3Q earnings advance at Nathan's Famous
JERICHO, NY – Net income at Nathan's Famous increased 16.5 percent to $5,913,000 compared to $5,076,000 for the quarter ended Dec. 25, 2011.
Earnings per diluted share advanced 31.6 percent to $1.29 compared to 98 cents for the comparable year-ago period. Revenues climbed to $56,567,000, up 9.2 percent compared to $51,815,000 a year ago.
"On Oct. 29, 2012, Hurricane Sandy struck the Northeastern United States, which forced the closing of all of the company-owned restaurants," the company said. "Seventy-eight franchised restaurants, including 18 branded menu locations, also closed for varying periods of time, two of which remain closed.
"Our flagship Coney Island restaurant and our new Boardwalk restaurant have been closed since the storm. Our company-owned restaurant in Oceanside, New York was closed for approximately two weeks. The new Coney Island Boardwalk restaurant sustained minor damage and is anticipated to re-open in March 2013. The Coney Island restaurant incurred significant damage. We are seeking to re-open the restaurant during the spring of 2013.
"On Nov. 25, 2012, we closed the company-owned restaurant in Yonkers, NY, which was demolished as a part of a redevelopment of the property which will include a new Nathan's company-owned restaurant that we anticipate opening in December 2013."
Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased 12.1 percent to $33,464,000 during the quarter compared to sales of $29,843,000 in the year-ago quarter.
Nathan's Famous and Smithfield subsidiary John Morrell & Co. have an agreement which makes John Morrell the exclusive licensee to manufacture and sell Nathan’s branded hot dog, sausage and corned beef products at retail. The agreement begins March 2, 2014, and lasts 18 years providing royalties of 10.8 percent of net sales, subject to annual minimum royalties which start at $10 million in the first year and increase annually throughout the term.