Nathan's Famous Revenue Rises as Beef Costs Weigh on Profits
Total revenues climbed to $54.06 million in the first quarter of fiscal 2027
Nathan's Famous (NATH), the hot dog and restaurant operator, reported total revenues of $54.06 million for the first quarter of fiscal 2027, up from $46.99 million in the prior year period.
Growth was primarily driven by the company's Branded Product Program, where sales rose $5.96 million to $35.04 million. This increase followed an 8% rise in hot dog volume and a 17% increase in average selling prices.
Despite the top-line growth in branded products, operating income for that segment fell to $1.33 million from $2.28 million. The decline was due to a 22% increase in the cost of beef and beef trimmings.
License royalties provided additional support to the quarter's results, increasing to $13.59 million from $12.38 million. Royalties from Smithfield Foods specifically rose 10% to $12.62 million.
Restaurant performance remained flat or declined across both ownership models. Company-owned restaurant sales fell to $3.95 million from $3.99 million, impacted by a 1% decline in average check. Franchise restaurant sales decreased by $240,000 to $18.20 million, while total franchise fee income, including cancellation fees, dropped to $54,000 from $128,000.
Net income decreased slightly to $8.83 million from $8.93 million, with diluted earnings per share falling to $2.14 from $2.16. Adjusted EBITDA rose slightly to $13.62 million from $13.53 million.
Nathan's had $295,000 in non-recurring transaction costs related to its merger agreement with Smithfield Foods. The expected closing date for the merger has shifted to the second half of 2026, moving from the first-half timeline originally announced in January 2026.