News

Nathan's Famous branded-product program on a roll

August 8, 2013

Nathan's Famous Inc. today reported results for the first quarter of its 2014 fiscal year that ended June 30.

Highlights include:

• Net income increased by 67.2 percent to $3,354,000 as compared to $2,006,000 for the 13 weeks ended June 24, 2012;
• Earnings per diluted share increased by 65.9 percent to $0.73 as compared to $0.44 for the 13 weeks ended June 24, 2012; and
• Revenues increased by 15.9 percent to $23,401,000, as compared to $20,182,000 during the 13 weeks ended June 24, 2012.

Also during the quarter, sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 11.3 percent to $13,141,000.

Sales from the company-owned restaurants were $3,726,000 during the quarter, compared to $4,588,000 during the same period last year, mostly due to the flagship Coney Island restaurant's closing and repair following Superstorm Sandy. The restaurant was closed until May 20, and therefore only in operation for five weeks of the quarter.

Additionally, the temporary closing of Nathan's Yonkers, N.Y., restaurant for redevelopment negatively impacted sales as well. The company estimates these two factors impacted sales by about $1.4M.

Since reopening, sales at the Flagship Coney Island restaurant for the five weeks ending June 30, were approximately 19 percent higher than the comparative five weeks of the previous fiscal period.

Also during the quarter, eight new franchised units were opened during, including four Branded Menu Program outlets and Nathan's first location in Moscow.

Read more about operations management.