Nathan's Famous, Inc. Reports Year End and Fourth Quarter Results
Rhea-AI Summary
Nathan's Famous (NASDAQ:NATH) reported fiscal 2026 results and declared a $0.50 quarterly cash dividend payable June 30, 2026 to shareholders of record on June 22, 2026.
Fiscal 2026 revenue rose to $162.1 million, while net income declined to $20.0 million and diluted EPS to $4.85. Q4 revenue grew to $35.1 million, but quarterly net income and EPS decreased. Branded Product Program sales increased, helped by a higher average selling price, though beef costs rose 19%, reducing operating income. License royalties remained stable and franchise royalties and sales increased.
Nathan's also highlighted its pending $102 per share all-cash acquisition by Smithfield Foods, valuing the company at about $450 million. Closing now is expected in the second half of 2026, subject to shareholder approval, CFIUS clearance and other conditions.
Positive
- Fiscal 2026 revenue grew to $162.1 million from $148.2 million
- Branded Product Program sales rose $13.9 million to $105.8 million
- Fiscal 2026 Adjusted EBITDA reached $36.3 million
- Q4 2026 Adjusted EBITDA increased to $7.6 million from $7.1 million
- Stable license royalties of $37.4 million in fiscal 2026
- Franchise restaurant sales increased to $70.1 million from $66.9 million
- Quarterly cash dividend of $0.50 per share payable June 30, 2026
- Proposed $102 per share cash acquisition by Smithfield valuing Nathan's at ~$450 million
Negative
- Fiscal 2026 income from operations declined to $30.1 million from $36.5 million
- Fiscal 2026 net income fell to $20.0 million from $24.0 million
- Fiscal 2026 diluted EPS decreased to $4.85 from $5.87
- Beef and beef trimming costs increased about 19%, cutting branded program operating income
- Q4 2026 net income declined to $2.8 million from $4.2 million
- Q4 2026 diluted EPS decreased to $0.68 from $1.03
- Company-owned restaurant sales slipped to $12.5 million, pressured by lower foot traffic
- More franchise closures than openings, 32 closed versus 23 opened in fiscal 2026
- Merger closing delayed to second half 2026 and contingent on regulatory and shareholder approvals
News Market Reaction – NATH
On the day this news was published, NATH declined 0.62%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 16 | Store opening | Positive | +0.0% | Announcement of new franchised location in Tucson near university corridor. |
| Feb 05 | Earnings & merger | Positive | -0.3% | Q3 results and Board approval of cash merger at $102.00 per share. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news flow (store opening, prior earnings/merger announcement) produced very small price reactions, suggesting historically muted trading responses to company updates during the pending acquisition period.
Over the past few months, Nathan’s updates have centered on operations and the pending acquisition. On Feb 5, 2026, the company reported Q3 results and confirmed the planned $102.00 per-share cash merger with Smithfield Foods, with only a modest -0.33% price reaction. A franchise opening announced on Feb 16, 2026 in Tucson saw virtually flat trading. Today’s full-year and Q4 results, plus a continued $0.50 dividend and updated merger timing, fit this pattern of operational detail against a largely deal-anchored stock price.
Key Terms
merger agreement regulatory
cfius regulatory
ebitda financial
adjusted ebitda financial
non-gaap financial
us gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Declares Quarterly Cash Dividend Of
JERICHO, N.Y., June 09, 2026 (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 29, 2026.
Effective June 9, 2026, as permitted under the Merger Agreement (as defined below) the Board of Directors declared its quarterly cash dividend for fiscal 2027 of
For the fiscal year ended March 29, 2026:
- Revenues were
$162,063,000 for the fifty-two weeks ended March 29, 2026 (“fiscal 2026”) as compared to$148,182,000 for the fifty-two weeks ended March 30, 2025 (“fiscal 2025”); - Income from operations was
$30,102,000 for fiscal 2026 as compared to$36,497,000 for fiscal 2025; - Adjusted EBITDA1 for fiscal 2026, a non-GAAP financial measure, was
$36,314,000 as compared to$39,206,000 for fiscal 2025; - Income before provision for income taxes was
$28,190,000 for fiscal 2026 as compared to$32,761,000 for fiscal 2025; - Net income was
$20,020,000 for fiscal 2026 as compared to$24,026,000 for fiscal 2025; and - Earnings per diluted share was
$4.85 per share for fiscal 2026 as compared to$5.87 per share for fiscal 2025.
