The earnings miss and margin compression from rising beef costs are negative for near-term equity value, but the $102/share acquisition price provides a floor. Traders should monitor CFIUS clearance timing — any delay or risk of deal failure could trigger a re-rating toward standalone value, which appears lower given deteriorating profitability.
Price Chart
Executive Summary
Nathan's Famous reported fiscal 2026 annual revenue growth of 9.4% to $162.1M, but net income fell 16.7% to $20.0M and diluted EPS dropped 17.4% to $4.85, driven by a 19% surge in beef costs that compressed operating margins. The board declared a $0.50 quarterly dividend, and the pending $102/share acquisition by Smithfield Foods (enterprise value ~$450M) is now expected to close in H2 2026 due to CFIUS delays.
Key Financial Metrics
Key Facts
- Fiscal 2026 revenue rose 9.4% to $162.1M, but net income declined 16.7% to $20.0M
- Diluted EPS fell to $4.85 from $5.87, a 17.4% decline
- Income from operations dropped 17.5% to $30.1M, driven by a 19% increase in beef costs
- Quarterly dividend maintained at $0.50 per share
- Merger with Smithfield Foods at $102/share (~$450M enterprise value) expected to close in H2 2026, pending CFIUS clearance
Financial Impact
Net income down $4.0M (16.7%) YoY; operating income down $6.4M (17.5%); beef cost inflation of 19% eroded margins
Risk Factors
- Merger closing delayed or blocked by CFIUS, exposing stock to standalone valuation with declining earnings
- Continued beef cost inflation could further compress branded product program margins
- Franchise closures (32 net closures in fiscal 2026) signal potential brand weakness in certain markets
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3308652 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13D/A | — | awaiting T+60 | — | — |
Oct 26, 2026 today | 25-NSE | — | awaiting T+60 | — | — |
Oct 26, 2026 today | 8-K | — | awaiting T+60 | — | — |
Oct 14, 2026 12d ago | 8-K | $101.88 | awaiting T+60 | — | $102.05 (+0.17%) |
Aug 7, 2026 11w ago | 8-K | $98.01 | awaiting T+60 | — | $102.05 (+4.12%) |
Jul 24, 2026 13w ago | 10-K/A | $98.18 $101.88 | ▲ +3.77% | ▲ +0.48% | $102.05 (+3.94%) |
Jun 9, 2026 19w ago | 8-K | $101.47 $97.86 | ▲ +3.56% | ▲ +7.37% | $102.05 (−0.57%) |
Jun 9, 2026 19w ago | Press Release | $101.47 $97.86 | ▲ +3.56% | ▲ +7.37% | $102.05 (−0.57%) |
Mar 6, 2026 33w ago | PREM14A | $100.57 $100.99 | ▲ +0.42% | ▼ −11.57% | $102.05 (+1.47%) |
US Market Status
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