On the back of slow food service and lesser sales at restaurants, egg producer Cal-Maine Foods Inc. posted a lower than expected earnings report for the current fiscal year's second quarter. A lower sale of egg products was also one of the reasons for falling profits.

As confirmed by the company, the results could have been much worse, but a 10% decline in the feed costs helped the figures to decline further. Cal-Maine Foods is mainly known for its speciality eggs which the company sells under the Egg-Land's Best and Farmhouse labels.

"Looking ahead, we continue to see a favorable balance between egg supply and egg demand. However... feed costs will continue to be volatile and relatively high", Chief Executive Fred Adams said.

For the second quarter up-to November 28, the company reported net earnings of $16.1 Million, or 67 cents a share, as compared to the figure $27.2 Million, or $1.14 a share, reported for the same period last year.

Revenue recorded a fall of 4% to $229.2 Million.

As confirmed by Cal-Maine, egg product sales fell by about 2%.