Nathan's Famous (NATH) AI Stock Analysis

• Market Cap: $389.53M
• Dividend Yield: 2.04%
• Average Volume (3M): 50.20K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.61
• Revenue Growth: 7.81%
• EPS Growth: 4.58%
• Country: US
• Employees: 147
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.26
• Shares Outstanding: 4,089,510
• 10 Day Avg. Volume: 57,213
• 30 Day Avg. Volume: 50,197
• PEG Ratio: 0.74
• Price to Book (P/B): -23.85
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 15.74
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.14
• Enterprise Value/Gross Profit: 9.38
• Enterprise Value/Ebitda: 12.72
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $95.00 ▲(3.56% Upside)

Nathan's Famous shows strong profitability and reasonable valuation, but high leverage and negative equity pose significant financial risks. The bearish technical indicators suggest weak market momentum, which negatively impacts the stock's attractiveness. The absence of earnings call data limits insights into future guidance and sentiment.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and profitability.

Cash Flow Generation

Strong cash flow generation indicates efficient operations and capital management, providing financial flexibility for future investments.

Profitability

Stable and improving profit margins demonstrate effective cost management and pricing power, enhancing long-term financial health.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term sustainability.

Negative Equity

Negative equity reflects financial instability, potentially hindering growth opportunities and investor confidence over the long term.

Liquidity Risks

Liquidity risks can constrain operational capabilities and investment potential, affecting the company's ability to sustain growth and manage obligations.

Nathan's Famous Business Overview & Revenue Model

Company Description

Nathan's Famous, Inc. is a renowned American fast-food restaurant chain primarily known for its hot dogs and fast-casual dining experience. Established in 1916, the company operates in the food service sector, offering a variety of products including hot dogs, hamburgers, french fries, and other classic American fare. Nathan's Famous is recognized not only for its iconic products but also for its association with the annual Nathan's Hot Dog Eating Contest, which enhances its brand visibility and cultural significance.

How the Company Makes Money

Nathan's Famous generates revenue through multiple streams. The primary source of income comes from its restaurant operations, including company-owned locations and franchises. Franchise fees and royalties contribute significantly to revenue as the company expands its brand footprint both domestically and internationally. Additionally, Nathan's Famous earns money through retail sales of its packaged food products, which are sold in grocery stores and other retail outlets. The brand also benefits from partnerships and sponsorships, particularly related to its annual hot dog eating contest, which boosts media exposure and customer engagement. Overall, the combination of franchise operations, retail sales, and promotional events forms the core of Nathan's revenue model.

Nathan's Famous Financial Statement Overview

Summary

Nathan's Famous shows strong profitability and cash flow generation, with consistent revenue and profit growth. However, the high leverage and negative equity present considerable financial risks, which may impact long-term sustainability. While operational efficiency is commendable, the company must address its balance sheet vulnerabilities to enhance financial stability.

Income Statement

Nathan's Famous has exhibited a robust revenue growth trend with a notable increase of 6.91% from 2024 to 2025 and 6.00% from 2023 to 2024. The gross profit margin has been stable at around 39.5%, and the net profit margin improved to 16.21% in 2025, which indicates strong profitability. The EBIT and EBITDA margins are also healthy, showing effective cost management. However, the growth rate in revenue is slowing, which could be a concern for future growth prospects.

Balance Sheet

The company exhibits a high debt-to-equity ratio due to negative stockholders' equity, which raises concerns about financial stability and leverage. The equity ratio is negative, indicating that liabilities exceed assets. Despite this, the company has managed to reduce its total liabilities over the years, suggesting some improvement in financial management, but the high leverage remains a significant risk.

Cash Flow

Operating cash flow has grown consistently, with a significant free cash flow growth of 27.04% from 2024 to 2025. The operating cash flow to net income ratio is favorable, indicating strong cash generation relative to accounting profits. The free cash flow to net income ratio is also robust, reflecting efficient capital expenditure management. However, the reliance on cash reserves and ongoing negative financing cash flows highlight potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	150.41M	148.18M	138.61M	130.78M	114.88M	75.84M
Gross Profit	50.33M	51.98M	49.25M	49.64M	44.06M	38.74M
EBITDA	37.10M	37.82M	33.94M	35.68M	29.73M	27.11M
Net Income	23.68M	24.03M	19.62M	19.62M	13.60M	11.07M
Balance Sheet
Total Assets	63.44M	53.48M	48.86M	58.61M	78.52M	108.81M
Cash, Cash Equivalents and Short-Term Investments	26.87M	27.80M	21.03M	29.86M	50.06M	81.06M
Total Debt	54.89M	55.92M	66.39M	86.24M	116.52M	156.22M
Total Liabilities	72.78M	69.99M	81.78M	103.17M	133.50M	171.29M
Stockholders Equity	-9.34M	-16.51M	-32.92M	-44.56M	-54.99M	-62.48M
Cash Flow
Free Cash Flow	19.73M	25.02M	19.69M	19.21M	15.84M	11.21M
Operating Cash Flow	20.03M	25.24M	20.00M	19.84M	16.48M	11.77M
Investing Cash Flow	-299.00K	-225.00K	-313.00K	-584.00K	-636.00K	-551.00K
Financing Cash Flow	-18.84M	-18.24M	-28.52M	-39.45M	-46.84M	-7.27M

Nathan's Famous Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 91.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATH, the sentiment is Neutral. The current price of 91.73 is below the 20-day moving average (MA) of 92.56, below the 50-day MA of 99.19, and below the 200-day MA of 98.75, indicating a neutral trend. The MACD of -1.55 indicates Negative momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NATH.

Nathan's Famous Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOCO	74 Outperform	$345.38M	13.16	9.63%	―	2.09%	12.10%
PBPB	68 Neutral	―	―	19.65%	―	-1.72%	-70.31%
PTLO	67 Neutral	$353.51M	12.96	5.82%	―	2.40%	-14.90%
NATH	61 Neutral	$389.53M	17.15	―	2.04%	7.81%	4.58%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIN	58 Neutral	$491.13M	15.23	―	5.99%	6.47%	-62.84%
JACK	53 Neutral	$383.04M	―	―	8.35%	-6.75%	-118.94%

Nathan's Famous Corporate Events

Nathan’s Famous Holds Annual Stockholders Meeting

On September 9, 2025, Nathan’s Famous, Inc. held its annual meeting of stockholders, where key decisions were made. The stockholders approved the election of ten directors and ratified the appointment of CBIZ CPAs P.C. as the company’s auditors for fiscal year 2026, indicating continued stability and strategic direction for the company.