A monthlong share repurchase by Jericho-based Nathan's Famous Inc. ended Thursday with a buyback of nearly 600,000 shares for a total cost of $13.1 million.
All told, Nathan’s agreed to buy about 12 percent of its own stock at $22 a share during the past month.
The hot dog maker’s shares had been trading at around $19 a share when it initially offered, in a Dec. 7 announcement, to buy back up to 500,000 shares at a $3 premium.
However, the offer was oversubscribed by shareholders, who asked to sell 666,486 shares back to Nathan’s. Of the oversubscribed amount, the company decided to repurchase 98,959 shares.
When all transactions are done the company will have about 4.3 million shares outstanding.
The initial effect of the buyback was to lift Nathan’s share price by $2. At the time of the December offer Nathan’s was trading at $19.08, rising to more than $21 the same day.
Friday, though, the share price fell 81 cents to $20.50 after news that the buyback was over.
Famed for its beef frankfurters, Nathan's first restaurant opened in 1916 in Coney Island.
With about 220 workers and a market capitalization of $104.2 million, it had $4.2 million in income on $61.64 million in revenue during the past four fiscal quarters.
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