Wed, Jun 12, 11:05 AM (87 days ago)
Nathan's Famous, Inc. reported a 6% increase in total revenues to $138.6 million for the fiscal year ended March 31, 2024, driven by higher foodservice sales from the Branded Product Program and increased franchise royalties. The Branded Product Program saw a 10% rise in average selling prices, contributing to a 9.6% increase in revenues to $86.5 million. Company-owned restaurant sales remained relatively flat at $12.1 million, impacted by reduced traffic due to unfavorable summer weather. License royalties increased slightly to $33.6 million, with significant contributions from Smithfield Foods, Inc. Franchise fees and royalties also saw a modest increase to $4.4 million. Cost of sales rose by 11% to $83.2 million, primarily due to a 10% increase in the average cost per pound of hot dogs. This was attributed to higher commodity prices and inflationary pressures. General and administrative expenses increased by $1.6 million to $15.6 million. Despite these cost increases, Nathan's maintained a strong financial position with a focus on leveraging its multi-channel, asset-light business model to generate consistent free cash flow. The company's outlook includes continued monitoring of inflationary pressures, strategic investments in new units, and further debt reduction. Key risks include supply chain disruptions, economic conditions, and changes in consumer preferences.