Just to speculate a little further, the ongoing legal fees from this may have been material too. I'm not sure how big SMG is, but little companies like NATH are sometimes more likely to buckle and cut there losses instead of racking up legal fees that may affect margins more than at larger companies.
These guys should do a midwinter hot dog event. I mean this 4th of July stuff is great and all, but gotta keep people interested year round. I'm sure Joey Chestnut can throw down 4 dozen dogs on New Years Eve. By the way has a $16 stock ever stayed in a $1 range the whole year? This makes investing in CDs look interesting.