Nathan's Famous, Inc. reported significant financial performance improvements for the thirteen and twenty-six weeks ended September 29, 2024, compared to the same periods in 2023. Total revenues for the thirteen weeks reached $41.1 million, a 6% increase from $38.7 million in the prior year. For the twenty-six weeks, revenues rose to $85.9 million, up from $80.7 million. The growth was primarily driven by the Branded Products segment, which generated $24.5 million in the latest quarter, compared to $23.4 million in 2023, reflecting a 5% increase.

Net income for the thirteen weeks was $6.0 million, an increase from $5.7 million in the same quarter last year. For the twenty-six weeks, net income rose to $15.3 million from $13.1 million. Earnings per share also improved, with basic net income per share for the latest quarter at $1.48, up from $1.40 in 2023.

The company's total costs and expenses increased to $31.5 million for the thirteen weeks, up from $29.6 million, primarily due to rising costs associated with food and labor. The gross profit margin for the latest quarter was 13%, down from 15% in the previous year, indicating pressure from inflationary costs, particularly in beef and related products.

Nathan's Famous has also made strategic financial moves, including refinancing $60 million in Senior Secured Notes through a new unsecured Credit Agreement, which includes a term loan and revolving credit facility. This refinancing resulted in a loss on extinguishment of debt of $334,000. The company is required to maintain specific financial ratios under this agreement and reported compliance as of the end of the reporting period.

As of September 29, 2024, Nathan's cash and cash equivalents totaled $31.2 million, a significant increase from $21.0 million at the end of the previous fiscal period. The company also reported a total stockholders’ deficit of $(21.3 million), improved from $(32.9 million) in March 2024, reflecting a positive shift in retained earnings.

Operationally, Nathan's restaurant system expanded to 243 locations, up from 235 a year earlier. The company continues to face challenges from inflation and rising labor costs, particularly in New York, where minimum wage increases are planned. Despite these pressures, Nathan's management believes that available cash and operational cash flows will be sufficient to meet future obligations, including debt service and dividend distributions. The company declared a quarterly cash dividend of $0.50 per share, payable on December 6, 2024.