Nathan's Famous Reports 5% Revenue Growth, Decline in Net Income for Fiscal 2026

Nathan's Famous, Inc. reported a revenue increase of approximately 5% for the thirteen weeks ended June 29, 2025, totaling $46.998 million compared to $44.767 million for the same period in the previous year. The growth was primarily driven by a significant rise in sales from the Branded Product Program, which saw an 11% increase to $29.075 million. However, sales from company-owned restaurants decreased by about 5% to $3.986 million, attributed to lower customer traffic at Coney Island locations due to unfavorable weather conditions. The company also experienced a decline in license royalties, which fell by 4% to $12.381 million, largely due to a decrease in retail volume.

In terms of profitability, Nathan's net income for the fiscal 2026 period was $8.928 million, down from $9.277 million in the prior year. This resulted in a diluted earnings per share of $2.16, compared to $2.27 in the previous year. The decrease in net income was influenced by rising costs, with total costs and expenses increasing by approximately 10% to $34.207 million, driven by a 13% rise in the cost of sales, which reached $28.423 million. The company noted that inflationary pressures, particularly in commodity prices, significantly impacted its cost structure.

Operationally, Nathan's Famous reported a decrease in its restaurant system, with 225 locations as of June 29, 2025, down from 231 a year earlier. The company opened eight new franchise locations while closing thirteen during the fiscal 2026 period. The franchise fee income increased to $128,000, up from $92,000 in the previous year, reflecting a slight uptick in franchise activity despite the overall decline in locations. The company also reported an increase in accounts receivable, which rose to $26.274 million, indicating higher sales on credit.

Looking ahead, Nathan's Famous anticipates continued inflationary pressures on commodity prices, particularly beef, which could affect future profitability. The company plans to manage these challenges through price adjustments and strategic sales agreements. Additionally, Nathan's intends to maintain its focus on expanding its market presence through its Licensing and Branded Product Programs, which have been key drivers of revenue growth. The company also declared a quarterly cash dividend of $0.50 per share, reflecting its commitment to returning value to shareholders while navigating the current economic landscape.