Nathan's Famous, Inc. (NATH) Bundle
An Overview of Nathan's Famous, Inc. (NATH)
General Summary of Nathan's Famous, Inc.
Nathan's Famous, Inc. (NATH), established in 1916, is a renowned American fast-food chain known for its hot dogs and fast-casual dining experience. The brand originated with a single hot dog stand in Coney Island, New York, and has since expanded its operations to include a diverse range of products such as burgers, chicken, and various sides, alongside its iconic hot dogs. As of 2024, Nathan's Famous operates 243 franchised locations globally, an increase from 235 in the previous year.
In 2024, Nathan's Famous reported total sales of approximately $85.9 million for the first half of the fiscal year, reflecting a 6% increase from $80.7 million during the same period in 2023. The company continues to leverage its strong brand presence and innovative product offerings to enhance customer engagement and drive sales growth.
Company's Financial Performance in the Latest Financial Reports
Nathan's Famous has demonstrated robust financial performance in the latest reporting period. For the thirteen weeks ending September 29, 2024, total revenues reached $41.1 million, up 6% from $38.7 million in the comparable period of 2023. Key financial highlights include:
- Total revenues for the twenty-six weeks ended September 29, 2024: $85.9 million
- Net income for the second quarter of 2024: $6.03 million, compared to $5.71 million in 2023.
- Adjusted EBITDA for the second quarter: $10.35 million, up from $9.77 million in the prior year.
- Gross profit margin remained stable at approximately 15%.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $41.11 million | $38.74 million |
| Net Income | $6.03 million | $5.71 million |
| Adjusted EBITDA | $10.35 million | $9.77 million |
| Gross Profit Margin | 15% | 15% |
The increase in revenues is primarily attributed to a 4% rise in the volume of hot dogs sold and a 1.4% increase in average selling prices. Additionally, Nathan's Famous has seen an 8% rise in sales from company-owned restaurants, totaling $9.5 million for the fiscal year.
Introduction to Nathan's Famous as an Industry Leader
Nathan's Famous stands as a leader in the fast-food industry, particularly within the hot dog segment. The company's commitment to quality and brand heritage has established it as a household name. With a strategic focus on expanding its franchised locations, Nathan's continues to capture market share in both domestic and international markets. The company's ability to adapt to changing consumer preferences and economic conditions has been pivotal in maintaining its competitive edge.
To explore more about why Nathan's Famous is successful in the fast-food industry, continue reading below.
Mission Statement of Nathan's Famous, Inc. (NATH)
Mission Statement of Nathan's Famous, Inc. (NATH)
Nathan's Famous, Inc. is committed to delivering high-quality food products and exceptional service to its customers while maintaining a strong brand legacy that emphasizes quality and tradition. The company's mission statement reflects its dedication to providing a unique dining experience and premium products, particularly its renowned hot dogs, which have become synonymous with American culture.
Core Component 1: Quality Products
At the heart of Nathan's mission is the commitment to quality. The company aims to use only the finest ingredients in its products. For instance, the average cost per pound of Nathan's hot dogs increased by 5% to $23,318,000 in the second quarter of fiscal 2025 compared to $21,442,000 in the second quarter of fiscal 2024 due to rising commodity prices and supply chain pressures. This reflects the brand's ongoing investment in maintaining product quality even amidst inflationary pressures.
Core Component 2: Exceptional Service
Nathan's Famous emphasizes exceptional customer service as a vital part of its mission. The company has seen a growth in total revenues, which increased by approximately 6% to $41,109,000 for the thirteen weeks ended September 29, 2024, compared to $38,744,000 for the same period in the previous year. This growth can be attributed to enhanced customer experiences and operational efficiencies in its restaurants.
Core Component 3: Brand Legacy and Community Engagement
Nathan's Famous also focuses on its brand legacy and community engagement. With 243 franchised locations operating as of September 29, 2024, an increase from 235 locations a year earlier, the company continues to expand its footprint while fostering community ties. The licensing agreements, particularly with Smithfield Foods for retail and foodservice, which increased 14% to $20,605,000 in fiscal 2025 compared to $18,303,000 in fiscal 2024, illustrate Nathan's commitment to its brand and community.
| Financial Metric | FY 2024 | FY 2025 | Change (%) |
|---|---|---|---|
| Total Revenues | $80,729,000 | $85,876,000 | 6% |
| Franchise Locations | 235 | 243 | 3.4% |
| Branded Product Program Sales | $48,522,000 | $50,682,000 | 4% |
| Average Cost per Pound of Hot Dogs | $21,442,000 | $23,318,000 | 8.7% |
| Net Income | $13,099,000 | $15,307,000 | 16.8% |
Vision Statement of Nathan's Famous, Inc. (NATH)
Vision Statement Overview
The vision statement of Nathan's Famous, Inc. (NATH) emphasizes its ambition to be a leader in the foodservice industry, particularly in the hot dog and quick-service restaurant segments. The company aims to enhance customer experiences while expanding its brand presence globally.
