JERICHO, N.Y., June 10, 2025 (GLOBE NEWSWIRE) -- Nathan's Famous, Inc. ("Nathan's", the "Company", "we", "us" or "our") $(NATH)$ 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; and
-- Earnings 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; and
-- Earnings 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.
COMPANY Robert Steinberg, Vice President - Finance and CFO
CONTACT: (516) 338-8500 ext. 229
Nathan's Famous, Inc. and Subsidiaries
Thirteen Fourteen Fifty-two Fifty-three
weeks ended weeks ended weeks ended weeks ended
------------ ------------ ------------- ---------------
Mar. 30, Mar. 31,
2025 2024 Mar. 30, 2025 Mar. 31, 2024
------------ ------------ ------------- ---------------
Financial
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:
Basic 4,089,000 4,085,000 4,086,000 4,081,000
=========== =========== ============ ============
Diluted 4,102,000 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 licensing 7,901,000 7,506,000 37,418,000 33,581,000
Restaurant
operations 2,273,000 2,626,000 16,862,000 16,459,000
Advertising fund
revenue 566,000 580,000 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 licensing 7,856,000 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
========== ========== =========== ===========
1. Excludes loss on debt extinguishment, interest expense, interest and
dividend income, and other income, net.
2. 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.
3. 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 Subsidiaries
Reconciliation of Net Income to EBITDA and Adjusted
EBITDA
Thirteen Fourteen Fifty-two
weeks weeks weeks Fifty-three
ended ended ended weeks ended
---------- ---------- ----------- -------------
Mar. 30, Mar. 31, Mar. 30,
2025 2024 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
========= ========= ========== ==========
(END) Dow Jones Newswires
June 10, 2025 06:30 ET (10:30 GMT)
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