Revenues increased by 12.5 percent to $57,255,000, as compared to $50,876,000 during the fiscal year ended March 28, 2010. Revenues increased by 16.6 percent to $12,268,000, as compared to $10,524,000 during the quarter ended March 28, 2010.
Sales from the Branded Product Program, featuring the sale of Nathan’s hot dogs to the foodservice industry, increased by 23.3 percent to $30,497,000 during the 52 weeks ended March 27, as compared to sales of $24,738,000 during the 52 weeks ended March 28, 2010.
Sales and pre-tax profits from the five comparable company-owned restaurants during the fiscal year ended March 27 increased approximately $1,021,000 or 8.5 percent and $512,000 or 36.3 percent, respectively, over the prior fiscal year.
Revenues from franchise operations increased by 4.9 percent or $231,000 to $4,989,000 during the 52 weeks ended March 27, as compared to $4,758,000 during the 52 weeks ended March 28, 2010. Forty new franchised units were opened during the fifty-two weeks ended March 27, 2011, including the company’s first two restaurants in Beijing, China.
A trial on the claims relating to Nathan’s termination of its License Agreement with SMG took place between Oct. 6 and Oct. 13, 2010. On Oct. 13, 2010, an order was entered with the Court denying Nathan’s cross-motion and granting SMG’s motion for summary judgment with respect to SMG’s claims relating to the sale of Nathan’s proprietary seasonings to SMG. On Dec. 17, 2010, the Court ruled Nathan’s was not entitled to terminate the License Agreement. On Jan. 19, 2011, the parties submitted an order which, among other things, assessed damages against Nathan’s for the seasonings claims. The order was entered on Feb. 4, 2011.
On March 4, 2011, Nathan's filed a notice of appeal seeking to appeal the final judgment. Nathan’s was required to secure the final judgment pending an appeal, and on March 31, Nathan's entered into the necessary agreements. On April 7, the Court entered a stipulation and order which granted a stay of enforcement of the final judgment.
As a result of the Court’s order, Nathan's recorded litigation accruals totaling $4,909,701.44, inclusive of pre-judgment interest during the fiscal year ended March 27, 2011, representing $2,939,000 or $0.53 per share net of tax. Nathan’s incurred incremental legal expenses in connection with the SMG litigation of $258,000 during the fiscal year ended March 27, 2011. Nathan’s has also recorded interest expense of $38,000 or $0.01 per share, net of tax, representing required post-judgment interest of 9% per annum through March 27, 2011.