Revenue and Sales Performance - Total revenues increased by approximately 6% to $41,109,000 for the thirteen weeks ended September 29, 2024, compared to $38,744,000 for the same period in 2023[115] - Foodservice sales from the Branded Product Program increased by approximately 5% to $24,536,000 for the second quarter fiscal 2025, with a 4% increase in the volume of hot dogs sold[116] - Total Company-owned restaurant sales increased by approximately 3% to $5,348,000 during the second quarter fiscal 2025, influenced by higher sales at Coney Island locations[117] - Total revenues increased by approximately 6% to $85,876,000 for the 26 weeks ended September 29, 2024, compared to $80,729,000 for the same period in fiscal 2024[137] - Foodservice sales from the Branded Product Program increased by approximately 4% to $50,682,000 for the fiscal 2025 period compared to $48,522,000 in fiscal 2024[138] - Comparable domestic franchise sales decreased to $29,037,000 in fiscal 2025 from $29,388,000 in fiscal 2024, primarily due to lower traffic at international locations[141] Financial Metrics - EBITDA for the thirteen weeks ended September 29, 2024, was $9,787,000, compared to $9,592,000 for the same period in 2023[112] - Adjusted EBITDA for the thirteen weeks ended September 29, 2024, was $10,350,000, compared to $9,774,000 for the same period in 2023[112] - Overall cost of sales increased by approximately 5% to $51,270,000 in the fiscal 2025 period compared to $48,871,000 in fiscal 2024, with gross profit at $8,959,000 or 15%[144] - The effective income tax rate for Q2 fiscal 2025 was 25.5%, down from 27.4% in Q2 fiscal 2024, reflecting income tax expense of $2,069,000 on $8,099,000 of pre-tax income[134] - The effective income tax rate for fiscal 2025 was 26.7%, compared to 27.2% in fiscal 2024, with income tax expense of $5,576,000 on pre-tax income of $20,883,000[153] Costs and Expenses - Cost of sales in the Branded Product Program increased by 5% to $46,290,000 in fiscal 2025 from $44,010,000 in fiscal 2024, driven by a 2% increase in hot dog sales volume and a 3% rise in average cost per pound[145] - Company-owned restaurant sales cost was $4,980,000 or 52% of sales in fiscal 2025, down from $4,861,000 or 55% in fiscal 2024, with food and paper costs decreasing from 27.8% to 24.8%[145] - Restaurant operating expenses rose to $2,518,000 in fiscal 2025 from $2,383,000 in fiscal 2024, with a decrease in the percentage of sales from 26.9% to 26.4%[146] - General and administrative expenses decreased by approximately $60,000 or 1% to $7,227,000 in fiscal 2025 compared to $7,287,000 in fiscal 2024[148] Cash Flow and Financing - Cash and cash equivalents increased by $10,180,000 to $31,207,000 at September 29, 2024, compared to $21,027,000 at March 31, 2024[157] - Net cash provided by operating activities was $14,826,000 in fiscal 2025, up from $11,366,000 in fiscal 2024[162] - The Company entered into a five-year unsecured Credit Agreement and borrowed $60,000,000 to refinance existing debt[103] - The Company entered into a five-year unsecured Credit Agreement providing for a term loan facility of $60,000,000 and a revolving credit facility of up to $10,000,000[166] - The company made a voluntary principal prepayment of $8,000,000 on Term Loan borrowings under its Credit Agreement on October 10, 2024[175] Dividends and Shareholder Returns - The Company declared a third quarter fiscal 2025 dividend of $0.50 per common share, payable on December 6, 2024[171] - The Company expects total cash requirements for dividends for fiscal 2025 to be approximately $8,169,000[172] Market and Economic Conditions - Inflationary pressures impacted operations, particularly with higher commodity prices for beef and beef trimmings, which may continue throughout fiscal year 2025[104] - The average cost of hot dogs during fiscal 2025 was approximately 3% higher than during fiscal 2024, indicating inflationary pressures on commodity prices[180] - A short-term increase or decrease of 10% in the cost of food and paper products would have increased or decreased the cost of sales by approximately $4,741,000 for the period ended September 29, 2024[191] - The company expects continued volatility in oil and gas prices affecting distribution costs and utility costs in Company-owned restaurants[190] - Competitive pressure on labor rates due to minimum wage increases in New York State has significantly impacted financial results[181] - The company anticipates that rising labor costs, commodity prices, and other operating expenses could adversely affect operations[184] Licensing and Royalties - The primary growth drivers have been the Licensing and Branded Product Programs, which are the largest contributors to the Company's revenues and profits[100] - License royalties increased by approximately 14% to $9,491,000 in Q2 fiscal 2025 compared to $8,339,000 in Q2 fiscal 2024, driven by an 18% increase in retail volume[118] - Franchise fees and royalties decreased by approximately 9% to $1,174,000 in Q2 fiscal 2025 from $1,291,000 in Q2 fiscal 2024, with traditional franchise royalties at $807,000 compared to $858,000[119] - Total franchise fee income was $200,000 in the fiscal 2025 period compared to $238,000 in fiscal 2024, with domestic franchise fee income increasing to $58,000 from $55,000[142] - The company recognized $23,000 in forfeited fees in the fiscal 2025 period, compared to $63,000 in fiscal 2024, with twenty-one franchise locations opened in fiscal 2025[143] - Advertising fund revenue, after eliminating company contributions, was $988,000 during the fiscal 2025 period compared to $993,000 in fiscal 2024[143] Debt and Interest Rate Exposure - A hypothetical 100 bps increase in the interest rate on outstanding unsecured Term Loan borrowings would lead to an increase of approximately $600,000 in cash interest costs over the next twelve months[188] - As of September 29, 2024, the company's cash and cash equivalents totaled $31,207,000, with earnings on this cash expected to fluctuate by approximately $78,000 per annum for each 0.25% change in interest rates[187] - The company has not hedged against fluctuations in commodity prices, leaving future purchases subject to market changes[191]

