GFP Investments

Nathan's Famous, Inc. Valuation: New Licensing Agreement Provides Catalyst For Future Profits


Nathan's Famous (NASDAQ:NATH) has built a successful business by marketing and selling branded products. Familiar to many in the Northeastern United States and beyond, these products include beef hot dogs, crinkle cut French fries, mustards, and pickles, among others. Nathan's makes money by selling its products through a branded products program, franchising quick service restaurants, and, increasingly, a license program that allows third parties to create and sell Nathan's Famous branded products. The increasing importance of the licensing program gives Nathan's an avenue for strong profit margin expansion and the ability to maintain an enviable balance sheet. Retail license royalties for the 39-week period ended December 23 grew 15% compared to the previous year (source)....

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details