Nathan's Famous, Inc. (‘Nathan’s’ or ‘Nathan’s Famous’), together with its subsidiaries, operates as a branded licensor, wholesaler and retailer of products marketed under its Nathan’s Famous brand, including its popular Nathan’s World Famous Beef Hot Dogs.
The company’s innovative business model seeks to maximize the points of distribution for, and the consumption of, Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, and its other products across a wide range of grocery retail and...
Nathan's Famous, Inc. (‘Nathan’s’ or ‘Nathan’s Famous’), together with its subsidiaries, operates as a branded licensor, wholesaler and retailer of products marketed under its Nathan’s Famous brand, including its popular Nathan’s World Famous Beef Hot Dogs.
The company’s innovative business model seeks to maximize the points of distribution for, and the consumption of, Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, and its other products across a wide range of grocery retail and foodservice formats. The company’s products are currently marketed for sale in approximately 79,000 locations, including supermarkets, mass merchandisers, and club stores, selected foodservice locations, and its company-owned and franchised restaurants throughout the United States and in twenty foreign countries. The company considers itself to be in the foodservice industry and has pursued co-branding initiatives within other foodservice environments. The company’s major channels of distribution are as follows:
The company’s licensing program contracts with certain third parties to manufacture, distribute, market, and sell a broad variety of Nathan’s Famous branded products, including its hot dogs, frozen crinkle-cut French fries, and additional products through supermarkets, grocery channels, and club stores throughout the United States. As of March 30, 2025, packaged Nathan’s World Famous Beef Hot Dogs continued to be sold in supermarkets, mass merchandisers, and club stores, such as Walmart, Kroger, Ahold, Publix, Albertsons, Safeway, ShopRite, Target, Sam’s Club, Costco, and BJ’s Wholesale Club located in all 50 states. The company earns revenue through royalties on products sold by its licensees.
The company’s Branded Product Program provides foodservice operators in a variety of venues the opportunity to capitalize on its Nathan’s Famous brand by marketing and selling certain Nathan’s Famous hot dog and specialty products. In conjunction with the program, foodservice operators are granted a limited use of the Nathan’s Famous trademark, as well as Nathan’s Famous point-of-purchase materials. Unlike the company’s licensing and franchise programs, it does not generate revenue from royalties, but rather by selling its hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice accounts.
The company’s franchised restaurant operations predominantly feature a menu consisting of Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, and beverages, as well as other items. The company earns royalties on sales at these franchise locations and virtual kitchens (existing kitchens with no Nathan’s Famous branded storefront presence, used to fill online orders for delivery). In addition to the company’s traditional franchised restaurants and virtual kitchens, it enables approved foodservice operators to offer a Nathan’s Famous menu of Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, proprietary toppings, and a limited menu of other Nathan’s products through its Branded Menu Program (BMP). The company earns royalties on Nathan’s products purchased from Nathan’s approved distributors by its BMP franchise operators.
The company also owns the Arthur Treacher’s Fish & Chips brand and trademarks. It uses the Arthur Treacher’s Fish & Chips brand, products, and trademarks as a branded seafood menu-line extension for inclusion in certain Nathan’s Famous restaurants, as well as online platforms for third-party delivery, such as UberEats, GrubHub, and DoorDash.
Business Strategies
The company’s primary strategies are to leverage Nathan’s Famous brand and iconic products to grow sales; expect that its retail licensing program may continue to grow, centered around its licensing program with Smithfield Foods, Inc.; expect to continue the growth of its Branded Product Program through the addition of new accounts and venues; continue to market its franchise program and Branded Menu Program to large, experienced, and successful operators with the financial and business capability to develop multiple franchise locations, as well as to individual owner-operators; consider opening new company-owned restaurants on an opportunistic basis; improve company-owned restaurant profitability; continue to focus its efforts using social media advertising to engage with its customers; and collaborate with its licensees on potential new product offerings.
