Nathan's Famous(NATH) 2023Q4 Earnings Summary
Bullish Points:
1. Cash increased to $31,936,000 from $29,861,000.
2. Accounts and other receivables, net increased to $20,965,000 from $15,066,000.
3. Total assets increased to $65,822,000 from $58,610,000.
4. Total revenues for the thirteen weeks ended June 25, 2023 were $41,985,000, an increase from $39,720,000 in the same period in 2022.
5. Net income for the thirteen weeks ended June 25, 2023 was $7,388,000, an increase from $7,137,000 in the same period in 2022.
6. Basic and diluted earnings per share for the thirteen weeks ended June 25, 2023 were $1.81, an increase from $1.74 in the same period in 2022.
7. Dividends declared per share for the thirteen weeks ended June 25, 2023 were $0.50, an increase from $0.45 in the same period in 2022.
8. Foodservice sales from the Branded Product Program increased by 9% to $25,170,000 in the fiscal 2024 period compared to $23,171,000 in the fiscal 2023 period.
9. License royalties increased by 3% to $11,658,000 in the fiscal 2024 period compared to $11,314,000 in the fiscal 2023 period.
Bearish Points:
1. Total liabilities increased to $105,046,000 from $103,172,000.
2. Company-owned restaurant sales decreased by 2% to $3,658,000 in the fiscal 2024 period compared to $3,723,000 in the fiscal 2023 period, primarily due to unfavorable weather conditions in June 2023.
3. The company is experiencing rising labor costs and higher commodity prices, including beef and beef trimmings, and expects this trend to continue throughout the remainder of the fiscal year 2024.
4. Cost of sales increased by 9% to $24,684,000 in fiscal 2024 compared to $22,667,000 in fiscal 2023.
5. Gross profit decreased to $4,144,000 or 14% of sales in fiscal 2024 compared to $4,227,000 or 16% of sales in fiscal 2023.
6. General and administrative expenses increased by $469,000 or 13% to $4,058,000 in fiscal 2024 compared to $3,589,000 in fiscal 2023.
7. Volatility in commodity prices, including beef and beef trimmings, could have a significant adverse effect on the company's results of operations.
In summary, Nathan's Famous(NATH) has shown growth in revenues, net income, and earnings per share for the thirteen weeks ended June 25, 2023. However, the company is facing challenges such as rising labor costs, higher commodity prices, and increased general and administrative expenses. For more information, you can read the original text of Nathan's Famous' financial report: https://www.sec.gov/Archives/edgar/data/69733/000143774923021738/nath20230625_10q.htm
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