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Nathan's Famous Inc. (NATH-0.89%) has submitted its 10-Q filing for the quarterly period ended December 29, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenues to $31,519,000 from $28,890,000 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 $19,571,000, representing 62% of sales, compared to 62% in the same quarter of the previous year. The cost of sales increased mainly due to higher average costs per pound of hot dogs.
The company reported a gross profit of $3,332,000 for the quarter, compared to $3,477,000 in the previous year, with the decline attributed to increased costs.
Interest expense for the quarter was $842,000, down from $1,392,000 in the previous year, following the refinancing of the 2025 Notes.
Net income for the quarter was $4,484,000, up from $2,607,000 in the previous year. The increase in net income is primarily due to higher revenues and lower interest expenses.
Cash provided by operating activities was $18,450,000, while cash used in investing and financing activities was $171,000 and $15,595,000, respectively.
Nathan's had a working capital of $26,504,000 as of December 29, 2024. The company continues to focus on expanding its market penetration through its Licensing and Branded Product Programs.
The filing details the refinancing of the company's 2025 Notes with a new unsecured Credit Agreement, which includes a term loan facility of $60,000,000 and a revolving credit facility of up to $10,000,000.
Nathan's does not anticipate significant increases in the number of company-owned restaurants but may invest in new units as showcase locations.
The company highlights ongoing inflationary pressures, particularly in commodity prices, and its efforts to manage these through price increases and cost management strategies.
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 February 6, 2025. To report an error, please email earnings@qz.com.