NATHNathan's Famous, Inc.
Is the business good?
The checks split: earnings fully cash-backed (0.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NATH?
Nathan's Famous, Inc. keeps 18% of every revenue dollar as operating profit, against 7.8% for the median Restaurants name.
Operating margin · Restaurants median 7.8% · 12 months to Q1 2026
- Cash conversion
- 0.91×
Cash conversion · 0.77× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.12%
Share count, year on year · flat: no meaningful dilution
- Gross margin
- 33%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 34% |
| FY2021 | 26% |
| FY2022 | 26% |
| FY2023 | 23% |
| FY2024 | 25% |
| FY2025 | 19% |
Details›
- Gross margin12 months to Q1 2026
- 33%
- Operating margin12 months to Q1 2026
- 18%
- Net margin12 months to Q1 2026
- 12%
- Free cash flow margin
- 11%
- Revenue, trailing twelve months
- $169M
- Free cash flow, trailing twelve months
- $19M
- Net income, trailing twelve months
- $20M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.