Sign Up for Updates

Nathan’s Famous Royalty Revenue Increases 2.5%

06-18-2019

Nathan's Famous Inside Licensing

Nathan’s Famous’ royalty revenue rose 2.5% to $23.6 million in the year ended March 31, due largely to its licensing deal with John Morrell & Co. tied to hot dogs, sausage and corned beef.

Royalties from Morrell, which accounted for 19.4% of Nathan’s total revenue (up from 18.7% a year earlier), increased 2.1% to $21.2 million. Morrell pays a 10.8% royalty on net sales under an agreement that also carries a $10 million minimum annual guarantee. The pact runs through 2032.

Net income increased to $21.4 million (including $11.1 million from a real estate sale) from $2.6 million a year earlier, despite a 2.2% decline total revenue to $101.8 million. Nathan’s had 259 stores as of March 31, down from 276 a year earlier with 34 franchised stores having closed. The chain has four company-owned and 255 franchised locations, the largest concentration being in New York State where there are 98.

Contact:

Nathan’s Famous, Ronald DeVoss, CFO, 516-318-8500

Become a Member Today

Learn More

  • Copyright © 2019 Licensing International
  • We use web cookies to offer you a better experience on our site. By clicking on "Accept" you consent to the use of cookies in accordance with our Cookie Policy.

    Translation provided by Google Translate, please pardon any shortcomings