Revenue growth of 13.9% in 2025Q4 is offset by structural margin pressure, as gross margins contracted significantly from a 41.1% peak in 2024Q1 to 30.8% in 2025Q4.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 | Mar'12 | Mar'11 | Mar'10 | Mar'09 | Mar'08 | Mar'07 | Mar'06 | Mar'05 | Mar'04 | Mar'03 | Mar'02 | Mar'01 | Mar'00 | Mar'99 | Mar'98 | Mar'97 |
|---|
| Sales/Revenue | 162.06M | 148.18M | 138.61M | 130.78M | 114.88M | 75.84M | 103.33M | 101.85M | 104.2M | 96.65M | 100.89M | 99.11M | 82.6M | 71.07M | 65.65M | 56.45M | 50.88M | 49.22M | 47.4M | 45.73M | 41.36M | 34.11M | 30.68M | 33.93M | 44.4M | 47.17M | 30.5M | 24.5M | 23.5M | 26.6M |
| Revenue Growth % | 9.37% | 6.91% | 5.98% | 13.84% | 51.48% | -26.6% | 1.45% | -2.26% | 7.81% | -4.2% | 1.79% | 19.99% | 16.23% | 8.26% | 16.3% | 10.95% | 3.36% | 3.85% | 3.64% | 10.57% | 21.25% | 11.19% | -9.58% | -23.58% | -5.88% | 54.67% | 24.49% | 4.26% | -11.65% | 0.76% |
| Cost of Goods Sold | 114.06M | 96.2M | 89.36M | 81.14M | 70.82M | 37.1M | 60.14M | 58.81M | 62.26M | 55.42M | 61.55M | 65.7M | 56.21M | 47.57M | 42.11M | 34.57M | 28.51M | 28.77M | 27.07M | 27.27M | 25.41M | 20.33M | 18.58M | 22.37M | 29.43M | 31.49M | 27.82M | 21.1M | 20.8M | 19.5M |
| COGS % of Revenue | 70.38% | 64.92% | 64.47% | 62.04% | 61.65% | 48.92% | 58.21% | 57.74% | 59.75% | 57.34% | 61.01% | 66.29% | 68.05% | 66.94% | 64.14% | 61.24% | 56.04% | 58.46% | 57.12% | 59.64% | 61.42% | 59.59% | 60.57% | 65.93% | 66.29% | 66.76% | 91.22% | 86.12% | 88.51% | 73.31% |
| Gross Profit | 48.01M | 51.98M | 49.25M | 49.64M | 44.06M | 38.74M | 43.18M | 43.04M | 41.94M | 41.24M | 39.34M | 33.41M | 26.39M | 23.5M | 23.54M | 21.88M | 22.36M | 20.45M | 20.32M | 18.46M | 15.96M | 13.78M | 12.1M | 11.56M | 14.97M | 15.68M | 2.68M | 3.4M | 2.7M | 7.1M |
| Gross Margin % | 29.62% | 35.08% | 35.53% | 37.96% | 38.35% | 51.08% | 41.79% | 42.26% | 40.25% | 42.66% | 38.99% | 33.71% | 31.95% | 33.06% | 35.86% | 38.76% | 43.96% | 41.54% | 42.88% | 40.36% | 38.58% | 40.41% | 39.43% | 34.07% | 33.71% | 33.24% | 8.78% | 13.88% | 11.49% | 26.69% |
| Gross Profit Growth % | -7.65% | 5.54% | -0.78% | 12.66% | 13.74% | -10.29% | 0.34% | 2.61% | 1.71% | 4.83% | 17.72% | 26.63% | 12.31% | -0.2% | 7.6% | -2.16% | 9.37% | 0.6% | 10.13% | 15.68% | 15.76% | 13.93% | 4.66% | -22.78% | -4.54% | 485.51% | -21.24% | 25.93% | -61.97% | 4.41% |
| Operating Expenses | 17.9M | 15.49M | 16.75M | 15.2M | 14.2M | 13.22M | 16.01M | 15.06M | 14.84M | 14.96M | 14.37M | 13.46M | 12.62M | 11.38M | 13.63M | 14.13M | 13.82M | 13.03M | 13M | 10.29M | 9.63M | 9.52M | 8.75M | 10.19M | 11.84M | 11.61M | 10.3M | 6.2M | 6.3M | 5.6M |
