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Nathan’s Famous, the iconic hot dog chain founded more than a century ago on New York’s Coney Island, is considering a sale, according to people briefed on the matter.
The brand, known for its annual hot dog-eating contest in Brooklyn, is in preliminary talks about putting itself on the market, according to two people familiar with the matter. The talks were still early and it was possible the company would not be able to secure a deal, or would decide to retain its public listing, the people added.
The company’s market capitalisation is about $350mn, with its stock closing at $87.51 on Wednesday in New York. Its shares have risen nearly 12 per cent since the start of the year.
Nathan’s did not immediately respond to a request for comment.
Private equity groups and major food manufacturers are potential buyers for Nathan’s, which has boosted income in recent quarters. Earlier this month, Nathan’s reported revenues of more than $31mn for the most recent quarter, up 9 per cent from the same period a year ago. The company also issued a cash dividend.
Many restaurant chains struggled to rebound after the Covid-19 pandemic as a result of high operating costs and consumer uncertainty. Howard Lorber, the tycoon behind real estate broker Douglas Elliman and cigarette group Vector, owns a quarter of the company’s shares, according to regulatory filings, and sits on the board as executive chair.
Nathan’s runs four company-owned restaurants in the US, and franchises out another 230 restaurants globally. But selling Nathan’s branded packaged goods at supermarkets and other retailers through licensing deals is the largest part of its business.
Nathan’s was first opened in 1916 by Polish immigrant Nathan Handwerker as a small hot dog stand on Coney Island, a recreation district hosting a well-known amusement park and boardwalk in the south of New York City. Handwerker secured a $300 loan from friends, according to the company’s website, and began selling hot dogs with his “wife’s secret recipe”.
Since then, the company has grown into a globally recognised brand.
It has become well-known for hosting an annual hot dog eating contest on July 4, US Independence Day, a tradition that began in 1972 and that attracts more than 40,000 fans each year. Nathan’s products are sold in the US and 18 other countries.
The original hot dog stand is still open on Coney Island, just a few blocks from the Cyclone rollercoaster.
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