Nathan's Famous, Inc. Reports Second Quarter Results
Nathan's Famous (NASDAQ:NATH) reported results for the second quarter ended September 28, 2025. Q2 revenues were $45.687M vs $41.109M a year ago; Q2 net income was $5.199M and EPS diluted was $1.26, down from $6.030M and $1.47 a year earlier. Adjusted EBITDA for Q2 was $8.280M vs $10.350M prior year. For the 26-week fiscal period, revenues were $92.685M and net income was $14.127M with diluted EPS of $3.42.
The company noted higher Branded Product sales ($58.122M) and a ~16% increase in beef costs that reduced branded operating income. The Board declared a regular quarterly dividend of $0.50 and a special cash dividend of $2.50 per share, both payable December 5, 2025.
La società ha registrato una maggiore vendita di Prodotti Brand ($58.122M) e un aumento di circa il 16% dei costi della carne che ha ridotto l'utile operativo del marchio. Il Consiglio di Amministrazione ha dichiarato un dividendo trimestrale regolare di $0,50 e un dividendo in contanti speciale di $2,50 per azione, entrambi pagabili il 5 dicembre 2025.
La empresa señaló un mayor venta de Productos de Marca ($58.122M) y un aumento de ~16% en los costos de la carne que redujo el ingreso operativo de la marca. El Consejo declaró un dividendo trimestral regular de $0,50 y un dividendo en efectivo especial de $2,50 por acción, pagaderos el 5 de diciembre de 2025.
회사는 브랜드 제품 매출($58.122M) 증가와 육류 원가가 약 16% 상승해 브랜드 영업이익이 감소했다고 밝혔습니다. 이사회는 정기 분기 배당금 $0.50과 특별 현금 배당금 $2.50를 주당으로 선언했으며, 두 배당금은 2025년 12월 5일에 지급될 예정입니다.
L'entreprise a enregistré une hausse des ventes de Produits de marque ($58,122M) et une augmentation d'environ 16% des coûts de la viande qui ont réduit le résultat opérationnel de la marque. Le conseil a déclaré un dividende trimestriel régulier de $0,50 et un dividende en espèces spécial de $2,50 par action, tous deux payables le 5 décembre 2025.
Das Unternehmen verzeichnete höhere Branded-Product-Umsätze ($58.122M) und eine ungefähr 16%ige Erhöhung der Fleischkosten, die das Brand-Operating-Income reduzierten. Der Vorstand kündigte eine reguläre Quartalsdividende von $0,50 und eine Sonderdividende in bar von $2,50 pro Aktie an, beide zahlbar am 5. Dezember 2025.
أشارت الشركة إلى ارتفاع مبيعات المنتجات الماركة ($58.122M) وزيادة تقارب 16% في تكاليف اللحم مما قلل من الدخل التشغيلي للعلامة التجارية. أعلن المجلس عن توزيعات أرباح ربع سنوية منتظمة قدرها $0.50 وتوزيعة نقدية خاصة قدرها $2.50 للسهم الواحد، وكلاهما يستحق الدفع في 5 ديسمبر 2025.
- Q2 revenues +11.1% to $45.687M
- Branded Product sales +$7.44M to $58.122M
- Board declared special dividend of $2.50 per share
- Q2 Adjusted EBITDA down ~20% to $8.280M
- Q2 diluted EPS down ~14% to $1.26
- Branded Product operating income fell due to a 16% rise in beef costs
Insights
Nathan's 2Q fiscal 2026 shows higher revenue but lower profits and a large special dividend declaration.
The company reported second quarter revenues of
Results depend on cost and royalty dynamics: license royalties and Smithfield‑related royalties decreased modestly, while branded product sales rose to
Watch cash deployment and margin recovery over the next fiscal half; monitor quarterly operating income, beef cost trends, and any commentary on cash sources used for the
Declares Regular Quarterly Cash Dividend Of
JERICHO, N.Y., Nov. 06, 2025 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) today reported results for its second fiscal quarter ended September 28, 2025.