Commitment to Quality
Nathan's Famous is dedicated to providing high-quality products. As of 2024, the company reported an increase in foodservice sales from the Branded Product Program, which rose to approximately $50.68 million, compared to $48.52 million in the previous fiscal year, reflecting a commitment to quality and consumer satisfaction.
Global Brand Expansion
The vision includes a strong focus on global expansion. As of September 29, 2024, Nathan's Famous operated 243 franchised locations, an increase from 235 the prior year, indicating growth in both domestic and international markets.
Customer Experience Enhancement
Nathan's strives to enhance the customer experience through innovative menu offerings and improved service. The company experienced an approximate 8% increase in total Company-owned restaurant sales, reaching $9.55 million in the fiscal 2025 period.
Sustainability and Community Engagement
As part of its vision, Nathan's Famous is committed to sustainability and community engagement. The company aims to source ingredients responsibly and engage with local communities, which is reflected in its operational strategies and partnerships.
Financial Performance Metrics
| Metric | Fiscal 2024 | Fiscal 2025 | Change (%) |
|---|---|---|---|
| Total Revenues | $80.73 million | $85.88 million | 6% increase |
| Branded Product Sales | $48.52 million | $50.68 million | 4% increase |
| Net Income | $13.10 million | $15.31 million | 17% increase |
| Franchised Locations | 235 | 243 | 3.4% increase |
Conclusion of Vision Statement
Nathan's Famous, Inc. envisions a future where it leads in the foodservice sector through quality products, global expansion, enhanced customer experiences, and sustainability efforts. The financial metrics from fiscal 2024 to fiscal 2025 illustrate the company's growth trajectory and commitment to its vision.
Core Values of Nathan's Famous, Inc. (NATH)
Integrity
Nathan's Famous, Inc. emphasizes integrity as a core value, underlining the importance of honesty and transparency in all business dealings.
The company has demonstrated its commitment to integrity through various initiatives, including a robust compliance program that ensures adherence to ethical standards and regulatory requirements. In fiscal 2025, Nathan's reported a net income of $15,307,000, reflecting consistent financial integrity in its reporting practices.
Quality
Quality is a cornerstone of Nathan's Famous, Inc., as it strives to deliver premium products that meet customer expectations.
The company sources high-quality ingredients for its hot dogs, which have been a staple of its brand for decades. In the fiscal 2025 period, Nathan's experienced a 4% increase in the volume of hot dogs sold, indicating strong consumer demand for its quality offerings. Additionally, the average selling prices increased by approximately 2.5%, reflecting the perceived value of its products.
Customer Focus
Nathan's Famous prioritizes customer satisfaction by actively seeking feedback and adapting its offerings to meet changing preferences.
The company has implemented various customer engagement strategies, including social media interactions and loyalty programs, which have contributed to a 6% increase in total revenues to $85,876,000 for the twenty-six weeks ended September 29, 2024. This focus on customer experience is also reflected in the 8% increase in total Company-owned restaurant sales during the same period.
Innovation
Innovation drives Nathan's Famous to continuously evolve its product offerings and operational processes.
The company has expanded its menu to include new items and has embraced technology in its operations. For instance, Nathan's has introduced virtual kitchen concepts to improve service efficiency, which has led to an increase in franchise sales. Franchise restaurant sales decreased slightly to $36,334,000 in fiscal 2025, primarily due to lower traffic at certain locations, but the overall trend indicates adaptability in a competitive market.
Community Engagement
Nathan's Famous is dedicated to community engagement, recognizing its role as a corporate citizen.
The company participates in various charitable initiatives, including food donations and community events. Nathan's has also reported a total franchise fee income of $200,000 in fiscal 2025, showcasing its commitment to supporting local businesses through its franchise model.
| Core Value | Description | Recent Initiatives | Impact on Performance |
|---|---|---|---|
| Integrity | Commitment to honesty and transparency | Robust compliance program | Net income: $15,307,000 |
| Quality | Delivering premium products | High-quality ingredient sourcing | 4% increase in hot dog volume sold |
| Customer Focus | Prioritizing customer satisfaction | Customer engagement strategies | 6% increase in total revenues |
| Innovation | Continuous evolution of products | Virtual kitchen concepts | Franchise sales adaptation |
| Community Engagement | Active role in community support | Food donations and events | Total franchise fee income: $200,000 |
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Updated on 16 Nov 2024
Resources:
- Nathan's Famous, Inc. (NATH) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Nathan's Famous, Inc. (NATH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nathan's Famous, Inc. (NATH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.