Nathan's Famous (NATH) AI Stock Analysis

• Market Cap: $472.17M
• Dividend Yield: 1.73%
• Average Volume (3M): 39.86K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.68
• Revenue Growth: 6.91%
• EPS Growth: 22.33%
• Country: US
• Employees: 147
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Restaurants
• EPS (TTM): 1.04
• Shares Outstanding: 4,089,510
• 10 Day Avg. Volume: 97,772
• 30 Day Avg. Volume: 39,863
• PEG Ratio: 0.02
• Price to Book (P/B): -4.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.10
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 6.09
• Enterprise Value/Ebitda: 2.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• 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 Business Overview & Revenue Model

Company Description

Nathan'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 Money

Nathan'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

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
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
148.18M	138.61M	130.78M	114.88M	75.84M
	Gross Profit
58.48M	49.25M	49.64M	44.06M	38.74M
	EBIT
36.50M	32.51M	34.45M	29.86M	25.52M
	EBITDA
29.61M	33.94M	35.68M	29.73M	27.11M
	Net Income Common Stockholders
24.03M	19.62M	19.62M	13.60M	11.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.80M	21.03M	29.86M	50.06M	81.06M
	Total Assets
53.48M	48.86M	58.61M	78.52M	108.81M
	Total Debt
7.85M	66.39M	86.24M	116.52M	156.22M
	Net Debt
-19.95M	45.36M	56.38M	66.46M	75.16M
	Total Liabilities
69.99M	81.78M	103.17M	133.50M	171.29M
	Stockholders Equity
-16.51M	-32.92M	-44.56M	-54.99M	-62.48M
Cash Flow		Free Cash Flow
25.02M	19.69M	19.21M	15.84M	11.21M
	Operating Cash Flow
25.24M	20.00M	19.84M	16.48M	11.77M
	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 Price: 111.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	74 Outperform	$2.85B	18.09	46.60%	1.84%	4.42%	48.23%
NATH	66 Neutral	$472.17M	19.68	-102.54%	1.73%	6.91%	22.33%
PZZA	65 Neutral	$1.70B	21.94	-20.16%	3.63%	-2.77%	4.01%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
CNNE	56 Neutral	$1.24B	―	-12.56%	2.43%	-15.46%	3.24%
CHSN	52 Neutral	$15.01M	35.16	4.99%	―	3.95%	1180.00%
JACK	50 Neutral	$374.76M	―	4.15%	9.03%	-6.02%	-136.86%