Nathan's Famous (NATH) Q2 2025 earnings summary

Executive summary

• Total revenues for the quarter ended September 29, 2024 increased 6% year-over-year to $41.1 million, driven by growth in branded products and license royalties.

• Net income for the quarter rose to $6.0 million from $5.7 million in the prior year period; EPS was $1.48 (basic), up from $1.40.

• For the first half of fiscal 2025, revenues reached $85.9 million, net income $15.3 million, and diluted EPS $3.74, all up from the prior year.

• The company refinanced its 2025 Notes with a new $60 million unsecured term loan, incurring a $334,000 loss on debt extinguishment.

• The board declared a $0.50 per share quarterly dividend, with continued focus on expanding branded product and licensing programs.

Financial highlights

• Revenue for the quarter: $41.1 million, up 6% year-over-year; YTD revenue: $85.9 million, up 6%.

• Net income for the quarter: $6.0 million; YTD net income: $15.3 million, both up from prior year.

• Adjusted EBITDA for the quarter: $10.4 million, up from $9.8 million; YTD Adjusted EBITDA: $24.6 million.

• Gross profit margin for the quarter: 13% (down from 15%); YTD gross margin: 15% (flat year-over-year).

• Cash and cash equivalents at quarter-end: $31.2 million, up $10.2 million from March 31, 2024.

Outlook and guidance

• Inflationary pressures on beef and labor are expected to persist through fiscal 2025, with continued price volatility.

• Management expects to fund operations, debt service, dividends, and potential share repurchases from operating cash flow.

• No formal revenue or earnings guidance provided, but management remains focused on expanding branded and licensing programs.