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Nathan's Famous, Inc. has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenues to $41,109,000 from $38,744,000 in the same quarter the previous year. This increase is attributed to higher sales in the Branded Product Program and increased license royalties.
Cost of sales for the quarter was $26,029,000, representing 63% of sales, compared to 62% in the same quarter of the previous year. The increase in cost ratio is due to higher commodity prices, including beef and beef trimmings.
The company reported a gross profit of $3,855,000 for the quarter, compared to $4,358,000 in the previous year, with the decline attributed to increased costs.
Interest expense for the quarter was $1,441,000, which included costs related to the refinancing of the company's 6.625% Senior Secured Notes due 2025.
Net income for the quarter was $6,030,000, up from $5,711,000 in the previous year. The increase is attributed to higher revenues and a lower effective tax rate.
Cash provided by operating activities was $14,826,000, while cash used in investing and financing activities was $130,000 and $4,516,000, respectively.
Nathan's had a working capital of $32,618,000 as of September 29, 2024. The company highlights its focus on expanding the market penetration of the Nathan's Famous brand.
The filing also details the refinancing of the company's debt, with a new Credit Agreement providing a term loan of $60,000,000 to refinance the existing Senior Secured Notes.
Nathan's declared a quarterly cash dividend of $0.50 per share, payable on December 6, 2024, to shareholders of record as of November 25, 2024.
The company continues to monitor inflationary pressures, particularly in commodity prices, and may adjust pricing strategies to mitigate impacts on margins.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Nathan's Famous Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.