Nathan’s Famous Q2 Royalty Revenue Declines
Nathan’s Famous’ revenue and operating income from product licensing remained essentially flat (off less than a percentage point) in Q2 ended Sept. 23. Revenue stood at $5.75 million, while operating revenue was $5.7 million.
Royalties from the company’s largest licensee by far, John Morelli & Co. (hot dogs) dropped 5.6 percent to $5.25 million, as the average selling price fell 1.7 percent and volume declined 3.7 percent. It also has licensing deals with Lamb Weston (crinkle cut fries) and Saratoga Specialties (spices).
Overall Q2 net income rose 43.7 percent to $4.48 million as the company gained $1.3 million from the sale of a regional office in Ft. Lauderdale, FL. Total revenue dropped 6.8 percent to $29.3 million as the average product selling price fell 9.2 percent, due largely to an 11.5 percent decline in beef prices, the company said.
Nathan’s Famous, Ronald DeVos, CFO 516-338-8500