Financial Performance - Revenues for the second quarter fiscal 2025 were $41,109,000, an increase of 6.5% compared to $38,744,000 in the same period last year[2] - Net income for the second quarter fiscal 2025 was $6,030,000, up 5.6% from $5,711,000 in the prior year[2] - Adjusted EBITDA for the second quarter fiscal 2025 was $10,350,000, representing a 5.9% increase from $9,774,000 in the same quarter of the previous year[2] - Income from operations for the twenty-six weeks ended September 29, 2024, was $23,377,000, a 13.6% increase from $20,567,000 in the same period last year[3] - Total net income for the twenty-six weeks ended September 29, 2024, was $15,307,000, compared to $13,099,000 for the same period last year, representing a 16.8% increase[18] - Total adjusted EBITDA for the twenty-six weeks ended September 29, 2024, was $24,631,000, up from $21,810,000 in the prior year, indicating a 12.5% growth[18] Earnings and Dividends - Earnings per diluted share for the second quarter fiscal 2025 were $1.47, up from $1.40 in the same quarter of the previous year, a 5.0% increase[2] - The Board of Directors declared a quarterly cash dividend of $0.50 per share, totaling $4,085,000 for the fiscal 2025 period[9] Sales and Royalties - License royalties increased to $22,412,000 for the twenty-six weeks ended September 29, 2024, compared to $19,997,000 in the same period last year, a growth of 12.0%[5] - Sales from the Branded Product Program rose by $2,160,000 to $50,682,000 during the twenty-six weeks ended September 29, 2024, reflecting a 4.5% increase from $48,522,000 in the prior year[6] - Franchise restaurant sales decreased slightly to $36,334,000 during the fiscal 2025 period, compared to $36,433,000 in the prior year, a decline of 0.3%[8] Expenses and Taxation - Interest expense for the thirteen weeks ended September 29, 2024, was $1,441,000, slightly higher than $1,413,000 in the same period last year[18] - Provision for income taxes for the thirteen weeks ended September 29, 2024, was $2,069,000, down from $2,153,000 year-over-year, showing a decrease of 3.9%[18] - Depreciation and amortization expenses decreased to $247,000 for the thirteen weeks ended September 29, 2024, from $315,000 in the same period last year, a reduction of 21.6%[18] Other Financial Metrics - The average selling price of hot dogs increased by approximately 2.5% compared to the prior year period, while the volume sold increased by 2%[6] - EBITDA for the thirteen weeks ended September 29, 2024, was $9,787,000, up from $9,592,000 year-over-year, indicating a 2.0% growth[18] - Adjusted EBITDA for the thirteen weeks ended September 29, 2024, reached $10,350,000, compared to $9,774,000 in the prior year, reflecting a 5.9% increase[18] - Loss on debt extinguishment was recorded at $334,000 for the thirteen weeks ended September 29, 2024, with no loss reported in the same period last year[18] - Share-based compensation increased to $229,000 for the thirteen weeks ended September 29, 2024, compared to $182,000 in the prior year, marking a 25.8% rise[18]

JERICHO, N.Y., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. (“Nathan’s”, the “Company”, “we”, “us” or “our”) (NASDAQ:NATH) today reported results for its second fiscal quarter ended September 29, 2024. For the thirteen-week period ended September 29, 2024 (“second quarter fiscal 2025”): Revenues were $41,109,000 as compared to $38,744,000 during the thirteen weeks ended September 24, 2023;Income from operations was $9,632,000 as compared to $9,104,000 during the thirteen weeks ended September 24, ...