Restaurant Operations
Company-owned restaurants
The company operated company-owned restaurants (including seasonal units) within the New York metropolitan area. The company’s seasonal location on the Coney Island Boardwalk was open from March 21, 2024, to November 3, 2024. It reopened for the summer season on March 28, 2025.
Some of the company’s company-owned restaurants range in size from approximately 3,500 square feet to 10,000 square feet and have seating to accommodate between 60 and 125 customers. These restaurants are open seven days a week on a year-round basis and are designed to appeal to consumers of all ages. The company has established high standards for food quality, cleanliness, and service at its restaurants and regularly monitors the operations of its restaurants to ensure adherence to these standards.
Some of the company’s company-owned restaurants have contemporary service areas, seating, signage, and general decor. The company’s Coney Island flagship location has been open for over 100 years and is the home of the annual Nathan’s International Hot Dog Eating Contest, which has been broadcast on ESPN each 4th of July since 2004 and achieved more than one million viewers in fiscal 2025.
The company continues to focus on digital and social media initiatives, as well as direct mail and point-of-purchase materials to enhance the customer experience, to increase customer traffic, and to promote off-premise capabilities.
Franchise Operations
As of March 30, 2025, the company’s franchise system, including its Branded Menu Program, consisted of 230 locations operating in 17 states and 12 foreign countries. It also included 143 virtual kitchens located in 25 states and 4 foreign countries.
The company’s franchise system includes, among its franchisees, such well-known companies as Applegreen USA Welcome Centers, LLC, HMS Host, Areas USA, National Amusements, Inc., Hershey Entertainment & Resorts Company, Fifth Avenue Restaurant Group, Concessions International, Compass Group, and Bruster’s Real Ice Cream. The company continues to seek out and market its franchising programs to larger, experienced, and successful operators with the financial and business capability to develop multiple franchise locations, as well as to individual owner-operators with evidence of restaurant management experience, net worth, and sufficient capital.
Applegreen USA Welcome Centers, LLC operated various franchised locations within highway travel plazas, and HMS Host operated four franchised locations, including three units at airports, and a unit within a mall. Additionally, various mobile carts were registered to operate in New York, NY. Nine Bruster’s Real Ice Cream shops were selling Nathan’s products under its Branded Menu Program.
During the fiscal 2025 period, various franchised locations opened, including Branded Menu Program locations. Additionally, various franchised locations closed, including some Branded Menu Program locations.
Nathan’s Famous Concept and Menus
The company’s Nathan’s Famous concept is scalable, offering a wide range of facility designs and sizes, suitable to a vast variety of locations, featuring a core menu consisting of Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, and beverages. Nathan’s menu is designed to take advantage of site-specific market opportunities by adding complementary food items to the core menu. The Nathan’s concept is suitable to stand-alone or can be co-branded with other nationally recognized brands.
Nathan’s World Famous Beef Hot Dogs are flavored with the company’s secret blend of spices, which historically have distinguished Nathan’s World Famous Beef Hot Dogs from other hot dogs. The company’s hot dogs are prepared and served in accordance with procedures that have not varied significantly since its inception over 100 years ago in its company-owned and franchised restaurants. The company’s signature crinkle-cut French fries are featured at each Nathan’s restaurant.
Nathan’s restaurants supplement their core menu items with a variety of other quality menu choices, including the company’s fresh angus hamburgers and its hand-dipped chicken. The company has historically used the Arthur Treacher’s Fish & Chips brand, products, and trademarks as a branded seafood menu-line extension for inclusion in certain Nathan’s Famous restaurants. Additionally, Nathan’s restaurants sell a variety of promotional items on a limited-time basis.
Nathan’s restaurant designs are available in a range of sizes from 300 to 4,000 square feet. The company has also developed various kiosks, mobile food carts, and trucks, and modular units. The company’s smaller units may not have customer seating areas, although they may often share seating areas with other fast food or quick-service outlets in food court settings. Other units generally provide seating for 45 to 125 customers. Carts, kiosks, and modular units generally carry only the core menu.
