NATHANS FAMOUS, INC.

Nathan’s Famous, Inc.

Overview

Nathan’s Famous, Inc. is a multi-channel food company built around the Nathan’s Famous brand (hot dogs and related products). The company operates through several programs and channels:

• Branded Product Program (BPP): sells Nathan’s-branded hot dogs and specialty products to foodservice operators through Nathan’s-approved distributors.
• Product Licensing: licenses the Nathan’s brand, recipes, and related products to licensees and manufacturers, including Smithfield Foods, Lamb Weston, Solina, Bran-Zan, Hermann Pickle Packers, and Lake Street Provisions.
• Restaurant Operations: operates Company-owned restaurants, franchised Nathan’s Famous restaurants, and virtual kitchens (online-delivery-focused kitchens without branded storefronts).
• Branded Menu Program (BMP): enables foodservice operators to offer a Nathan’s Famous menu using Nathan’s trademarks on signage and menu boards; operators purchase products from Nathan’s-approved distributors and Nathan’s earns royalties on those product purchases.
• Arthur Treacher’s Fish & Chips: owns the Arthur Treacher’s brand and trademarks and uses it as a branded seafood extension in some Nathan’s locations and online channels.

Business model and channels

• Licensing and retail: royalties on products manufactured and sold under license agreements across retail grocery channels, foodservice programs, and bulk/foodservice supply.
• Foodservice and restaurant mix: Company-owned restaurants, franchised restaurants, virtual kitchens, and BMP/Branded Product sales to foodservice operators and distributors.
• International expansion: franchisees operate internationally, and Nathan’s licenses manufacturing and distribution rights abroad.
• Brand and marketing: emphasis on nontraditional distribution via the Branded Product Program, retail partnerships, sports sponsorships, and the Nathan’s International Hot Dog Eating Contest.

Operational footprint (as of March 29, 2026)

• Location count (total operating units):
  • Domestic: 160 total locations (4 Company-owned; 156 franchised)
  • International: 65 locations (international development)
  • Grand total: 225 locations (this number excludes Branded Product Program locations and virtual kitchens)
  • Virtual kitchens: 476 located in 41 states and 3 foreign countries
• Company-owned restaurants: 4 (including one seasonal unit)
  • Revenue from Company-owned restaurants: $12,508,000 in fiscal 2026; $12,714,000 in fiscal 2025
• Franchised restaurants: 156 domestic locations
• International locations: 65 locations in 11 foreign countries
• Distribution channels: national grocery and club chains such as Walmart, Kroger, Ahold, Publix, Albertsons, Safeway, ShopRite, Target, Costco, and BJ’s for packaged Nathan’s products; BMP and licensing reach into various foodservice venues and hospitality locations.

Revenue and income by segment (fiscal years ended March 29, 2026 and March 30, 2025)

• Branded Product Program (BPP): $105,768,000 (fiscal 2026); $91,828,000 (fiscal 2025)
  • The BPP distributes Nathan’s hot dogs and other branded products across foodservice operators and retail channels.
  • Distribution reaches all 50 states, D.C., Puerto Rico, Canada, U.S. Virgin Islands, Guam, and Mexico; customers include national chains, amusement venues, stadiums, airports, and other large venues.
• Restaurant operations:
  • Company-owned restaurants: $12,508,000 (fiscal 2026); $12,714,000 (fiscal 2025)
  • Franchised restaurants (franchise system revenue): $4,317,000 (fiscal 2026); $4,148,000 (fiscal 2025)
  • International development revenue: $3,443,000 (fiscal 2026); $3,864,000 (fiscal 2025)
• Licensing Program (all licensing agreements combined): $37,417,000 (fiscal 2026); $37,418,000 (fiscal 2025)
  • Smithfield Foods (retail and bulk licensing; primary revenue driver):
    • Royalties on packaged products sold to supermarkets and similar channels: approximately $31,893,000 (fiscal 2026) and $31,869,000 (fiscal 2025), representing approximately 20% and 22% of total revenues, respectively
    • Additional Smithfield arrangement: $1,696,000 (fiscal 2026); $1,720,000 (fiscal 2025)
  • Other licensees and related royalties (selected examples):
    • Lamb Weston, Inc. (frozen crinkle-cut French fries and onion rings): $1,598,000 (fiscal 2026); $1,649,000 (fiscal 2025)
    • Bran-Zan Holdings, LLC (mini bagel dogs, etc.): $339,000 (fiscal 2026); $350,000 (fiscal 2025)
    • Hermann Pickle Packers, Inc. (pickles): $255,000 (fiscal 2026); $271,000 (fiscal 2025)
    • Lake Street Provisions, Inc. (meat sticks/jerky): $75,000 (fiscal 2026)

