Nathan's Famous (NATH) investor relations material

Executive summary

• Total revenues increased 5% year-over-year to $46.998 million for the quarter ended June 29, 2025, driven by higher Branded Product Program sales and price increases, despite lower Company-owned restaurant sales and license royalties.

• Net income was $8.928 million, down from $9.277 million year-over-year, reflecting higher cost of sales and labor expenses offset by lower interest expense and higher interest income.

• Earnings per diluted share were $2.16, compared to $2.27 year-over-year.

• Inflationary pressures on commodity prices, especially beef, and labor costs continued to impact results, with management taking actions such as price increases and cost controls.

• The company paid a $0.50 per share quarterly dividend and maintained a strong cash position of $26.867 million at quarter-end.

Financial highlights

• Branded Product Program sales rose 11% to $29.075 million, driven by an 8% increase in average selling price.

• Company-owned restaurant sales decreased 5% to $3.986 million due to lower traffic at Coney Island locations from unfavorable weather.

• License royalties fell 4% to $12.381 million, mainly from a 15% drop in retail volume, partially offset by a 12% increase in net selling price.

• Adjusted EBITDA was $13.531 million, compared to $14.281 million in the prior year quarter.

• Income from operations was $12.791 million, down from $13.745 million year-over-year.

Outlook and guidance

• Management anticipates continued inflationary pressures on beef and labor costs throughout fiscal 2026, with potential further price adjustments to offset cost increases.

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