Nathan's Famous Posts 9.4% Revenue Gain, 17% EPS Drop; Merger Slated H2 2026
NATH•Fiscal 2026 revenues rose 9.4% to $162.1 million while EPS declined 17% to $4.85 due to a 19% increase in beef costs. The company declared a $0.50 quarterly dividend payable June 30 and confirmed the $102-per-share Smithfield Foods merger to close in H2 2026.
1. Fiscal 2026 Results
In the fiscal year ended March 29, 2026, Nathan’s Famous generated $162.1 million in revenue, up from $148.2 million a year earlier, driven by branded product sales and stable licensing royalties. Income from operations declined to $30.1 million and net income fell to $20.0 million with EPS down to $4.85, pressured by a 19% jump in beef and trimming costs.
2. Fourth Quarter Performance
For the quarter ended March 29, 2026, revenue increased to $35.1 million from $30.8 million, but operating income slipped to $4.7 million and net income dropped to $2.8 million. Adjusted EBITDA rose slightly to $7.6 million, yet EPS fell to $0.68 from $1.03 as higher input costs eroded margins.
3. Dividend Declaration
The board declared a quarterly cash dividend of $0.50 per share for fiscal 2027, payable June 30, 2026, to shareholders of record on June 22, 2026. This marks the company’s second regular dividend under the terms of its merger agreement.
4. Smithfield Foods Merger
Nathan’s agreed to be acquired by Smithfield Foods for $102.00 per share in cash, valuing the transaction at roughly $450 million. Closing remains subject to shareholder approval, CFIUS clearance and other conditions, with the timeline now pushed to the second half of 2026 due to government review delays.