| OpEx % of Revenue | 11.05% | 10.45% | 12.08% | 11.62% | 12.36% | 17.44% | 15.5% | 14.79% | 14.24% | 15.47% | 14.25% | 13.58% | 15.27% | 16.01% | 20.77% | 25.04% | 27.17% | 26.47% | 27.44% | 22.51% | 23.27% | 27.91% | 28.52% | 30.04% | 26.67% | 24.61% | 33.76% | 25.31% | 26.81% | 21.05% |
| Selling, General & Admin | 17.9M | 14.53M | 15.61M | 14.06M | 13.14M | 12.04M | 14.78M | 13.85M | 13.49M | 13.66M | 13.12M | 12.2M | 11.46M | 10.44M | 12.67M | 13.22M | 9.71M | 9.3M | 12.21M | 9.25M | 8.55M | 8.34M | 7.52M | 8.6M | 9.29M | 8.98M | 8.22M | 4.7M | 4.8M | 4.1M |
| SG&A % of Revenue | 11.05% | 9.81% | 11.26% | 10.75% | 11.44% | 15.88% | 14.3% | 13.6% | 12.95% | 14.13% | 13% | 12.31% | 13.87% | 14.69% | 19.3% | 23.41% | 19.08% | 18.89% | 25.76% | 20.23% | 20.68% | 24.45% | 24.51% | 25.35% | 20.93% | 19.03% | 26.96% | 19.18% | 20.43% | 15.41% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 957K | 1.14M | 1.14M | 1.05M | 1.18M | 1.23M | 209K | 99K | 85K | 99K | 87K | 1.16M | 940K | 965K | 915K | 4.12M | 3.73M | 797K | 1.04M | 1.07M | 1.18M | 1.23M | 1.59M | 2.55M | 2.63M | 2.07M | 1.5M | 1.5M | 1.5M |
| Operating Income | 30.1M | 36.5M | 32.51M | 34.45M | 29.86M | 25.52M | 27.17M | 27.98M | 27.1M | 26.28M | 24.96M | 19.96M | 14.1M | 12.59M | 9.91M | 7.75M | 8.54M | 7.42M | 7.32M | 8.16M | 6.33M | 4.26M | 3.35M | 1.37M | 3.13M | 4.07M | -7.62M | -2.8M | -3.6M | 1.5M |
| Operating Margin % | 18.57% | 24.63% | 23.45% | 26.34% | 25.99% | 33.64% | 26.3% | 27.47% | 26.01% | 27.19% | 24.74% | 20.14% | 17.07% | 17.72% | 15.1% | 13.73% | 16.79% | 15.07% | 15.45% | 17.85% | 15.3% | 12.49% | 10.91% | 4.03% | 7.04% | 8.63% | -24.98% | -11.43% | -15.32% | 5.64% |
| Operating Income Growth % | -17.52% | 12.28% | -5.63% | 15.34% | 17.04% | -6.1% | -2.87% | 3.23% | 3.12% | 5.28% | 25.08% | 41.59% | 11.94% | 27.05% | 27.92% | -9.27% | 15.11% | 1.34% | -10.29% | 28.95% | 48.53% | 27.31% | 144.84% | -56.28% | -23.21% | 153.45% | -172.07% | 22.22% | -340% | 123.08% |
| EBITDA | 31.03M | 37.45M | 33.64M | 35.58M | 30.92M | 26.7M | 28.41M | 29.19M | 28.45M | 27.58M | 26.22M | 21.21M | 15.25M | 13.53M | 10.88M | 8.66M | 9.38M | 8.29M | 8.52M | 9.55M | 7.71M | 5.68M | 4.71M | 3.64M | 5.68M | 6.7M | -5.54M | -1.3M | -2.1M | 3M |
| EBITDA Margin % | 19.14% | 25.28% | 24.27% | 27.21% | 26.91% | 35.2% | 27.49% | 28.66% | 27.3% | 28.53% | 25.99% | 21.4% | 18.47% | 19.04% | 16.57% | 15.35% | 18.44% | 16.85% | 17.97% | 20.89% | 18.64% | 16.65% | 15.34% | 10.72% | 12.78% | 14.21% | -18.18% | -5.31% | -8.94% | 11.28% |
| EBITDA Growth % | -17.16% | 11.33% | -5.45% | 15.08% | 15.8% | -6.01% | -2.68% | 2.59% | 3.17% | 5.18% | 23.61% | 39.06% | 12.72% | 24.42% | 25.55% | -7.67% | 13.14% | -2.62% | -10.87% | 23.96% | 35.73% | 20.68% | 29.39% | -35.92% | -15.31% | 220.89% | -326.46% | 38.1% | -170% | 173.17% |
