Revenue beat the prior year but operating income declined on beef cost inflation — no analyst consensus provided to gauge surprise. The primary price catalyst remains the Smithfield merger closing; watch for CFIUS clearance and stockholder vote updates in H2 2026. With the $102/share offer capping upside for NATH common, near-term trading likely aligns with deal-probability movements rather than quarterly operating strength.
Price Chart
Executive Summary
Nathan's Famous reported Q1 fiscal 2027 results with revenue up 15% YoY to $54.1M driven by branded product program sales (+$6.0M) and 10% higher licensing royalties, but income from operations declined to $12.7M from $12.8M as a 22% surge in beef costs squeezed branded product margins. The pending $102/share cash acquisition by Smithfield Foods at ~$450M enterprise value remains the dominant catalyst, with CFIUS clearance expected in H2 2026 — an update is provided but no material change to the deal timeline.
Key Facts
- Q1 fiscal 2027 (13 weeks ended June 28, 2026): Revenue $54,062,000 vs $46,998,000 YoY (+15.0%)
- Net income $8,829,000 vs $8,928,000 YoY (-1.1%); diluted EPS $2.14 vs $2.16
- Income from operations $12,668,000 down from $12,791,000 YoY despite revenue growth
- Branded product program revenue +20.5% to $35,039,000 driven by 8% volume and 17% ASP increases
- Beef/beef trimming costs rose 22%, causing branded product income to fall to $1,330,000 from $2,276,000 YoY
- License royalties increased 10% to $13,587,000, with Smithfield Foods retail/foodservice royalties up 10% to $12,617,000
- Company-owned restaurant sales slipped to $3,951,000 from $3,986,000 YoY
- Franchise revenue $1,074,000 vs $1,129,000; four new franchised units opened in the quarter
- Adjusted EBITDA (non-GAAP) $13,615,000 vs $13,531,000 YoY
- Cash dividend of $0.50 per share paid on June 30, 2026
- Merger with Smithfield Foods at $102.00/share (~$450M enterprise value) expected to close in H2 2026, pending CFIUS and stockholder approval
Financial Impact
Revenue $54.1M, net income $8.8M, EPS $2.14 — YoY revenue growth but net income decline; pending $450M acquisition caps near-term upside
Risk Factors
- Merger may not close by H2 2026 or at all due to CFIUS or stockholder approval conditions
- Beef cost inflation (up 22% in Q1) could further compress branded product margins if selling prices cannot keep pace
- Company-owned and franchise restaurant revenue trends are flat to declining
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-026426 |
| Document: nath20260730_8k.htm | 0001437749-26-026426 |
| Document: 0001437749-26-026426-index-headers.html | 0001437749-26-026426 |
| Document: 0001437749-26-026426-index.html | 0001437749-26-026426 |
| Document: 0001437749-26-026426.txt | 0001437749-26-026426 |
| 8-K Data (Synthetic) | 0001437749-26-026426 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13D/A | $102.05 | awaiting T+60 | — | $102.05 (+0.00%) |
Oct 26, 2026 today | 25-NSE | $102.05 | awaiting T+60 | — | $102.05 (+0.00%) |
Oct 26, 2026 today | 8-K | $102.05 | awaiting T+60 | — | $102.05 (+0.00%) |
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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