Cal-Maine Foods Inc., the renowned egg producer, has revealed that its fiscal third-quarter earnings managed to rise by 12%, mainly on the back of strong retail egg sales and declining feed costs.

Fred Adams Jr., Chairman and CEO of Cal-Maine, on Monday shared that while retail sales were relatively strong, sales to restaurants and other food services firms have continued to remain on the softer side, mainly because customers are not eating out as frequently because of the unstable economy.

While feed costs did manage to decline as compared to the past year, Mr. Adams warned that those costs still seem to be volatile.

Cal-Maine sells most of its shell eggs across some 29 states across the southwestern, southeastern, midwestern and mid-Atlantic areas.

For the three months up-to February 27, 2010, earnings of the company rose to $34.5 Million, or $1.45 a share, compared with the figure of $30.8 Million, or $1.29 per share, reported for the same period last year.

Revenue hiked to $271.2 Million from last year's figure of $270 Million. Analysts had predicted a figure of $284.6 Million.