📊 NATH Key Takeaways
Is NATH a Good Investment? Thesis Analysis
Nathan's Famous demonstrates strong operational fundamentals with a 20% operating margin and consistent positive free cash flow of $15.4M, but these strengths are severely undermined by critical balance sheet distress: negative stockholders' equity of -$15.3M indicates technical insolvency. Sustainability hinges on maintaining operating cash flow and avoiding covenant violations while underlying business quality remains solid.
Why Buy NATH? Key Strengths
- Exceptional operating margin of 20% for restaurant/retail sector demonstrates pricing power and cost discipline
- Robust free cash flow generation of $15.4M (12.1% FCF margin) indicates operational cash conversion strength despite balance sheet issues
- Strong liquidity position with current ratio of 2.73x and $24.5M cash reserves provides near-term runway
NATH Investment Risks to Consider
- Critical: Negative stockholders' equity of -$15.3M represents technical insolvency with liabilities exceeding assets by $15.3M
- Unsustainable debt burden with $48.7M long-term debt at 2.8x annual net income; debt sustainability contingent on continued positive cash generation
- Stalling profitability growth: flat net income (+0% YoY) despite 6.9% revenue growth signals diminishing operational leverage and potential margin compression ahead
Key Metrics to Watch
- Operating cash flow stability and trajectory—any decline below $15M would immediately threaten liquidity given debt obligations
- Stockholders' equity recovery path—monitor if retained earnings can restore positive equity or if additional leverage is required
- Debt covenant compliance and refinancing risk—critical given negative equity cushion and reliance on lender patience
NATH Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.73x current ratio provides a solid financial cushion.
NATH Profitability Ratios
NATH vs Consumer Sector
How NATHANS FAMOUS, INC. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is NATH Overvalued or Undervalued?
Based on fundamental analysis, NATHANS FAMOUS, INC. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
NATH Balance Sheet & Liquidity
NATH 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: NATHANS FAMOUS, INC.'s revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.80 reflects profitable operations.
NATH Growth Metrics (YoY)
NATH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $31.5M | $3.1M | $0.75 |
| Q2 2026 | $41.1M | $5.2M | $1.26 |
| Q1 2026 | $44.8M | $8.9M | $2.16 |
| Q3 2025 | $28.9M | $2.6M | $0.64 |
| Q2 2025 | $38.7M | $5.7M | $1.40 |
| Q1 2025 | $42.0M | $7.4M | $1.81 |
| Q3 2024 | $26.2M | $2.6M | $0.64 |
| Q3 2023 | $25.9M | $2.1M | $0.52 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NATH Capital Allocation
NATH SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for NATHANS FAMOUS, INC. (CIK: 0000069733)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NATH
What is the AI rating for NATH?
NATHANS FAMOUS, INC. (NATH) has an AI rating of HOLD with 42% confidence, based on fundamental analysis of SEC EDGAR filings.
What are NATH's key strengths?
Claude: Exceptional operating margin of 20% for restaurant/retail sector demonstrates pricing power and cost discipline. Robust free cash flow generation of $15.4M (12.1% FCF margin) indicates operational cash conversion strength despite balance sheet issues.
What are the risks of investing in NATH?
Claude: Critical: Negative stockholders' equity of -$15.3M represents technical insolvency with liabilities exceeding assets by $15.3M. Unsustainable debt burden with $48.7M long-term debt at 2.8x annual net income; debt sustainability contingent on continued positive cash generation.
What is NATH's revenue and growth?
NATHANS FAMOUS, INC. reported revenue of $127.0M.
Does NATH pay dividends?
NATHANS FAMOUS, INC. pays dividends, with $7.6M distributed to shareholders in the trailing twelve months.
Where can I find NATH SEC filings?
Official SEC filings for NATHANS FAMOUS, INC. (CIK: 0000069733) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NATH's EPS?
NATHANS FAMOUS, INC. has a diluted EPS of $4.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NATH a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, NATHANS FAMOUS, INC. has a HOLD rating with 42% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is NATH stock overvalued or undervalued?
Valuation metrics for NATH: ROE of N/A (sector avg: 18%), net margin of 13.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy NATH stock in 2026?
Our dual AI analysis gives NATHANS FAMOUS, INC. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NATH's free cash flow?
NATHANS FAMOUS, INC.'s operating cash flow is $15.7M, with capital expenditures of $332.0K. FCF margin is 12.1%.
How does NATH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 13.6% (avg: 8%), ROE N/A (avg: 18%), current ratio 2.73 (avg: 1.5).