NATHANS FAMOUS, INC. has recently released its 10-K report, detailing its operations in the foodservice industry. The company owns and franchises restaurants under the Nathan's Famous brand name, sells products bearing the Nathan's Famous trademarks through various distribution channels, and has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded products. The company generated total revenues of approximately $148,182,000 for the fifty-two weeks ended March 30, 2025, marking a 7% increase from the previous fiscal year.
In the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, NATHANS FAMOUS, INC. highlighted the impact of inflationary pressures on its consolidated results of operations during fiscal 2025. The company anticipates continued inflationary pressures on commodity prices, including beef and beef trimmings, as well as labor inflation during fiscal 2026. It mentioned that it has been able to offset some of these cost increases resulting from inflation by increasing prices at its company-owned restaurants and entering into sales agreements with its Branded Product Program customers correlated to its cost of beef and beef trimmings.
Moreover, the company discussed the refinancing of its senior secured notes due 2025. On July 10, 2024, NATHANS FAMOUS, INC. entered into a five-year unsecured Credit Agreement with Citibank, N.A. and borrowed $60,000,000 in Term Loan borrowings to refinance and redeem its outstanding 6.625% Senior Secured Notes due 2025. The company stated that its future results may be impacted by its debt service and repayment obligations under the Credit Agreement.
The report also provided a business overview, emphasizing the company's primary focus on expanding the market penetration of the Nathan's Famous brand by increasing the number of distribution points for its products across all of its business platforms. NATHANS FAMOUS, INC. operates 230 Nathan’s franchised locations, including 121 Branded Menu locations located in 17 states and 12 foreign countries, as well as four company-owned restaurants within the New York metropolitan area.
In terms of critical accounting estimates, the company discussed the impairment of long-lived assets, impairment of intangible assets, current expected credit losses (CECL), customer rebates, income taxes, and uncertain tax positions. It highlighted that the estimates and assumptions made are inherently uncertain and require additional management judgment, and that results can materially differ when varying assumptions are applied.
Today the company's shares have moved 1.09% to a price of $109.89. For the full picture, make sure to review NATHANS FAMOUS, INC.'s 10-K report.
