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Nathan's Famous fiscal 2nd-quarter net income dips

JERICHO, N.Y. (AP) -- NEWS: Nathan's Famous Inc. said Friday its fiscal second-quarter net income fell 7 percent, as the higher cost of beef offset better revenue.

DETAILS: The hotdog purveyor said it will enter into a new licensing agreement with John Morrell & Co in March 2014 to replace SMG Inc. as its hot dog maker. The new agreement has better terms, the company said. The new agreement includes royalties of 10.8 percent of net sales compared with 4.5 percent on net sales in the prior agreement.

Nathan's operates 314 hot dog restaurants or stands, including 309 franchised units and 5 company-owned units.

NUMBERS: Net income for the 13 weeks ended Sept. 29 totaled $2.6 million, or 57 cents per share. That compares with $2.8 million, or 62 cents per share, last year.

Revenue rose 10.8 percent to $23.7 million from $21.4 million last year.

STOCK: Shares fell $1.72, or 3.2 percent, to $51.70 during midday trading. The stock has risen 53 percent since the beginning of the year.