activities that do not individually meet the quantitative thresholds for separate disclosure. Unallocated Corporate SG&A represents overhead such as corporate payroll related expenses, legal and professional fees, amortization and other expenses that are not used to measure segment income and is managed at the corporate office. Intersegment sales represent sales between segments as part of our vertical integration. Intersegment sales from the Conventional and Specialty Shell Eggs segments are primarily sales related to our non -reportable egg products or hard -cooked segments. Conventional and Specialty Shell Eggs intersegment sales are transferred at discounted fixed rates to account for undergrades and yield loss, market rates, or at production costs. The Company does not report total assets by segment as operations are highly integrated, and assets are shared amongst segments. The CODM does not assess performance or allocate resources based on segment assets. Segment results, including the significant expense categories regularly provided to the CODM, are provided below (in thousands):
Thirteen Weeks Ended August 29, 2026 Conventional Shell Eggs Eggs Segments Net sales - external customers $ 191,859 $ 229,112 $ 62,995 $ 483,966 9,824 7,820 — 17,644 201,683 236,932 62,995 501,610 250,481 197,623 48,346 496,450 Segment SG&A 22,247 24,372 6,807 53,426 $ (71,045) $ 14,937 $ 7,842 $ (48,266) (8,374) Unallocated corporate SG&A (24,609) Loss on disposal of fixed assets (916) (82,165) 7,969 $ (74,196)
Thirteen Weeks Ended August 30, 2025 Conventional Shell Eggs Eggs Segments Net sales - external customers $ 486,523 $ 269,579 $ 72,368 $ 828,470 11,910 6,011 — 17,921 498,433 275,590 72,368 846,391 312,205 184,575 53,471 550,251 Segment SG&A 17,992 26,819 5,676 50,487 Segment income $ 168,236 $ 64,196 $ 13,221 $ 245,653 12,219 Unallocated corporate SG&A (16,072) Gain on involuntary conversions 7,488 Loss on disposal of fixed assets (104) 249,184 14,081 Income before income taxes $ 263,265 The following table shows the reconciliation of net sales to consolidated results (in thousands):
Total reportable segments $ 483,966 $ 828,470 55,641 94,132 Total consolidated net sales $ 539,607 $ 922,602 Other – segment sales represent sales from our non-reportable segments which includes co-pack shell egg sales, egg product sales, hard-cooked eggs and other business activities. Revenue primarily derives from sales throughout the U.S. The following table provides revenue disaggregated by segment and by sales channel which includes a new industrial channel and has been recast historically (in thousands):
Thirteen Weeks Ended August 29, 2026 Retail Foodservice Industrial Other Total $ 161,604 $ 25,600 $ 1,102 $ 3,553 $ 191,859 208,611 18,396 9 2,096 229,112 37,236 20,129 5,630 — 62,995 35,367 2,069 18,088 117 55,641 $ 442,818 $ 66,194 $ 24,829 $ 5,766 $ 539,607
Thirteen Weeks Ended August 30, 2025 Retail Foodservice Industrial Other Total $ 407,244 $ 69,958 $ 1,342 $ 7,979 $ 486,523 241,110 26,266 279 1,924 269,579 21,593 31,265 19,510 — 72,368 60,536 2,667 30,869 60 94,132 $ 730,483 $ 130,156 $ 52,000 $ 9,963 $ 922,602 Retail customers include primarily grocery and supermarket chains, club stores and other retailers. Foodservice customers include primarily distributors and operators serving restaurants and other away -from-home food markets. Industrial customers include primarily food manufacturers and other customers that use our products as ingredients or inputs in further processing. |