Nathan's Famous Inc (NATH, Financial) released its 8-K filing on June 12, 2024, detailing the financial performance for its fiscal year and fourth quarter ended March 31, 2024. Nathan's Famous Inc is an owner of fast food franchises in the United States, with segments including the Branded Product Program, Product Licensing, Restaurant Operations, and Corporate. The company generates maximum revenue from the Branded Product Program segment and derives a majority of its revenue from the United States.
Fiscal Year Performance
For the fiscal year ended March 31, 2024, Nathan's Famous Inc reported revenues of $138.61 million, a 6% increase from $130.79 million in the previous fiscal year. Despite the revenue growth, income from operations decreased to $32.51 million from $34.45 million in fiscal 2023. Adjusted EBITDA also saw a decline, coming in at $34.84 million compared to $36.38 million in the prior year.
Net income for fiscal 2024 was $19.62 million, nearly unchanged from $19.62 million in fiscal 2023. Earnings per diluted share remained consistent at $4.80 for both fiscal years.
Fourth Quarter Highlights
In the fourth quarter of fiscal 2024, Nathan's Famous Inc reported revenues of $28.99 million, up from $27.41 million in the same period last year. Income from operations for the quarter was $6.80 million, an increase from $6.42 million in the fourth quarter of fiscal 2023. Adjusted EBITDA for the quarter was $7.28 million, slightly higher than $7.10 million in the previous year's fourth quarter.
Net income for the fourth quarter was $3.91 million, compared to $3.27 million in the same period last year. Earnings per diluted share for the quarter were $0.96, up from $0.80 in the fourth quarter of fiscal 2023.
Segment Performance
| Segment | Revenue (Q4 FY2024) | Revenue (Q4 FY2023) | Revenue (FY2024) | Revenue (FY2023) |
|---|---|---|---|---|
| Branded Product Program | $18.28 million | $17.02 million | $86.49 million | $78.88 million |
| Product Licensing | $7.51 million | $7.39 million | $33.58 million | $33.46 million |
| Restaurant Operations | $2.63 million | $2.51 million | $16.46 million | $16.45 million |
| Corporate | $0.58 million | $0.49 million | $2.08 million | $1.99 million |
Financial Metrics and Analysis
Key financial metrics indicate a mixed performance for Nathan's Famous Inc. The company's revenue growth is a positive indicator, driven primarily by the Branded Product Program segment. However, the decline in income from operations and Adjusted EBITDA suggests operational challenges that need to be addressed.
The company's consistent net income and earnings per share reflect stability, but the slight decrease in operational income highlights the need for efficiency improvements. The declaration of a quarterly cash dividend of $0.50 per share, payable on July 2, 2024, underscores the company's commitment to returning value to shareholders.
Overall, Nathan's Famous Inc's financial performance for fiscal 2024 shows resilience in revenue growth but also points to areas where operational efficiencies can be enhanced to improve profitability. Investors and stakeholders will be keen to see how the company addresses these challenges in the coming fiscal year.
Explore the complete 8-K earnings release (here) from Nathan's Famous Inc for further details.
