News

Nathan's Famous reports Q2 profit

November 1, 2011

Nathan's Famous Inc. has reported results for the second quarter of its 2012 fiscal year that ended Sept. 25.

The company experienced a net income of $2.2 million, or $0.44 per diluted share, as compared to $151,000 or $0.03 per diluted share for the 13 weeks ended Sept. 26, 2010.

Also, revenues received a 17.4 percent bounce, to $19 million, compared to revenues of $16 million during the same period last year.

Other highlights from the report include:

• Non-GAAP earnings after tax, which exclude litigation expense items with SMG, increased by 8.7 percent to $2,343,000, as compared to $2,155,000 last year; and
• Non-GAAP earnings per share, which exclude the same litigation expense items, increased by 18.4 percent to $0.45 per diluted share, as compared to $0.38 per diluted share for the same period last year.

For the extended 26-week period ended Sept. 26, Nathan's Famous reported a net income of $3.8 million, or $0.75 per diluted share, as compared to $1.8 million, or $0.32 per diluted share, for the 26 weeks ended Sept. 26, 2010.

Additionally, sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 36.4 percent to $20.7 million during the 26 weeks ended Sept. 25, 2011, as compared to sales of $15 million during the same period last year.

Nathan's retail license royalties increased by 5.6 percent or $195,000 to $3.6 million during the 26-week period.

Tropical Storm Irene forced the closure of the five company-owned restaurants for two days and negatively affected sales at franchised restaurants in the Northeast.

However, revenues from franchise operations increased by 6.4 percent or $172,000 to $2.8 million during the 26 weeks ended Sept. 25, 2011, as compared to $2.6 million during the same period last year.

Thirty-five new franchised units were opened during the recent 26-week period, including the system's first unit in Canada, third and fourth in China, fourth in the Dominican Republic and 15th in Kuwait.

Finally, Nathan's opened its 100th Branded Menu Program unit during the quarter ended Sept. 25, 2011. The Branded Menu Program was created to provide qualified operators of existing locations with the ability to become a Nathan's franchisee, adding signature products along with a limited-menu of other Nathan's products to their current operations.

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