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Core Insights - Nathan's Famous (NASDAQ: NATH) stock has experienced a significant increase, rising 51% over the past five months since mid-January [1] Company Performance - The stock price movement indicates a strong upward trend, suggesting positive market sentiment towards Nathan's Famous [1]

Revenue and Sales Performance - Total revenues increased by approximately 7% to $148,182,000 for fiscal 2025 compared to $138,610,000 for fiscal 2024[255] - Foodservice sales from the Branded Product Program increased by approximately 6% to $91,828,000 for fiscal 2025, with a 1.2% increase in the total volume of hot dogs sold[257] - Average selling prices in the Branded Product Program increased by approximately 5% compared to fiscal 2024[257] - Total Company-owned restaurant sales increased by approximately 5% to $12,714,000 during fiscal 2025 compared to $12,103,000 during fiscal 2024[258] - License royalties increased by approximately 11% to $37,418,000 in fiscal 2025 compared to $33,581,000 in fiscal 2024[259] - Royalties earned on sales of hot dogs from the license agreement with Smithfield Foods, Inc. increased to $33,589,000 for fiscal 2025, reflecting an 11% increase in retail volume[259] - Franchise restaurant sales declined to $66,905,000 in fiscal 2025 from $68,417,000 in fiscal 2024, with comparable domestic franchise sales at $51,250,000 in fiscal 2025 compared to $53,108,000 in fiscal 2024[260] Costs and Expenses - Overall cost of sales increased by approximately 8% to $89,707,000 in fiscal 2025 from $83,182,000 in fiscal 2024, with gross profit at $14,835,000 or 14% of sales in fiscal 2025 compared to $15,410,000 or 16% of sales in fiscal 2024[263] - Cost of sales in the Branded Product Program increased by 9% to $82,462,000 in fiscal 2025, primarily due to a 1.2% increase in hot dog sales volume and a 7% increase in average cost per pound[264] - General and administrative expenses decreased by $1,082,000 to $14,530,000 in fiscal 2025 from $15,612,000 in fiscal 2024, attributed to lower professional fees and a cash bonus payout in fiscal 2024[267] Net Income and Financial Position - Net income for fiscal 2025 was $24,026,000, an increase from $19,616,000 in fiscal 2024, with EBITDA rising to $37,824,000 from $33,941,000[283] - Cash and cash equivalents increased by $6,775,000 to $27,802,000 at March 30, 2025, compared to $21,027,000 at March 31, 2024[285] - The effective income tax rate for fiscal 2025 was 26.7%, down from 28.5% in fiscal 2024, reflecting income tax expense of $8,735,000 on $32,761,000 of pre-tax income[275] Debt and Financing - The Company entered into a five-year unsecured Credit Agreement and borrowed $60,000,000 to refinance its outstanding Senior Secured Notes due 2025[235] - During fiscal 2025, the company made a voluntary principal prepayment of $8,000,000 on its Term Loan borrowings under the Credit Agreement[271] - The Company borrowed $60,000,000 in Term Loan borrowings to refinance and redeem its 2025 Notes, incurring $431,000 in debt issuance costs[292] - During fiscal 2025, the Company made mandatory principal repayments of $1,200,000 and a voluntary principal repayment of $8,000,000 on its Term Loan[292] - A hypothetical 100 bps increase in the interest rate on the $50,800,000 of outstanding unsecured Term Loan borrowings would lead to an increase of approximately $508,000 in cash interest costs over the next twelve months[315] - The Company expects to make cash interest payments of approximately $2,895,000 on the Term Loan borrowings during the fiscal year ended March 29, 2026[302] Dividends and Share Repurchase - The Company declared and paid four quarterly dividends of $0.50 per share, totaling $8,172,000 during fiscal 2025[297] - As of March 30, 2025, the Company had cash and cash equivalents of $27,802,000, with potential future cash dividend requirements of approximately $8,179,000 for fiscal 2026[299] - The Company has repurchased 1,101,884 shares at a cost of approximately $39,000,000 under its stock repurchase plan, with 98,116 shares remaining to be repurchased[296] Market Conditions and Future Outlook - The Company anticipates continued inflationary pressures on commodity prices and labor during fiscal 2026, impacting future results[233] - Inflationary pressures and rising commodity prices, particularly for beef, are expected to continue impacting the Company's results into fiscal 2026[308] - The average cost of hot dogs during fiscal 2025 was approximately 7% higher than in fiscal 2024, reflecting inflationary pressures on commodity prices[308] - The Company has not entered into hedging arrangements for commodity price fluctuations, exposing it to market changes in commodity prices[318] - The primary focus is to expand market penetration of the Nathan's Famous brand across all business platforms, with growth driven by Licensing and Branded Product Programs[241]

