The net income of fast-food operator Nathan's Famous Inc. slid 43 percent in its fiscal first quarter primarily because of higher costs in the Jericho-based company's international franchising program.
Net income fell to $2.3 million in the first quarter ended June 28, from $4.1 million a year earlier. That decrease came as total franchise-fee income tumbled to $41,000 during the 13-week period, from $227,000 a year ago. The company blamed "store opening variances" in its international franchising program. In accounting, variances generally refer to the difference between the actual and expected cost of something.
Revenue in the quarter rose 11 percent to $30.7 million.
Besides Nathan's Famous restaurants, the company operates, franchises or licenses other brands that include Kenny Rogers Roasters and Arthur Treacher's Fish & Chips.