Jericho-based hot dog company Nathan’s Famous Inc. had mixed results during the past fiscal year, its annual report says.
It opened 40 new franchised units, “including our first two restaurants in Beijing, China,” Nathan’s said in its annual report, filed Monday with the Securities and Exchange Commission.
The report is for the fiscal year ending March 27.
Nathan’s saw growth across the board, but the income was offset by a nearly $5 million court judgment against the company.
Nathan’s had net income of $2.1 million, or $0.40 per diluted share, compared to last year’s net income of $5.5 million, or $0.97 per diluted share.
The company’s revenues were $57.2 million, up 12.5 percent from the previous year’s $50.9 million.
The court judgment came in a commercial dispute with SMG, a subsidiary of Specialty Foods Group inc., of Illinois. Nathan’s lost the suit, which centered on an alleged breach of contract, and in April agreed to deposit an amount equivalent to the judgment, $4.9 million, in a bank account while it appeals.
The court problems offset good news in other aspects of Nathan’s business.
Its sales of Nathan’s hot dogs to the food service industry increased by 23 percent to $30.5 million, compared to sales of $24.7 million the previous year. Its profits from company-owned restaurants rose 36 percent, retail royalties rose 5.2 percent, and revenues from franchise operations rose 4.9 percent.
Moreover, the company bought back $9.2 million of its stock, a total of 576,485 shares.