Westbury, NY- Nathan's Famous, Inc. reported results for the period ended Dec. 28, 1997.
Net earnings for the 39 weeks ended Dec. 28, 1997 were $1,325,000 compared to $1,061,000 for the same period ended Dec. 29, 1996. Basic earnings per share and diluted earnings per share were $0.28 for the 39 weeks ended Dec. 28, 1997 as compared to $0.22 for the 39 weeks ended Dec. 29, 1996.
Total revenues were $22,285,000, compared to revenues of $20,933,000 in the prior fiscal period. Total systemwide sales, including supermarket sales by the company's licensee, during the 39 week period ended Dec. 28, 1997 were $87,203,000 as compared to $89,906,000 in the prior fiscal period.
Net earnings for the quarter ended Dec. 28, 1997, were $242,000 compared to $186,000 for the same period ended Dec. 29, 1996. Basic earnings per share and diluted earnings per share were $0.05 for the quarter ended Dec. 28, 1997, as compared to $0.04 for the quarter ended Dec. 29, 1996. Total revenues for the second quarter were $6,825,000, compared to revenues of $6,599,000 in the prior fiscal period.
The 53 franchised Caldor units which were closed between Nov. 1996 and Feb. 1997 generated franchise royalties of approximately $242,000 and $87,000 on sales of approximately $6,042,000 and $2,174,000 for the 39 week and 13 week periods of the prior fiscal period, respectively. Results for the 39 weeks ended Dec. 29, 1997 include a gain from the sale of an unprofitable restaurant in June 1997 of approximately $78,000 net of tax.
Wayne Norbitz, president and chief operating operating officer, said, "Nathan's is focused on a brand marketing and points-of-distribution strategy, both domestically and internationally. Our recently introduced Branded Product Program now includes over 300 points-of-distribution featuring the superior quality of our signature products and the marketing of our valued brand. Additionally, the company continues to emphasize development of smaller restaurant units within non-traditional captive markets and increased sales of Nathan's products in supermarkets."
Norbitz added, "We have recently executed a license agreement to market and sell Nathan's Home Meal Replacement food products to supermarkets and groceries nationwide with J.J. Mathew's & Co. Recent international activity includes the opening of a franchised unit in Aruba and five co-branded units in Jamaica, West Indies under our co-branding alliance with TCBY Treats Inc. and the construction of the first franchised Nathan's in Israel which is expected to open in the Spring 1998. Additionally, there are currently three new company-owned units under construction within Home Depot Improvement Centers."
The Nathan's Famous retail system currently is comprised of 154 franchised or licensed units, 25 company-owned units and over 300 Branded Product points-of-distribution located in 25 states and the District of Columbia featuring its world famous all beef hot dogs.
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