Customers and relationships

• BPP placements include major national accounts and venues such as Auntie Anne’s, Johnny Rockets, Cheesecake Factory, Beef ’O’ Brady’s, Lazy Dog; amusement and family entertainment venues including Universal Studios, Disneyland, and Hershey Family Entertainment; casinos such as Foxwoods; convenience chains like RaceTrac; and sports arenas serving Nathan’s products for teams including the Yankees, Mets, Rays, Nets, Bucks, and Cowboys.
• A small number of BPP customers account for a material portion of revenue: the five largest BPP customers represented about 80% of Branded Product Program revenues in fiscal 2026.
• Major licensing relationships, particularly with Smithfield Foods, are a substantial portion of licensing revenues and overall results.

Strategic and operating highlights

• Competitive strengths: an iconic brand with global recognition, a multi-channel model that diversifies revenue streams, high-margin licensing revenue, broad distribution across retail and foodservice, international expansion opportunities, and a scalable restaurant concept (hot dogs, crinkle-cut fries, beverages, with room for additional items and co-branding).
• Major brands and labels: Nathan’s Famous and Arthur Treacher’s Fish & Chips (owned trademarks used in some Nathan’s locations and BMP channels).
• Marketing and growth: advertising and promotions through social media, digital campaigns, and in-store materials; ongoing menu innovation and pricing strategies to manage inflation; growth opportunities via BMP, licensing, and franchising.
• Corporate structure and governance: three main operating segments (Branded Product Program, Product Licensing, Restaurant Operations) and a strategic relationship with Smithfield Foods, including related regulatory considerations tied to the merger.

People

• Employees: 129 total as of March 29, 2026
  • Corporate management and administrative: 29
  • Restaurant managers: 20
  • Hourly full-time and part-time foodservice employees: 80
• Gender and diversity: approximately 43% female; about 65% of employees from racial or ethnic minority groups
• Seasonal workforce: typically 240–250 seasonal employees in spring and summer
• Union representation: two Company-owned restaurants represented by Local 1102 RWDSU UFCW AFL-CIO (agreement expires June 30, 2026) and a third location under a separate agreement (expires November 30, 2028)

Key operating notes

• Product supply: Nathan’s World Famous Beef Hot Dogs are primarily manufactured by Smithfield Foods for retail, BMP, and restaurant use; other hot dogs may be supplied by alternate sources if needed. Solina supplies proprietary spice formulations. Lamb Weston provides frozen crinkle-cut French fries. Other ingredients are sourced from multiple suppliers to maintain competition and supply continuity.
• Seasonal and geographic concentration: sales are historically strongest in the first two fiscal quarters. The Company has a Northeast concentration of Company-owned and many franchised locations. The Coney Island flagship location remains a long-standing feature with annual events, including the Nathan’s International Hot Dog Eating Contest, which receives ESPN coverage.
• Risks and environment: the company identifies risks related to the pending merger with Smithfield (including timeline uncertainty, potential termination fee, and regulatory approvals) and risks common to a multi-channel food business, such as commodity cost volatility, supply continuity, competition, food safety, cyber risk, regulatory changes, and labor costs.