Looks like a Chicken of the Woods, and they are edible and good when they're in their prime. They're bright orange colored when young, which is the best time to get them. This one looks old, than they're tough and also looks bug infested so it's no good anymore. They usually grow on the same spot for afew years, so remember where you saw it for future harvests. I usually just slice them up and sautee them in butter with alittle salt and pepper. They're also good in soups.
Bearclaw is right. That's a Chicken Mushroom, and looks a bit past it's edible stage. Not everyone has the same opinions of table fare of course, but to me, those are ok to put in soups, but not very tasty eaten solo.