Nathan's Famous, Inc. Delivers Strong Fiscal Performance
Nathan's Famous, Inc. Reports Financial Year-End Results
JERICHO, N.Y. - Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) recently reported its financial results for the fiscal year and for the period ending on March 30th.
Quarterly Cash Dividend Announced
As of June 10, the Board of Directors has declared a quarterly cash dividend of $0.50 per share for fiscal 2026. This dividend is set to be paid on July 1 to shareholders who are on record at the end of business on June 23.
Performance Overview for Fiscal 2025
The results for the fiscal year ending on March 30, 2025, shows significant growth:
- Revenues totaled $148,182,000 compared to $138,610,000 for the previous fiscal year.
- Income from operations rose to $36,497,000 from $32,506,000.
- Adjusted EBITDA was $39,206,000, an increase from $34,843,000 year-over-year.
- Income before income taxes was reported at $32,761,000, an increase from $27,451,000.
- Net income reached $24,026,000 compared to $19,616,000 the prior year.
- Earnings per diluted share improved to $5.87 per share from $4.80.
Fourth Quarter Highlights
In the fourth quarter, Nathan's Famous saw impressive performance:
- Revenues were $30,787,000 compared to $28,991,000 for the same quarter last year.
- Operating income stood at $6,368,000, while the previous year was slightly higher at $6,802,000.
- Adjusted EBITDA for the quarter came in at $7,096,000, down from $7,282,000.
- Net income rose to $4,235,000 compared to $3,910,000 year-over-year.
- Earnings per diluted share were $1.03 compared to $0.96.
Royalty and Restaurant Growth
The Company has also reported a strong increase in license royalties, which climbed to $37,418,000 for the fiscal year compared to $33,581,000 in the previous year. Earnings from the retail agreement with Smithfield Foods, Inc. were remarkable, rising by 12%.
Within the Branded Product Program, sales also saw an increase to $91,828,000, up by $5,339,000 from the previous fiscal year, with the volume of hot dogs sold increasing by approximately 1.2%.
Sales from Company-owned restaurants reached $12,714,000, which was slightly higher than the previous year's revenue of $12,103,000. Increased sales at the iconic Coney Island locations contributed significantly to this growth.
Franchise and Advertising Metrics
In franchise operations, revenues were recorded at $4,148,000, slightly down from $4,356,000 from the previous year. Twenty-five new franchised locations opened within the fiscal year, demonstrating ongoing interest in the Nathan's brand.
Advertising revenue remained stable at $2,074,000, somewhat similar to the previous year's revenues of $2,081,000, reflecting persistent brand engagement.
Insights Into Non-GAAP Financial Measures
The Company has highlighted its non-GAAP financial measures, including EBITDA and Adjusted EBITDA, indicating that these are vital in assessing the operational performance and underlying business trends. These measures exclude certain expenses and losses to provide a clearer picture of the Company's health.
About Nathan’s Famous
Nathan's Famous, Inc. is recognized as a Russell 2000 Company, distributing its products across 50 states and internationally through various channels including product licensing, foodservice sales programs, and its restaurant system. These strategic O&M efforts allow Nathan's to maintain a significant footprint in the market.
Frequently Asked Questions
What recent financial results did Nathan's Famous disclose?
The company reported increased revenues of $148,182,000 and net income rising to $24,026,000 for fiscal year 2025.
When was the recent dividend declared?
The Board of Directors declared a quarterly cash dividend of $0.50 on June 10.
How did the fourth quarter perform for Nathan's Famous?
In the fourth quarter, revenues were $30,787,000, with a net income of $4,235,000, showcasing solid performance despite slight declines in operating income compared to the previous year.
What are the highlights of Nathan's licensing revenue?
Licensing royalties increased to $37,418,000 in fiscal 2025, a significant growth from $33,581,000 in 2024.
How does Nathan's Famous measure its operational performance?
The company utilizes non-GAAP measures like EBITDA and Adjusted EBITDA to reflect its operational performance more accurately, excluding specific costs that can distort financial health.
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