Nathan's Famous, Inc. (NATH) reported earnings per share (EPS) of $2.27 in the first quarter of fiscal 2025, which increased 25.4% from the year-ago EPS of $1.81. Revenues in Detail Nathan's Famous registered revenues of $44.8 million in the fiscal first quarter, up 6.6% year over year. Lower revenues from the majority of its segments drove the topline. Segment Details Nathan's Famous derives revenues from five segments — Branded Products, Company-owned restaurants, License royalties, Franchise fees and roy ...

OkiMdp Overview Below, I will discuss each segment of Nathan's. Note that the percentage of sales and year-over-year growth are as of March 2024 based on FactSet data. 8 Ct Beef Hot Dogs at Food Lion margins decline to 32.3% by 2030 and using a 9% WACC and a -3% growth rate, I arrived at $64.23 (less than 8% downside). Nathan's Famous (NASDAQ:NATH) is significantly underfollowed and undervalued, allowing investors the opportunity to invest in a leading premium hot dog brand with substantial upside (over 50% ...

Core Viewpoint - Nathan's Famous, Inc. reported solid financial results for the fiscal fourth quarter of 2024, with notable growth in revenues and earnings per share, although there were concerns regarding rising costs and margin contraction [3][4][13]. Financial Performance - Full-year EPS was $4.80, flat compared to the fiscal 2023 period [1]. - Nathan's Famous delivered EPS of 96 cents in the fourth quarter, reflecting a 20% increase year over year [3]. - Total revenues for the fiscal fourth quarter reached $28.9 million, up 5.8% from the previous year [4]. - Full-year revenues amounted to $138.6 million, indicating a 5.9% increase from fiscal 2023 [5]. Segment Performance - Revenues in the Product licensing segment totaled $7.5 million, up 1.6% year over year [2]. - The Branded product program reported revenues of $18.3 million, a 7.4% increase from the year-ago quarter [6]. - Restaurant operations segment revenues totaled $2.6 million, up 4.5% year over year [7]. - Robust performances across all segments contributed to the overall revenue growth [14]. Profitability Metrics - Gross profit increased by 6.6% to $12.2 million, with gross margin expanding by 34 basis points to 42.2% [8]. - Adjusted EBITDA for the fourth quarter amounted to $7.3 million, up 2.6% year over year [10]. - Adjusted operating profit totaled $7 million, reflecting a 4.9% increase from the prior year, although the adjusted operating margin contracted by 20 basis points to 24.3% [17]. Cost and Expense Analysis - Selling, general and administrative expenses rose by 5.4% year over year to $4.7 million, with advertising expenses increasing significantly by 61.3% to $0.5 million [9]. - Adjusted operating costs totaled $5.2 million, indicating a 9% increase from the year-ago quarter [9]. Liquidity and Debt Management - At the end of fiscal 2024, the company had cash of $21 million, down from $29.9 million at the end of fiscal 2023 [11]. - Total long-term debt decreased to $59.6 million from $79.1 million at the end of fiscal 2023 [11]. Operational Highlights - The volume of hot dogs sold during the fiscal year was encouraging, and the company opened 17 new franchised locations [13]. - Cumulative net cash provided by operating activities at the end of fiscal 2024 was $20 million, slightly up from $19.8 million a year ago [19]. - The company exited the fourth quarter with solid top-line and bottom-line results, supported by robust segment performances [20].

Nathan's Famous (NASDAQ:NATH) has posted its earnings report for its fiscal fourth quarter of 2024 all while caught up in drama over its hot dog eating contest. To go along with that, Nathan's Famous also reported a cash dividend of 50 cents per share for the first quarter of fiscal 2025. Shareholders need to be on record as of June 24, 2024 to get the dividend on July 2, 2024. At the same time, the company is embroiled in drama after banning 16-time champion Joey Chestnut from its 2024 contest. It did so a ...

