Nathan's Famous Reports 7% Revenue Growth to $148.2 Million for Fiscal Year Ending March 30, 2025

Nathan's Famous, Inc. reported a total revenue of $148.2 million for the fiscal year ending March 30, 2025, marking a 7% increase from $138.6 million in the previous fiscal year. The company's net income rose to $24 million, compared to $19.6 million in fiscal 2024. This growth was driven by a 6% increase in foodservice sales from the Branded Product Program, which generated $91.8 million, and an 11% rise in licensing royalties, totaling $37.4 million. The increase in revenue was partially offset by rising costs, with total cost of sales increasing by 8% to $89.7 million, leading to a gross profit margin decrease from 16% to 14%.

In terms of operational changes, Nathan's Famous maintained a franchise system of 230 locations, with 25 openings and 25 closures during the fiscal year. The company also operates four Company-owned restaurants, which contributed $12.7 million in sales, a 5% increase from the previous year. The average check at these restaurants increased by approximately 10%. The company continues to focus on expanding its market presence through its Branded Product and Licensing Programs, which are the primary revenue drivers.

Strategically, Nathan's Famous has been impacted by inflationary pressures, particularly in commodity prices, including beef, which saw a 7% increase in average costs during fiscal 2025. The company has implemented price increases to mitigate these costs but acknowledges the challenges posed by competitive pricing pressures and consumer spending levels. Additionally, the company refinanced its debt, entering into a five-year unsecured Credit Agreement, which has improved its interest expense situation, reducing it from $5.4 million in fiscal 2024 to $4.1 million in fiscal 2025.

Looking ahead, Nathan's Famous anticipates continued inflationary pressures and volatility in commodity prices, particularly for beef, which could impact future profitability. The company plans to focus on managing these costs while exploring opportunities for growth in both domestic and international markets. The management remains optimistic about leveraging its iconic brand and expanding distribution points for its products, particularly through its licensing agreements and Branded Product Program.

As of March 30, 2025, Nathan's Famous employed 131 individuals, with a diverse workforce comprising approximately 44% female and 68% racial and ethnic minorities. The company continues to prioritize employee engagement and development, which it believes positively impacts customer experience and product quality. Nathan's Famous is committed to maintaining its competitive edge in the fast-food industry while navigating the challenges posed by economic conditions and market competition.