Nathan's Famous (NATH)
NASDAQ:NATH
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Nathan's Famous
(NASDAQ:NATH)
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Rating:73Outperform
Price Target:
$113.00
▲(23.19% Upside)
Action:Reiterated
Date:02/06/26
The score is led by strong operating profitability and high-quality free cash flow, supported by a favorable M&A catalyst that anchors value near the takeout price. Offsetting these positives is the structurally weak balance sheet (negative equity), with technicals supportive but showing signs of short-term overbought conditions.
Positive Factors
Free Cash Flow Conversion
High-quality cash generation with FCF roughly matching net income (≈0.98 TTM) indicates durable cash conversion. This supports reinvestment, franchise growth, and shareholder returns without heavy reliance on external financing, strengthening long-term operational flexibility.
Negative Factors
Negative Shareholders' Equity
A persistent negative equity position is a structural capital weakness that limits financial flexibility. It complicates leverage assessment, constrains borrowing capacity and makes funding large investments or weathering shocks more difficult, raising long-term balance sheet risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Conversion
High-quality cash generation with FCF roughly matching net income (≈0.98 TTM) indicates durable cash conversion. This supports reinvestment, franchise growth, and shareholder returns without heavy reliance on external financing, strengthening long-term operational flexibility.
Read all positive factors
Nathan's Famous (NATH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$414.03M
Dividend Yield2.09%
Average Volume (3M)44.98K
Price to Earnings (P/E)31.2
Beta (1Y)0.52
Revenue Growth7.79%
EPS Growth-9.60%
CountryUS
Employees147
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)5.24
Shares Outstanding4,094,405
10 Day Avg. Volume40,675
30 Day Avg. Volume44,980
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)-23.85
Price to Sales (P/S)2.66
P/FCF Ratio15.74
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue2.82
Enterprise Value/Gross Profit9.59
Enterprise Value/Ebitda13.13
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 includ...
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 th...
Nathan's Famous Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
34
Negative
Cash Flow
86
Very Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.78M | 148.18M | 138.61M | 130.78M | 114.88M | 75.84M |
| Gross Profit | 46.39M | 51.98M | 49.25M | 49.64M | 44.06M | 38.74M |
| EBITDA | 33.87M | 37.82M | 33.94M | 35.68M | 29.73M | 27.11M |
| Net Income | 21.45M | 24.03M | 19.62M | 19.62M | 13.60M | 11.07M |
Balance Sheet | ||||||
| Total Assets | 50.94M | 53.48M | 48.86M | 58.61M | 78.52M | 108.81M |
| Cash, Cash Equivalents and Short-Term Investments | 24.55M | 27.80M | 21.03M | 29.86M | 50.06M | 81.06M |
| Total Debt | 55.30M | 55.92M | 66.39M | 86.24M | 116.52M | 156.22M |
| Total Liabilities | 66.21M | 69.99M | 81.78M | 103.17M | 133.50M | 171.29M |
| Stockholders Equity | -15.27M | -16.51M | -32.92M | -44.56M | -54.99M | -62.48M |
Cash Flow | ||||||
| Free Cash Flow | 22.10M | 25.02M | 19.69M | 19.21M | 15.84M | 11.21M |
| Operating Cash Flow | 22.48M | 25.24M | 20.00M | 19.84M | 16.48M | 11.77M |
| Investing Cash Flow | -386.00K | -225.00K | -313.00K | -584.00K | -636.00K | -551.00K |
| Financing Cash Flow | -21.26M | -18.24M | -28.52M | -39.45M | -46.84M | -7.27M |
Nathan's Famous Technical Analysis
Positive
91.73
Price Trends
100.88
Positive
99.40
Positive
99.55
Positive
Market Momentum
0.03
Positive
52.31
Neutral
39.99
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 91.73 is below the 20-day moving average (MA) of 100.92, below the 50-day MA of 100.88, and below the 200-day MA of 99.55, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.31 is Neutral, neither overbought nor oversold. The STOCH value of 39.99 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 43 risk factors in its most recent earnings report. Nathan's Famous reported the most risks in the "Finance & Corporate" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $414.03M | 31.17 | -182.42% | 2.09% | 7.79% | -9.60% | |
71 Outperform | $430.94M | 12.51 | 10.14% | ― | 4.42% | 16.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $379.92M | 10.80 | -6.47% | 5.10% | 8.39% | -70.93% | |
48 Neutral | $295.64M | -235.32 | 3.37% | ― | 2.37% | -49.32% | |
46 Neutral | $213.05M | 5.33 | -3.80% | 9.34% | -17.16% | ― |
* Consumer Cyclical Sector Average
NATH
Nathan's Famous
101.12
4.13
4.26%
DIN
Dine Brands Global
29.95
8.21
37.75%
JACK
Jack In The Box
11.17
-8.77
-43.98%
LOCO
El Pollo LoCo
14.15
5.21
58.28%
PTLO
Portillo's
3.90
-7.60
-66.09%
Nathan's Famous Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsRegulatory Filings and Compliance
Nathan’s Famous agrees to all-cash acquisition by Smithfield
Positive
Jan 21, 2026
On January 20, 2026, Nathan’s Famous, Inc. agreed to be acquired by Smithfield Foods, Inc. in an all-cash merger valuing the hot dog maker at about $450 million, with Nathan’s shareholders to receive $102.00 per share and the company t...
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.