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Nathan's Famous, Inc. Reports Year End And Fourth Quarter Results

1. Nathan's Famous declared a quarterly cash dividend of $0.50 per share. 2. Fiscal 2025 revenues increased to $148.18 million from $138.61 million. 3. Net income grew from $19.62 million to $24.03 million year-over-year. 4. License royalties rose by 12%, totaling $33.59 million during fiscal 2025. 5. Earnings per diluted share increased to $5.87 from $4.80 in the previous year.

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FAQ

Why Bullish?

The robust financial performance and dividend announcement generally signal confidence, reminiscent of past bullish responses to such announcements in similar companies.

How important is it?

The combination of increased revenue, net income, and dividend signals strong operational health, making the announcement significantly relevant to investors.

Why Short Term?

Investors will likely react positively to the dividend announcement and financial results shortly after publication.

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SFDBRIDWEN
Declares Quarterly Cash Dividend Of $0.50 Per Share June 10, 2025 06:30 ET  | Source: Nathan's Famous Inc 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 $148,182,000 for the fifty-two weeks ended March 30, 2025 (“fiscal 2025”) as compared to $138,610,000 for the fifty-three weeks ended March 31, 2024 (“fiscal 2024”);Income from operations was $36,497,000 for fiscal 2025 as compared to $32,506,000 for fiscal 2024;Adjusted EBITDA1 for fiscal 2025, a non-GAAP financial measure, was $39,206,000 as compared to $34,843,000 for fiscal 2024;Income before provision for income taxes was $32,761,000 for fiscal 2025 as compared to $27,451,000 for fiscal 2024;Net income was $24,026,000 for fiscal 2025 as compared to $19,616,000 for fiscal 2024; andEarnings per diluted share was $5.87 per share for fiscal 2025 as compared to $4.80 per share for fiscal 2024. For the quarter ended March 30, 2025: Revenues were $30,787,000 for the thirteen weeks ended March 30, 2025 (“fourth quarter fiscal 2025”) as compared to $28,991,000 for the fourteen weeks ended March 31, 2024 (“fourth quarter fiscal 2024”);Income from operations was $6,368,000 for the fourth quarter fiscal 2025 as compared to $6,802,000 for the fourth quarter fiscal 2024;Adjusted EBITDA1 for the fourth quarter fiscal 2025, a non-GAAP financial measure, was $7,096,000 as compared to $7,282,000 for the fourth quarter fiscal 2024;Income before provision for income taxes was $5,819,000 for the fourth quarter fiscal 2025 as compared to $5,720,000 for the fourth quarter fiscal 2024;Net income was $4,235,000 for the fourth quarter fiscal 2025 as compared to $3,910,000 for the fourth quarter fiscal 2024; andEarnings per diluted share was $1.03 per share for the fourth quarter fiscal 2025 as compared to $0.96 per share for the fourth quarter fiscal 2024. The Company also reported the following: License royalties increased to $37,418,000 during fiscal 2025 as compared to $33,581,000 during fiscal 2024. During fiscal 2025, royalties earned under the retail agreement, including the foodservice program, from Smithfield Foods, Inc., increased 12% to $33,589,000 as compared to $30,068,000 during fiscal 2024.In the Branded Product Program, which features the sale of Nathan’s hot dogs to the foodservice industry, sales increased by $5,339,000 to $91,828,000 during fiscal 2025 as compared to $86,489,000 during fiscal 2024. The volume of hot dogs sold by the Company increased by approximately 1.2%. Our average selling price, which is partially correlated to the beef markets, increased by approximately 5% compared to the prior year period. Income from operations decreased by $1,148,000 to $7,136,000 during fiscal 2025 as compared to $8,284,000 during fiscal 2024 due primarily to a 7% increase in the cost of beef and beef trimmings.Sales from Company-owned restaurants were $12,714,000 during fiscal 2025 as compared to $12,103,000 during fiscal 2024. Restaurant sales were primarily impacted by higher sales at our Coney Island locations due to an increase in our average check.Revenues from franchise operations were $4,148,000 during fiscal 2025 as compared to $4,356,000 during fiscal 2024. Total royalties were $3,767,000 during fiscal 2025 as compared to $3,886,000 during fiscal 2024. Total franchise fee income, including cancellations fees, was $381,000 during fiscal 2025 as compared to $470,000 during fiscal 2024. Twenty-five franchised locations opened during fiscal 2025.Advertising revenue was $2,074,000 during fiscal 2025 as compared to $2,081,000 during fiscal 2024.On February 28, 2025, the Company paid the $0.50 per share regular cash dividend that was declared by the Board of Directors effective February 6, 2025 to shareholders of record at the close of business of February 18, 2025. Certain Non-GAAP Financial Information: In addition to disclosing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("US GAAP"), the Company is disclosing EBITDA, a non-GAAP financial measure which is defined as net income, excluding (i) interest expense; (ii) provision for income taxes and (iii) depreciation and amortization expense. The Company is also disclosing Adjusted EBITDA, a non-GAAP financial measure which is defined as EBITDA, excluding (i) loss on debt extinguishment, and (ii) share-based compensation that the Company believes will impact the comparability of its results of operations. The Company believes that EBITDA and Adjusted EBITDA are useful to investors to assist in assessing and understanding the Company's operating performance and underlying trends in the Company's business because EBITDA and Adjusted EBITDA are (i) among the measures used by management in evaluating performance and (ii) are frequently used by securities analysts, investors and other interested parties as a common performance measure. EBITDA and Adjusted EBITDA are not recognized terms under US GAAP and should not be viewed as alternatives to net income or other measures of financial performance or liquidity in conformity with US GAAP. Additionally, our definitions of EBITDA and Adjusted EBITDA may differ from other companies. Analysis of results and