UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 29, 2019. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from to . Commission File No. 001-35962 NATHAN'S FAMOUS, INC. (Exact name of registrant as specified in its charter) Delaware 11-3166443 (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from to . Commission File No. 001-35962 NATHAN'S FAMOUS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 11-3166443 (I.R.S. Employer Identification No.) FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) Commission File No. 001-35962 NATHAN'S FAMOUS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or Delaware 11-3166443 (I.R.S. Employer Identification No.) One Jericho Plaza, Second Floor – Wing A, Jericho, New York 11753 (Address of principal executive offices) (Zip Code) (516) 338-8500 (Registrant's telephone number, including area code) (Former name, former ...

NATHAN'S FAMOUS, INC. (Exact name of registrant as specified in its charter) | Delaware | 11-3166443 | | --- | --- | | (State or other jurisdiction of incorporation or | (I.R.S. Employer | | organization) | Identification No.) | | One Jericho Plaza, Jericho, New York | 11753 | | (Address of principal executive offices) | (Zip Code) | | Registrant's telephone number, including area code: | 516-338-8500 | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] ANNUAL REPORT PURS ...

Sales Performance - Total sales decreased by 13.8% to $14,404,000 for the thirteen weeks ended December 23, 2018, compared to $16,705,000 for the same period in 2017[128] - Total sales decreased by 10.9% to $56,448,000 for the thirty-nine weeks ended December 23, 2018, compared to $63,327,000 for the same period in 2017[149] - Foodservice sales from the Branded Product Program decreased by 15.1% to $12,453,000 for the third quarter fiscal 2019, down from $14,674,000 in the third quarter fiscal 2018[128] - Foodservice sales from the Branded Product Program decreased by 12.7% to $44,308,000 for the fiscal 2019 period compared to $50,741,000 in fiscal 2018[149] Profitability - EBITDA for the thirteen weeks ended December 23, 2018, was $16,277,000, compared to a loss of $3,116,000 for the same period in 2017[127] - Adjusted EBITDA for the thirty-nine weeks ended December 23, 2018, was $35,377,000, compared to $24,085,000 for the same period in 2017[127] - Gross profit decreased to $15,182,000 or 26.9% of sales during the fiscal 2019 period, compared to $15,474,000 or 24.4% of sales during fiscal 2018[157] Costs and Expenses - Average selling prices decreased by approximately 4.3%, correlating with a 5.5% decrease in the cost of beef during the third quarter fiscal 2019 compared to the same period in 2018[128] - Cost of sales decreased by 13.8% to $41,266,000 in the fiscal 2019 period compared to $47,853,000 in fiscal 2018[157] - Restaurant operating expenses increased to $2,817,000 in fiscal 2019 from $2,769,000 in fiscal 2018, primarily due to higher home delivery costs, occupancy costs, and insurance[160] - General and administrative expenses rose by $290,000 or 2.9% to $10,354,000 in fiscal 2019, attributed to higher marketing expenses and professional fees related to ASC 606[161] Franchise and Royalties - License royalties increased to $4,316,000 in the third quarter fiscal 2019, compared to $4,228,000 in the third quarter fiscal 2018[130] - Total royalties earned on sales of hot dogs from the license agreement with John Morrell & Co. were $3,741,000 for the third quarter fiscal 2019, up from $3,680,000 in the same period of 2018[130] - Franchise fees and royalties were $911,000 in the third quarter fiscal 2019, down from $1,088,000 in the third quarter fiscal 2018[131] - Traditional franchise royalties decreased to $638,000 in the third quarter fiscal 2019 from $704,000 in the third quarter fiscal 2018[131] - Comparable domestic franchise sales were $11,413,000 in the third quarter fiscal 2019, compared to $11,098,000 in the third quarter fiscal 2018[132] Cash Flow and Financing - Cash and cash equivalents increased by $15,493,000 to $72,832,000 as of December 23, 2018, compared to $57,339,000 at March 25, 2018[174] - Cash provided by operations was $7,373,000 in fiscal 2019, primarily driven by net income of $19,001,000[182] - Cash provided by investing activities totaled $12,449,000, mainly from the sale of the Company-owned restaurant in Bay Ridge, Brooklyn, NY, generating $11,445,000[183] - Cash used in financing activities was $4,329,000, primarily for dividend payments totaling $3,139,000[184] - The Company repurchased 14,390 shares of common stock for $1,000,000 during fiscal 2019, continuing its stock repurchase program[184] Tax and Interest - The income tax provision for the thirteen weeks ended December 23, 2018 was $3,627,000 or 27.2% of earnings before income taxes[147] - The effective tax rate for the thirty-nine week period ended December 23, 2018 was 27.8%, reflecting the impact of the Tax Cuts and Jobs Act[167] - Interest expense was $2,650,000 in the third quarter fiscal 2019, compared to $3,650,000 in the third quarter fiscal 2018[142] - Interest expense decreased to $7,951,000 in fiscal 2019 from $10,976,000 in fiscal 2018, reflecting a reduction in interest rates following the refinancing of the 2020 Notes[164] - Interest payments of $9,937,500 are required for the fiscal year ending March 31, 2019, and the same amount is expected for the fiscal year ending March 29, 2020[189] Market Conditions and Strategies - The market price for hot dogs during the fiscal 2019 period was approximately 8.7% lower than the fiscal 2018 period, reflecting volatility in commodity costs[206] - A short-term increase or decrease of 10.0% in the cost of food and paper products for the thirty-nine weeks ended December 23, 2018 would have impacted the cost of sales by approximately $3,656,000[208] - The minimum hourly wage for fast food workers in New York City increased to $15.00 effective December 31, 2018, with further increases planned for the rest of New York State[195][196] - The company is developing strategies to mitigate the financial impact of increased labor costs and other operating expenses[197] - The company has not hedged against fluctuations in commodity prices, exposing it to market volatility for future purchases[208]