For the thirteen-week period ended September 28, 2025 (“second quarter fiscal 2026”):
- Revenues were
$45,687,000 as compared to$41,109,000 during the thirteen weeks ended September 29, 2024; - Income from operations was
$7,502,000 as compared to$9,632,000 during the thirteen weeks ended September 29, 2024; - Adjusted EBITDA1, a non-GAAP financial measure, was
$8,280,000 as compared to$10,350,000 during the thirteen weeks ended September 29, 2024; - Income before provision for income taxes was
$7,021,000 as compared to$8,099,000 during the thirteen weeks ended September 29, 2024; - Net income was
$5,199,000 as compared to$6,030,000 during the thirteen weeks ended September 29, 2024; and - Earnings per diluted share was
$1.26 per share as compared to$1.47 per share during the thirteen weeks ended September 29, 2024.
For the twenty-six weeks ended September 28, 2025 (“fiscal 2026”):
- Revenues were
$92,685,000 as compared to$85,876,000 during the twenty-six weeks ended September 29, 2024; - Income from operations was
$20,293,000 as compared to$23,377,000 during the twenty-six weeks ended September 29, 2024; - Adjusted EBITDA1, a non-GAAP financial measure, was
$21,811,000 as compared to$24,631,000 during the twenty-six weeks ended September 29, 2024; - Income before provision for income taxes was
$19,278,000 as compared to$20,883,000 during the twenty-six weeks ended September 29, 2024; - Net income was
$14,127,000 as compared to$15,307,000 during the twenty-six weeks ended September 29, 2024; and - Earnings per diluted share was
$3.42 per share as compared to$3.74 per share during the twenty-six weeks ended September 29, 2024.
The Company also reported the following:
- License royalties decreased to
$21,608,000 during the twenty-six weeks ended September 28, 2025, (“fiscal 2026 period”) as compared to$22,412,000 during the twenty-six weeks ended September 29, 2024. During the fiscal 2026 period, royalties earned under the retail agreement, including the foodservice program, from Smithfield Foods, Inc., decreased4% to$19,853,000 as compared to$20,605,000 of royalties earned during the twenty-six weeks ended September 29, 2024. - In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, sales increased by
$7,440,000 t o$58,122,000 during the fiscal 2026 period as compared to$50,682,000 during the twenty-six weeks ended September 29, 2024. The volume of hot dogs sold by the Company increased by3% . Our average selling price, which is partially correlated to the beef markets, increased by approximately10% compared to the prior year period. Income from operations decreased by$2,003,000 t o$1,194,000 during the fiscal 2026 period as compared to$3,197,000 for the twenty-six weeks ended September 29, 2024, due primarily to a16% increase in the cost of beef and beef trimmings. - Sales from Company-owned restaurants were
$9,610,000 during the fiscal 2026 period as compared to$9,547,000 during the twenty-six weeks ended September 29, 2024. Restaurant sales were impacted by higher sales at our Coney Island locations which were offset by lower sales at our locations in Oceanside and Yonkers, New York. - Revenues from franchise operations were
$2,352,000 during the fiscal 2026 period as compared to$2,247,000 during the twenty-six weeks ended September 29, 2024. Total royalties were$2,139,000 during the fiscal 2026 period as compared to$2,047,000 during the twenty-six weeks ended September 29, 2024. Franchise restaurant sales increased by$1,982,000 t o$38,316,000 as compared to$36,334,000 for the twenty-six weeks ended September 29, 2024.2 Total franchise fee income, including cancellation fees, was$213,000 during the fiscal 2026 period as compared to$200,000 during the twenty-six weeks ended September 29, 2024. Fourteen franchised locations opened during the fiscal 2026 period. - During the fiscal 2026 period, we recorded Advertising Fund revenue of
$993,000 and expense of$1,114,000. - During the fiscal 2026 period, the Board of Directors declared and paid two quarterly cash dividends of
$0.50 per share totaling$4,089,000. - Effective November 6, 2025, the Board of Directors declared its quarterly cash dividend of
$0.50 per share payable on December 5, 2025 to shareholders of record at the close of business on November 24, 2025. - Effective November 6, 2025, the Board of Directors declared a special cash dividend of
$2.50 per share payable on December 5, 2025 to shareholders of record at the close of business on November 24, 2025.