Revenue and Sales Performance - Total revenues increased by approximately 6% to $138,610,000 for fiscal 2024 compared to $130,785,000 for fiscal 2023[271]. - Foodservice sales from the Branded Product Program were $86,489,000 for fiscal 2024, up from $78,884,000 in fiscal 2023, with a 2% increase in hot dog volume sold[272]. - Average selling prices increased by approximately 7% in fiscal 2024 compared to fiscal 2023[272]. - Total Company-owned restaurant sales decreased by approximately $58,000 to $12,103,000 during fiscal 2024 due to reduced traffic from unfavorable summer weather[273]. - Franchise restaurant sales rose to $68,417,000 in fiscal 2024 from $63,739,000 in fiscal 2023, attributed to higher sales at airport locations, movie theaters, and shopping malls[275]. - Comparable domestic franchise sales increased to $54,031,000 in fiscal 2024 from $51,607,000 in fiscal 2023[275]. Royalties and Licensing - License royalties increased by approximately $126,000 to $33,581,000 in fiscal 2024 compared to $33,455,000 in fiscal 2023[274]. - Total royalties earned on hot dog sales from the licensing agreement with Smithfield Foods, Inc. increased to $30,068,000 for fiscal 2024, up from $29,998,000 in fiscal 2023[274]. - The increase in hot dog royalties was due to a 3% increase in average net selling price, offset by a 3% decrease in retail volume[274]. - Franchise fees and royalties increased by $64,000 to $4,356,000 in fiscal 2024 compared to $4,292,000 in fiscal 2023, with total royalties at $3,886,000 in fiscal 2024 versus $3,636,000 in fiscal 2023[275]. Costs and Expenses - Cost of sales increased by approximately 11% to $83,182,000 in fiscal 2024 from $75,172,000 in fiscal 2023, with gross profit at $15,410,000 compared to $15,873,000[278]. - General and administrative expenses rose by $1,551,000 to $15,612,000 in fiscal 2024 from $14,061,000 in fiscal 2023, primarily due to discretionary bonuses and higher professional fees[282]. - Inflationary pressures on labor and rising commodity prices, particularly for beef, have impacted consolidated results during fiscal 2024, with average hot dog costs approximately 10% higher than fiscal 2023[317][328]. - A short-term increase or decrease of 10% in the cost of food and paper products for the year ended March 31, 2024, would have increased or decreased the cost of sales by approximately $7,734,000[330]. Cash Flow and Financial Position - Net cash provided by operating activities was $20,002,000 in fiscal 2024, compared to $19,837,000 in fiscal 2023[301]. - Cash at March 31, 2024, was $21,027,000, a decrease of $8,834,000 from $29,861,000 at March 26, 2023[297]. - Adjusted EBITDA for fiscal 2024 was $34,843,000, down from $36,383,000 in fiscal 2023[296]. - At March 31, 2024, Nathan's cash balance was $21,027,000, with earnings on this cash potentially increasing or decreasing by approximately $53,000 per annum for each 0.25% change in interest rates[326]. - The company has $60,000,000 principal amount of 6.625% 2025 Notes outstanding, with interest expense on these borrowings increasing or decreasing by approximately $150,000 per annum for each 0.25% change in interest rates[327]. - The company expects to make interest payments of $3,975,000 during the fiscal year ending March 30, 2025[313]. Stock and Dividends - As of March 31, 2024, Nathan's has repurchased 1,101,884 shares at a cost of approximately $39,000,000 under the sixth stock repurchase plan, with 98,116 shares remaining to be repurchased[307]. - The company declared and paid four quarterly dividends of $0.50 per share during fiscal 2024, totaling $8,161,000[308]. - The total cash requirement for dividends for fiscal 2025 is projected to be approximately $8,169,000, assuming the same quarterly dividend rate[310]. - The company intends to continue its stock repurchase programs, funding these investments from operating cash flow[313]. Market and Competitive Environment - The franchise system consisted of 230 Nathan's franchised locations at March 31, 2024, including 116 Branded Menu locations[252]. - The company plans to expand market penetration through increased distribution points across all business platforms, focusing on Licensing and Branded Product Programs[253]. - Competitive pressure on labor rates has increased due to the minimum wage rise to $16.00 in New York City, impacting financial results and potentially leading to a decrease in franchisee margins[319][320]. - Inflationary pressures, including rising labor costs and commodity prices, have impacted results, with ongoing monitoring and mitigation measures in place[247]. Interest and Debt Management - Interest expense decreased by $2,387,000 to $5,355,000 in fiscal 2024 from $7,742,000 in fiscal 2023, due to partial redemptions of the 2025 Notes[285].

