Today, a dozen eggs costs $12.99 in NYC—more than three times the price just a few months ago.

What changed?

Avian flu (H5N9) has once again disrupted the market. Since the outbreak began in October, 13.5% of egg-laying birds have been affected, significantly reducing supply.

With high demand and increasing scarcity, the market has responded with rising prices.

At the same time, concerns over the virus have sparked increased interest in alternative proteins and egg substitutes, while the stock prices of chicken-heavy businesses like KFC, McDonalds, or even some grocery stores may decline due to consumer uncertainty.

However, whenever well-run businesses are impacted by short-term panic and stock that is selling at prices below their long-term intrinsic value, opportunities are created for savvy investors.

To an egg- or chicken-reliant company—think a mom-and-pop omelet shop—they either have to pass on the cost to customers, pivot to alternative ingredients, or absorb the losses at the expense of their margins.