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Nathan's Famous (NATH)
NASDAQ:NATH

Nathan's Famous (NATH) AI Stock Analysis

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Nathan's Famous

(NASDAQ:NATH)

Rating:66Neutral
Price Target:
$125.00
▲(12.06%Upside)
Nathan's Famous demonstrates strong profitability and operational efficiency, but high leverage remains a risk. Technical indicators show bullish momentum with potential for correction, while valuation metrics are fair but not outstanding.

Nathan's Famous (NATH) vs. SPDR S&P 500 ETF (SPY)

Nathan's Famous Business Overview & Revenue Model

Company DescriptionNathan's Famous, Inc. (NATH) is a leading American company renowned for its iconic hot dogs and a variety of other fast-food offerings. Established in 1916, the company operates in the foodservice sector, primarily through its quick-service restaurant chains. It also engages in the licensing, franchising, and sale of packaged foods through retail channels, thereby extending its brand presence beyond its physical restaurant locations.
How the Company Makes MoneyNathan's Famous generates revenue through several key streams. The company earns income from its company-owned and franchised restaurant operations, where it sells its signature hot dogs and other menu items. Additionally, Nathan's Famous benefits significantly from its branded product program, which involves licensing agreements with third-party manufacturers and distributors who produce and sell Nathan's branded hot dogs, sausages, and other products through supermarkets and retail outlets. The company also engages in foodservice sales, supplying Nathan's products to various foodservice operators. Partnerships with major retailers and distributors, as well as its widespread franchising model, play a crucial role in expanding its market reach and contributing to its revenue.

Nathan's Famous Financial Statement Overview

Summary
Nathan's Famous shows strong profitability and cash flow generation with consistent revenue and profit growth. However, high leverage and negative equity present financial risks, impacting long-term sustainability.
Income Statement
85
Very Positive
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
40
Negative
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
78
Positive
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
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
148.18M138.61M130.78M114.88M75.84M
Gross Profit
58.48M49.25M49.64M44.06M38.74M
EBIT
36.50M32.51M34.45M29.86M25.52M
EBITDA
29.61M33.94M35.68M29.73M27.11M
Net Income Common Stockholders
24.03M19.62M19.62M13.60M11.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
27.80M21.03M29.86M50.06M81.06M
Total Assets
53.48M48.86M58.61M78.52M108.81M
Total Debt
7.85M66.39M86.24M116.52M156.22M
Net Debt
-19.95M45.36M56.38M66.46M75.16M
Total Liabilities
69.99M81.78M103.17M133.50M171.29M
Stockholders Equity
-16.51M-32.92M-44.56M-54.99M-62.48M
Cash FlowFree Cash Flow
25.02M19.69M19.21M15.84M11.21M
Operating Cash Flow
25.24M20.00M19.84M16.48M11.77M
Investing Cash Flow
-225.00K-313.00K-584.00K-636.00K-551.00K
Financing Cash Flow
-18.24M-28.52M-39.45M-46.84M-7.27M

Nathan's Famous Technical Analysis

Technical Analysis Sentiment
Positive
Last Price111.55
Price Trends
50DMA
100.30
Positive
100DMA
96.15
Positive
200DMA
88.84
Positive
Market Momentum
MACD
3.64
Negative
RSI
70.31
Negative
STOCH
78.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATH, the sentiment is Positive. The current price of 111.55 is above the 20-day moving average (MA) of 106.35, above the 50-day MA of 100.30, and above the 200-day MA of 88.84, indicating a bullish trend. The MACD of 3.64 indicates Negative momentum. The RSI at 70.31 is Negative, neither overbought nor oversold. The STOCH value of 78.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NATH.

Nathan's Famous Risk Analysis

Nathan's Famous disclosed 2 risk factors in its most recent earnings report. Nathan's Famous reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nathan's Famous Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$2.85B18.0946.60%1.84%4.42%48.23%
66
Neutral
$472.17M19.68-102.54%1.73%6.91%22.33%
65
Neutral
$1.70B21.94-20.16%3.63%-2.77%4.01%
62
Neutral
$6.90B11.052.80%4.27%2.67%-24.92%
56
Neutral
$1.24B-12.56%2.43%-15.46%3.24%
52
Neutral
$15.01M35.164.99%3.95%1180.00%
50
Neutral
$374.76M4.15%9.03%-6.02%-136.86%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NATH
Nathan's Famous
111.55
43.76
64.55%
JACK
Jack In The Box
18.30
-34.60
-65.41%
PZZA
Papa John's International
50.42
5.72
12.80%
CAKE
Cheesecake Factory
57.02
18.47
47.91%
CNNE
Cannae Holdings
19.63
2.88
17.19%
CHSN
Chanson International Holding Class A
0.22
-2.62
-92.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.