TODAY'S PAPER
63° Good Morning
63° Good Morning
Hello, we've upgraded our systems.

Please log back in to enjoy your subscription. Thank you for being part of the Newsday family.

Forgot your password? We can help go here.

Log in
Business

Nathan's Famous share prices rise in buyback

Nathan's hot dog

Nathan's hot dog Credit: Newsday, 2010 / Erica Marcus

Nathan's Famous Inc.'s stock price rose sharply after an offer to buy back up to a half-million of its own shares and to pay a premium of as much as $3 a share.

The buyback takes the form of a Dutch auction, in which shareholders can tender their shares to Nathan's at prices ranging from $20 to $22 per share. The company will buy as much as 10 percent of its nearly 5 million shares outstanding.

The Jericho-based hot dog maker and restaurant operator made the offer Monday, saying it will spend up to $11 million. The offer period begins Thursday and ends Jan. 12.

The company's stock closed at $19.08 on Monday on the Nasdaq exchange, and Nathan's made the offer after the market closed that day. The shares reached a closing price the next day of $20.99. By midafternoon Wednesday, the price hovered at about $21.10 per share.

Famed for its beef frankfurters, Nathan's first restaurant opened in 1916 in Coney Island.

With about 220 workers and a market capitalization of $104.8 million, it had $4.2 million in income on $61.64 million revenue during the past four fiscal quarters.

More news