Nathan's Famous Q1 Revenue Rises 5% Amid Earnings Decline

Nathan's Famous, Inc. reported a 5.0% increase in revenue to approximately $47 million for the first quarter of fiscal 2026, driven primarily by an 11% increase in sales within its Branded Product Program and an 8% rise in average selling prices. Despite the revenue growth, net income declined to $8.93 million, or $2.16 per diluted share, down from $9.28 million and $2.27 per share in the prior year period, largely due to increased costs of sales, especially higher beef prices. Operating income for the Branded Product Program decreased as the company absorbed rising food costs, while licensing royalties dropped by roughly 4%, impacted by a 15% decline in retail volume but partially offset by higher selling prices. Franchise operations saw slight revenue improvements with eight new franchised locations opened, although sales at company-owned restaurants declined, attributed to decreased customer traffic influenced by unfavorable weather. The Board of Directors declared a second quarterly cash dividend of $0.50 per share, reflecting confidence despite margin pressures. Overall, Nathan's continues to leverage its iconic brand and expand its revenue streams amid challenging cost inflation and shifting market dynamics.