Financial Performance - Revenues for fiscal 2025 were $148,182,000, an increase of 6% compared to $138,610,000 for fiscal 2024[5] - Net income for fiscal 2025 was $24,026,000, representing a 22.4% increase from $19,616,000 in fiscal 2024[5] - Adjusted EBITDA for fiscal 2025 was $39,206,000, up 12.7% from $34,843,000 in fiscal 2024[5] - Income from operations for fiscal 2025 was $36,497,000, an increase of 12.2% from $32,506,000 in fiscal 2024[5] Revenue Sources - License royalties increased to $37,418,000 in fiscal 2025, a rise of 11% from $33,581,000 in fiscal 2024[7] - Sales from the Branded Product Program rose by $5,339,000 to $91,828,000 in fiscal 2025, a 6.2% increase compared to fiscal 2024[7] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.50 per share, payable on July 1, 2025[3] Market Expansion - Twenty-five franchised locations opened during fiscal 2025, contributing to market expansion efforts[7] Pricing Trends - Average selling price of hot dogs increased by approximately 5% compared to the prior year period[7] Franchise Income - Total franchise fee income was $381,000 in fiscal 2025, down from $470,000 in fiscal 2024[7]

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 $0.50 per share, which is payable on July 1, 2025 to shareholders of record at the close of business on June 23, 2025. For the fiscal year ended March 30, 2025: Revenues were $148,182, ...

Product Launch - Nathan's Famous has introduced Hot & Spicy Beef Franks, enhancing their product line with a spicy flavor profile while maintaining the signature taste [1][2] - The new franks are made from 100% beef, free from by-products, corn syrup, artificial flavors, or colorings, catering to health-conscious consumers [1] Market Availability - The Hot & Spicy Beef Franks are now available at major retailers across the United States, targeting both existing fans and new customers [2] Company Overview - Nathan's Famous, Inc. is a publicly traded company on NASDAQ (NATH) and is part of the Russell 2000 index, distributing products in 50 states and 20 foreign countries [3] - Smithfield Foods, Inc. is the parent company of Nathan's Famous, recognized for its leadership in packaged meats and fresh pork products [4]

Group 1 - The recent stock market pullback may be justified due to the potential impact of changes in U.S. tariff policy on corporate profits and economic growth [1] - Despite the pullback, many companies may have been unfairly affected, indicating potential investment opportunities [1]

