Nathan's Famous, Inc. (NASDAQ:NATH) today reported results for its 2011 fiscal year ended March 27, 2011.

For the fiscal year ended March 27, 2011:
  • Net income was $2,213,000 or $0.40 per diluted share, as compared to $5,569,000 or $0.97 per diluted share for the fiscal year ended March 28, 2010;
  • Non-GAAP earnings, which exclude the litigation expense items described below, were $5,566,000 or $1.01 per diluted share; and
  • Revenues increased by 12.5% to $57,255,000, as compared to $50,876,000 during the fiscal year ended March 28, 2010.

For the thirteen weeks ended March 27, 2011:
  • Net income was $555,000 or $0.11 per diluted share, as compared to $791,000 or $0.14 per diluted share for the quarter ended March 28, 2010;
  • Non-GAAP earnings, which exclude the litigation expense items described below, were $597,000 or $0.12 per diluted share; and
  • Revenues increased by 16.6% to $12,268,000, as compared to $10,524,000 during the quarter ended March 28, 2010.

The Company also reported the following:
  • Sales from the Branded Product Program, featuring the sale of Nathan’s hot dogs to the foodservice industry, increased by 23.3% to $30,497,000 during the fifty-two weeks ended March 27, 2011 as compared to sales of $24,738,000 during the fifty-two weeks ended March 28, 2010.
  • Sales and pre-tax profits from the five comparable company-owned restaurants during the fiscal year ended March 27, 2011 increased approximately $1,021,000 or 8.5% and $512,000 or 36.3%, respectively, over the prior fiscal year.
  • Retail license royalties increased by 5.2% or $335,000 to $6,787,000 during the fifty-two weeks ended March 27, 2011 as compared to $6,452,000 during the fifty-two weeks ended March 28, 2010.
  • Revenues from franchise operations increased by 4.9% or $231,000 to $4,989,000 during the fifty-two weeks ended March 27, 2011 as compared to $4,758,000 during the fifty-two weeks ended March 28, 2010. Forty new franchised units were opened during the fifty-two weeks ended March 27, 2011, including our first two restaurants in Beijing, China.
  • During the fiscal year ended March 27, 2011, we continued our stock repurchase programs, acquiring 576,485 shares at a total cost of approximately $9,254,000.

A trial on the claims relating to Nathan’s termination of its License Agreement with SMG took place between October 6 and October 13, 2010. On October 13, 2010, an order was entered with the Court denying Nathan’s cross-motion and granting SMG’s motion for summary judgment with respect to SMG’s claims relating to the sale of Nathan’s proprietary seasonings to SMG. On December 17, 2010, the Court ruled that Nathan’s was not entitled to terminate the License Agreement. On January 19, 2011, the parties submitted an order which, among other things, assessed damages against Nathan’s for the seasonings claims. The order was entered on February 4, 2011.

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