For the quarter ended March 25, 2018, the company reported net income of $367,000 compared to $729,000 in the fourth quarter in 2017. Diluted earnings per share were $0.09 compared to $0.17 per share in the year-ago period.

Excluding the impairment charge on long-lived assets, net income and earnings per diluted share would have been $1,175,000 or $0.28 per share, as compared to $729,000 or $0.17 per share, for the 13 weeks ended March 26, 2017, the company said.

Revenues in the fourth quarter increased to $19,906,000, compared to $19,232,000 during the fourth quarter a year ago.

During the 52 weeks ended March 25, revenues increased 8.3 percent to $104,201,000 from $96,256,000.

Net income for the fiscal year was $2,630,000 compared to $7,485,000 reported a year ago. Earnings per diluted share were $0.62 per share, as compared to $1.78 per share last year.

On a segment basis, sales from company-operated restaurants totaled $14,085,000 in fiscal year 2018, compared to $14,646,000 reported for fiscal 2017. The company attributed the decline in sales to unfavorable summer weather conditions during the fiscal 2018 period, especially at the company’s main location in Coney Island that depends on beach traffic.

In the Branded Product segment, which includes sales of Nathan’s Famous hot dogs to the foodservice industry, sales increased to $62,623,000, or 11.9 percent, during the fiscal year 2018, as compared to sales of $55,960,000 during fiscal year 2017.

“During the period, the volume of hot dogs sold increased 9.4 percent and our average selling price increased by approximately 1.8 percent,” the company said. “Income from operations from the Branded Product Program declined by approximately $788,000 for the fiscal 2018 period as compared to the fiscal 2017 period, primarily as a result of a significant increase in the cost of beef during May, June and July 2017.”

Franchise operations generated $4,473,000 during the fiscal 2018 period, compared to $5,068,000 during fiscal year 2017. Total royalties were $4,138,000 in the fiscal 2018 period compared to $4,290,000 in the fiscal 2017 period, the company said.

On Nov. 1, 2017, the company issued $150.0 million 6.625 percent Senior Secured Notes due 2025 to fund the Nov. 16, 2017, redemption of Nathan’s $135.0 million 10.000 percent Senior Secured Notes due 2020. The company said Nathan’s incurred a loss on debt extinguishment associated with the refinancing of $8,872,000 in addition to interest expense of approximately $562,500 from the time the 2025 notes closed until the time the 2020 notes were redeemed. Nathan’s Famous expects to reduce its future cash annual interest expense by $3,562,500 per annum.