Nathan's Famous (NATH) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenues rose to $138.6M from $130.8M in fiscal 2023, with net income stable at $19.6M year-over-year.

• Fourth quarter revenues increased to $29.0M from $27.4M, with net income up to $3.9M from $3.3M year-over-year.

• Quarterly cash dividend of $0.50 per share declared, payable July 2, 2024.

Financial highlights

• Fiscal 2024 income from operations was $32.5M, down from $34.4M in fiscal 2023.

• Adjusted EBITDA for fiscal 2024 was $34.8M, compared to $36.4M in fiscal 2023.

• Earnings per diluted share remained at $4.80 for fiscal 2024 and 2023.

• Fourth quarter EPS rose to $0.96 from $0.80 year-over-year.

Segment performance

• Branded Product Program sales increased by $7.6M to $86.5M, with a 2% volume and 7% price increase, but operating income declined due to a 10% rise in beef costs.

• License royalties were $33.6M, with $30.1M from Smithfield Foods.

• Company-owned restaurant sales were $12.1M, slightly down due to unfavorable summer weather.

• Franchise royalties rose to $3.9M, with 17 new franchised locations opened.

• Advertising revenue increased to $2.1M from $2.0M year-over-year.