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Nathan’s Famous, Inc. Stock Pops on Q4 Earnings Results

Karl Utermohlen

Nathan’s Famous, Inc. (NASDAQ:NATH) reported its latest quarterly earnings results early Friday, posting revenue increases but an earnings decline.

Nathan's Famous, Inc.

For its fourth quarter of fiscal 2018, the company posted net income of $367,000, which is a slide of nearly 50% compared to its year-ago net income of $729,000. On an adjusted basis, earnings came in at 9 cents per share, below the 17 cents per share it brought in during the year-ago period.

On the revenue front, the Nathan’s Famous impressed as it brought in $19.9 million in sales, a 3.5% improvement compared to the year-ago quarter. For the fiscal year, the company’s revenue tallied up to $104.2 million, an 8.3% gain compared to the year-ago quarter.

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For the fiscal year, net income amounted to $2.63 million, marking a drop of nearly 65% from the $7.49 million from the year-ago period. Nathan’s Famous also said Friday that it will pay a regular quarterly cash dividend of 25 cents per share to shareholders of record on June 18.

The dividend became a reality thanks to the company’s strong operating performance and cash flow, as well as anticipated savings from the federal tax overhaul. On Nov. 1, Nathan’s Famous issued $150 million in senior secured notes to fund paying down debt and to pay part of a $5 special cash dividend to shareholders.

The notes have a 6.625% interest rate and they are due in 2025.

NATH stock gained 1.4% on Friday.

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