Nathan’s Standard Franchise Program
Franchisees are required to execute a standard franchise agreement prior to opening each Nathan’s Famous location. The company’s standard Nathan’s Famous franchise agreement provides for, among other things, a one-time $30,000 franchise fee payable upon execution of the agreement, a monthly royalty payment based on 5.5% of restaurant sales, and the expenditure of up to 2.5% of restaurant sales on advertising. The initial term of the typical franchise agreement is 10 years, with a 5-year renewal option by the franchisee, subject to conditions contained in the franchise agreement. The company may offer alternatives to the standard franchise agreement, having to do with the term, franchise royalties, fees, or advertising requirements.
Franchisees are approved on the basis of their business background, evidence of restaurant management experience, net worth, and capital available for investment in relation to the proposed scope of the development agreement.
The company provides numerous support services to its Nathan’s Famous franchisees. It assists in and approves all site selections. Thereafter, the company provides architectural plans suitable for restaurants of varying sizes and configurations for use in food court, in-line, and free-standing locations. The company also assists in establishing building design specifications, reviewing construction compliance, equipping the restaurant, and providing appropriate menus to coordinate with the restaurant design and location selected by the franchisee. The company does not employ personnel on behalf of franchisees.
The company offers various training courses for management personnel of company-owned and franchised restaurants. A restaurant manager from each restaurant must successfully complete the company’s mandated management training program. The company also offers additional operations and general management training courses for all restaurant managers and other managers with supervisory responsibilities. The company provides standard manuals to each franchisee covering training and operations, products and equipment, and local marketing programs. The company also provides ongoing advice and assistance to franchisees. It meets with its franchisees to discuss upcoming marketing events, menu development, and other topics, each of which is designed to provide individual restaurant and system-wide benefits.
Franchised restaurants are required to be operated in accordance with uniform operating standards and specifications relating to the selection, quality, and preparation of menu items, signage, decor, equipment, uniforms, suppliers, maintenance, and cleanliness of premises, and customer service. All standards and specifications are developed by the company to be applied on a system-wide basis. The company regularly monitors franchisee operations and inspects restaurants. Franchisees are required to furnish the company with monthly sales or operating reports which assist in monitoring the franchisee’s compliance with its franchise agreement. The company makes both announced and unannounced inspections of restaurants to review operations, including quality, service, and cleanliness, and to ensure that its practices and procedures are followed. The company has the right to terminate a franchise if a franchisee does not operate and maintain a restaurant in accordance with the requirements of its franchise agreement, including for non-payment of royalties, sale of unauthorized products, bankruptcy, or conviction of a felony.
A franchisee who desires to open multiple locations in a specific territory within the United States may enter into an area development agreement under which the company would expect to receive an area development fee based upon the number of proposed locations which the franchisee is authorized to open. With respect to the company’s international development, it generally grants exclusive territorial rights in foreign countries for the development of Nathan’s locations based upon compliance with a predetermined development schedule. Additionally, the company may further grant exclusive manufacturing and distribution rights in foreign countries, and it may require an exclusivity fee to be conveyed for such exclusive rights.
Nathan’s Branded Menu Program
The company’s Nathan’s Famous Branded Menu Program enables qualified foodservice operators to offer a Nathan’s Famous menu of Nathan’s World Famous Beef Hot Dogs, crinkle-cut French fries, proprietary toppings, and a limited menu of other Nathan’s products. Under the Branded Menu Program, the operator may use the Nathan’s Famous trademarks on signage and as part of its menu boards. Additionally, the operator may use Nathan’s Famous paper goods and point-of-sale marketing materials. The company also provides architectural and design services, training, and operation manuals in conjunction with this program. The operator provides Nathan’s with a fee and is required to sign a five-year agreement. Instead, the Branded Menu Program operator is required to purchase products from Nathan’s approved distributors, and the company earns its royalties from such purchases.
