Nathan’s Famous revenue rises to $162M as beef costs pinch profits

Nathan’s Famous (NASDAQ:NATH) reported higher top-line revenue for fiscal year 2026, driven by growth in its foodservice and franchise segments, even as surging input costs chipped away at overall profit margins ahead of its planned private ownership transition.

The Jericho, New York-based hot dog purveyor generated full-year revenue of $162.1 million, an expansion from the previous fiscal cycle.

However, the company's net income fell to $20 million, pushing diluted earnings per share down to $4.85.

The same divergence played out in the fourth quarter, where revenue climbed to $35.1 million, but quarterly net income and earnings per share dropped compared to the prior-year period.

The margin compression stemmed largely from severe raw material inflation across the meat supply chain.

Nathan's noted that wholesale beef costs spiked 19% during the fiscal year, weighing heavily on its core operating income.

The company mitigated a portion of the pressure through its Branded Product Program, which registered an increase in sales volumes thanks to a higher average selling price.

Meanwhile, licensing royalties under its retail program remained stable, and franchise-driven royalties and restaurant sales experienced steady growth.

Alongside the financial results, the board of directors declared a quarterly cash dividend of $0.50 per share.

The dividend will be payable on June 30, 2026, to shareholders of record at the close of business on June 22, 2026.

Corporate attention remains trained on the company’s pending transition to private ownership.

Nathan's highlighted its upcoming all-cash acquisition by Smithfield Foods, which values the hot dog chain at approximately $450 million, or $102.00 per share.

The close of the deal is now expected to occur in the second half of 2026.