10-K - NATHANS FAMOUS, INC. (0000069733) (Filer)

Tue, Jun 10, 11:02 AM (8 days ago)

### Summary of Nathan's Famous, Inc. (NATH) Financial Performance and Strategic Overview **Financial Performance:** - **Revenue:** $148,182,000 for fiscal 2025, up 7% from $138,610,000 in fiscal 2024. - **Net Income:** $24,026,000 for fiscal 2025, up from $19,616,000 in fiscal 2024. - **Earnings Per Share (EPS):** $5.88 for fiscal 2025, up from $4.81 in fiscal 2024. - **Operating Expenses:** Total costs and expenses were $111,685,000 for fiscal 2025, up from $106,104,000 in fiscal 2024. - **Cash Flow:** Net cash provided by operating activities was $25,240,000 for fiscal 2025, up from $20,002,000 in fiscal 2024. **Strategic Overview:** - **Brand Strength:** Nathan's Famous leverages its iconic brand and signature products to grow sales, with a focus on expanding market penetration and increasing distribution points. - **Segment Performance:** The Branded Product Program and Product Licensing segments are the largest contributors to revenue and profits. - **Future Outlook:** The company aims to continue growing through strategic investments in existing restaurants, supporting the Branded Product and Branded Menu Programs, and servicing debt obligations. - **Risk Factors:** Key risks include inflationary pressures, supply chain disruptions, competitive pressures, and regulatory challenges. **Market Position Changes:** - **Brand Recognition:** Nathan's Famous continues to enjoy high brand awareness and is expanding its reputation for quality and value. - **Operational Efficiency:** The company focuses on managing expenses, particularly cost of goods sold, including food costs, paper costs, and labor costs, while maintaining quality and service. **Financial Condition:** - **Debt Management:** The company has total outstanding indebtedness of $50,800,000 as of March 30, 2025, with a Credit Agreement maturing in July 2029. - **Cash Position:** The company had cash and cash equivalents of $27,802,000 as of March 30, 2025, with a positive net increase in cash and cash equivalents of $6,775,000 during fiscal 2025. **Dividends and Share Repurchases:** - **Dividends:** The company paid quarterly dividends of $0.50 per share during fiscal 2025 and declared its first quarterly cash dividend of $0.50 per share for fiscal 2026. - **Share Repurchases:** The company did not repurchase any shares during fiscal 2025 but has a sixth stock repurchase plan with 98,116 shares remaining to be repurchased.