Arthur Treacher’s Fish & Chips
Arthur Treacher’s main product is its ‘Original Fish-n-Chips,’ consisting of fish fillets coated with a special batter prepared under a proprietary formula, deep-fried golden brown, and served with English-style chips and corn meal ‘hush puppies.’
As of March 30, 2025, Arthur Treacher’s, as a co-brand, was included within Nathan’s Famous restaurants. Additionally, there are some Arthur Treacher’s BMP locations.
International Development
Nathan’s Famous franchisees operated at various locations in 12 foreign countries.
Through separate licensed manufacturing agreements, Nathan’s World Famous Beef Hot Dogs are manufactured in Brazil, Germany, Egypt, and the United Arab Emirates.
The company continues to pursue international expansion opportunities. During fiscal 2025, it opened franchised locations in Brazil.
The company may seek to continue granting exclusive territorial rights for franchising and for the manufacturing and distribution rights in foreign countries, and it expects to require that an exclusivity fee be conveyed for these rights. The company plans to develop the restaurant franchising system internationally through the use of master franchising agreements based upon individual or combined use of its existing restaurant concepts and for the distribution of Nathan’s products.
Branded Product Program
The total volume of hot dogs sold in the Branded Product Program achieved its highest levels in fiscal 2025.
In fiscal 2025, the company continued to experience inflationary pressures on commodity prices, including beef and beef trimmings. The company is unable to predict the future cost of its hot dogs and expects to experience price volatility for its beef products during fiscal 2026.
As of March 30, 2025, the Branded Product Program distributed product in all 50 states, the District of Columbia, Puerto Rico, Canada, the U.S. Virgin Islands, Guam, and Mexico. Pursuant to the Branded Product Program, Nathan’s World Famous Beef Hot Dogs are being offered in national restaurant chains, such as Auntie Anne’s, Johnny Rockets, Cheesecake Factory, Beef ‘O’ Brady’s, and Lazy Dog; national movie theater chains, such as Regal Entertainment and National Amusements; amusement parks, such as Universal Studios, Disneyland California, and Herschend Family Entertainment; casino hotels, such as Foxwoods Casino in Connecticut; convenience store chains, such as RaceTrac; and golf courses and country clubs. The Branded Product Program also distributes product in professional sports arenas, with Nathan’s World Famous Beef Hot Dogs being served in stadiums and arenas that host the New York Yankees, New York Mets, Tampa Bay Rays, Brooklyn Nets, Dallas Cowboys, and Green Bay Packers.
Additionally, the company’s products are offered in numerous other foodservice operations, including business office cafeterias, snack bars, and vending machines located in many different types of foodservice outlets and venues, including airports, highway travel plazas, colleges and universities, gas and convenience stores, military installations, and Veterans Administration hospitals throughout the United States.
The company expects to continue to seek out and evaluate a variety of alternative environments designed to maximize and to grow its Branded Product Program.
Licensing Program
Pursuant to an agreement expiring in March 2032, Smithfield Foods, Inc., has been granted, among other things, the exclusive right and obligation to manufacture, distribute, market, and sell ‘Nathan’s Famous’ branded hot dogs, and sausages in refrigerated consumer packages to be resold through retail channels (e.g., supermarkets, groceries, mass merchandisers, and club stores) within the United States, a right of first offer to license any other ‘Nathan’s Famous’ branded refrigerated meat products in consumer packages to be resold through retail channels within the United States, on terms to be negotiated in good faith, the right and obligation to manufacture ‘Nathan’s Famous’ branded hot dog and sausage products in bulk for use in the food service industry within the United States, and the non-exclusive right and obligation to supply ‘Nathan’s Famous’ natural casing and skinless hot dogs in bulk for use in the ‘Nathan’s Famous’ restaurant system within the United States. The agreement provides for royalties on packaged products sold to supermarkets, club stores, and grocery stores, payable on a monthly basis to the company equal to 10.8% of net sales, subject to minimum annual guaranteed royalties.
