Nathans Famous 2026 Q2 Earnings Revenue Grows 11% Despite 13.8% Net Income Drop

Nathan's Famous (NATH) reported mixed Q2 2026 results, . The company’s EPS fell 14.2% to $1.27, reflecting margin compression from higher costs. Management emphasized sustained profitability over 20+ years and announced a regular quarterly dividend of $0.50 and a special dividend of $2.50 per share.

Revenue

Nathan's Famous reported a 11.1% year-over-year revenue increase to $45.69 million in Q2 2026, driven by strong Branded Product Program sales.

Earnings/Net Income

, , while EPS fell 14.2% to $1.27. Despite these declines, the company has maintained profitability for over two decades, demonstrating operational resilience amid cost pressures.

Price Action

, , .

Post-Earnings Price Action Review

The strategy of buying Nathan's Famous (NATH) shares on the day after its revenue raise announcement and holding for 30 days delivered moderate returns but underperformed the market. The compound annual growth rate (CAGR) over three years was 5.64%, compared with the S&P 500's 8.99% CAGR. , it lagged the market by 4.83 percentage points. . Given these results, the strategy is viable but offers modest returns, making it suitable for investors seeking stability rather than high growth.

CEO Commentary

CEO highlighted sustainable growth through menu innovation and operational efficiency, noting strategic pricing actions and cost controls offset inflationary pressures. Priorities include digital transformation, delivery partnerships, and store modernization, with Smith expressing confidence in outperforming industry trends.

Guidance

The CEO outlined forward-looking targets, including revenue growth through continued operational improvements and market differentiation.

Additional News

, . This marks the company’s commitment to returning value to shareholders despite margin challenges. Additionally, the firm reiterated its focus on mitigating supply chain costs through strategic pricing and operational efficiency.