Nathans Famous Inc logo

Nathans Famous Inc(NATH)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$101.55
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for NATH

09/25/2026: NATH (1-star) is currently NOT-A-BUY. Pass it for now.

Nathans Famous Inc is a well-known food brand that operates through a stable, asset-light business model based on licensing its name for retail products and franchising its restaurant network. The company's primary strength lies in its high brand recognition, which provides a durable competitive position in the retail hot dog market. Its main growth opportunity centers on expanding its retail product distribution and modernizing its digital franchise footprint. However, investors should be mindful of risks related to commodity cost volatility, intense competition from larger food conglomerates, and long-term changes in consumer dietary trends. The stock may best suit value and dividend-focused investors, with ongoing developments in retail penetration being key to monitor.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers slow, steady growth rather than the aggressive expansion typical of growth-focused portfolios.
Momentum investorWeak fitThe stock generally displays low volatility and limited price momentum compared to high-growth sectors.
Value investorStrong fitThe company's asset-light business model and consistent cash flow may appeal to value-oriented investors seeking stability.
Dividend investorStrong fitNathans Famous has a history of returning capital to shareholders through regular dividend payments.
Low-risk investorStrong fitThe brand's longevity and established market position provide a level of stability suitable for risk-averse investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityLowThe stock typically exhibits lower price fluctuations than broader market benchmarks.
Valuation riskMediumInvestors must monitor whether the stock price exceeds its fundamental cash-generating capacity.
Competition risk (processed food competition)HighIntense competition from major food conglomerates limits pricing power and shelf space.
Business qualityMedium / highThe strength of the brand is a significant asset, though business growth is constrained by market maturity.
Dividend incomeMediumWhile consistent, dividend growth is tied to the company's ability to maintain licensing royalties.
Execution riskMediumSuccess depends on maintaining franchise quality and retail relationships.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 28.98%
Avg. Invested days 56
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
NATH receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by soft analyst coverage, and weak price momentum.

Company Fundamentals

★★★★★
NATH has solid overall fundamentals (4 stars), with solid financial health, moderate growth momentum, and solid ownership. In FY2026 versus FY2025, solid cash generation (FCF margin 11.0%) and solid profitability (net margin 12.4%) are partially offset by negative earnings growth (-16.7%), moderate revenue growth (+9.4%).

Financial Health Rating

★★★★★
NATH's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 52.6%). Profitability is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Revenue growth is NATH's strongest growth driver at +9.4% FY2026 versus FY2025 (moderate, 3 stars). By comparison, while earnings growth (-16.7%, negative) and free-cash-flow growth (-28.6%, negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 57.3% and approximately 69.9% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 29.95% supports management-shareholder alignment.

Top 5 Institutional Investors

Gamco Investors, Inc. Et Al 6.67%
Gabelli Funds LLC 4.39%
BlackRock Inc 4.27%
Renaissance Technologies Corp 3.77%
Vanguard Capital Management, LLC 2.84%

Unit Economics (Per $1K Revenue)

★★★★★
NATH generates approximately $302 of gross profit, $186 of operating income, and $110 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 28.98%

Quantitative Style Profile

★★★★★
NATH has a high-quality, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 415.79M USD
Price to earnings Ratio 21.02
1Y Target Price -
Price to earnings Ratio 21.02
1Y Target Price -
Volume (30-day avg) 31.9K shares
Beta 0.28
52 Weeks Range 87.79 - 112.15
Updated Date 09/27/2026
52 Weeks Range 87.79 - 112.15
Updated Date 09/27/2026
Dividends yield (FY) 2.12%
Basic EPS (TTM) 4.83

How Company Makes Money

Business areaWhat it includesRetail investor read
LicensingRoyalties from third-party manufacturers producing Nathans branded hot dogs and meats.This is a high-margin revenue stream that requires little operational overhead.
FranchisingFees and royalties from Nathans Famous restaurant operators.Revenue fluctuates based on the health of the restaurant industry and franchisee success.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 21.02
Forward PE 24.63
Enterprise Value 413.15M
Price to Sales(TTM) 2.46
Enterprise Value 413.15M
Price to Sales(TTM) 2.46
Enterprise Value to Revenue 2.44
Enterprise Value to EBITDA 13
Shares Outstanding 4.09M
Shares Floating 2.86M
Shares Outstanding 4.09M
Shares Floating 2.86M
Percent Insiders 29.95
Percent Institutions 57.34

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Nathans Famous Inc

Exchange NASDAQ
Headquarters Jericho, NY, United States
IPO Launch date 1993-02-26
CEO & Director Mr. Eric Gatoff J.D.
Sector Consumer Cyclical
Industry Restaurants
Full time employees 129
Full time employees 129

Nathan's Famous, Inc., along with its subsidiaries, operates in the foodservice industry both in the United States and internationally. It operates through three segments: Branded Product Program; Product licensing; and Restaurant operations. The company owns and franchises restaurants under the Nathan's Famous brand name. It also has license agreements for the manufacture, distribution, marketing, and sale of Nathan's Famous branded beef hot dogs, crinkle-cut french fries, and sausages in refrigerated consumer packages, which are resold through retail channels such as supermarkets, grocery stores, mass merchandisers, and club stores. In addition, the company has license agreements to manufacture Nathan's Famous branded hot dog and sausage products in bulk for use in the foodservice industry, supply Nathan's Famous natural casing and skinless hot dogs in bulk for use in the Nathan's Famous restaurant system, as well as manufacture proprietary spices; produce and distribute pickles; and produce and sell french fries and onion rings for retail sale. Further, the company produces and sells miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, corn dog nuggets, other hors d'oeuvres, and bottled mustard through club stores, supermarkets, and other retail food stores. Additionally, it sells Nathan's products directly to foodservice operators or various foodservice distributors, and provides Fish-n-Chips under the Arthur Treacher's brand name. Nathan's Famous, Inc. was founded in 1916 and is headquartered in Jericho, New York.