Validea Joel Greenblatt Strategy Daily Upgrade Report - 6/27/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 27 2025
0mins
Should l Buy NATH?
Source: NASDAQ.COM
Nathan's Famous Inc. Stock Upgrade: Nathan's Famous Inc. received an upgrade in its rating from 80% to 90% based on Joel Greenblatt's Earnings Yield Investor model, indicating strong interest due to the company's solid fundamentals and stock valuation.
Company Overview: Nathan's Famous Inc. operates in the Restaurants industry, focusing on licensing and selling branded products like hot dogs, with a presence in approximately 79,000 locations across the United States.
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Analyst Views on NATH
About NATH
Nathan’s Famous, Inc. is a licensor, wholesaler and retailer of products marketed under its Nathan’s Famous brand, including its Nathan’s World Famous Beef Hot Dogs. The Company distributes its products in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, and 20 foreign countries. The Branded Product Program segment is engaged in the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. The Product licensing segment includes royalties, from licensing a range of its branded products, including its hot dogs, sausage and corned beef products, frozen French fries and additional products, through retail grocery channels and club stores throughout the United States. The Restaurant operations segment is engaged in the sale of its products at Company-owned restaurants and earns fees and royalties from its franchised restaurants, including its virtual kitchens.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- New Store Opening: Nathan's Famous has opened a new restaurant in Tucson, Arizona, located at 628 North 4th Avenue, aiming to bring the iconic flavors of New York to the local community and expand brand presence.
- Diverse Menu: The new location features a wide-ranging menu including world-famous hot dogs, crinkle-cut fries, Angus burgers, hand-breaded chicken sandwiches, and premium shakes, catering to families, students, and visitors, thereby enhancing local dining options.
- Community Engagement: The restaurant is owned by Michael Kramkowski, who has over 20 years of experience in the community and is dedicated to introducing a brand with a strong heritage to Tucson, thereby enriching the local independent spirit and dining culture.
- Convenient Location: Situated near the university and close to the 4th Street streetcar stop, the new restaurant is easily accessible for students and tourists, expected to attract significant foot traffic and drive business growth.
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- New Store Opening: Nathan's Famous has opened a new restaurant in Tucson, Arizona, located at 628 North 4th Avenue, aiming to bring the iconic flavors of New York to the local community and further expand its market presence in the U.S.
- Diverse Menu: The new location features a wide-ranging menu including world-famous hot dogs, crinkle-cut fries, fresh Angus burgers, hand-breaded chicken sandwiches, and chicken wings, catering to families, students, and visitors, thereby enhancing local fast-casual dining options.
- Community Partnership: The restaurant is owned by Michael Kramkowski, who has over 20 years of experience in the area and is committed to introducing a brand with a strong heritage to Tucson, aiming to elevate local dining choices while preserving the neighborhood's unique character.
- Convenient Location: Situated near the university and close to the free 4th Street streetcar stop, the new restaurant is easily accessible for students and tourists, expected to attract significant foot traffic and boost the local economy.
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- Investigation Background: Halper Sadeh LLC is investigating companies such as Nathan's Famous, Inc., SkyWater Technology, Inc., and Gold Resource Corporation for potential violations of federal securities laws and breaches of fiduciary duties, highlighting concerns over investor rights.
- Transaction Details: Nathan's Famous is being sold to Smithfield Foods for $102.00 per share in cash, SkyWater Technology is being sold for $15.00 in cash and $20.00 in IonQ common stock, and Gold Resource Corporation is being sold for 1.4476 shares of Goldgroup per share, with these financial structures potentially impacting shareholder interests.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, promising legal services on a contingency fee basis, aiming to secure increased consideration and additional disclosures for shareholders.
- Commitment to Legal Services: The firm represents investors globally, focusing on combating securities fraud and corporate misconduct, having successfully recovered millions for defrauded investors in the past, demonstrating its expertise in protecting investor rights.
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- Valaris Acquisition Investigation: Valaris Limited is set to be acquired by Transocean in an all-stock transaction valued at approximately $5.8 billion, with shareholders receiving 15.235 shares of Transocean stock per Valaris share, raising concerns about whether the board breached fiduciary duties by failing to ensure a fair process.
- Silicon Labs Acquisition Scrutiny: Silicon Labs will be acquired by Texas Instruments for $231.00 per share in an all-cash deal, representing a total enterprise value of about $7.5 billion, with investigations focusing on whether the board failed to conduct a fair process to ensure shareholders receive fair value.
- SkyWater Technology Acquisition Review: SkyWater Technology is being acquired by IonQ for $35.00 per share in a cash-and-stock transaction, implying a total equity value of approximately $1.8 billion, with investigations questioning whether the board breached fiduciary duties as the deal consideration is below the company's 52-week high of $36.27.
- Nathan's Famous Acquisition Investigation: Nathan's Famous will be acquired by Smithfield Foods for $102.00 per share in cash, representing an enterprise value of around $450 million, with investigations examining whether the board failed to ensure a fair process, as the deal consideration is below the company's 52-week high of $118.50.
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- Revenue Growth: Nathan's Famous reported Q3 revenues of $34.31 million, an 8.9% increase from $31.52 million in the prior year, indicating a struggle to meet market expectations despite nominal growth.
- Earnings Decline: The diluted earnings per share fell to $0.75 from $1.10 a year earlier, representing a 31.8% decrease, which reflects a weakening in profitability that could dampen investor confidence.
- Acquisition Impact: Smithfield Foods announced its acquisition of Nathan's Famous for $450 million, leading to a 7% premarket jump in NATH shares, suggesting a positive market reaction and potential new opportunities for the company.
- Market Sentiment: Despite the decline in revenue and profitability, the acquisition news has buoyed market sentiment, as investors anticipate potential synergies and integration benefits that may support the stock price in the short term.
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- Quarterly Dividend Announcement: Nathan's Famous has declared a quarterly dividend of $0.50 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability, which is likely to attract more investor interest.
- Dividend Yield: The forward yield of 1.97% reflects the company's attractiveness in the current market environment, potentially boosting shareholder confidence and enhancing its market position.
- Payment Schedule: The dividend is payable on February 27, with a record date of February 17 and an ex-dividend date also on February 17, ensuring shareholders receive timely returns and further solidifying the relationship between the company and its investors.
- Market Reaction: Following the dividend announcement, Nathan's Famous shares jumped 7% in pre-market trading, indicating a positive market sentiment regarding the company's future prospects, which may attract more investors to participate.
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