Financial Performance - Revenues for fiscal 2024 were $138,610,000, an increase of 6.0% compared to $130,785,000 for fiscal 2023[5] - Net income for fiscal 2024 was $19,616,000, slightly down from $19,623,000 in fiscal 2023, resulting in earnings per diluted share of $4.80, unchanged from the previous year[5] - Adjusted EBITDA for fiscal 2024 was $34,843,000, a decrease of 4.2% from $36,383,000 in fiscal 2023[5] - Income from operations for fiscal 2024 was $32,506,000, down from $34,445,000 in fiscal 2023, primarily due to increased costs[5] - The total net income for the thirteen weeks ended March 31, 2024, was $19,616,000, slightly down from $19,623,000 for the same period in 2023, a decrease of about 0.04%[21] - The total adjusted EBITDA for the thirteen weeks ended March 31, 2024, was $34,843,000, down from $36,383,000 in the same period of 2023, a decline of approximately 4.2%[21] Sales and Revenue Growth - Franchise restaurant sales increased by $4,678,000 to $68,417,000 during fiscal 2024 compared to $63,739,000 in fiscal 2023[7] - Sales from the Branded Product Program rose by $7,605,000 to $86,489,000 in fiscal 2024, with a 2% increase in volume sold and a 7% increase in average selling price[7] - License royalties for fiscal 2024 were $33,581,000, up from $33,455,000 in fiscal 2023[7] - Advertising revenue increased to $2,081,000 during fiscal 2024, compared to $1,993,000 in fiscal 2023[12] - Seventeen new franchised locations opened during fiscal 2024, contributing to the growth in franchise royalties[7] Weekly Financial Highlights - Net income for the week ended March 31, 2024, was $3,910,000, an increase from $3,265,000 for the same period in 2023, reflecting a growth of approximately 19.6%[21] - EBITDA for the week ended March 31, 2024, reached $7,095,000, compared to $6,562,000 for the same week in 2023, indicating an increase of about 8.1%[21] - Adjusted EBITDA for the week ended March 31, 2024, was $7,282,000, up from $7,096,000 in the prior year, representing a growth of approximately 2.6%[21] Expense Management - Interest expense decreased significantly to $1,136,000 for the week ended March 31, 2024, down from $1,911,000 in the same week of 2023, a reduction of about 40.5%[21] - Provision for income taxes increased to $1,810,000 for the week ended March 31, 2024, compared to $1,088,000 for the same period in 2023, reflecting an increase of approximately 66.2%[21] - Depreciation and amortization expenses decreased slightly to $239,000 for the week ended March 31, 2024, from $298,000 in the same week of 2023, a decline of about 19.7%[21] - The loss on debt extinguishment was recorded at $0 for the week ended March 31, 2024, compared to a loss of $357,000 in the same week of 2023[21] - Share-based compensation increased to $187,000 for the week ended March 31, 2024, from $177,000 in the same week of 2023, an increase of approximately 5.7%[21] Dividends - The company declared a quarterly cash dividend of $0.50 per share, payable on July 2, 2024[3]

Core Points - Nathan's Famous, Inc. declared its first quarterly cash dividend of $0.50 per share for fiscal 2025, payable on July 2, 2024, to shareholders of record on June 24, 2024 [1] - The company reported revenues of $138.61 million for fiscal 2024, an increase from $130.79 million in fiscal 2023 [2] - Net income for fiscal 2024 was $19.62 million, slightly down from $19.63 million in fiscal 2023, with earnings per diluted share remaining stable at $4.80 [2] - For the fourth quarter of fiscal 2024, revenues were $28.99 million, up from $27.41 million in the same quarter of fiscal 2023 [3] - The company experienced a 10% increase in the cost of beef and beef trimmings, impacting income from operations, which decreased to $8.28 million in fiscal 2024 from $8.98 million in fiscal 2023 [4] - Franchise restaurant sales increased by $4.68 million to $68.42 million in fiscal 2024 compared to $63.74 million in fiscal 2023 [4] Financial Performance - Total revenues for the fourteen weeks ended March 31, 2024, were $28.99 million compared to $27.41 million for the thirteen weeks ended March 26, 2023 [9] - Income from operations for the fourth quarter of fiscal 2024 was $6.80 million, an increase from $6.42 million in the fourth quarter of fiscal 2023 [9] - Adjusted EBITDA for the fourth quarter of fiscal 2024 was $7.28 million, compared to $7.10 million in the fourth quarter of fiscal 2023 [9] - Net income for the fourth quarter of fiscal 2024 was $3.91 million, up from $3.27 million in the fourth quarter of fiscal 2023 [9] Segment Information - Revenues from the Branded Product Program for fiscal 2024 were $86.49 million, an increase from $78.88 million in fiscal 2023 [4] - License royalties increased to $33.58 million in fiscal 2024 from $33.46 million in fiscal 2023 [4] - Sales from company-owned restaurants were $12.10 million in fiscal 2024, slightly down from $12.16 million in fiscal 2023 due to reduced traffic from unfavorable weather [4]