| D&A (Non-Cash Add-back) | 925K | 957K | 1.14M | 1.14M | 1.05M | 1.18M | 1.23M | 1.21M | 1.35M | 1.3M | 1.25M | 1.25M | 1.16M | 940K | 965K | 915K | 843K | 874K | 1.2M | 1.39M | 1.38M | 1.42M | 1.36M | 2.27M | 2.55M | 2.63M | 2.07M | 1.5M | 1.5M | 1.5M |
| EBIT | 30.1M | 36.87M | 32.81M | 34.55M | 28.67M | 25.93M | 28.61M | 40.2M | 17.7M | 26.47M | 25.01M | 20.22M | 13.7M | 12.59M | 10.48M | 3.38M | 8.29M | 7.42M | 7.32M | 6.69M | 6.33M | 4.36M | 3.57M | 1.37M | 3.07M | 4.04M | 410K | 2.26M | 1.78M | 1.5M |
| Net Interest Income | -2.08M | -3.43M | -4.97M | -7.3M | -10.03M | -10.24M | -9.24M | -9.95M | -13.43M | -14.56M | -14.58M | -640K | 190K | -61K | 96K | 782K | 916K | 1.06M | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 780K | 672K | 383K | 440K | 110K | 364K | 1.36M | 840K | 166K | 104K | 52K | 176K | 325K | 392K | 573K | 808K | 916K | 1.06M | 1.08M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | -2.86M | 4.11M | 5.36M | 7.74M | 10.13M | 10.6M | 10.6M | 10.79M | 13.59M | 14.66M | 14.63M | 816K | 135K | 453K | 477K | 63K | 0 | 0 | 0 | 75K | 49K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -1.91M | -3.74M | -5.05M | -7.64M | -11.33M | -10.19M | -9.16M | 1.43M | -22.99M | -14.48M | -14.58M | -553K | 2.64M | 21K | 96K | -4.43M | -250K | 2.46M | 0 | 0 | -1.78M | -33K | -109K | -3.16M | -861K | -1.01M | -1.93M | 5.11M | 5.4M | -100K |
| Pretax Income | 28.19M | 32.76M | 27.45M | 26.8M | 18.54M | 15.32M | 18.01M | 29.41M | 4.11M | 11.8M | 10.38M | 19.41M | 13.56M | 12.14M | 10.01M | 3.32M | 8.29M | 7.42M | 7.32M | 8.13M | 6.3M | 4.23M | 2.99M | -1.79M | 2.21M | 3.02M | -1.52M | 2.3M | 1.8M | 1.4M |
| Pretax Margin % | 17.39% | 22.11% | 19.8% | 20.49% | 16.13% | 20.21% | 17.43% | 28.88% | 3.95% | 12.21% | 10.29% | 19.58% | 16.42% | 17.08% | 15.24% | 5.88% | 16.29% | 15.07% | 15.45% | 17.77% | 15.23% | 12.39% | 9.76% | -5.27% | 4.98% | 6.41% | -4.98% | 9.39% | 7.66% | 5.26% |
| Income Tax | 8.17M | 8.73M | 7.83M | 7.18M | 4.94M | 4.25M | 4.58M | 7.92M | 1.48M | 4.32M | 4.29M | 7.7M | 5.23M | 4.67M | 3.85M | 1.11M | 2.72M | 2.46M | 2.47M | 2.92M | 2.35M | 1.48M | 1.1M | -283K | 962K | 1.42M | -250K | -400K | 300K | 600K |
| Effective Tax Rate % | 28.98% | 26.66% | 28.54% | 26.79% | 26.65% | 27.73% | 25.42% | 26.92% | 36.04% | 36.59% | 41.29% | 39.69% | 38.6% | 38.48% | 38.46% | 33.34% | 32.82% | 33.17% | 33.77% | 35.9% | 37.36% | 35.05% | 36.74% | 15.82% | 43.51% | 46.86% | 16.45% | -17.39% | 16.67% | 42.86% |
| Net Income | 20.02M | 24.03M | 19.62M | 19.62M | 13.6M | 11.07M | 13.44M | 21.49M | 2.63M | 7.49M | 6.1M | 11.7M | 8.33M | 7.47M | 6.16M | 2.21M | 5.57M | 7.48M | 6.55M | 5.54M | 21.27M | 2.74M | 1.89M | -13.97M | 1.25M | 1.61M | -1.27M | 2.7M | 1.5M | 800K |
