Westbury, NY - Nathan's Famous, Inc. reported results for the period ended December 27, 1998.
Net earnings for the thirty-nine weeks ended December 27, 1998 were $1,737,000 compared to $1,325,000 for the same period in the prior fiscal year. Basic and diluted earnings per share were $0.37 for the thirty-nine weeks ended December 27, 1998 compared to basic and diluted earnings per share of $0.28 for the thirty-nine weeks ended December 28, 1997. The Company's earnings before income taxes for the thirty-nine weeks ended December 27, 1998 were $2,299,000 as compared to $2,215,000 for the thirty-nine weeks ended December 28, 1997. Results for the thirty-nine weeks ended December 27, 1998 include an income tax benefit of $426,000, or $0.09 per share, from the reduction of the Company's deferred tax valuation.
Total revenues increased approximately 4.1% to $23,202,000 during the thirty-nine weeks of fiscal 1999 compared to $22,285,000 during the same period in fiscal 1998. Total systemwide sales, including supermarket sales by the Company's licensee, were $92,801,000 for the thirty-nine weeks ended December 27, 1998, compared to $87,194,000 for the thirty-nine weeks ended December 28, 1997.
Net earnings for the quarter were $412,000 compared to $242,000 for the same period in the prior fiscal year. Basic and diluted earnings per share were $0.09 for the quarter ended December 27, 1998 compared to basic and diluted earnings per share of $0.05 for the quarter ended December 28, 1997. The Company's earnings before income taxes for the thirteen weeks ended December 27, 1998 were $548,000 as compared to $412,000 for the thirteen weeks ended December 28, 1997. The results for the quarter ended December 27, 1998 include an income tax benefit of $115,000, or $0.02 per share, from the reduction of the Company's deferred tax valuation allowance.
Wayne Norbitz, President and Chief Operating Officer said, “The Branded Product Program which was launched last year continues to fuel our sales growth. Through December 27, 1998 sales were approximately $1,784,000 compared to $862,000 during the same period last year. Currently, the Branded Product Program includes over 500 retail points of distribution and allows Nathan's products to be distributed in a more significant way through a variety of venues, including colleges and universities, Business & Institution accounts, club stores and convenience stores. This year, our hot dogs were successfully introduced into vending machines under a multi-year contract with The Compass Group. The Company continues to emphasize development of smaller restaurant outlets within non-traditional captive markets and increasing sales of Nathan's products in supermarkets.”
Mr. Norbitz added, “We are continuing our menu development efforts and local store marketing activities and have continued to reinvest in our existing Company-owned restaurants by renovating our restaurants on 86th Street in Brooklyn, NY and in the Kings Plaza Shopping Center in Brooklyn, NY. In fiscal 1999, two franchised restaurants were opened in the State of Israel and another franchisee recently opened our first Kosher Nathan's restaurant in Brooklyn, NY under a multi-restaurant development agreement. During fiscal 1999, we have also executed a master franchise agreement providing exclusive rights to develop Nathan's restaurants and distribute Nathan's products throughout foodservice venues within Egypt.”
Meat Industry Insights News Service
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