Nathan's Famous (NATH) investor relations material

Executive summary

• Total revenues for the quarter increased 11% year-over-year to $45.7 million, with net income declining to $5.2 million from $6.0 million, mainly due to higher costs.

• For the first half of fiscal 2026, revenues rose to $92.7 million from $85.9 million, while net income fell to $14.1 million from $15.3 million year-over-year.

• The company declared a regular quarterly dividend of $0.50 per share and a special cash dividend of $2.50 per share, both payable in December 2025.

Financial highlights

• Branded Product Program sales rose 18% year-over-year, with a 7% increase in hot dog volume and an 11% increase in average selling price.

• Adjusted EBITDA for Q2 fiscal 2026 was $8.3 million, down from $10.4 million; for the half-year, $21.8 million, down from $24.6 million.

• Gross profit margin declined to 7% from 13% in the prior year, reflecting a 24% increase in cost of sales, especially in the Branded Product Program.

• Earnings per diluted share for Q2 fiscal 2026 were $1.26, down from $1.47; for the half-year, $3.42, down from $3.74.

• Interest expense decreased by $702,000 year-over-year due to lower debt and a lower interest rate under the new Credit Agreement.

Outlook and guidance

• Management expects continued inflationary pressures on commodity prices, especially beef and beef trimmings, and labor costs for the remainder of fiscal 2026.

• The company anticipates ongoing volatility in commodity and labor markets, with potential impacts on margins if cost increases cannot be offset by price adjustments.

• Sufficient liquidity is expected to fund operations, debt service, dividends, and potential share repurchases for at least the next 12 months.