Nathan's Famous, Inc. (NATH) Bundle
A Brief History of Nathan's Famous, Inc. (NATH)
Founding and Early Years
Nathan's Famous, Inc. was founded by Nathan Handwerker in 1916 at Coney Island, New York. The first hot dog stand was opened with an initial investment of $300. The price of a hot dog was five cents, and Nathan aimed to provide quality food at reasonable prices. The stand quickly gained popularity, selling as many as 10,000 hot dogs on a busy summer day.
Expansion and Growth
By 1920, Nathan's Famous had established itself as a staple in Coney Island. The company's reach expanded in the 1930s with the introduction of the famous Nathan's Hot Dog Eating Contest in 1972, further solidifying its iconic status. The contest became an annual event, attracting significant media attention and expanding the brand's visibility.
Public Listing and Financial Data
Nathan's Famous, Inc. went public in 1993, trading on the Nasdaq under the ticker symbol NATH. The share price during its IPO was $6.75. As of the end of 2022, the stock price had fluctuated between $13.00 and $30.00. In fiscal year 2022, Nathan's reported total revenue of approximately $30.2 million.
| Year | Revenue (in millions) | Net Income (in millions) | Stock Price ($) |
|---|---|---|---|
| 2019 | 30.1 | 5.6 | 18.00 |
| 2020 | 26.9 | 3.7 | 19.00 |
| 2021 | 29.5 | 4.9 | 26.00 |
| 2022 | 30.2 | 5.8 | 26.50 |
Franchising and Licensing
Nathan's Famous has a robust franchising model. As of 2022, Nathan's has over 300 locations worldwide, including restaurants, food carts, and kiosks. The franchising fees are structured as follows:
- Initial Franchise Fee: $30,000
- Royalty Fee: 5% of gross sales
- Advertising Fee: 2% of gross sales
Current Operations and Market Presence
Nathan's Famous continues to adapt, expanding into grocery stores and retail markets with frozen products. The gross sales of retail products reached $10 million in 2022, indicating a strong market presence outside of traditional restaurant operations. The brand is synonymous with American culture, frequently appearing in media and film.
Recent Developments
In 2023, Nathan's launched a new line of premium hot dogs, aiming to capture the gourmet market segment. The response from consumers has been positive, with early sales reports indicating an increase in total sales by 15% in the first quarter of 2023. The latest stock price as of October 2023 is $28.50, reflecting a steady growth trend.
A Who Owns Nathan's Famous, Inc. (NATH)
Ownership Structure
Nathan's Famous, Inc. (NATH) is a publicly traded company listed on the NASDAQ stock exchange. As of the latest financial filings, the ownership structure is categorized into institutional holdings, insider holdings, and retail investors.
| Ownership Type | % of Total Shares | Number of Shares |
|---|---|---|
| Institutional Investors | 45.2% | 2,088,325 |
| Insider Ownership | 8.1% | 377,950 |
| Retail Investors | 46.7% | 2,171,200 |
Institutional Investors
Institutional investors play a significant role in the ownership of Nathan's Famous. As of the last reporting period, several major institutional shareholders are listed below:
| Institution Name | Shares Held | % of Institutional Holdings |
|---|---|---|
| The Vanguard Group, Inc. | 640,000 | 30.6% |
| BlackRock, Inc. | 500,000 | 24.0% |
| Dimensional Fund Advisors LP | 350,000 | 16.7% |
| Wellington Management Group LLP | 200,000 | 9.6% |
Insider Ownership
Insider ownership reflects the confidence company's management has in Nathan's Famous. The key insiders and their ownership stakes are as follows:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Eric L. Hefter | CEO | 150,000 |
| Glenn L. Westrick | Chairman | 100,000 |
| David W. Kessler | CFO | 70,000 |
Retail Investors
The remainder of Nathan's Famous shares is held by retail investors. This segment represents individual shareholders who contribute to the liquidity of the stock. Recent trading volumes indicated active participation from this group.
Recent Financial Performance
Nathan's Famous, Inc. reported the following financial figures for the most recent fiscal year:
| Financial Metric | 2022 Amount (USD) | 2023 Amount (USD) |
|---|---|---|
| Total Revenue | 45 million | 48 million |
| Net Income | 5 million | 6 million |
| EBITDA | 8 million | 9 million |
| EPS (Earnings per Share) | 0.80 | 0.90 |
Market Capitalization
The market capitalization of Nathan's Famous as of the latest trading session is:
| Market Capitalization Type | Value (USD) |
|---|---|
| Total Market Cap | 130 million |
| Share Price (Latest) | 22.00 |
Nathan's Famous, Inc. (NATH) Mission Statement
Company Overview
Nathan's Famous, Inc. is a publicly traded company known for its iconic hot dogs and fast food offerings. Its mission statement reflects its commitment to quality, tradition, and customer satisfaction.
Mission Statement
The mission of Nathan's Famous is to provide high-quality food products with a focus on customer service, while delivering a unique experience that emphasizes American culture and tradition.
Core Values
- Quality: Commitment to sourcing and serving the best ingredients.
- Tradition: Upholding the legacy and history of Nathan's Famous since 1916.
- Customer Satisfaction: Striving to exceed customer expectations in service and product.
- Community Involvement: Engaging with and supporting local communities.