| Net Margin % | 12.35% | 16.21% | 14.15% | 15% | 11.83% | 14.6% | 13% | 21.1% | 2.52% | 7.74% | 6.04% | 11.81% | 10.08% | 10.51% | 9.38% | 3.92% | 10.95% | 15.2% | 13.83% | 12.12% | 51.41% | 8.02% | 6.17% | -41.17% | 2.81% | 3.4% | -4.16% | 11.02% | 6.38% | 3.01% |
| Net Income Growth % | -16.67% | 22.48% | -0.04% | 44.33% | 22.76% | -17.57% | -37.49% | 717.22% | -64.86% | 22.79% | -47.91% | 40.54% | 11.5% | 21.27% | 178.26% | -60.26% | -25.57% | 14.14% | 18.26% | -73.93% | 676.95% | 44.51% | 113.56% | -1218.33% | -22.23% | 226.46% | -147.04% | 80% | 87.5% | 112.5% |
| Net Income (Continuing) | 20.02M | 24.03M | 19.62M | 19.62M | 13.6M | 11.07M | 13.44M | 21.49M | 2.63M | 7.49M | 6.1M | 11.7M | 8.33M | 7.47M | 6.16M | 2.21M | 5.57M | 4.96M | 4.85M | 5.21M | 3.94M | 2.8M | 2.04M | -1.51M | 1.39M | 1.58M | -1.27M | 2.73M | 1.5M | 800K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.85 | 5.87 | 4.80 | 4.80 | 3.30 | 2.69 | 3.19 | 5.09 | 0.62 | 1.78 | 1.37 | 2.55 | 1.81 | 1.63 | 1.22 | 0.40 | 0.97 | 1.21 | 1.01 | 0.87 | 0.87 | 0.45 | 0.33 | -2.34 | 0.18 | 0.23 | -0.18 | 0.57 | 0.32 | 0.17 |
| EPS Growth % | -17.38% | 22.29% | 0% | 45.45% | 22.68% | -15.67% | -37.33% | 720.97% | -65.17% | 29.93% | -46.27% | 40.88% | 11.04% | 33.61% | 205% | -58.76% | -19.83% | 19.8% | 16.09% | 0% | 93.33% | 36.36% | 114.1% | -1400% | -21.74% | 227.78% | -131.58% | 78.13% | 88.24% | 112.59% |
| EPS (Basic) | 4.89 | 5.88 | 4.81 | 4.80 | 3.30 | 2.69 | 3.19 | 5.13 | 0.63 | 1.79 | 1.38 | 2.61 | 1.87 | 1.70 | 1.26 | 0.41 | 1.00 | 1.27 | 1.08 | 0.95 | 1.02 | 0.52 | 0.36 | -2.34 | 0.18 | 0.23 | -0.18 | 0.58 | 0.32 | 0.17 |
| Diluted Shares Outstanding | 4.12M | 4.09M | 4.09M | 4.09M | 4.12M | 4.12M | 4.22M | 4.22M | 4.22M | 4.21M | 4.46M | 4.59M | 4.61M | 4.59M | 5.05M | 5.5M | 5.72M | 6.18M | 6.5M | 6.34M | 6.55M | 6.08M | 5.68M | 5.98M | 7.08M | 7.1M | 7.04M | 4.79M | 4.69M | 4.72M |
| Basic Shares Outstanding | 4.09M | 4.09M | 4.08M | 4.09M | 4.12M | 4.12M | 4.22M | 4.19M | 4.18M | 4.17M | 4.43M | 4.49M | 4.45M | 4.4M | 4.91M | 5.4M | 5.56M | 5.9M | 6.08M | 5.84M | 5.58M | 5.31M | 5.31M | 5.98M | 7.05M | 7.06M | 7.04M | 4.7M | 4.69M | 4.72M |
| Dividend Payout Ratio | 91.92% | 34.01% | 41.6% | 38.54% | 45.4% | 52.02% | 44% | 20.18% | 801.25% | 5.01% | 6.15% | 983.59% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Commodity Input Cost Volatility
According to recent financial disclosures, Nathan's Famous reported a 13.9% year-over-year revenue increase in 2025Q4, yet the company's top-line performance remains heavily influenced by seasonal demand cycles and the inherent volatility of its Branded Product Program, which complicates long-term organic growth trend analysis for institutional investors.