The company licenses the manufacture of the proprietary spices which are used to produce Nathan’s World Famous Beef Hot Dogs to Saratoga Specialties, Inc., a wholly-owned subsidiary of Solina.
During fiscal 2025, the company’s licensee, Lamb Weston Holdings, Inc., continued to produce and distribute Nathan’s Famous frozen crinkle-cut French fries and onion rings. These products were distributed within 41 states during fiscal 2025.
During fiscal 2025, the company’s licensee, Bran-Zan Holdings, LLC, continued to produce and distribute miniature bagel dogs, franks-in-a-blanket, mozzarella sticks, corn dog nuggets, other hors d’oeuvres, and bottled mustard through club stores, supermarkets, and other retail food stores.
During fiscal 2025, the company’s licensee, Hermann Pickle Packers, Inc., continued to produce and distribute Nathan’s Famous pickles.
Provisions and Supplies
Nathan’s World Famous Beef Hot Dogs are primarily manufactured by Smithfield Foods, Inc. for sale at retail, for the company’s Branded Product Program, and for its restaurant system. Smithfield Foods, Inc. and another hot dog manufacturer supply the hot dogs for its company-owned and franchised restaurants. All hot dogs are manufactured in accordance with Nathan’s recipes, quality standards, and proprietary spice formulations. Saratoga Specialties, Inc., a wholly-owned subsidiary of Solina, produces Nathan’s proprietary spice formulations. In the past, the company engaged Newly Weds Foods, Inc. as an alternative source of supply. The company’s frozen crinkle-cut French fries have been produced primarily by Lamb Weston, Inc.
The company utilizes a cooperative distribution system pursuant to an agreement with National Distribution Alliance, a UniPro Solutions Company, which consists of institutional food and non-food distributors organized to procure, distribute, and market food service and non-food merchandise for the distribution needs of the company’s domestic restaurant system. The initial term of the agreement was for five years through November 15, 2022. The agreement was subsequently amended and extended through June 30, 2027. The strategic distribution partners under this agreement include: DiCarlo Distributors, Inc., Tapia Brothers Company, and Feesers, Inc. The company’s branded products are delivered to its ultimate customers throughout the country by numerous distributors, including US Foodservice, Inc., SYSCO Corporation, Performance Food Group Company, McLane Company, Inc., and DOT Foods.
Marketing, Promotion, and Advertising
In 2024, the company held regional contests in Grand Rapids, Michigan; Cleveland, Ohio; San Francisco, California; and Washington D.C.
Nathan’s Famous continues to look to sports sponsorships as a strategic marketing opportunity to further brand recognition. In addition to the branded signage opportunity, Nathan’s sells its Nathan’s World Famous Beef Hot Dogs and crinkle-cut French fries. In many venues, Nathan’s World Famous Beef Hot Dogs and crinkle-cut French fries are sold at Nathan’s concession stands and as menu items that are served in suites and throughout premium seating areas. The company’s professional sports sponsorships include:
Baseball: Yankee Stadium – New York Yankees; Citi Field – New York Mets; Tropicana Field – Tampa Bay Rays (temporarily relocated to Steinbrenner Field due to damage sustained by Hurricane Milton in October 2024); and
Basketball: The Barclays Center – Brooklyn Nets; and
Football: AT&T Stadium – Dallas Cowboys; Lambeau Field – Green Bay Packers.
The company maintains an advertising fund for local, regional, and national advertising under the Nathan’s Famous Systems, Inc. Franchise Agreement. Nathan’s Famous franchisees are generally required to spend on local marketing activities or contribute to the advertising fund up to 2.5% of restaurant sales for advertising and promotion. Franchisee contributions to the advertising fund for national marketing support are generally based upon the type of restaurant and its location.