outlook on a non-US GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with US GAAP. Please see the table at the end of this press release for a reconciliation of EBITDA and Adjusted EBITDA to net income. About Nathan’s Famous         Nathan’s is a Russell 2000 Company that currently distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and twenty foreign countries through its product licensing activities, foodservice sales programs, and restaurant system. For additional information about Nathan’s Famous, please visit our website at www.nathansfamous.com. ________________________________1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. Please see the definitions of EBITDA and Adjusted EBITDA on page 2 of this release and the reconciliation of EBITDA and Adjusted EBITDA to net income in the table at the end of this release. Except for historical information contained in this news release, the matters discussed are forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, and similar expressions identify forward-looking statements, which are based on the current belief of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially include but are not limited to: the impact of disease epidemics such as the COVID-19 pandemic; increases in the cost of food and paper products; the impact of price increases on customer visits; the status of our licensing and supply agreements, including our licensing revenue and overall profitability being substantially dependent on our agreement with Smithfield Foods, Inc.; the impact of our debt service and repayment obligations under our credit facility, including the effect on our ability to fund working capital, operations and make new investments; economic (including inflationary pressures like those currently being experienced); weather (including the impact on sales at our restaurants particularly during the summer months), and changes in the price of beef trimmings; our ability to pass on the cost of any price increases in beef and beef trimmings; legislative and business conditions; potential changes in U.S. income tax or tariff policies; the collectability of receivables; changes in consumer tastes; the continued viability of Coney Island as a destination location for visitors; the ability to attract franchisees; the impact of the minimum wage legislation on labor costs in New York State or other changes in labor laws, including regulations which could render a franchisor as a “joint employer” or the impact of our union contracts; our ability to attract competent restaurant and managerial personnel; the enforceability of international franchising agreements; the future effects of any food borne illness, such as bovine spongiform encephalopathy, BSE and e coli; and the risk factors reported from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update such forward-looking statements. COMPANYRobert Steinberg, Vice President - Finance and CFOCONTACT:(516) 338-8500 ext. 229   Nathan's Famous, Inc. and Subsidiaries             Thirteen weeksended Fourteen weeksended Fifty-two weeksended Fifty-three weeksended Mar. 30, 2025 Mar. 31, 2024 Mar. 30, 2025 Mar. 31, 2024Financial Highlights                       Total revenues$30,787,000  $28,991,000  $148,182,000  $138,610,000             Income from operations (a)$6,368,000  $6,802,000  $36,497,000  $32,506,000             Net income$4,235,000  $3,910,000  $24,026,000  $19,616,000             Net income per share:           Basic$1.04  $0.96  $5.88  $4.81 Diluted$1.03  $0.96  $5.87  $4.80             Weighted-average shares used in           Computing net income per share:           Basic4,089,000  4,085,000  4,086,000  4,081,000 Diluted4,102,000  4,088,000  4,095,000  4,087,000             Select Segment Information                       Revenues           Branded product program$20,047,000  $18,279,000  $91,828,000  $86,489,000 Product licensing7,901,000  7,506,000  37,418,000  33,581,000 Restaurant operations2,273,000  2,626,000  16,862,000  16,459,000 Advertising fund revenue566,000  580,000  2,074,000  2,081,000 Total Revenues$30,787,000  $28,991,000  $148,182,000  $138,610,000             Income from operations (b)           Branded product program$1,730,000  $2,515,000  $7,136,000  $8,284,000 Product licensing7,856,000  7,460,000  37,236,000  33,399,000 Restaurant operations(310,000) (339,000) 2,431,000  1,661,000 Corporate (c)(2,908,000) (2,834,000) (10,306,000) (10,838,000)Income from operations (b)$6,368,000  $6,802,000  $36,497,000  $32,506,000                  Excludes loss on debt extinguishment, interest expense, interest and dividend income, and other income, net.Excludes loss on debt extinguishment, interest expense, interest and dividend income, and other income, net which are managed centrally at the corporate level, and, accordingly, such items are not presented by segment since they are excluded from the measure of profitability reviewed by the Chief Operating Decision Maker.Consists principally of administrative expenses not allocated to the operating segments such as executive management, finance, information technology, legal, insurance, corporate office costs, incentive compensation, share-based compensation, compliance costs, and the operating results of the Advertising Fund.  Nathan's Famous, Inc. and SubsidiariesReconciliation of Net Income to EBITDA and Adjusted EBITDA  Thirteen weeksended Fourteen weeksended Fifty-two weeksended Fifty-three weeksended Mar. 30, 2025 Mar. 31, 2024 Mar. 30, 2025 Mar. 31, 2024                EBITDA       Net Income$4,235,000  $3,910,000  $24,026,000  $19,616,000         Interest Expense 763,000   1,136,000   4,106,000   5,355,000         Provision for income taxes 1,584,000   1,810,000   8,735,000   7,835,000         Depreciation and amortization 226,000   239,000   957,000   1,135,000         EBITDA$6,808,000  $7,095,000  $37,824,000  $33,941,000                         Adjusted EBITDA       EBITDA$6,808,000  $7,095,000  $37,824,000  $33,941,000         Loss on debt extinguishment -   -   389,000   169,000         Share-based compensation 288,000   187,000   993,000   733,000         Adjusted EBITDA$7,096,000  $7,282,000  $39,206,000  $34,843,000         

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