News

Nathan's Famous retail royalties up 218% under new license agreement

August 6, 2014

Nathan's Famous Inc. has reported results for the first quarter of its 2015 fiscal year that ended June 29, including:

• Net income increased by 21.4 percent year over year;
• Earnings per diluted share increased by 21.9 percent;
• Revenues increased by 18.2 percent.

Also, effective March 1, 2014, Nathan’s new license agreement with John Morrell & Co. is in place, allowing the exclusive right to manufacture, distribute, market and sell "Nathan's Famous" branded hot dogs through retail channels in the U.S. For the quarter, which is the first full quarter with the new agreement in effect, royalties earned pursuant to the new agreement, increased by 217.6 percent to $4,656,000 as compared to $1,466,000 earned under the prior agreement during the 13 weeks ended June 30, 2013.

The company also reported that sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased by 14.6 percent to $15,064,000.