The revenue trajectory appears inconsistent, characterized by significant quarterly swings that reflect the company's reliance on seasonal foodservice demand. While the 13.9% growth in the most recent quarter suggests some resilience, the underlying reliance on transactional product sales rather than recurring licensing revenue warrants caution regarding the durability of these gains.
As reported in quarterly filings, the company's gross margin contracted to 30.8% in 2025Q4 from a peak of 41.1% in 2024Q1, suggesting that inflationary pressures on beef trim costs are increasingly difficult to pass through to foodservice partners without impacting overall volume.
The erosion of gross margins over the last two years indicates that the company's pricing power may be reaching a ceiling in the face of rising protein costs. Investors should monitor whether the shift toward higher-margin licensing can offset the persistent margin volatility inherent in the Branded Product Program.
Based on the provided income statements, operating income has failed to scale proportionally with gross profit, as evidenced by the decline in operating margins from 30.7% in 2024Q1 to 13.4% in 2025Q4, highlighting a potential inefficiency in managing overhead relative to fluctuating revenue streams.
The lack of operating leverage suggests that the company's fixed cost base is becoming a larger burden as gross margins compress. This trend implies that management may struggle to protect bottom-line profitability if revenue growth does not accelerate significantly to absorb existing SG&A expenses.
Financial statements reveal that stock-based compensation has remained a consistent expense, totaling $280,000 in 2025Q4, which, when combined with declining net income margins, suggests that shareholder dilution and compensation costs are exerting downward pressure on the quality of reported earnings per share.
The consistent allocation toward stock-based compensation during periods of declining net income suggests a misalignment between executive incentives and operational performance. Investors should scrutinize the impact of these non-cash charges on the overall earnings quality, particularly as net margins have retreated from the 20% level seen in early 2024.
While the company promotes a capital-light licensing model, the concentration of royalty income within a single major partner, as noted in historical filings, creates a significant counterparty risk that could lead to abrupt earnings volatility if the primary licensing relationship faces operational or contractual challenges.
Short-term observers might argue that the reliance on a single partner for the bulk of high-margin licensing revenue masks underlying weaknesses in the broader brand ecosystem. This concentration risk suggests that the company's valuation premium over traditional restaurant peers may be vulnerable to any disruption in its primary distribution channel.
Quick answers to the most common questions about buying NATH stock.
For fiscal year 2025, Nathan's Famous, Inc. (NATH) reported total revenue of $162.1M. This represents a 509.3% increase compared to $26.6M in 1996.
Nathan's Famous, Inc. (NATH) is profitable, generating $20.0M in net income for the fiscal year ending 2025 with a net profit margin of 12.4%.
Nathan's Famous, Inc. (NATH) reported an operating income of $30.1M, resulting in an operating profit margin of 18.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Nathan's Famous, Inc. (NATH) generated $48.0M in gross profit for the year, representing a gross profit margin of 29.6%. This demonstrates the company's core pricing power and production efficiency.