Nathan's Famous, Inc.

Nathan's Famous, Inc.

NATHยทNASDAQ

$101.16

+0.17%
Consumer CyclicalRestaurants

Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. The company owns and franchises restaurants under the Nathan's Famous brand name, as well as sells products bearing the Nathan's Famous trademarks through various channels of distribution. It also has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded hot dogs, sausages, and corned beef products in refrigerated consumer packages to be resold through retail channels, such as supermarkets, groceries, mass merchandisers, and club stores; and other Nathan's Famous branded refrigerated meat products in consumer packages to be resold through retail channels. In addition, the company has license agreements to manufacture Nathan's Famous branded hot dog and sausage products in bulk for use in the food service industry; for supplying Nathan's Famous natural casing and skinless hot dogs in bulk for use in the Nathan's Famous restaurant system; to manufacture proprietary spices; to produce and distribute sauerkraut and pickles; to produce and sell French fries and onion rings for retail sale; and to produce and sell miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, and other hors d'oeuvres through club stores, supermarkets, and other retail food stores. Further, the company sells Nathan's products directly to foodservice operators or to various foodservice distributors, as well as provides Arthur Treacher's brand fish fillets. As of March 27, 2022, its restaurant system consisted of four company-owned units in the New York City metropolitan area; and 239 franchised units in 18 states and 12 foreign countries. Nathan's Famous, Inc. was founded in 1916 and is based in Jericho, New York.

At a Glance

Live Snapshot
Market Cap$414.19M
EPS5.8800
P/E Ratio17.20
Earnings Date06/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 17.2).

Valuation inputs: P/E 17.2, earnings yield +5.8%, momentum +0.2%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE -1.5%, ROIC +65.2%).

Profitability stack: net margin +16.2%, ROE -1.5%, ROIC +65.2%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +130.9%, momentum +0.2%, net margin +16.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

nath

Nathan's Famous, Inc. Market vs Earnings Trajectory

NATH ยท NASDAQ

Loading price and EPS data...

Nathan's Famous, Inc.

Nathan's Famous, Inc. Fair Value Envelope

NATH ยท NASDAQ

Our analysis suggests that NATH has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $101.16, this represents a potential HIDDEN relative to our calculated worth for Nathan's Famous, Inc..

Intrinsic Value
Current Price: $101.16
3Y+78.0%
5Y+84.0%
10Y+326.0%
3Y+29.0%
5Y+43.0%
10Y+47.0%
3Y+77.0%
5Y+79.0%
10Y+294.0%
3Y+53.0%
5Y+104.0%
10Y+102.0%
3Y+58.0%
5Y+118.0%
10Y+120.0%
3Y-32.0%
5Y-49.0%
10Y-25.0%
Nathan's Famous, Inc.

Nathan's Famous, Inc. Profit Bridge

NATH ยท NASDAQ
Revenue148.18M
Cost of Goods Sold (96.20M)
Gross Profit51.98M
Operating Expenses (15.49M)
Operating Income36.50M
Interest Expense (4.11M)
Other Income/Expense-3.74M
Pretax Income32.76M
Income Tax (8.73M)
Net Income24.03M
Net Income
24.03M

Profitability Analysis

Gross Margin

35.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

24.6%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

16.2%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

26.7%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.

35.08%
Gross Profit Margin
-1%
3Y-9.0%
5Y-16.0%
10Y-10.0%
24.63%
Operating Profit Margin
5%
3Y-5.0%
5Y-6.0%
10Y-
16.21%
Net Profit Margin
15%
3Y+37.0%
5Y+25.0%
10Y+168.0%
-145.50%
Return on Equity
144%
3Y+488.0%
5Y+619.0%
10Y+1627.0%
44.93%
Return on Assets
12%
3Y+159.0%
5Y+252.0%
10Y+427.0%
65.23%
Return on Invested Capital
-1%
3Y+90.0%
5Y+202.0%
10Y+169.0%
NATH

Nathan's Famous, Inc. Cash Conversion Engine

NATH ยท NASDAQ
Net Income24.03M
Depreciation & Amortization957.00K
Stock-Based Compensation993.00K
Change in Working Capital-1.32M
Others817.00K
Capital Expenditures-225.00K
Free Cash Flow25.02M

Cash Flow Quality Analysis

FCF Conversion Rate

104.1%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

0.9%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+27.1%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$1.32M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

nath

Nathan's Famous, Inc. Funding & Solvency Profile

NATH ยท NASDAQ
Cash & Cash Equivalents24.55M
Net Receivables17.73M
Inventory680.00K
Other Current Assets995.00K
Total Current Assets44 M
Property, Plant & Equipment5.82M
Goodwill & Intangible Assets486.00K
Long-Term Investments0.00
Other Non-Current Assets85.00K
Total Non-Current Assets6 M
Total Assets
50.94M

Financial Health Analysis

Current Ratio

2.73x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Working Capital

28 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

86% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

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Nathan's Famous, Inc. Street Expectations Map

NATH ยท NASDAQ

No Target Data

No analyst price targets available for nath.

nath

Nathan's Famous, Inc. Insider Positioning

NATH ยท NASDAQ

During the last 12 months, there has been no insider trading activity reported for NATH.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

3.19%
Dividend Yield
246%
3Y+372.0%
5Y+397.0%
10Y+4684.0%
ย 

nath Dividend History

NATH
10Y CAGR 21%
Latest $0.5
Annual $5
Dividend decline trend
Last Period: 83%