Despite America’s waning interest in hot dogs, Nathan’s Famous (NATH), renowned organizer of anatomy-defying hot dog eating contests, is enjoying sales growth. The company’s revenues in the 12 months ending in March increased by 15.9 percent, to nearly $83 million, according to a recent Securities Exchange Commission filing. The chain says it is outperforming the Standard & Poor’s 500-stock index.
The source of Nathan’s growth last year was getting its hot dogs offered by more retailers, not from supermarket sales. Sales in stadiums, movie theaters, and non-Nathan’s restaurants totaled $51.9 million–up 20 percent, year-on-year–and was the company’s only business to grow during the period. In addition to increased orders, Nathan’s raised prices in December to offset higher beef costs. (The price of hot dogs during the year rose about 7.5 percent, according to the company.)
Meanwhile, royalties from licensees who manufacture and distribute Nathan’s franks were flat, at about $8.5 million, after growing for years. Nor did Nathan’s restaurants have a stellar year: Sales at its five company-owned restaurants were down, and royalties and fees from franchisees decreased, too.
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