Nathans Famous 2026 Q1 Earnings Steady Performance with Slight Revenue Growth

Nathan's Famous(NATH) reported its fiscal 2026 Q1 earnings on Aug 8th, 2025. The total revenue of Nathan's Famous increased by 5.0% to $47 million in 2026 Q1, compared to $44.77 million in 2025 Q1. The results slightly exceeded expectations with moderate revenue growth. However, the company's net income declined by 3.8% to $8.93 million in 2026 Q1 from $9.28 million in 2025 Q1, with EPS falling to $2.18 from $2.27. Nathan's Famous did not provide forward guidance in the report, and its stock experienced a significant monthly decline.

Revenue
Nathan's total revenue of $47 million for 2026 Q1 demonstrated a 5.0% increase compared to the same quarter in 2025. The Branded Products segment was the largest contributor, generating $29.07 million, reflecting the continued strength of its branded offerings. The Company-owned restaurants segment contributed $3.99 million, while License royalties amounted to $12.38 million. Franchise fees and royalties brought in $1.13 million, and the Advertising fund revenue added $427,000 to the total.

Earnings/Net Income
Nathan's Famous's EPS declined 4.0% to $2.18 in 2026 Q1 from $2.27 in 2025 Q1. Meanwhile, the company's net income declined to $8.93 million in 2026 Q1, down 3.8% from $9.28 million in 2025 Q1. Despite this decline, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring its strong operational resilience. The decrease in profitability reflects a challenging operating environment, including higher beef costs and weather-related disruptions to restaurant traffic.

Price Action
The stock price of Nathan's Famous has edged down 2.85% during the latest trading day, edged up 2.53% during the most recent full trading week, and plummeted 15.22% month-to-date, reflecting mixed investor sentiment in the short term.

Post-Earnings Price Action Review
The strategy of buying Nathan's Famous (NATH) shares after its revenue raises quarter-over-quarter on the financial report released date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 120.31% return, significantly outperforming the benchmark return of 47.10%. The excess return was 73.21%, indicating the strategy's ability to capitalize on positive revenue news. With a CAGR of 31.30% and a maximum drawdown of 0.00%, the strategy also showcased robust risk-adjusted returns and minimal downside risk.

CEO Commentary
The CEO emphasized the Company’s resilience amid a challenging operating environment, noting that first-quarter results reflected slight revenue growth and stable profitability despite headwinds from beef costs and weather-impacted restaurant traffic. The CFO, Robert Steinberg, highlighted the 8% increase in average selling prices within the Branded Product Program and the opening of eight new franchised locations as positive momentum drivers. The Company remains committed to maintaining its dividend, with the Board declaring a second quarterly cash dividend of $0.50 per share, underscoring confidence in its long-term financial stability and cash flow generation.

Guidance
The Company did not provide explicit forward-looking guidance or quantitative expectations for future performance in the filing. The document outlined results for the first quarter of fiscal 2026 and declared the upcoming dividend but did not include statements such as “we expect,” “we anticipate,” or other definitive guidance on future earnings, revenue, or operational performance.

Additional News
Over the three weeks following Nathan's Famous's 2026 Q1 earnings release, the following notable developments were reported:
1. Nathan's Famous announced the opening of eight new franchised locations, signaling expansion momentum and growing brand recognition.
2. The Board declared a second quarterly cash dividend of $0.50 per share, reaffirming the company’s commitment to rewarding shareholders and maintaining financial stability.
3. The CFO highlighted an 8% increase in average selling prices within the Branded Product Program, indicating the company’s ability to manage pricing in a competitive market. These developments collectively underscore Nathan's Famous’s ongoing efforts to strengthen its market position while maintaining profitability and shareholder returns.