Nathan's Famous, Inc. Reports Quarterly Financial Performance
Located in Jericho, N.Y., Nathan's Famous, Inc. (NASDAQ: NATH) has announced its financial results for the first fiscal quarter concluding June 29. This period brought in revenues totaling $46,998,000, a noticeable rise from $44,767,000 recorded in the same quarter of the previous year.
Financial Overview
In analyzing revenues for the thirteen-week duration ending June 29:
- Income from operations stood at $12,791,000 compared to $13,745,000 from the same quarter last year.
- Adjusted EBITDA was recorded at $13,531,000, illustrating a decline from $14,281,000 year over year.
- Income before taxes reached $12,257,000, a slight drop from $12,784,000 reported last year.
- Net income fell to $8,928,000, down from $9,277,000.
- Earnings per diluted share were noted at $2.16, a decrease from $2.27.
Furthermore, the Company highlighted some notable aspects:
- License royalties decreased to $12,381,000, down from $12,921,000 during the same quarter a year ago.
- Under the Branded Product Program, sales of Nathan's hot dogs surged to $29,075,000, a $2,929,000 increase from $26,146,000 the previous year. The average selling price also climbed by approximately 8%, influenced by fluctuations in the beef market.
- In contrast, sales from company-owned restaurants totaled $3,986,000, a decrease attributed to reduced customer traffic, particularly in Coney Island locations, affected by unfavorable weather.
- Franchise operations saw revenues of $1,129,000, a rising trend as franchise restaurant sales increased to $18,444,000.
Dividends and Future Outlook
On July 1, the company distributed a cash dividend of $0.50 per share to shareholders. With fresh optimism, Nathan's Board of Directors declared another quarterly cash dividend of $0.50 per share, slated for September 5, as the company continues to support its shareholders amidst changing economic conditions.
Understanding Non-GAAP Financial Measures
Nathan's Famous also disclosed Non-GAAP financial metrics including EBITDA. This measure evaluates income minus interest expenses, tax provisions, and depreciation, to further understand the company's operational performance. Adjusted EBITDA is specifically calculated to exclude share-based compensation, which may affect comparative results.
Business Highlights
As a member of the Russell 2000, Nathan's Famous distributes its products across a wide reach, spanning 50 states along with territories like Puerto Rico and Guam, signaling strong market presence. Ongoing enhancements in the foodservice sector and robust product licensing strategies present opportunities for increased revenues.
Frequently Asked Questions
What are Nathan's Famous, Inc.'s total revenues for the first quarter?
The total revenues for Nathan's Famous, Inc. in the first quarter were $46,998,000.
How did the company's net income change in this quarter?
The net income decreased to $8,928,000 compared to $9,277,000 from the previous year.
What is EBITDA and why is it significant?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's significant as it helps assess the company's operating performance and underlying trends.
What dividends has Nathan's Famous declared recently?
Nathan's Famous declared a cash dividend of $0.50 per share on July 1 and another similar dividend scheduled for September 5.
How does Nathan's Famous maintain its market presence?
The company boosts its market presence through restaurant operations, foodservice sales programs, and strategic product licensing activities, reaching diverse markets.
