Nathan’s Famous (NATH), which makes the Nathan’s Famous Hot Dogs, said sales in fiscal Q4 gained in line with expectations, but earnings declined and missed forecasts.
Net income was $1.22 million, or $0.27 a share, down from $1.5 million, or $0.34 a share in the year earlier period. For the full-year, EPS was up 11% to $1.81, below forecasts for $2.00, according to Capital IQ. No estimates were available for Q4 earnings.
Revenues gained 15.7% to $17.3 million, slightly ahead of forecasts for $17.1 million.
The company said it began a new license agreement in March with John Morrell & Co. replacing SMG, Inc. as Nathan’s exclusive licensee to manufacture and sell Nathan’s branded hot dog, sausage and corned beef products at retail. It said the new license is expected to be more “financially advantageous” with a guaranteed minimum in the first year of $10 million.