In fiscal 2025, Nathan’s marketing efforts were largely focused on the annual July 4th International Hot Dog Eating Contest and its sports sponsorships, as well as digital and social media to promote the brand, to drive awareness of menu offerings, and to generate traffic. This past year, there was an increased emphasis on point-of-purchase materials and updating menu boards to showcase new and existing menu items.
Nathan’s marketing efforts include employing an ‘always on’ social media strategy to support the brand and franchise operations through the company’s centralized brand presence.
During fiscal 2025, Nathan’s marketing efforts for the Branded Product Program concentrated primarily on participation in national industry trade shows, as well as regional and local distributor trade events. The company has also advertised its products in distributor and trade periodicals.
Government Regulation
The company is subject to Federal Trade Commission (FTC) regulation and several state laws that regulate the offer and sale of franchises.
The FTC’s ‘Trade Regulation Rule Concerning Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures’ (the ‘FTC Franchise Rule’) requires the company to disclose certain information to prospective franchisees.
The company is subject to the Federal Fair Labor Standards Act and various other federal and state laws that govern minimum wages, overtime, working conditions, mandatory benefits, health insurance, and other matters.
The company is also subject to the requirement that its restaurants post certain calorie content information for standard menu items, pursuant to Section 4205 of the Patient Protection and Affordable Care Act of 2010.
Trademarks
The company holds trademark and/or service mark registrations for NATHAN’S, NATHAN’S FAMOUS, NATHAN’S FAMOUS and design, SINCE 1916 NATHAN’S FAMOUS and design, SINCE 1916 NATHAN’S FAMOUS, INC. and design, THE ORIGINAL SINCE 1916 NATHAN’S FAMOUS and design, SINCE 1916 NATHAN’S FAMOUS THIS IS THE ORIGINAL, THE ORIGINAL NATHAN’S FAMOUS, SINCE 1916 NATHAN’S FAMOUS and hot dog design in color, SINCE 1916 NATHAN’S FAMOUS and hot dog, fries, and drink design in color, and NATHAN’S FAMOUS EXPRESS within the United States, with some of these marks holding corresponding foreign trademark and service mark registrations in over 80 international jurisdictions, including Canada and China. The company also holds various package design registrations and other related marks, FROM A HOT DOG TO AN INTERNATIONAL HABIT, and MORE THAN JUST THE BEST HOT DOG! and design, for restaurant services and some food items.
The company holds trademark and/or service mark registrations for the marks ARTHUR TREACHER’S (stylized), ARTHUR TREACHER’S FISH & CHIPS (stylized), KRUNCH PUP, and ORIGINAL within the United States. The company holds service mark registrations for ARTHUR TREACHER’S in China and Japan. The company also holds service mark registrations for ARTHUR TREACHER’S FISH & CHIPS in Canada, ARTHUR TREACHER’S FISH & CHIPS and design in Canada and Mexico, and ARTHUR TREACHER’S FISH & CHIPS and design in Colombia, Costa Rica, Kuwait, Malaysia, Singapore, and the United Arab Emirates.
Seasonality
The company’s routine business pattern is affected by seasonal fluctuations, including the effects of weather and economic conditions. Historically, sales from the company’s company-owned restaurants, principally at Coney Island, and franchised restaurants from which franchise royalties are earned, and the company’s earnings have been highest during its first two fiscal quarters, with the fourth fiscal quarter (year ended March 30, 2025) typically representing the slowest period. Routine seasonality is primarily attributable to weather conditions in the marketplace for its company-owned and franchised restaurants, which are principally located in the Northeast of the United States. Additionally, revenues from the company’s Branded Product Program and retail licensing program generally follow similar seasonal fluctuations, although not to the same degree.
History
The company was founded in 1916. It was incorporated in Delaware in July 1992. It was formerly known as Nathan's Famous Holding Corporation and changed its name to Nathan's Famous, Inc. in December 1992.
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