Nathan’s Famous reported a 12 percent drop in net income in the most recent quarter due to falling sales.
The Jericho-based frankfurter maker had net income of $2.5 million in the three-month period ending on Sept. 26, down from $2.85 million a year earlier, the company reported Friday.
Its sales fell by 8.9 percent year-over-year, to $21.9 million, as Nathan’s Famous reduced its average selling prices because of a decline in the cost of beef. The impact of the lower selling prices was “partly offset by a 3.5 [percent] increase in the volume of products sold,” the company said in its quarterly filing.
Nathan’s Famous also took a hit in license royalties, which fell by 8.9 percent to $4.79 million; franchise fees, which dipped by 4 percent to $1.33 million; and sales at its five company-owned restaurants, which declined by 12.3 percent, to just over $6.6 million.
This year’s “unfavorable summer weather conditions” took a toll on its two Coney Island locations, which were unable to match their 2015 all-time-high sales, the company said in its filing.
The company’s earnings per diluted share fell by 4 cents, to 60 cents. Its stock fell 6.9 percent Friday to close at $48. Nathan’s Famous stock price has risen more than 20 percent in the past 12 months.
This year, Nathan’s Famous is celebrating the 100th anniversary of its founding by Polish immigrant Nathan Handwerker, who got his start selling franks at a Coney Island stand.