Core Insights - Nathan's Famous, Inc. (NATH) has seen a 14.6% increase in stock price over the past three months, outperforming the industry and major indices [1][6] - The company reported strong third-quarter fiscal 2025 results, with improvements in both revenue and net income across all segments [2][3] - Strategic pricing, improved licensing revenues, and operational efficiencies contributed to the robust quarterly performance [3] Financial Performance - The company's revenue growth in the Branded Product segment was driven by higher volumes and prices, which offset increased beef costs [3] - Licensing revenue has grown significantly, particularly through the partnership with Smithfield Foods, providing a stable income stream [9] - Nathan's Famous maintains a trailing 12-month EV/Sales ratio of 2.8X, which is lower than the industry average of 4.9X but higher than its five-year median of 2.7X [13] Market Position - Nathan's Famous has a strong franchising network that diversifies revenue streams and reduces marketing burdens through franchisee contributions [10] - The brand's products are sold in high-traffic venues, and sponsorships with major sports franchises enhance brand exposure and sales [11] - The company continues to invest in digital marketing and delivery partnerships, aligning with changing consumer behaviors [8] Challenges - Rising commodity costs, particularly for beef, pose a risk to margins if the company cannot pass these costs onto customers [12] - Reliance on Smithfield Foods for licensing revenue and hot dog supply presents a significant risk, as any disruption could materially affect revenue streams [12] Investment Outlook - The strong core growth prospects and financial stability of Nathan's Famous present a compelling case for both existing and new investors [14][16] - The current stock valuation suggests potential for growth, as it is valued lower than the industry average, indicating room for alignment with overall market performance [16]

Core Concern - The primary concern regarding Nathan's Famous (NASDAQ: NATH) is understanding the current stock price despite several quarters of strong performance [1]. Performance Analysis - Nathan's Famous has shown strong performance in recent quarters, yet the stock continues to trade at a price that raises questions about its valuation [1].

Core Insights - Nathan's Famous, Inc. (NATH) shares have increased by 3.2% following the earnings report for the quarter ended December 29, 2024, outperforming the S&P 500 Index, which declined by 0.7% during the same period [1] - The stock has gained 11.3% over the past month, significantly exceeding the S&P 500's 3.2% rise [1] Financial Performance - Total revenues for the third quarter of fiscal 2025 reached $31.5 million, a 9.1% increase from $28.9 million in the same quarter last year [2] - Income from operations rose by 31.4% to $6.8 million from $5.1 million, while net income increased by 71.9% to $4.5 million from $2.6 million [2] - Diluted earnings per share (EPS) improved to $1.10, reflecting a 71.9% increase from $0.64 in the prior-year quarter [2] - For the first nine months of fiscal 2025, revenues totaled $117.4 million, up 7.1% from $109.6 million in the prior-year period [3] - Net income for this period grew by 26% to $19.8 million from $15.7 million, with diluted EPS increasing to $4.84 from $3.84, representing a 26% rise [3] Segmental Performance - Branded Product Program revenues increased by 7.2% to $21.1 million from $19.7 million in the prior-year quarter, with a 1.5% increase in hot dog sales volume and a 3.5% rise in average selling price [4] - Product Licensing revenues climbed by 16.9% to $7.1 million from $6.1 million, with year-to-date revenues growing 13.2% to $29.5 million from $26.1 million [5] - Restaurant Operations revenues improved by 6.8% to $2.8 million from $2.6 million, with year-to-date sales growing 5.5% to $14.6 million from $13.8 million [5] - Advertising Fund Revenue increased by 2.4% to $0.52 million from $0.51 million in the prior-year quarter, with year-to-date revenues growing 0.5% to $1.51 million from $1.50 million [6] Key Business Metrics - Adjusted EBITDA for the quarter was $7.5 million, a 30% increase from $5.8 million in the prior-year quarter [7] - For the nine-month period, adjusted EBITDA rose by 16.5% to $32.1 million from $27.6 million [7] Management Commentary - Management attributed the strong quarterly performance to strategic pricing actions, improved licensing revenues, and operational efficiencies [8] - Revenue growth in the Branded Product segment was supported by higher volumes and prices, despite increased beef costs [8] - Strong consumer demand contributed to revenue growth in both product licensing and restaurant operations segments [8] Other Developments - Nathan's Famous opened 24 new franchised locations during the nine-month period, expanding its market presence [10] - The board of directors declared and paid three quarterly dividends totaling $6.13 million and announced a quarterly cash dividend of $0.50 per share, payable on February 28, 2025 [10]