Certain Non-GAAP Financial Information:
In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"), the Company is disclosing EBITDA, a non-GAAP financial measure which is defined as net income, excluding (i) interest expense; (ii) provision for income taxes and (iii) depreciation and amortization expense. The Company is also disclosing Adjusted EBITDA, a non-GAAP financial measure which is defined as EBITDA, excluding (i) the loss on debt extinguishment and (ii) share-based compensation that the Company believes will impact the comparability of its results of operations.
The Company believes that EBITDA and Adjusted EBITDA are useful to investors to assist in assessing and understanding the Company's operating performance and underlying trends in the Company's business because EBITDA and Adjusted EBITDA are (i) among the measures used by management in evaluating performance and (ii) are frequently used by securities analysts, investors and other interested parties as a common performance measure.
EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be viewed as alternatives to net income or other measures of financial performance or liquidity in conformity with US GAAP. Additionally, our definitions of EBITDA and Adjusted EBITDA may differ from other companies. Analysis of results and outlook on a non-US GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with US GAAP. Please see the table at the end of this press release for a reconciliation of EBITDA and Adjusted EBITDA to net income.
About Nathan’s Famous
Nathan’s is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and twenty foreign countries through its restaurant system, foodservice sales programs and product licensing activities. For additional information about Nathan’s please visit our website at www.nathansfamous.com.
_____________________
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 3 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.
2 Franchise restaurant sales are not revenues of the Company and are not included in the Company’s Condensed Consolidated Financial Statements.
Except for historical information contained in this news release, the matters discussed are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the current belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially include but are not limited to: the impact of disease epidemics such as the COVID-19 pandemic; increases in the cost of food and paper products; the impact of price increases on customer visits; the status of our licensing and supply agreements, including our licensing revenue and overall profitability being substantially dependent on our agreement with Smithfield Foods, Inc.; the impact of our debt service and repayment obligations under our credit facility, including the effect on our ability to fund working capital, operations and make new investments; economic (including inflationary pressures like those currently being experienced); weather (including the impact on sales at our restaurants particularly during the summer months), and changes in the price of beef and beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; the collectability of receivables; changes in consumer tastes; the continued viability of Coney Island as a destination location for visitors; the ability to attract franchisees; the impact of the minimum wage legislation on labor costs in New York State or other changes in labor laws, including regulations which could render a franchisor as a “joint employer” or the impact of our union contracts; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; the future effects of any food borne illness, such as bovine spongiform encephalopathy, BSE and e coli; and the risk factors reported from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update such forward-looking statements.
| FOR: | NATHAN'S FAMOUS, INC. |
| COMPANY CONTACT: | Robert Steinberg, Vice President - Finance and CFO |
| (516) 338-8500 ext. 229 | |
| Nathan's Famous, Inc. and Subsidiaries(unaudited) | ||||||||||||||||
| Thirteen weeks ended | Twenty-six weeks ended | |||||||||||||||
