Who has not seen the iconic Nathan’s Famous, Inc. (Nasdaq:NATH) logo. After a humble start in Coney Island, NY, they have done a substantial job building a nationwide brand. Now, they own and franchise restaurants and engage in licensing agreements for manufacturing of its products through various channels of distribution.
Comps: Potbelly Corporation (Nasdaq:PBPB), Fiesta Restaurant Group, Inc. (Nasdaq:FRGI)
When we compare Nathan’s Famous to these other franchises, they have better earnings per share, price to earnings per share, and debt to equity than both Potbelly Corporation and Fiesta Restaurant Group. Furthermore, Nathan’s Famous exhibited higher profitabilty than Potbelly Corporation. With that being said, they did not have the revenues of either of these two other groups, but they did manage to show more revenue growth year-over-year than Fiesta Restaurant Group.