For the quarter ended March 29, 2026:
- Revenues were
$35,066,000 for the thirteen weeks ended March 29, 2026 (“fourth quarter fiscal 2026”) as compared to$30,787,000 for the thirteen weeks ended March 30, 2025 (“fourth quarter fiscal 2025”); - Income from operations was
$4,682,000 for the fourth quarter fiscal 2026 as compared to$6,368,000 for the fourth quarter fiscal 2025; - Adjusted EBITDA1 for the fourth quarter fiscal 2026, a non-GAAP financial measure, was
$7,590,000 as compared to$7,096,000 for the fourth quarter fiscal 2025; - Income before provision for income taxes was
$4,164,000 for the fourth quarter fiscal 2026 as compared to$5,819,000 for the fourth quarter fiscal 2025; - Net income was
$2,809,000 for the fourth quarter fiscal 2026 as compared to$4,235,000 for the fourth quarter fiscal 2025; and - Earnings per diluted share was
$0.68 per share for the fourth quarter fiscal 2026 as compared to$1.03 per share for the fourth quarter fiscal 2025.
The Company also reported the following:
- License royalties were
$37,417,000 in fiscal 2026, comparable to the prior year, reflecting the stability of the Company’s licensing business and the steady royalty income earned under the Company’s retail and foodservice program with Smithfield Foods, Inc. - In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, sales increased by
$13,940,000 t o$105,768,000 during fiscal 2026 as compared to$91,828,000 during fiscal 2025. The volume of hot dogs sold by the Company increased by approximately1% . Our average selling price, which is partially correlated to the beef markets, increased by approximately12% compared to the prior year period. Income from operations decreased by$2,851,000 t o$4,285,000 during fiscal 2026 as compared to$7,136,000 during fiscal 2025 due primarily to a19% increase in the cost of beef and beef trimmings. - Sales from Company-owned restaurants were
$12,508,000 during fiscal 2026 as compared to$12,714,000 during fiscal 2025. Restaurant sales were primarily impacted by lower foot traffic attributable to unfavorable weather conditions, particularly at our Coney Island locations during the key summer season. - Revenues from franchise operations were
$4,317,000 during fiscal 2026 as compared to$4,148,000 during fiscal 2025. Total royalties were$3,897,000 during fiscal 2026 as compared to$3,767,000 during fiscal 2025. Franchise restaurant sales increased by$3,212,000 t o$70,117,000 as compared to$66,905,000 for fiscal 2025.2 Total franchise fee income, including cancellation fees, was$420,000 during fiscal 2026 as compared to$381,000 during fiscal 2025. Twenty-three franchised locations opened and thirty-two franchised locations closed during fiscal 2026. - Advertising revenue was
$2,053,000 during fiscal 2026 as compared to$2,074,000 during fiscal 2025. - On February 27, 2026, the Company paid the
$0.50 per share regular cash dividend that was declared by the Board of Directors effective February 5, 2026 to shareholders of record at the close of business on February 17, 2026.
As previously announced, on January 20, 2026, Nathan's entered into an Agreement and Plan of Merger (the "Merger Agreement") with Smithfield Foods, Inc. ("Smithfield Foods") and Boardwalk Merger Sub Inc. under which Smithfield Foods will acquire Nathan's for
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, (ii) share-based compensation, and (iii) non-recurring transaction costs consisting primarily of professional fees incurred in connection with the Merger Agreement 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.
____________________________
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.
