NATH has $6 a share in cash. Why don't they do something with it, like distribute some in a special dividend or buy back more stock. Their stock buyback program seems to have slowed to a trickle, as far as I can see. Past attempts at buying other restaurant concepts, Kenny Rogers and Miami Subs, have been unsuccessful and lost money. They should just keep doing what they know how to do.
The chairman, Howard Lorber, owns a large chunk of the outstanding stock and he may push for a special dividend to take advantage of the lower tax treatment afforded dividend payouts before the new tax rules raise the tax rate. I have owned NATH for a few years now, and they just seem to be sitting on the money. It would be prudent to remove the temptation to invest in another ill-conceived venture that would have to be sold at a lower price in the future. They have had enough time to come up with an idea and haven't. Give the money back, I can put it to a constructive use.
The earnings announcement is Friday. Here's hoping for good news. Good luck, all.
The point is, these execs are pulling down about 1% of revenue each, total comp. That is a lot of jing if you ask me. Remember, NATH is an extremely small company, only generating a small profit on the core business. The way I look at it is there are 5 guys getting paid handsomely to drive fat rides to plush offices every day and keep a hand on the rudder. BFD, they've bought back a few shares. We'll see, but I'm not too inspired by these guys.
I've owned for a lot longer than a few years. I'll be pretty upset if they pay a dividend, and I have to hand over a chunk of it to Uncle Sam. Would prefer they buy back shares, but I'm fine with them sitting on the cash and doing nothing. Ironically, all too often, I've seen sitting on your "arse" lead too unimagineable riches while those who feel impelled to do something end up losers. BTW, they may have gotten a little skittish with the buy back because they were waiting for some legal crap to clear...
"On October 5, 2009, the Company was served with a summons and complaint filed in the Supreme Court of Suffolk County, New York. The plaintiff, Painted Pieces LTD, alleges copyright infringement and asserts causes of action for breach of contract, unjust enrichment, willful wrongful use of plaintiff’s artwork, and violation of the New York general business law, in each case due to the reproduction of certain artwork used by the Company in its advertising. The complaint sought damages of an aggregate $10.5 million. On November 2, 2009, the Company removed the action to the United States district Court, Eastern District of New York and on November 9, 2009, filed a motion to dismiss. The Company denied all of the claims asserted against it in this litigation. The Company has submitted the claim to its various insurance carriers for defense and indemnification. The majority of Nathan’s insurance carriers have initially declined coverage and the Company is presently reviewing its rights in relation thereto. In May 2010, this action was settled whereby Nathan’s agreed to purchase the claimants rights in the intellectual property for $140,000. The complaint was dismissed with prejudice on or about May 13, 2010. "