Financial Performance
As of the most recent financial report, Nathan's Famous, Inc. has shown significant financial growth:
| Financial Metric | 2023 Amount ($ millions) | 2022 Amount ($ millions) | Year-Over-Year Growth (%) |
|---|---|---|---|
| Revenue | 37.2 | 30.5 | 21.9 |
| Net Income | 9.5 | 7.8 | 21.8 |
| Total Assets | 51.3 | 48.2 | 6.4 |
| Total Liabilities | 10.1 | 9.7 | 4.1 |
| Shareholder Equity | 41.2 | 38.5 | 7.0 |
Market Position
Nathan's Famous holds a significant market position in the fast-food industry, particularly recognized for its hot dog offerings.
- Market Share: Approximately 6% of the U.S. hot dog market.
- Franchise Locations: Over 300 across the United States and internationally.
- Brand Recognition: Strong brand presence with over 100 years in operation.
Customer Engagement
The company prioritizes customer engagement through various channels:
- Social Media Followers: Over 500,000 combined across platforms.
- Annual Hot Dog Eating Contest: Attracts over 1 million viewers each year.
- Customer Loyalty Program: Over 250,000 active members.
Future Goals
Nathan's Famous aims to expand its brand presence and enhance its product offerings:
- New Product Launches: Introduction of plant-based and healthier menu options.
- Expansion Plans: Targeting 50 new franchise locations by 2025.
- Sustainability Initiatives: Commitment to reducing packaging waste by 30% by 2024.
How Nathan's Famous, Inc. (NATH) Works
Business Overview
Business Overview
Nathan's Famous, Inc. (NATH) operates as a restaurant and food service company specializing in hot dogs and related products. The company was founded in 1916 and has established itself as a leader in the fast-food industry, particularly known for its Nathan's Famous brand of hot dogs. As of 2021, Nathan's operates over 300 locations across the United States and internationally.
Financial Performance
Nathan's Famous, Inc. reported the following financial metrics for the year ending March 31, 2023:
| Financial Metric | Amount (in Millions USD) |
|---|---|
| Revenue | 51.5 |
| Net Income | 7.9 |
| Total Assets | 53.4 |
| Total Liabilities | 21.7 |
| Shareholder Equity | 31.7 |
Product Offerings
Nathan's Famous offers a diverse menu that includes:
- Hot dogs
- French fries
- Onion rings
- Burgers
- Chicken products
The company offers various styles of hot dogs including the classic Nathan's Famous hot dog, the chili cheese dog, and specialty dogs. Additionally, Nathan's engages in co-branding deals and partnerships to expand its reach.
Franchise Operations
Nathan's Famous operates under a franchising model, which is a significant aspect of its business strategy. The company has partnered with numerous franchisees across the globe, particularly in the United States. As of 2023, Nathan's has more than 200 franchised locations.
Key details of the franchise operations include:
| Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|
| $30,000 | 5% of gross sales | $250,000 - $1,500,000 |
Marketing Strategies
Nathan's Famous employs various marketing strategies to enhance brand visibility and customer engagement:
- Social media campaigns
- National hot dog eating contest
- Seasonal promotions
- Partnerships with sports teams
In 2022, Nathan’s engaged in a marketing spend of approximately $3 million aimed at increasing brand recognition and penetrating new markets.
Expansion Plans
Looking forward, Nathan's Famous aims to expand its presence in both domestic and international markets. The company plans to open an additional 20 franchise locations by 2025, with particular emphasis on high-traffic urban areas and entertainment venues.
Investment in new product lines and menu innovations is also a focus, with a projected budget of $2 million for research and development over the next two years.
How Nathan's Famous, Inc. (NATH) Makes Money
Core Revenue Streams
Nathan's Famous, Inc. generates revenue through several key channels:
- Restaurant Sales: Revenue from sales at company-owned restaurants.
- Franchise Operations: Fees and royalties from franchisee operations.
- Retail Products: Sales from packaged products sold in grocery stores and other retailers.
- Licensing Agreements: Revenue from brand licensing activities.
Financial Overview
As of the fiscal year ending March 2023, Nathan's Famous reported the following financial metrics:
| Metric | Amount |
|---|---|
| Total Revenue | $43.93 million |
| Net Income | $10.48 million |
| Gross Profit | $24.82 million |
| Operating Expenses | $10.73 million |
| EBITDA | $12.92 million |
Restaurant Sales
Restaurant sales are crucial to Nathan's revenue. As of 2023:
- Total Company-owned Locations: 40
- Average Revenue per Location: $1.1 million
- Franchise Locations: 300
Franchise Revenue
Nathan's Famous earns significant income from its franchise operations, including:
| Franchise Revenue Source | Amount |
|---|---|
| Initial Franchise Fee | $30,000 |
| Royalty Rate | 4% of gross sales |
| Advertising Fee | 2% of gross sales |
Retail and Packaged Products
Nathan's Famous also generates revenue from retail product sales:
- Product Categories:
- Hot Dogs
- Burgers
- Frozen Foods
- Retail Revenue (2023): $15 million
- Distribution Channels: Grocery stores, convenience stores
Licensing Agreements
The company derives additional income through various licensing agreements:
- Licensing Revenue (2023): $2.5 million
- Key Partners:
- Food Service Companies
- Retail Partners
Investment Metrics
Nathan's Famous, Inc. has demonstrated solid investment performance metrics as of 2023:
| Metric | Value |
|---|---|
| Net Margin | 23.8% |
| Return on Equity (ROE) | 15.1% |
| Price to Earnings (P/E) Ratio | 20.3 |
| Earnings per Share (EPS) | $0.70 |
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