Nathan's(NATH) - 2026 Q2 - Quarterly Results

Financial Performance - Revenues for the second quarter of fiscal 2026 were $45,687,000, an increase of 11.5% compared to $41,109,000 for the same period in the previous year[4] - Net income for the second quarter was $5,199,000, down 13.8% from $6,030,000 in the prior year[4] - Adjusted EBITDA for the second quarter was $8,280,000, a decrease of 20% from $10,350,000 in the same quarter last year[4] - For the twenty-six weeks ended September 28, 2025, total revenues were $92,685,000, up 7.5% from $85,876,000 in the prior year[4] - Net income for the thirteen weeks ended September 28, 2025, was $5,199,000, a decrease of 13.8% compared to $6,030,000 for the same period in 2024[15] - EBITDA for the thirteen weeks ended September 28, 2025, was $7,996,000, down 18.2% from $9,787,000 in the prior year[15] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $8,280,000, a decline of 20.0% compared to $10,350,000 in the same quarter of 2024[15] - Net income for the twenty-six weeks ended September 28, 2025, was $14,127,000, a decrease of 7.7% compared to $15,307,000 for the same period in 2024[15] - Adjusted EBITDA for the twenty-six weeks ended September 28, 2025, was $21,811,000, down 11.0% from $24,631,000 in the same period of 2024[15] Revenue Sources - License royalties decreased to $21,608,000 for the twenty-six weeks, down from $22,412,000, reflecting a 3.6% decline[6] - Sales from the Branded Product Program increased by $7,440,000 to $58,122,000, a rise of 14.7% compared to the previous year[6] - The average selling price of hot dogs increased by approximately 10% compared to the prior year period[6] - Fourteen franchised locations opened during the fiscal 2026 period, contributing to an increase in franchise restaurant sales to $38,316,000, up from $36,334,000[6] Expenses and Costs - The company reported a 16% increase in the cost of beef and beef trimmings, impacting income from operations[6] - Interest expense decreased to $739,000 for the thirteen weeks ended September 28, 2025, from $1,441,000 in the same period last year, representing a reduction of 48.7%[15] - Provision for income taxes for the thirteen weeks ended September 28, 2025, was $1,822,000, down 12.0% from $2,069,000 in the prior year[15] - Depreciation and amortization expenses decreased to $236,000 for the thirteen weeks ended September 28, 2025, compared to $247,000 for the same period in 2024, a decrease of 4.5%[15] - The loss on debt extinguishment was recorded as $334,000 in the twenty-six weeks ended September 28, 2025, consistent with the same amount in the previous year[15] - Share-based compensation increased to $284,000 for the thirteen weeks ended September 28, 2025, up 24.1% from $229,000 in the same period last year[15] Dividends - The Board of Directors declared a regular quarterly cash dividend of $0.50 per share and a special cash dividend of $2.50 per share, payable on December 5, 2025[6]