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Nathan's Famous
(NASDAQ:NATH)
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Rating:59Neutral
Price Target:
$103.00
▲(5.26% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by solid revenue growth and strong free cash flow, but is held back by a structurally weak balance sheet with negative equity and signs of margin pressure. Technical indicators also lean mildly bearish, while valuation is partially supported by a high dividend yield and a moderate P/E.
Positive Factors
Free Cash Flow
Consistent, material free cash flow provides durable financial flexibility: it funds dividends, franchise support, and modest investments without relying on external financing. Sustained FCF (~$19M TTM) reduces refinancing risk and supports shareholder distributions and strategic initiatives over months.
Negative Factors
Negative Equity
Persistently negative equity materially weakens financial flexibility and heightens solvency risk in downturns. Even with TTM debt reduced, negative net worth can limit access to capital, increase financing cost, restrict growth investments or franchise support, and amplify shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Consistent, material free cash flow provides durable financial flexibility: it funds dividends, franchise support, and modest investments without relying on external financing. Sustained FCF (~$19M TTM) reduces refinancing risk and supports shareholder distributions and strategic initiatives over months.
Read all positive factors
Nathan's Famous (NATH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$400.26M
Dividend Yield4.6%
Average Volume (3M)44.98K
Price to Earnings (P/E)20.1
Beta (1Y)0.49
Revenue Growth12.44%
EPS Growth-15.97%
CountryUS
Employees129
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)4.87
Shares Outstanding4,097,661
10 Day Avg. Volume40,675
30 Day Avg. Volume44,980
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)-29.01
Price to Sales (P/S)2.55
P/FCF Ratio23.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nathan's Famous Business Overview & Revenue Model
Company Description
Nathan's Famous, Inc. (NATH) operates primarily within the foodservice sector, encompassing both direct operations and an extensive licensing model. The company manages and licenses out restaurant locations operating under the iconic Nathan's Famo...
How the Company Makes Money
Nathan’s Famous primarily generates revenue through (1) licensing and royalties, (2) sales from company-owned restaurants, and (3) fees and royalties from franchised restaurants. A major component of its model is brand licensing: the company licen...
Nathan's Famous Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
28
Negative
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 169.13M | 162.06M | 148.18M | 138.61M | 130.78M | 114.88M |
| Gross Profit | 48.96M | 48.93M | 51.98M | 49.25M | 49.64M | 44.06M |
| EBITDA | 31.82M | 31.97M | 37.82M | 33.94M | 35.68M | 29.73M |
| Net Income | 19.92M | 20.02M | 24.03M | 19.62M | 19.62M | 13.60M |
Balance Sheet | ||||||
| Total Assets | 64.79M | 53.65M | 53.48M | 48.86M | 58.61M | 78.52M |
| Cash, Cash Equivalents and Short-Term Investments | 24.69M | 24.40M | 27.80M | 21.03M | 29.86M | 50.06M |
| Total Debt | 51.02M | 52.09M | 55.92M | 66.39M | 86.24M | 116.52M |
| Total Liabilities | 71.95M | 67.87M | 69.99M | 81.78M | 103.17M | 133.50M |
| Stockholders Equity | -7.16M | -14.22M | -16.51M | -32.92M | -44.56M | -54.99M |
Cash Flow | ||||||
| Free Cash Flow | 19.08M | 17.86M | 25.02M | 19.69M | 19.21M | 15.84M |
| Operating Cash Flow | 19.40M | 18.23M | 25.24M | 20.00M | 19.84M | 16.48M |
| Investing Cash Flow | -322.00K | -370.00K | -225.00K | -313.00K | -584.00K | -636.00K |
| Financing Cash Flow | -21.26M | -21.26M | -18.24M | -28.52M | -39.45M | -46.84M |
Nathan's Famous Technical Analysis
Negative
97.85
Price Trends
99.18
Negative
99.92
Negative
98.20
Negative
Market Momentum
-0.37
Negative
45.89
Neutral
49.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATH, the sentiment is Negative. The current price of 97.85 is above the 20-day moving average (MA) of 97.79, below the 50-day MA of 99.18, and below the 200-day MA of 98.20, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NATH.
Nathan's Famous Risk Analysis
Nathan's Famous disclosed 41 risk factors in its most recent earnings report. Nathan's Famous reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nathan's Famous Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $475.36M | 12.88 | 11.68% | ― | 4.40% | 39.48% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $360.73M | 22.39 | 2.95% | ― | 2.89% | -58.76% | |
59 Neutral | $400.26M | 20.07 | -187.25% | 4.58% | 12.44% | -15.97% | |
52 Neutral | $315.88M | 9.14 | -3.65% | ― | -20.21% | ― | |
50 Neutral | $445.73M | 65.37 | -2.46% | 3.17% | 6.44% | -82.92% |
* Consumer Cyclical Sector Average
NATH
Nathan's Famous
97.74
-4.17
-4.09%
DIN
Dine Brands Global
33.34
11.22
50.69%
JACK
Jack In The Box
15.90
-2.84
-15.15%
LOCO
El Pollo LoCo
15.20
4.46
41.53%
PTLO
Portillo's
4.48
-2.61
-36.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.