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How Nathans Famous (NATH) makes money

Nathans Famous (NATH) made $54.1M of revenue in the first quarter fiscal 2027 (Q1 FY27), +15% from a year earlier. Branded Products brought in $35.0M (65%); License brought in $13.6M (25%); Company-operated Restaurants brought in $4.0M (7%). Of every dollar of revenue, 35¢ was left as gross profit, 23¢ was left as operating profit, 16¢ was left as net earnings.

Drawing the Sankey…

Nathans Famous revenue by segment, Q1 FY27Nathans Famous revenue by segment, Q1 FY27Branded Products$35.0MLicense$13.6MCompany-operated Restaurants$4.0MFranchise Fees and Royalties$1.1MAdvertising Fund Revenue$411KFranchise$54K
Nathans Famous: revenue by line, Q3 FY25 to Q1 FY27Nathans Famous: revenue by line, Q3 FY25 to Q1 FY27Branded ProductsLicenseCompany-operated Rest…Franchise Fees and Ro…Advertising Fund Reve…FranchiseBranded Products: $35.0M latest$35.0MLicense: $13.6M latest$13.6MCompany-operated Restaurants: $4.0M latest$4.0MFranchise Fees and Royalties: $1.1M latestAdvertising Fund Revenue: $411K latestFranchise: $54K latestQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
License went from 22% of revenue in Q3 FY25 to 25% in Q1 FY27, the largest shift in the mix.
Nathans Famous revenue by quarterNathans Famous revenue by quarter$31.5MQ3 FY25$30.8MQ4 FY25$47.0MQ1 FY26$45.7MQ2 FY26$34.3MQ3 FY26$35.1MQ4 FY26$54.1MQ1 FY27
Nathans Famous: where each dollar of revenue goesNathans Famous: where each dollar of revenue goesCost of revenue65¢Gross profit35¢Operating expenses11¢Operating profit23¢Income tax6¢Net earnings16¢Operating cash flow2¢Free cash flow2¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Branded Products$35.0M64.7%+47%+21%
License$13.6M25.1%+61%+10%
Company-operated Restaurants$4.0M7.3%+216%-0.9%
Franchise Fees and Royalties$1.1M2.0%+14%-5%
Advertising Fund Revenue$411K0.8%-25%-4%
Franchise$54K0.1%-42%-58%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$54.1M100.0%
Cost of revenue$35.2M65.1%
Gross profit$18.9M34.8%
Operating expenses$6.2M11.4%
Operating profit$12.7M23.4%
Income tax$3.3M6.2%
Net earnings$8.8M16.3%
Operating cash flow$949K1.8%
Free cash flow$882K1.6%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$54.1M+15%
Q4 FY26$35.1M+14%
Q3 FY26$34.3M+9%
Q2 FY26$45.7M+11%
Q1 FY26$47.0M+5%
Q4 FY25$30.8M+6%
Q3 FY25$31.5M+9%

From Nathans Famous' 10-Q filed Aug 7, 2026 (on EDGAR).

Questions

How does Nathans Famous make money?

Nathans Famous (NATH) made $54.1M of revenue in the first quarter fiscal 2027 (Q1 FY27), +15% from a year earlier. Branded Products brought in $35.0M (65%); License brought in $13.6M (25%); Company-operated Restaurants brought in $4.0M (7%). Of every dollar of revenue, 35¢ was left as gross profit, 23¢ was left as operating profit, 16¢ was left as net earnings.

What is Nathans Famous' biggest business?

Branded Products: $35.0M in the first quarter fiscal 2027, 65% of revenue, +21% from a year earlier.

What is Nathans Famous' profit margin?

Net earnings were $8.8M, 16.3% of revenue, in the first quarter fiscal 2027; the operating margin was 23.4%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.