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Nathan's Famous
(NASDAQ:NATH)
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Rating:62Neutral
Price Target:
$108.00
▲(10.37% Upside)
Action:Reiterated
Date:10/24/26
The score is primarily weighed down by financial risk from the weak balance sheet (negative equity) and recent margin compression, despite solid revenue growth and strong free cash flow. Technicals are supportive with price above key averages, while valuation is helped by a strong dividend yield but tempered by a moderate P/E. The approved merger is a meaningful catalyst, but ongoing litigation creates uncertainty.
Positive Factors
Revenue Growth
Nathan’s has delivered a sustained increase in revenue across annual periods, with TTM sales reaching approximately $169.1 million. This indicates continued demand and distribution reach, providing a durable foundation for funding operations and supporting the brand’s long-term commercial relevance.
Negative Factors
Negative Shareholders’ Equity
Negative shareholders’ equity indicates a structurally strained capital base and reduces Nathan’s financial flexibility. Although debt has declined, the accumulated deficit can amplify vulnerability during weaker operating periods and constrain the company’s ability to absorb shocks or pursue investment independently.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Nathan’s has delivered a sustained increase in revenue across annual periods, with TTM sales reaching approximately $169.1 million. This indicates continued demand and distribution reach, providing a durable foundation for funding operations and supporting the brand’s long-term commercial relevance.
Read all positive factors
Nathan's Famous (NATH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$418.17M
Dividend Yield4.41%
Average Volume (3M)35.78K
Price to Earnings (P/E)21.0
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. Volume39,018
30 Day Avg. Volume35,784
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 Cap1.07
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit9.15
Enterprise Value/Ebitda14.07
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 generates revenue primarily by monetizing its brand and selling branded products through multiple channels. Key revenue streams include: (1) Licensing and royalties: The company licenses the Nathan’s Famous brand to third parties (...
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
Positive
97.85
Price Trends
99.37
Positive
99.59
Positive
99.61
Positive
Market Momentum
0.78
Positive
64.58
Neutral
95.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NATH, the sentiment is Positive. The current price of 97.85 is below the 20-day moving average (MA) of 101.75, below the 50-day MA of 99.37, and below the 200-day MA of 99.61, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 95.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $438.84M | 12.22 | 11.68% | 15.42% | 4.40% | 39.48% | |
62 Neutral | $418.17M | 20.95 | -187.25% | 4.41% | 12.44% | -15.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $319.72M | 21.04 | 2.95% | ― | 2.89% | -58.76% | |
47 Neutral | $211.55M | 6.34 | -3.65% | 5.73% | -20.21% | ― | |
44 Neutral | $393.70M | 60.98 | -2.46% | 2.44% | 6.44% | -82.92% |
* Consumer Cyclical Sector Average
NATH
Nathan's Famous
102.05
-0.05
-0.05%
DIN
Dine Brands Global
31.10
4.89
18.64%
JACK
Jack In The Box
11.03
-6.27
-36.24%
LOCO
El Pollo LoCo
14.42
4.66
47.75%
PTLO
Portillo's
4.21
-1.45
-25.62%
Nathan's Famous Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsShareholder Meetings
Nathan’s Shareholders Approve Merger with Smithfield Foods
Positive
Oct 23, 2026
Nathan’s Famous, Inc. disclosed that on January 20, 2026 it entered into a merger agreement under which Boardwalk Merger Sub Inc., a wholly owned subsidiary of Smithfield Foods, Inc., will merge with and into Nathan’s Famous, leaving N...
Delistings and Listing ChangesLegal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Nathan’s Famous Supplements Proxy Amid Merger Disclosure Lawsuits
Negative
Oct 14, 2026
On January 20, 2026, Nathan’s Famous entered into a merger agreement under which Boardwalk Merger Sub Inc., a wholly owned subsidiary of Smithfield Foods Inc., will merge into Nathan’s, leaving Nathan’s as the surviving corporati...
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.