Nathan's Famous (NATH) AI Stock Analysis

• Market Cap: $390.14M
• Dividend Yield: 2.1%
• Average Volume (3M): 71.32K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.67
• Revenue Growth: 6.91%
• EPS Growth: 22.33%
• Country: US
• Employees: 147
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): 1.04
• Shares Outstanding: 4,089,510
• 10 Day Avg. Volume: 52,629
• 30 Day Avg. Volume: 71,324
• PEG Ratio: 15.21
• Price to Book (P/B): -26.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.62
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 7.75
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $125.00
• Price Target Upside: 31.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $113.00 ▲(19.26%Upside)

The strong financial performance driven by profitability and cash flow generation is a significant strength for Nathan's Famous. However, high leverage and mixed technical signals pose notable risks. The valuation is reasonable but does not offer significant upside potential at present.

Nathan's Famous Business Overview & Revenue Model

Company Description

Nathan's Famous, Inc., together with its subsidiaries, operates in the foodservice industry. The company owns and franchises restaurants under the Nathan's Famous brand name, as well as sells products bearing the Nathan's Famous trademarks through various channels of distribution. It also has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded hot dogs, sausages, and corned beef products in refrigerated consumer packages to be resold through retail channels, such as supermarkets, groceries, mass merchandisers, and club stores; and other Nathan's Famous branded refrigerated meat products in consumer packages to be resold through retail channels. In addition, the company has license agreements to manufacture Nathan's Famous branded hot dog and sausage products in bulk for use in the food service industry; for supplying Nathan's Famous natural casing and skinless hot dogs in bulk for use in the Nathan's Famous restaurant system; to manufacture proprietary spices; to produce and distribute sauerkraut and pickles; to produce and sell French fries and onion rings for retail sale; and to produce and sell miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, and other hors d'oeuvres through club stores, supermarkets, and other retail food stores. Further, the company sells Nathan's products directly to foodservice operators or to various foodservice distributors, as well as provides Arthur Treacher's brand fish fillets. As of March 27, 2022, its restaurant system consisted of four company-owned units in the New York City metropolitan area; and 239 franchised units in 18 states and 12 foreign countries. Nathan's Famous, Inc. was founded in 1916 and is based in Jericho, New York.

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 demonstrates strong profitability and cash flow generation with consistent revenue and profit growth. However, high leverage and negative equity present significant financial risks, which may impact 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
EBITDA	29.61M	33.94M	35.68M	29.73M	27.11M
Net Income	24.03M	19.62M	19.62M	13.60M	11.07M
Balance Sheet
Total Assets	53.48M	48.86M	58.61M	78.52M	108.81M
Cash, Cash Equivalents and Short-Term Investments	27.80M	21.03M	29.86M	50.06M	81.06M
Total Debt	7.85M	66.39M	86.24M	116.52M	156.22M
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: Negative
• Last Price: 94.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATH, the sentiment is Negative. The current price of 94.75 is below the 20-day moving average (MA) of 104.93, below the 50-day MA of 106.48, and above the 200-day MA of 92.96, indicating a neutral trend. The MACD of -3.79 indicates Positive momentum. The RSI at 30.06 is Neutral, neither overbought nor oversold. The STOCH value of 7.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATH.

Nathan's Famous Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	72 Outperform	$3.26B	20.69	46.60%	1.64%	4.42%	48.23%
NATH	64 Neutral	$390.14M	16.26	-102.54%	2.10%	6.91%	22.33%
Sector *	62 Neutral	$17.27B	9.93	-8.46%	3.20%	1.63%	-26.06%
CNNE	61 Neutral	$1.36B	―	-12.56%	2.22%	-15.46%	3.24%
PZZA	56 Neutral	$1.41B	18.24	-20.16%	4.36%	-2.77%	4.01%
CHSN	55 Neutral	$5.46M	19.69	4.99%	―	3.95%	1180.00%
JACK	50 Neutral	$423.28M	―	4.15%	8.41%	-6.02%	-289.54%