Nathan's Famous Inc (NASDAQ: NATH) is a foodservice company that owns and franchises the Nathan's Famous restaurant brand, known for its hot dogs and related menu items. The company makes money through four channels: royalties and fees from franchised restaurants, revenue from Company-owned restaurants, a Branded Product Program that sells Nathan's branded products through foodservice operators, and a licensing program that generates royalties from retail sales of Nathan's branded products through supermarkets, mass merchandisers, and club stores. The licensing agreement with Smithfield Foods, Inc. is the principal driver of retail licensing royalties and a material contributor to overall profitability, as disclosed in the FY2025 10-K filed June 10, 2025. Company-owned restaurants are concentrated at Coney Island in New York, making seasonal weather a direct operating variable. The brand is built partly around the annual July 4th International Hot Dog Eating Contest, held at the flagship Coney Island location.

Revenue model

Four revenue streams: franchise royalties and fees from franchised restaurants; Company-owned restaurant sales; Branded Product Program sales to foodservice operator customers; and licensing royalties from retail product sales. Smithfield Foods, Inc. is identified as the principal supplier and the licensing agreement with Smithfield is cited as a key driver of licensing revenue and profitability (FY2025 10-K).

Products and services

Nathan's Famous branded hot dogs, French fries, and related menu items sold through Company-owned restaurants, franchised restaurants (including virtual kitchens), the Branded Product Program for foodservice operators, a Branded Menu Program, and retail grocery channels. The brand is also extended through licensed products sold in supermarkets, mass merchandisers, and club stores.

Customers and end markets

End markets include restaurant consumers at Company-owned and franchised locations, foodservice operators purchasing through the Branded Product Program, and retail grocery consumers purchasing licensed products. The company discloses material dependence on Smithfield Foods, Inc. as its principal supplier and licensing partner.

Value-chain role

Brand owner and franchisor. Nathan's licenses its brand and product specifications to manufacturers and foodservice operators, franchises its restaurant concept, and operates a small number of Company-owned restaurants. It does not manufacture products; supply is dependent on Smithfield Foods, Inc. as the principal supplier for hot dogs and related products.

Geographic exposure

Company-owned restaurants are concentrated at Coney Island, New York, with noted exposure to Northeast weather conditions. Franchised restaurants and Branded Product Program distribution extend beyond the Northeast. An international eating contest was held in Selsey, England in 2024, indicating some international brand presence, though the filing does not quantify international revenue.

Source: SEC 10-K, filed 2025-06-10

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