2 Franchise restaurant sales are not revenues of the Company and are not included in the Company’s 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 occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement or the failure to satisfy the closing conditions; the possibility that the consummation of the proposed transaction is delayed or does not occur, including the failure of Nathan's stockholders to approve the proposed transaction; uncertainty as to whether the parties will be able to complete the proposed transaction on the terms set forth in the Merger Agreement; uncertainty regarding the timing of the receipt of required regulatory approvals for the proposed transaction and the possibility that the parties may be required to accept conditions that could reduce or eliminate the anticipated benefits of the proposed transaction as a condition to obtaining regulatory approvals or that the required regulatory approvals might not be obtained at all; the outcome of any legal proceedings that have been or may be instituted against the parties or others following announcement of the transactions contemplated by the Merger Agreement; challenges, disruptions and costs of integrating and achieving anticipated synergies, or that such synergies will take longer to realize than expected, risks that the proposed transaction and other transactions contemplated by the Merger Agreement disrupt current plans and operations that may harm Nathan's businesses; the amount of any costs, fees, expenses, impairments and charges related to the proposed transaction, and uncertainty as to the effects of the announcement or pendency of the proposed transaction on the market price of Nathan's common stock and/or on its financial performance; 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; 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; 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 | Thirteen weeks ended | Fifty-two weeks ended | Fifty-two weeks ended | ||||||||
| Mar. 29, 2026 | Mar. 30, 2025 | Mar. 29, 2026 | Mar. 30, 2025 | ||||||||
| Financial Highlights | |||||||||||
| Total revenues | $ | 35,066,000 | $ | 30,787,000 | $ | 162,063,000 | $ | 148,182,000 | |||
| Income from operations (a) | $ | 4,682,000 | $ | 6,368,000 | $ | 30,102,000 | $ | 36,497,000 | |||
| Net income | $ | 2,809,000 | $ | 4,235,000 | $ | 20,020,000 | $ | 24,026,000 | |||
| Net income per share: | |||||||||||
| Basic | $ | 0.69 | $ | 1.04 | $ | 4.89 | $ | 5.88 | |||
| Diluted | $ | 0.68 | $ | 1.03 | $ | 4.85 | $ | 5.87 | |||
| Weighted-average shares used in | |||||||||||
| Computing net income per share: | |||||||||||
| Basic | 4,094,000 | 4,089,000 | 4,091,000 | 4,086,000 | |||||||
| Diluted | 4,123,000 | 4,102,000 | 4,124,000 | 4,095,000 | |||||||
| Select Segment Information | |||||||||||
| Revenues | |||||||||||
| Branded product program | |||||||||||
| Product licensing | 8,424,000 | 7,901,000 | 37,417,000 | 37,418,000 | |||||||
| Restaurant operations | 2,197,000 | 2,273,000 | 16,825,000 | 16,862,000 | |||||||
| Advertising fund revenue | 548,000 | 566,000 | 2,053,000 | 2,074,000 | |||||||
| Total Revenues | |||||||||||
| Income from operations (b) | |||||||||||
| Branded product program | |||||||||||
| Product licensing | 8,379,000 | 7,856,000 | 37,234,000 | 37,236,000 | |||||||
| Restaurant operations | (360,000) | (310,000) | 2,617,000 | 2,431,000 | |||||||
| Corporate (c) | (5,171,000) | (2,908,000) | (14,034,000) | (10,306,000) | |||||||
| Income from operations (b) | |||||||||||
| (a) | Excludes loss on debt extinguishment, interest expense, interest and dividend income, and other income, net. |
| (b) | 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. |
| (c) | 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, transaction costs contemplated by the Merger Agreement, 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 | Thirteen weeks ended | Fifty-two weeks ended | Fifty-two weeks ended | ||||||||
| Mar. 29, 2026 | Mar. 30, 2025 | Mar. 29, 2026 | Mar. 30, 2025 | ||||||||
| EBITDA | |||||||||||
| Net Income | $ | 2,809,000 | $ | 4,235,000 | $ | 20,020,000 | $ | 24,026,000 | |||
| Interest Expense | 653,000 | 763,000 | 2,857,000 | 4,106,000 | |||||||
| Provision for income taxes | 1,355,000 | 1,584,000 | 8,170,000 | 8,735,000 | |||||||
| Depreciation and amortization | 229,000 | 226,000 | 925,000 | 957,000 | |||||||
| EBITDA | $ | 5,046,000 | $ | 6,808,000 | $ | 31,972,000 | $ | 37,824,000 | |||
| Adjusted EBITDA | |||||||||||
| EBITDA | $ | 5,046,000 | $ | 6,808,000 | $ | 31,972,000 | $ | 37,824,000 | |||
| Loss on debt extinguishment | - | - | - | 389,000 | |||||||
| Share-based compensation | 280,000 | 288,000 | 1,132,000 | 993,000 | |||||||
| Transaction costs3 | 2,264,000 | - | 3,210,000 | - | |||||||
| Adjusted EBITDA | $ | 7,590,000 | $ | 7,096,000 | $ | 36,314,000 | $ | 39,206,000 | |||
____________________________
3 Consists principally of legal, accounting and advisory costs incurred in connection with the transaction contemplated by the Merger Agreement.
