Hotdog Maker Income Rises14 June 2013
US – US hotdog maker Nathan’s Famous saw net income increase by 21.3 per cent to $7,468,000 for the year ended March 31, 2013, as compared to $6,158,000 for, 2012.
Earnings per diluted share increased 33.6 per cent to $1.63 for the year compared to $1.22 in 2012.
Revenues increased by eight per cent to $71,543,000 for the 2013 financial year, compared to $66,222,000 in 2012.
For the quarter ended March 31, 2013, net income increased by 43.7 per cent to $1,555,000 compared to $1,082,000 for the same quarter in 2012.
As previously disclosed, Nathan's entered into an agreement with John Morrell & Co, a subsidiary of Smithfield Foods, to become Nathan's exclusive licensee to manufacture and sell branded hot dog, sausage and corned beef products at retail.
The agreement begins on 2 March 2014 for a term of 18 years providing royalties of 10.8 per cent of net sales, subject to annual minimum royalties which start at $10 million in the first year and increase annually throughout the term.
Sales from the Branded Product Program, featuring the sale of Nathan's hot dogs to the foodservice industry, increased 12.2 per cent to $43,214,000 during 2013.
Sales from the five Company-owned restaurants were $13,403,000 in 2013 compared to $13,208,000 in 2012.
Gross profit increased to 20.8 per cent of 2013 compared to 19.6 per cent of sales during 2012 thanks to improved margins from the Branded Product Program and the impact of the closed restaurants during the winter months.
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