Nathan's Famous Delivers Strong Q1 Performance in 2025

Author: Hannah Lewis Updated: 08-08-2025 06:43 AM

Nathan's Famous Reports Positive First Quarter Results

Nathan's Famous, Inc. (NASDAQ: NATH) has unveiled its financial performance for the first fiscal quarter, which concluded on June 29, 2025. The company's results indicate a robust growth trajectory despite facing some challenges during this period.

Financial Highlights from the Quarter

The results from this thirteen-week period show noteworthy progress in several key areas:

Reported revenues reached $46,998,000, marking a growth from $44,767,000 in the same quarter the previous year.
Income from operations totaled $12,791,000, although it reflects a slight decline from last year's $13,745,000.
Adjusted EBITDA stood at $13,531,000, compared to $14,281,000 in 2024.
Net income also saw a decrease, recorded at $8,928,000 compared to $9,277,000 previously.
Earnings per diluted share were $2.16, down from $2.27.

Segment Performance Insights

Nathan's reported a mixed performance across various segments:

License royalties experienced a drop to $12,381,000, compared to $12,921,000 recorded during the previous year. A notable factor was the 4.5% decrease in royalties from Smithfield Foods, Inc.
In the Branded Product Program, sales surged by $2,929,000 to $29,075,000, influenced partly by an 8% increase in the average selling price for hot dogs, reflecting trends in the beef market.
Company-owned restaurant sales dipped to $3,986,000 due to adverse weather impacting customer traffic.
Franchise operations showed resilience with revenues reaching $1,129,000, slightly up from $1,073,000 a year ago.

Advertising Fund and Dividend Announcements

The company also made strides in its advertising strategies, recording funding revenue and expenses at $427,000 for this quarter, similar to last year's figures. Additionally, Nathan's attention to shareholder value continues as they declared a cash dividend of $0.50 per share payable on September 5, 2025.

Understanding Non-GAAP Financial Metrics

Nathan's emphasizes that non-GAAP financial measures, like EBITDA and Adjusted EBITDA, provide an enhanced view of the company's operating performance. These metrics exclude certain expenses such as interest and taxes, allowing investors to gain better insights into the underlying trends affecting the business.

About Nathan's Famous

Nathan's Famous is a leader in the food service industry, distributing products across the United States and internationally. The company is committed to sustaining growth and delivering value to its customers and shareholders. Additional information on Nathan's can be found on their official website.

Frequently Asked Questions

What are the key financial highlights for Nathan's Famous this quarter?

This quarter, Nathan's reported revenues of $46,998,000 and adjusted EBITDA of $13,531,000.

How did the company's different segments perform?

While license royalties decreased, the branded product program witnessed increased sales, showing a mixed performance overall.

Was there a decline in net income compared to last year?

Yes, Nathan's net income decreased from $9,277,000 last year to $8,928,000 this year.

What is the significance of Nathan's non-GAAP financial measures?

Non-GAAP measures like EBITDA provide insights into the company’s operational efficiency, excluding certain items that may cloud financial performance.

When is Nathan's next dividend payment scheduled?

The next dividend payment of $0.50 per share is set for September 5, 2025.

About The Author

Hi there, I'm Hannah Lewis, a writer and financial specialist of 36 years old committed to making money understandable and approachable to everyone. Years of working in the field have given me a thorough grasp of market trends, investment techniques, and economic fundamentals. My objective is to enable people, by means of understandable, useful guidance, to take charge of their financial destiny.

I have written many articles for financial blogs over my career that simplify difficult financial ideas into understandable insights. Being financially literate is a critical ability, and I am passionate about enabling people to confidently manage their financial lives. Regardless of your level of experience, my work will help you at every stage of the investment process. I appreciate being allowed to share in your success and financial expansion.

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