Nathan's Famous Inc. reported Monday that its net income rose more than 40 percent for its fiscal year, driven by an increase in license royalties, higher sales of hot dogs to the food service industry and higher sales at company-owned restaurants.
The Jericho-based fast-food chain, which sells its signature hot dogs, fries and burgers, posted net income of $11.70 million for its fiscal year 2015 ending March 30, an increase of 40.5 percent compared with $8.33 million during the same 52-week period a year earlier. Revenue for the fiscal year increased by 24.3 percent to $99.11 million. Earnings per diluted share rose by 40.9 percent to $2.55, company officials reported late Monday.
For the fourth quarter, Nathan's net income increased by 26.2 percent from the year-earlier quarter to $1.54 million. Revenue increased by 17.9 percent to $20.34 million. Earnings per diluted share increased by 25.9 percent to 34 cents.
Before the earnings were released, shares of Nathan's closed at $39.74 on the Nasdaq stock market, up 63 cents. The shares, which traded at about $50 in June 2014, rose to more than $80 early this year, only to drop sharply after the company announced on March 20 a special $25 per share dividend to shareholders.