Nathan's Famous, Inc. Reports Year End And Fourth Quarter Results
- Revenue increased 6.9% to $148.2M in fiscal 2025
- Net income grew 22.5% to $24M ($5.87 per diluted share)
- License royalties from Smithfield Foods increased 12% to $33.6M
- Branded Product Program sales rose by $5.3M to $91.8M
- Twenty-five new franchised locations opened during fiscal 2025
- 7% increase in beef and beef trimmings costs impacted operations income
- Franchise operations revenue declined to $4.1M from $4.4M in fiscal 2024
- Franchise fee income decreased to $381,000 from $470,000 in prior year
Insights
Nathan's Famous reported strong 2025 results with 6.9% revenue growth and 22.5% net income growth despite higher beef costs.
Nathan's Famous delivered robust financial performance for fiscal 2025, with total revenue climbing
The company's licensing business was particularly strong, with royalties increasing
In the Branded Product Program, which sells hot dogs to foodservice operators, sales grew
Company-owned restaurant sales increased
The board's declaration of another
Declares Quarterly Cash Dividend Of
JERICHO, N.Y., June 10, 2025 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) today reported results for its fiscal year and fourth quarter ended March 30, 2025.
Effective June 10, 2025, the Board of Directors declared its first quarterly cash dividend for fiscal 2026 of
For the fiscal year ended March 30, 2025:
- Revenues were
$148,182,000 for the fifty-two weeks ended March 30, 2025 (“fiscal 2025”) as compared to$138,610,000 for the fifty-three weeks ended March 31, 2024 (“fiscal 2024”); - Income from operations was
$36,497,000 for fiscal 2025 as compared to$32,506,000 for fiscal 2024; - Adjusted EBITDA1 for fiscal 2025, a non-GAAP financial measure, was
$39,206,000 as compared to$34,843,000 for fiscal 2024; - Income before provision for income taxes was
$32,761,000 for fiscal 2025 as compared to$27,451,000 for fiscal 2024; - Net income was
$24,026,000 for fiscal 2025 as compared to$19,616,000 for fiscal 2024; and - Earnings per diluted share was
$5.87 per share for fiscal 2025 as compared to$4.80 per share for fiscal 2024.
For the quarter ended March 30, 2025:
- Revenues were
$30,787,000 for the thirteen weeks ended March 30, 2025 (“fourth quarter fiscal 2025”) as compared to$28,991,000 for the fourteen weeks ended March 31, 2024 (“fourth quarter fiscal 2024”); - Income from operations was
$6,368,000 for the fourth quarter fiscal 2025 as compared to$6,802,000 for the fourth quarter fiscal 2024; - Adjusted EBITDA1 for the fourth quarter fiscal 2025, a non-GAAP financial measure, was
$7,096,000 as compared to$7,282,000 for the fourth quarter fiscal 2024; - Income before provision for income taxes was
$5,819,000 for the fourth quarter fiscal 2025 as compared to$5,720,000 for the fourth quarter fiscal 2024; - Net income was
$4,235,000 for the fourth quarter fiscal 2025 as compared to$3,910,000 for the fourth quarter fiscal 2024; and - Earnings per diluted share was
$1.03 per share for the fourth quarter fiscal 2025 as compared to$0.96 per share for the fourth quarter fiscal 2024.
The Company also reported the following:
- License royalties increased to
$37,418,000 during fiscal 2025 as compared to$33,581,000 during fiscal 2024. During fiscal 2025, royalties earned under the retail agreement, including the foodservice program, from Smithfield Foods, Inc., increased12% to$33,589,000 as compared to$30,068,000 during fiscal 2024. - In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, sales increased by
$5,339,000 t o$91,828,000 during fiscal 2025 as compared to$86,489,000 during fiscal 2024. The volume of hot dogs sold by the Company increased by approximately1.2% . Our average selling price, which is partially correlated to the beef markets, increased by approximately5% compared to the prior year period. Income from operations decreased by$1,148,000 t o$7,136,000 during fiscal 2025 as compared to$8,284,000 during fiscal 2024 due primarily to a7% increase in the cost of beef and beef trimmings. - Sales from Company-owned restaurants were
$12,714,000 during fiscal 2025 as compared to$12,103,000 during fiscal 2024. Restaurant sales were primarily impacted by higher sales at our Coney Island locations due to an increase in our average check. - Revenues from franchise operations were
$4,148,000 during fiscal 2025 as compared to$4,356,000 during fiscal 2024. Total royalties were$3,767,000 during fiscal 2025 as compared to$3,886,000 during fiscal 2024. Total franchise fee income, including cancellations fees, was$381,000 during fiscal 2025 as compared to$470,000 during fiscal 2024. Twenty-five franchised locations opened during fiscal 2025. - Advertising revenue was
$2,074,000 during fiscal 2025 as compared to$2,081,000 during fiscal 2024. - On February 28, 2025, the Company paid the
$0.50 per share regular cash dividend that was declared by the Board of Directors effective February 6, 2025 to shareholders of record at the close of business of February 18, 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) 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 product licensing activities, foodservice sales programs, and restaurant system. For additional information about Nathan’s Famous, please visit our website at www.nathansfamous.com.