| Sept. 28, 2025 | Sept. 29, 2024 | Sept. 28, 2025 | Sept. 29, 2024 | |||||||||||||
| Financial Highlights | ||||||||||||||||
| Total revenues | $ | 45,687,000 | $ | 41,109,000 | $ | 92,685,000 | $ | 85,876,000 | ||||||||
| Income from operations (a) | $ | 7,502,000 | $ | 9,632,000 | $ | 20,293,000 | $ | 23,377,000 | ||||||||
| Net income | $ | 5,199,000 | $ | 6,030,000 | $ | 14,127,000 | $ | 15,307,000 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 1.27 | $ | 1.48 | $ | 3.45 | $ | 3.75 | ||||||||
| Diluted | $ | 1.26 | $ | 1.47 | $ | 3.42 | $ | 3.74 | ||||||||
| Weighted-average shares used in | ||||||||||||||||
| Computing net income per share: | ||||||||||||||||
| Basic | 4,089,000 | 4,085,000 | 4,089,000 | 4,085,000 | ||||||||||||
| Diluted | 4,130,000 | 4,095,000 | 4,127,000 | 4,092,000 | ||||||||||||
| Select Segment Information | ||||||||||||||||
| Revenues | ||||||||||||||||
| Branded product program | $ | 29,047,000 | $ | 24,536,000 | $ | 58,122,000 | $ | 50,682,000 | ||||||||
| Product licensing | 9,227,000 | 9,491,000 | 21,608,000 | 22,412,000 | ||||||||||||
| Restaurant operations | 6,847,000 | 6,522,000 | 11,962,000 | 11,794,000 | ||||||||||||
| Corporate (b) | 566,000 | 560,000 | 993,000 | 988,000 | ||||||||||||
| Total Revenues | $ | 45,687,000 | $ | 41,109,000 | $ | 92,685,000 | $ | 85,876,000 | ||||||||
| Income from operations (c) | ||||||||||||||||
| Branded product program | $ | (1,082,000) | $ | 697,000 | $ | 1,194,000 | $ | 3,197,000 | ||||||||
| Product licensing | 9,181,000 | 9,446,000 | 21,516,000 | 22,321,000 | ||||||||||||
| Restaurant operations | 1,993,000 | 1,781,000 | 3,061,000 | 2,827,000 | ||||||||||||
| Corporate (d) | (2,590,000) | (2,292,000) | (5,478,000) | (4,968,000) | ||||||||||||
| Income from operations (c) | $ | 7,502,000 | $ | 9,632,000 | $ | 20,293,000 | $ | 23,377,000 | ||||||||
| (a) | Excludes loss on debt extinguishment, interest expense, interest and dividend income, and other income, net. | |
| (b) | Represents Advertising Fund revenue. | |
| (c) | Excludes loss on debt extinguishment, interest expense, interest and dividend income and other income, net which are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the Chief Operating Decision Maker. | |
| (d) | Consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, incentive compensation, share-based compensation, compliance costs and the operating results of the Advertising Fund. | |
| Nathan's Famous, Inc. and Subsidiaries Reconciliation of Net Income to EBITDA and Adjusted EBITDA (unaudited) | |||||||||||||||||
| Thirteen weeks ended | Twenty-six weeks ended | ||||||||||||||||
| Sept. 28, 2025 | Sept. 29, 2024 | Sept. 28, 2025 | Sept. 29, 2024 | ||||||||||||||
| EBITDA | |||||||||||||||||
| Net Income | $ | 5,199,000 | $ | 6,030,000 | $ | 14,127,000 | $ | 15,307,000 | |||||||||
| Interest Expense | 739,000 | 1,441,000 | 1,497,000 | 2,501,000 | |||||||||||||
| Provision for income taxes | 1,822,000 | 2,069,000 | 5,151,000 | 5,576,000 | |||||||||||||
| Depreciation and amortization | 236,000 | 247,000 | 464,000 | 496,000 | |||||||||||||
| EBITDA | $ | 7,996,000 | $ | 9,787,000 | $ | 21,239,000 | $ | 23,880,000 | |||||||||
| Adjusted EBITDA | |||||||||||||||||
| EBITDA | $ | 7,996,000 | $ | 9,787,000 | $ | 21,239,000 | $ | 23,880,000 | |||||||||
| Loss on debt extinguishment | - | 334,000 | - | 334,000 | |||||||||||||
| Share-based compensation | 284,000 | 229,000 | 572,000 | 417,000 | |||||||||||||
| Adjusted EBITDA | $ | 8,280,000 | $ | 10,350,000 | $ | 21,811,000 | $ | 24,631,000 | |||||||||
FAQ
What did Nathan's (NATH) report for Q2 ended September 28, 2025 in revenue and EPS?
How much is the special dividend declared by Nathan's (NATH) on November 6, 2025?
Why did Nathan's (NATH) operating income decline in the branded product segment in fiscal 2026?
What happened to Nathan's (NATH) Adjusted EBITDA in Q2 2026 compared with Q2 2025?
Did Nathan's (NATH) royalties from Smithfield change in the 26-week fiscal 2026 period?
When will Nathan's (NATH) declared dividends be paid and who is the record date?