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1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 2 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release.
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 trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; potential changes in U.S. income tax or tariff policies; 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.
| COMPANY | Robert Steinberg, Vice President - Finance and CFO |
| CONTACT: | (516) 338-8500 ext. 229 |
| Nathan's Famous, Inc. and Subsidiaries | |||||||||||||||
| Thirteen weeks ended | Fourteen weeks ended | Fifty-two weeks ended | Fifty-three weeks ended | ||||||||||||
| Mar. 30, 2025 | Mar. 31, 2024 | Mar. 30, 2025 | Mar. 31, 2024 | ||||||||||||
| Financial Highlights | |||||||||||||||
| Total revenues | $ | 30,787,000 | $ | 28,991,000 | $ | 148,182,000 | $ | 138,610,000 | |||||||
| Income from operations (a) | $ | 6,368,000 | $ | 6,802,000 | $ | 36,497,000 | $ | 32,506,000 | |||||||
| Net income | $ | 4,235,000 | $ | 3,910,000 | $ | 24,026,000 | $ | 19,616,000 | |||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 1.04 | $ | 0.96 | $ | 5.88 | $ | 4.81 | |||||||
| Diluted | $ | 1.03 | $ | 0.96 | $ | 5.87 | $ | 4.80 | |||||||
| Weighted-average shares used in | |||||||||||||||
| Computing net income per share: | |||||||||||||||
| Basic | 4,089,000 | 4,085,000 | 4,086,000 | 4,081,000 | |||||||||||
| Diluted | 4,102,000 | 4,088,000 | 4,095,000 | 4,087,000 | |||||||||||
| Select Segment Information | |||||||||||||||
| Revenues | |||||||||||||||
| Branded product program | $ | 20,047,000 | $ | 18,279,000 | $ | 91,828,000 | $ | 86,489,000 | |||||||
| Product licensing | 7,901,000 | 7,506,000 | 37,418,000 | 33,581,000 | |||||||||||
| Restaurant operations | 2,273,000 | 2,626,000 | 16,862,000 | 16,459,000 | |||||||||||
| Advertising fund revenue | 566,000 | 580,000 | 2,074,000 | 2,081,000 | |||||||||||
| Total Revenues | $ | 30,787,000 | $ | 28,991,000 | $ | 148,182,000 | $ | 138,610,000 | |||||||
| Income from operations (b) | |||||||||||||||
| Branded product program | $ | 1,730,000 | $ | 2,515,000 | $ | 7,136,000 | $ | 8,284,000 | |||||||
| Product licensing | 7,856,000 | 7,460,000 | 37,236,000 | 33,399,000 | |||||||||||
| Restaurant operations | (310,000 | ) | (339,000 | ) | 2,431,000 | 1,661,000 | |||||||||
| Corporate (c) | (2,908,000 | ) | (2,834,000 | ) | (10,306,000 | ) | (10,838,000 | ) | |||||||
| Income from operations (b) | $ | 6,368,000 | $ | 6,802,000 | $ | 36,497,000 | $ | 32,506,000 | |||||||
- Excludes loss on debt extinguishment, interest expense, interest and dividend income, and other income, net.
- 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.
- 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 | |||||||||||||||
| Thirteen weeks ended | Fourteen weeks ended | Fifty-two weeks ended | Fifty-three weeks ended | ||||||||||||
| Mar. 30, 2025 | Mar. 31, 2024 | Mar. 30, 2025 | Mar. 31, 2024 | ||||||||||||
| EBITDA | |||||||||||||||
| Net Income | $ | 4,235,000 | $ | 3,910,000 | $ | 24,026,000 | $ | 19,616,000 | |||||||
| Interest Expense | 763,000 | 1,136,000 | 4,106,000 | 5,355,000 | |||||||||||
| Provision for income taxes | 1,584,000 | 1,810,000 | 8,735,000 | 7,835,000 | |||||||||||
| Depreciation and amortization | 226,000 | 239,000 | 957,000 | 1,135,000 | |||||||||||
| EBITDA | $ | 6,808,000 | $ | 7,095,000 | $ | 37,824,000 | $ | 33,941,000 | |||||||
| Adjusted EBITDA | |||||||||||||||
| EBITDA | $ | 6,808,000 | $ | 7,095,000 | $ | 37,824,000 | $ | 33,941,000 | |||||||
| Loss on debt extinguishment | - | - | 389,000 | 169,000 | |||||||||||
| Share-based compensation | 288,000 | 187,000 | 993,000 | 733,000 | |||||||||||
| Adjusted EBITDA | $ | 7,096,000 | $ | 7,282,000 | $ | 39,206,000 | $ | 34,843,000 | |||||||
FAQ
What is Nathan's Famous (NATH) earnings per share for fiscal 2025?
How much is Nathan's Famous (NATH) quarterly dividend in 2025?
What was Nathan's Famous (NATH) revenue in fiscal 2025?
How many new Nathan's Famous franchises opened in fiscal 2025?
How did Nathan's Famous Branded Product Program perform in 2025?
